(6 years, 10 months ago)
Commons ChamberI rise on behalf of the Scottish National party to support the resolution and to urge the House to vote for it, although sadly without any great hope or expectation that doing so will have a great deal of effect. Mr Speaker cautioned us at the beginning of this discussion to try to restrict our comments to the narrow business under consideration. I had wanted to put this question into the wider context of the debate on Brexit, and to consider the wider political questions, but I will not do that. I have taken Mr Speaker’s advice and, in my imagination, I have applied a blue pen to much of what I was going to say.
It is appropriate for us to note why the Digital, Culture, Media and Sport Committee wanted to hear from Mr Cummings in the first place. It was because many of the concerns expressed about the Vote Leave campaign exemplified the concerns about fake news that it was holding an inquiry into. As I said, I shall not go into great detail about this, but we have to say as a matter of record that the Vote Leave campaign stands accused of engaging in lies, propaganda and wilful distortion of the facts. It is a fact that it has been found guilty by the Information Commissioner of breaking the regulations on the gathering of personal data. It is a fact that it broke the law and has been fined by the Electoral Commission on expenses. It would be legitimate for Mr Cummings to engage with the Committee to discuss those things, and his refusal to do so or to appear before the Committee—that is the reason why the motion has been tabled—suggests that he has something to hide or that he cannot mount a defence against the accusations that have been made, which should concern the House.
Hon. Members have said, and I think it is true, that we should be concerned about what admonishment actually means. What sort of sanction or leverage is it at the end of the day? I fear that it is not a very great one, and this instance and others should lead us to reflect on whether our procedures are adequate for House of Commons inquiries into matters of public concern, and whether we need additional powers, as many other countries have, to compel people to give evidence when that is in the public interest. I make no suggestion about how that might happen, but I want to put on the table a recommendation that it should happen.
Finally, we are entitled, without going into detailed political debate, to form opinions and draw conclusions about the intentions and attitude of Mr Cummings as described in the motion. Many colleagues and I watched the recent TV drama “Brexit: The Uncivil War” which, to my mind, offered a generous and sympathetic portrayal of Dominic Cummings, suggesting that he was some sort of tortured genius—a radical, a free thinker and iconoclast; someone who wanted to engage in the noblest notions of sovereignty and democracy, and who would not debase himself for a moment in gutter politics. I am not sure that that is entirely the case.
Order. I, too, know what was said, and I will be the judge of whether something stretches beyond or remains within the advice that Mr Speaker gave. I can assure the hon. Gentleman that I am listening carefully. At the moment, we have not stepped outside the limits, and the hon. Member for Edinburgh East (Tommy Sheppard) is coming towards the end of his speech. We all know that there are limits that we should not go beyond. To mention someone in passing is one thing, but I do not want to get into an argument about the weakness of examples. It is purely about privilege, and we certainly have not stepped outside those limits.
Thank you, Mr Deputy Speaker. I have been keeping an eye on you carefully to make sure that I do not stray beyond the bounds or limitations that were set. I shall conclude simply by saying that I have drawn my own opinions from what has happened in this case as to the character of Mr Cummings.
Perhaps the truth is rather more mundane. Perhaps he is, after all, just a posh boy from a privileged background who has a sense of entitlement that means he does not think he has to account to his peers for his actions. I fear that the hon. Member for Lichfield (Michael Fabricant) is correct. If we agree the motion, as we should, at Mr Cummings’s next dinner party it will be worn as a badge of honour, and he will continue in contempt of the House, because there are people of his class who regard democratic institutions such as this in precisely that way.
(7 years, 1 month ago)
Commons ChamberThe hon. Lady is absolutely right, and I thank her for her support. Let us remember that these people—our constituents—were given professional tax advice and behaved in a way they thought was right and lawful at the time.
I fully support the right hon. Gentleman’s comments and will vote for new clause 26 if it is pressed to a Division. I wonder whether he will reflect briefly on my concern that some people who support the Government’s position have implied that, in seeking justice and fairness for our constituents, we in some way condone tax avoidance. In fact, the opposite is the case—we say that there should not be tax avoidance or evasion. The real culprits in this are not the individuals who were conned and duped by professionals into taking out these schemes and now face bankruptcy, but the firms that designed and sold them the schemes in the first place, some of which are still operating.
The hon. Gentleman is right on all the points he makes. When my hon. Friend the Member for Eastbourne (Stephen Lloyd) tabled the early-day motion that got cross-party support when this campaign was getting going, those were exactly the points he made. We all condemn tax avoidance and support the Treasury, but this retrospective approach to taxation is simply unacceptable.
(7 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I could not agree more. I have never seen people so distressed and distraught by one particular measure, which appears to target pain on just a few people. Those people work hard in our NHS, our industry, our schools and our civil service. Why do the Government want to target so much pain on so relatively few people? The charges involved are massive: hundreds of thousands of pounds. It is completely iniquitous. I believe the Minister knows that and I hope he will therefore put it right. Everyone in this House is clearly against tax scams; we want to close them down, but as other hon. and right hon. Gentlemen have said, people were advised by professional accountants and HMRC appeared to be happy. It was notified of the tax schemes and did nothing. Yes, let us crack down on tax avoidance, but let us not go after victims, the people simply trying to earn a living for themselves and their families.
I will in a second.
I might be the only veteran of the 1999 Finance Bill Standing Committee. I am happy for colleagues to correct me, but in those early days of my parliamentary career, I had the pleasure of sitting on nine consecutive Finance Bills that dealt with the early history of IR35. We had huge arguments then that that was wrong. There is an inherent issue that needs to be tackled, but what is proposed is absolutely not the way. HMRC has got to learn from history. It appears to me to be acting vindictively because it did not get its way a few years ago on IR35. Because people found legitimate ways around it, it is coming back and acting in an outrageously draconian way, and this House has to say no.
I am grateful, because I concur entirely with the point that the real villains are the companies that mis-sold the schemes in the first place—at times, for fees that can only be considered usurious. My constituent paid £138,000 in fees over three years to a company called AM Limited, which has changed its name but is still trading and registered in Panama. If HMRC were to assist my constituent in trying to recover that money, he would be much better able to pay his retrospective tax liability.
I have answered many debates in this Chamber as a Minister of various Departments, and I tell the Minister, who is a good and honourable man, that when this many hon. Members from both sides of the House come together in a single cause, he had better take action. The writing is on the wall and he has to respond. I know he will take that piece of sound advice in the spirit that it is offered to him.
I will briefly make three recommendations and then draw my remarks to a rapid conclusion. First, I would like the Minister to tell us what further impact assessment has been made by scale and detail on the families affected by the measures. Secondly, I would like him to give us an estimate of how many people who cannot or will not pay will be driven to bankruptcy, and what effect that will have on the Treasury’s revenue calculations on the matter. Thirdly, as I have already said twice—I make no apology for amplifying it—I would like him to tell us what steps he is taking in respect of the architects and advocates of the schemes, who have done so much damage.
I have no doubt that being a Treasury Minister is about churning figures, but it is also about changing lives. This matter affects the wellbeing of large numbers of our constituents. Families will be blighted and faith in fairness will be ruined. The Minister—an honourable gentleman, a good Treasury Minister, a valued colleague and friend—needs to see the writing on the wall and take action. Woe betide those who do not. They will rue the day that they failed to listen to the voices that have been aired today.
Will the Minister confirm, either now or in any such letter, the Treasury’s objectives in pursuing those companies? Is it to take retrospective action against them to try to recover the great volume of money they received from selling those schemes?
HMRC’s objective will be to secure the money owed, as per the rules of the tax system. HMRC has enormous power to levy charges of up to £1 million on those individuals who are not complying.
The schemes may have involved provision of a loan with no intention to repay it. The recipients of such payments enjoyed them no differently from the way any of us use our normal income. As such, in the eyes of HMRC, the payments have always been taxable.
I have acknowledged the comments of colleagues who said that the charge on disguised remuneration loans will apply to loans that were made as far back as 1999. It is fair to say that the schemes were never permitted. They were defective, going back to then.
(8 years, 4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is customary, when I rise to make the third party submission, to thank the Member who has brought the debate. On this occasion, I will decline to do that. The Scottish Government are accountable to the elected Members of the Scottish Parliament, who are elected by and accountable to the Scottish people. It is not a matter for this Westminster Parliament—indeed there is an explicit constitutional convention that forbids it—to try to hold to account the Scottish Government, so I wonder why the hon. Member for Stirling (Stephen Kerr) has chosen, among all the things he could discuss that affect his constituents, to bring this motion here today.
I conclude that the only possible reason for this debate is not to try to advance or develop public policy but purely and simply political point scoring and to have a go at the SNP. It is a matter of some regret that the hon. Gentleman has been aided and abetted in that endeavour by Her Majesty’s loyal Opposition.
It seems that contributors to the debate cannot make up their mind about whether the problem is that the Scottish Government are not using the powers they have, or whether they are using their powers, as some speakers have complained. The truth is that the Scottish Parliament and Government use their powers every day and in every way to try to make things better for the people of Scotland, but they do so within considerable legislative and financial constraints, which have seen Scottish public funding cut by almost 10% in real terms in a decade.
Sit down, please. I have not got time.
Despite that adversity, there have been many achievements. Time is short, so let me list just 10. First, in Scotland, people get free medicine. Since that policy was introduced, 34,000 free prescriptions have been issued in Stirling.
In Scotland, we do what we can to make taxation progressive. Higher-rate taxpayers in Scotland today pay more than they do in England. People with larger houses pay more when they sell them than they do in England, and people who live in larger houses pay more council tax than they do in England.
No, I will not.
We use the powers we have got. Crime is at an all-time low. More than 1,000 extra police officers have been on the beat over the 10 years of the SNP Government.
Scottish school students’ highers results were a full third higher than they were 10 years ago—a better performance than in any other part of the United Kingdom.
I shall not be giving way at all, because I have not got the time.
Help for small businesses in Scotland is at an unprecedented level, and much higher than it is in the rest of the UK. In Stirling, 4,882 businesses benefit from the small business scheme.
In Scotland, we will ensure that fracking will not take place beneath the houses of people living in Stirling, in line with their publicly expressed wishes. We have done what we can to mitigate the effects of the Westminster Government. We have used the hardship fund to try to mitigate the bedroom tax—a pernicious attack on the poor. In Stirling, there are 1,021 recipients of that fund.
We have a better-performing national health service than any other part of the United Kingdom. There are still many challenges, but there is a higher spend per head, more staff, shorter waiting times and a better public perception.
We have built 60,000 affordable homes in Scotland in the last 10 years, including 3,085 in Stirling, of which 777 are social housing. Most of all, in Scotland, if someone wants to go to university, it is free and they do not have to cripple themselves with unnecessary debt to pursue their education.
Compare and contrast the Scottish Government’s record with that of the Tory Government here in Westminster—a Government who, after just four months in office, appear to be punch-drunk and adrift on a sea of uncertainty and chaos of their own making. I know which Government I would rather have in control of my life: the Scottish Government led by the SNP. No wonder the SNP is 17 points ahead in the opinion polls and the Conservative party is trailing in third place in Scotland. The wafer-thin majority of the hon. Member for Stirling is disappearing day by day.
(8 years, 6 months ago)
Commons ChamberMy hon. Friend is absolutely right. The worst thing that we could do is to support the Labour party’s policies, which would, according to the Institute for Fiscal Studies, lead to the highest levels of taxation in peacetime history.
19. I think the Treasury response today to the questions about the 1% pay cap are profoundly disappointing. This is the single biggest thing ensuring that inflation erodes living standards. It is impoverishing workers, and it is driving up consumer debt. When will the Treasury agree with the Foreign Secretary that the time has come to end this cap?