Finance (No. 3) Bill
Alex Chalk ExcerptsMonday 12th November 2018
(5 years, 6 months ago)
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Mel Stride
Hopefully, the hon. Gentleman will welcome the announcement that the Chancellor made in the Budget that we will provide a £1,000 uplift to the universal credit work allowance, which will be worth, when we reach full roll-out, a total of £630 million for 2.4 million recipients of that benefit.
Alex Chalk (Cheltenham) (Con)
Does the Financial Secretary agree that were we to go back to the situation in 2010, when people had to start to pay tax after their first £6,750-odd, that would mean that ordinary, hard-working taxpayers would have to pay an additional £1,000 in tax and would therefore have less money to meet their day-to-day priorities?
Mel Stride
My hon. Friend is right. The problem with Labour’s approach to taxation, and to personal taxation in particular, is that it is a huge discouragement to going out and creating wealth and jobs and the kind of economy that supports the vital public services that Members from all parties wish to see prosper.
Peter Dowd
Look, we are always prepared to look at any idea, but we are trying to deal with the problem today. We are trying to deal now with the hundreds of thousands of elderly people who are not getting the service they are entitled to.
Alex Chalk
Back in 2010, at the height of the crisis the hon. Gentleman’s party left us with, it was a Labour Chancellor, Alistair Darling, who said that Labour would close the deficit by 2020. That will not now happen until 2025. How can the hon. Gentleman credibly suggest that this is an austerity Budget?
Peter Dowd
That is remarkable coming from an hon. Member who is a member of the party that promised us all that the deficit would be gone by 2015.
Alex Chalk (Cheltenham) (Con)
What a pleasure it is to follow the hon. Member for Warrington South (Faisal Rashid), but I profoundly disagree with what he has just said. In his last point, he referred to eight years of economic failure, but nothing could be further from the truth. It is worth pausing for a moment to consider some key figures. In 2010, this country was spending a total of £700 billion or so a year and bringing in just £548 billion of tax revenue. In other words, a full £152 billion was borrowed. Fast forward eight years, and this country will spend £842 billion in the next financial year. Why? Because the economy has grown by 17% in that time. Crucially, of that £842 billion, a full £810 billion will be raised in tax revenues. In other words, that £152 billion deficit has shrunk, and shrunk dramatically. The reality is that a country that in 2010 was staring into the abyss can now look forward to a future and say, “Our best days are ahead.” Had this country not got on top of its finances over the past eight years, it would have been not the rich who would have suffered but the poor, the needy, the vulnerable and the hungry. If we look at countries such as Greece and Venezuela that have lost control of their finances, we see that it is the poorest in society who suffer most.
It is important to note a point that increasingly seems to be lost but should not be, and that is how far we have come in respect of employment. The country risks taking it for granted. We have 3 million more jobs than in 2010. In 2010, unemployment had gone up by half a million; that is half a million people whose futures were curtailed, whose opportunities were reduced and whose dreams were eroded. Unemployment means misery, lack of self-esteem and wasted potential. It means hollowed-out communities and a corrosive sense of despair. We should reflect on the successes that have happened since 2010.
Unemployment in our country today stands at just 4%. In Cheltenham, it is under 2%, compared with the rate in France, which is 9%. It is 8% in the eurozone. In Italy, youth unemployment stands at 32%. When I speak to young people in my constituency—last week over the recess, I was speaking to young people at St Mark’s Junior School—I am able to say that, as they grow up and reach the age of 18, I want them to be in a position where they can choose whether to go to university, which is fine, or whether to have an apprenticeship, which is also fine, but, if they want to go into the world of work, driving true social mobility, there also are opportunities for them to do so.
Danielle Rowley (Midlothian) (Lab)
The hon. Gentleman talked about success. Unemployment may be falling, but in-work poverty is rising much more quickly. Is that a success?
Alex Chalk
Income inequality is declining. Any poverty is, of course, something that we want to address, but the best route out of poverty is through employment. If we were to ask individuals whether we should turn the clock back to 2010 when we had half a million more people unemployed, I do not think that they would choose to do so. The reality is that there is no true economic strength without fairness.
I must take issue again with the point made by the hon. Member for Warrington South. He suggested that raising the personal allowance a year early to £12,500, resulted in only “meagre” benefits—that was his expression. For the average family in my constituency, two wage earners each earning the average wage of about £28,000, that will mean a combined addition to the family budget of £260 a year. Does he want to stand up and seriously suggest that that is a meagre benefit? Does he? It is not a meagre benefit. It is more money in people’s pockets to focus on their priorities—on support for their children, support for their futures and support for their daily lives.
Strong families and strong communities require strong healthcare. It is important to note what managing the economy—taking a balanced approach—means for healthcare. It was the Leader of the Opposition who suggested during the last election that a 2.2% increase in health spending would make the NHS the “envy of the world”. Well, it is this Government who will be spending 3.4% above inflation every year. The figures are stark: the total budget will go from about £122 billion a year today to £149 billion a year in 2023—a real-terms increase above inflation of £20.5 billion a year.
Alex Chalk
It is critically important that we do not have a cap for those people who want to become nurses. One thing I found very depressing when I was first elected back in 2015 was that people wrote to me saying, “I want to become a nurse, but I can’t become a nurse, and yet the trust is off taking trips to other parts of the world to recruit nurses from overseas, while I cannot do it here in the UK.” That is something that we should not allow to continue. It is important that the money is spent in the communities that require it. In Cheltenham at the moment, trust managers want to shift all general surgery facilities from Cheltenham to Gloucester, but, as 58 clinicians wrote only today, that would be a mistake. It would be unsatisfactory for care in the whole of Gloucestershire, and I am calling on the trust to think again.
There was also £400 million for potholes, which is a priority for my constituents and something that I take very seriously as well. That is an extra £8 million or so for Gloucestershire. I also welcome the measures to safeguard businesses in our high streets. We all know that they are facing increased pressures, but to take a third off the business rate bill of small businesses in my constituency is a shot in the arm for our high streets and is something of which we can be proud. When I went round high streets in Cheltenham over the weekend, the news from the Chancellor was welcomed. Businesses could look towards a future with real optimism. The scope to roll out these measures is only provided by managing the economy fairly and sensibly. We do not take measures simply because we take some pleasure in eradicating the deficit for the sake of it; we do so because we want to create opportunity in our society. We want to say to our young people, “Be brave and be bold about the future because it is an exciting future.” A country that loses control of its finances loses control of the prospects of its young people. That is why I take pride in what the Chancellor has delivered and why we can say in confidence across this House that the United Kingdom’s best days lie ahead.
Julian Knight (Solihull) (Con)
Thank you, Mr Deputy Speaker, for letting me speak a bit earlier than I expected. It is a great pleasure to be called so early and I will not abuse that generosity by speaking for too long, because I know that many colleagues want to speak in the debate. I just wish to cover a few areas that have come up in the debate and the Budget more generally: first, the higher rate tax thresholds, which have been mentioned by many hon. Members; secondly, corporation tax and small businesses; thirdly, debt, which my right hon. Friend the Member for Wokingham (John Redwood) spoke about so interestingly; and, finally, fuel duty and car taxes more generally, which is pertinent to my constituency, with its 9,500 car workers.
On the higher rate tax, I was interested in what was said by the right hon. Member for Twickenham (Sir Vince Cable), who is no longer in his place. There is an amendment in the name of all the Liberal Democrats and it is good to see them here this evening in such numbers. The amendment mentioned the
“provision for a £1.3 billion tax cut for higher earners”.
I pressed the right hon. Gentleman to explain what that would actually mean for productivity and for what we term fiscal drag, a term first used when Gordon Brown was Chancellor of the Exchequer. It happened in the early part of the Labour Government, which came to office in 1997, and was eased over time. In 2010, it was decided, as an issue of morality, that we would also freeze the higher rate of income tax at the threshold. The reality is, however, that in the long term that has quite a damaging effect on the economy. It means that people are being brought into the higher rate of tax who really should not be there. I know that in my constituency there will be, for example, deputy headteachers, locum GPs and middle managers in local government who are paying the higher rate of tax. They would not have done so within the last generation, but they do now.
When people—this applies in the private sector as well—who pay the higher rate of tax are offered any extra work or overtime, they make a calculation: “Do I take that or do I trade that off against what my tax will be as a result of this?” If people are being charged too much tax at this marginal rate, that reduces productivity, and that, in itself, has a damaging effect on the economy. As my hon. Friend the Member for Dover (Charlie Elphicke) mentioned, in 1987, the then Chancellor, Nigel Lawson, lowered the rate of tax from 60p in the pound to 40p in the pound—and guess what? We actually took more tax in as a result.
This is a fundamental point that also applies to corporation tax. Labour Members have made their views very clear in that they would like a restitution of the rate of 26% for large businesses and 21% for small businesses. However, with regard to corporation tax, the proof of the pudding is in the eating—that is, employment. As my hon. Friend the Member for Cheltenham (Alex Chalk) said, the unemployment rate in the UK is 4%. I grew up in a town in the north of England in the 1980s, when the unemployment rate was about 25%. We went through a horrendous recession in our light industrial town. We could not even dream of a rate of 4% at that time. In the EU, unemployment is 8%, on average, and it is 9% in France. My hon. Friend also mentioned Italy and Spain. Think about all those lost opportunities and lost lives through high unemployment. This beds down in communities—I have seen it for myself. The way in which we bring about a culture of work and of higher employment is fundamental to the development not just of productivity but of our society itself.
Alex Chalk
Does my hon. Friend agree that unemployment has such a crushing effect on self-esteem and self-worth, and that that is one of the key reasons we should celebrate increased employment—not just for the sake of statistics but because of the individuals whose life chances lie behind them?
Julian Knight
I thank my hon. Friend for his intervention—that is absolutely true. If someone is unemployed for 18 months, they are often unemployed for the very long term—for the rest of their life, in some instances. It ruins lives, shortens lives and makes those lives more miserable.
The way in which we have approached corporation tax is absolutely correct. On small business rate relief, my hon. Friend, again—I do not wish to just copy his speech—talked about how that had been very well received in his business community and on his high street. It is a blessed relief that will bring a much-needed boost to our small businesses and to our high streets, which we have to nurture. We cannot have the high street of just the bookmaker, the pub next door, and the charity shop—although charity shops do very valuable work. We need diversity in the high street, not just in terms of retail but living space, opportunity, health and social services.
On debt, as I said in the Budget debate, with a ratio of 82% to GDP, we really should not give ourselves a pat on the back. It is not a good place to be at all. It makes us less likely and less able to effectively withstand the winds of global recession that happen on a cyclical basis. However, we have chosen a path by which, over time, we bring that under control. There are two ways to reduce the GDP-to-debt ratio: through productivity or inflation. The choice of British Governments, for years and years, was inflation. Inflation is a fool’s errand: it destroys living standards and destroys savings. The second approach is productivity. I am really pleased to see in the Red Book that many elements of this Budget really focus and home in on productivity, but we need to keep that going. We need a step change in our economy in this respect.
I turn to what I call car taxes. As the vice-chair of the APPG on fair fuel, and the former chair of said august APPG, I am absolutely delighted to see the freeze in fuel duty. However, I want to make a point about diesel cars in this respect. That is not, obviously, just because my constituency has 9,500 workers in this sector and 93% of the engines that come off the track are diesel cars. We have seen a 45% fall in diesel sales, and that hurts the Exchequer.
This problem originated in Wolfsburg. The irony is that the Germans are now changing their approach with regard to diesel, so the originators of the difficulty within the diesel market are now looking at the market and saying, “Hold on a minute—we need to ensure that clean, modern diesels are supported.” We have a higher excise duty on modern, clean diesels. According to the AA, 270 of the diesel cars currently tested are now within tolerance in that respect. If we have this disincentive, people will hold on to their older cars for longer. These cars can run for a quarter of a million miles—I know; I have one. That means that the older EU5 and EU4 engines will stay on the road longer and pollute more. We need to get really smart about this and construct the tax system to support all modern petrol and diesel engines while, at the same time, aiding the transition towards new technologies.
On the Budget as a whole, it is quite remarkable to note, as a former personal finance journalist, how we used to have a merry time pulling Budgets apart. We could almost guarantee that, by the end of the first day, we would have something to go at the Government on. With this one, that is not the case. That is a testament to the Chancellor and the team. I will be absolutely delighted to vote for this Bill tonight.
Oral Answers to Questions
Alex Chalk Excerpts(5 years, 6 months ago)
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Mel Stride
HMRC has a central role in ensuring that we are ready for Brexit, specifically in the unlikely event of a no-deal day one scenario. That has included the recruitment of 2,300 additional staff, and we will have an additional 5,000 staff by the end of the year. We are ready, and we will be ready, for wherever this deal lands.
Alex Chalk (Cheltenham) (Con)
Motorists want to see the earliest possible end to the traffic misery on the A417 caused by the air balloon pinch point. Does my hon. Friend recognise that the Budget, through its extra firepower for roads, provides the best possible platform for such a vital scheme?
Robert Jenrick
I have met my hon. Friend and his Gloucestershire colleagues to discuss this matter. It was with strategic roads and roundabouts, such as the air balloon roundabout, in mind that we made the largest ever investment in our strategic road network. Decisions on specific roads will be made next year.
World Menopause Day
Alex Chalk Excerpts(5 years, 7 months ago)
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Rachel Maclean (Redditch) (Con)
Thank you so much, Madam Deputy Speaker. You speak so much truth and I am glad that you have put those words on the record from your position—they will carry a lot of weight.
I pay tribute to the hon. Member for East Lothian (Martin Whitfield), who gave an absolutely brilliant and heartfelt speech that I know will resonate with all the women throughout the country and around the world who are watching this debate. They will be so happy that he, as a man, is championing this issue. If only every man was as warm, empathetic and well informed as he is, we would not be having this debate. I look forward to working assiduously with him and colleagues from all parties to reach that position, which I very much believe we will.
As has been said, we have already tackled many taboos in this place and in our society, and this is genuinely one of the last taboos. It is now okay to talk about mental health, and that is a really good thing. A lot of celebrities now talk about their mental health. It is all over social media, in the press and on the television. People are backing that, and people are coming forward to say, “It’s okay not to be okay.” Somehow, however, menopause is still left out, and this debate is a fantastic chance to put that right.
I started on this journey pretty much as the hon. Member for Lothian East described—
Rachel Maclean
East Lothian—I am so sorry. Please forgive me.
I was 50 when I was elected, so I was of course well within that perimenopausal/menopausal age myself. I did not conform to the menopause stereotypes, as I shall touch on later in my speech. There is so much ignorance out there. It is generally believed that someone has to suffer from the key symptoms, such as hot flushes and night sweats—that that is basically all that menopause is—but menopause is so much more than that. It is not just hot flushes and night sweats, and I am living proof of that. I have never had a hot flush or a night sweat, but I am most definitely menopausal. My symptoms revolve around quite debilitating migraines, sometimes on an almost daily basis when I am not able to manage the stress of this job. As was rightly said, this is an incredibly stressful job and an incredibly stressful workplace, and we cannot just take a day off and go and lie down in a dark room to sleep off a migraine, much as we all might like to, even if we are not menopausal. Many women working in other walks of life who are perhaps at the peak of their careers, or who work in any stressful environment, are not able to get the support that they need.
We saw a shocking demonstration of the ignorance in society from no less a figure than the Governor of the Bank of England, Mark Carney, who not long ago compared the economy with the menopause. He said that we are suffering a menopausal economy. He came back and defended that, saying that he did not mean it or whatever, but his casual use of those words demonstrated a fundamental lack of awareness of a leading figure in our country. It is not right. With that phrase, he made me so angry—and not only me but many other people. That made me think that I could not sit there and not be a voice for all the women out there who do not have the privilege of being able to raise the issue in this place.
So, I had my personal journey, and I started to look on social media and do some more research to educate myself. As the hon. Member for East—[Hon. Members: “Lothian.”] I will get there in the end!
Rachel Maclean
Yes; thank you.
The hon. Member for East Lothian said that social media plays a big part in this, and it is where I started my journey. From my research and conversations, I recognise that millions of women in this country do not feel listened to at this time of their lives. That was where my campaign started—from a place of wanting to represent those women.
We still have a long way to go. Last night, when I was voting in the Lobby, wearing this #MakeMenopauseMatter badge, I was approached by a very senior colleague, who shall remain nameless. His comment was: “Why—are you having a hot flush, dear?” That was said to my face. My goodness, does not that illustrate how we need to raise awareness? This is not a women’s issue; it is a society issue. It is for everybody, because every man works with a woman, is related to a woman or lives with a woman. People cannot just denigrate and belittle experiences that can be incredibly difficult for women to push through. I pride myself on being quite a feisty person. I am not afraid to say what I think and I definitely told that Member what I thought about that comment. I said, “Please, come to the World Menopause Day debate and find out why that comment is completely inappropriate and, hopefully, learn a bit more.” I am delighted to say that he is in a minority. I pay tribute to the many male colleagues from all parties who have been supportive of the debate and this issue.
I am not asking for a lot—perhaps I am, but I do not regard it as a lot. I regard these things as quite basic. The hon. Member for East Lothian has already touched on the key issues, the first of which is the workplace. We are in an extraordinarily unusual workplace where there are issues for not only the people who work here, but Members ourselves, but there are many more workplaces up and down the country. It is not too much to ask—is it?—for workplaces to be better prepared for women going through this change of life. The process can be extremely positive. If women get the support, understanding and empathy that they need from their colleagues, there is absolutely no reason why they cannot make this into a fantastic time in which they can move on to a new chapter of their lives, and flourish and contribute in different ways.
Summer Adjournment
Alex Chalk Excerpts(5 years, 9 months ago)
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Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)
Thank you, Madam Deputy Speaker, for allowing me to catch your eye in this important debate. I wish to raise four matters: the negative revenue support grant for Stroud District Council, the missing link on the A417, M4 and M5, the reasons for making the Cotswolds into a national park, and—this is the most important issue—the delays in the completion of a £400 million contract awarded to the Fire Service College at Moreton-in-Marsh in my constituency.
Stroud District Council sent a petition to the former Secretary of State for Communities and Local Government, my right hon. Friend the Member for Bromsgrove (Sajid Javid). It explained that when it accepted the four-year revenue support grant settlement, it did so on the basis that business rates would remain the same, with 100% retention, and that the new homes bonus would also remain the same. It has subsequently been reduced. I suppose that the most worrying aspect of the negative revenue support grant is the fact that it affects 147 out of 200 district councils in England. Not only will councils not receive any of the grant next year, but some councils, such as Stroud, will have to pay money back to the Treasury.
The petition sent to my right hon. Friend reads as follows:
“Stroud District Council strongly objects to Central Government introducing a new stealth tax on local households by demanding the payment of £549,000 from Stroud District to the Treasury in 2019/20… It is a complete reversal of financial support and is a worrying precedent which seriously threatens the Council’s ability to continue providing essential local and facilities; especially if this payment turns out to be the thin end of a stealth tax wedge which will see ever larger…payments of money siphoned off from local households to Central Government… Council therefore determines to lobby Central Government, through the District’s two Members of Parliament…for removal of the so-called Negative Revenue Support Grant of £549,000”.
There will be a review later in the summer, and I strongly urge my right hon. Friend the new Secretary of State for Housing, Communities and Local Government to conduct that review in a way that is more favourable to one of the two district councils that I represent.
The second subject that I wish to raise is the missing link on the A419-A417, about which I have campaigned for some 15 years. It is a highly dangerous stretch of road on which, sadly, there have been far too many accidents and far too many fatalities in recent years. It is a very busy road that links the M4 to the M5. Finally, after a lot of campaigning, we had a public consultation earlier this year in which two routes were published. Option 30 was chosen, and it is very important that the Secretary of State lives up to his promise of announcing a preferred route at the beginning of next year, so that we can get on to the development consent order process and get diggers into the ground and start work on this important road in the very early 2020s.
Alex Chalk (Cheltenham) (Con)
I thank my hon. Friend for raising such an important point about the A417. Does he agree that the death of a young soldier in May on this treacherous piece of road underscores the importance of delivering that vital project, which is crucial for safety, air quality and the economy of Gloucestershire?
Sir Geoffrey Clifton-Brown
The death of that young man was tragic, and I feel very sorry for his parents and his family. Unfortunately, this is just one of a number of fatalities, as my hon. Friend, who has worked with me very hard on this project, knows only too well. That is why it is imperative that this road scheme goes ahead, and he and I will shortly hold a meeting with the Treasury to make sure we get enough money for it.
The third subject I wish to raise is why the Cotswolds should be designated as a national park. Already 80% of my constituency is designated as an area of outstanding natural beauty. It is, as many Members will know, an important natural landscape and built environment, and I want to make sure that it continues to be protected so that our children and grandchildren can continue to enjoy this very special place. To that end, the chairman and chief executive and I visited the chief planner of the South Downs national park to see how well it operated, and we were impressed. We were also impressed by the number of similarities between our area and the SDNP—it covers 15 local authorities, and a national trail goes right through the middle—and that it seems to work very well in planning terms. There is a high standard of planning in the SDNP; it has very few call-ins, and when it does have appeals, it seems to win most of them because of the professionalism of its planning team. We could learn a lot from that, and the Cotswolds will get increased resources to pay for a lot of that if we are designated as a national park.
The defence fire and rescue contract was recently awarded, and announced publicly, to the Fire Service College in Moreton-in-Marsh. This contract is worth about £400 million over 12 years to the college. It will secure vital jobs in a part of my constituency where jobs are desperately needed—the north of my constituency, which is a very rural part—and my constituents and the FSC employees were looking forward to running this contract, but it seems to have run into some delay. That is most regrettable, and I call on the Ministry of Defence to resolve whatever difficulties there are—I am not entirely sure what they are—as quickly as possible, because that would provide certainty for the workforce. This contract is much needed in my constituency.
I have had discussions with my hon. Friend the Member for South Thanet (Craig Mackinlay), whose constituency contains Manston airfield where this activity is currently based, and he is very happy and wants to see this contract resolved as quickly as possible, because Manston airfield can then be used for an aviation freight hub opportunity and for further houses, which are desperately needed in his constituency.
I therefore call on the MOD to resolve the problems and to keep me, as the constituency Member of Parliament, informed. I should add that I have received superb help from the all-party group on fire safety and rescue. My hon. Friend the Member for Southend West (Sir David Amess) is present, and I thank him for his support over many years and months. The group’s members have visited the college in Moreton-in-Marsh and seen for themselves the world-renowned excellence of this institution, and it will be made even better and the entire country will benefit if we can get this contract there and it can start selling its services to the rest of the world by proving, through this defence fire and rescue contract, that it is superb at what it does.
Alex Chalk (Cheltenham) (Con)
What a pleasure it is to follow the hon. Member for Stretford and Urmston (Kate Green), whom I have had the privilege of serving with on the Select Committee on Justice. May I also take the opportunity to congratulate the hon. Members for Lewisham East (Janet Daby) and for Sheffield, Hallam (Jared O'Mara) on their distinguished maiden speeches today?
I want to take a few moments to speak about CrossCountry services from Cheltenham, because this matter relates not only to the convenience of my constituents, but to social mobility and opportunity. Unless those rail services are at the standard my constituents are entitled to expect, both those vital priorities will be undermined. Putting it simply, those services are too costly and too crowded, and they finish too early. It is particularly important that I mention them at this moment because a public consultation has been announced by the Government about the future of CrossCountry’s rail franchise and it is important that these points are made.
So what is the context? Cheltenham Spa is the busiest station in Gloucestershire, with 2.35 million passengers using it last year, which is an increase from 1.73 million in 2011. So we are talking about some 800,000 additional passengers in that relatively short time. The next busiest station, Gloucester, had 1.48 million users—about 900,000 fewer. There has been good news in recent years: there has been a new, additional, early morning, 200-seat service from Cheltenham to Bristol and through to Taunton and Exeter, as well as an additional 1,000 seats per day on the CrossCountry routes between Bristol, Cheltenham Spa and Birmingham. It is the cost that is the problem. An off-peak return ticket from Cheltenham to Manchester will cost £81.90 and a peak return will cost £129.40. That is extremely expensive—prohibitively expensive. That is important because, if we want to drive things such as the Cheltenham cyber-park, people need to feel that they can go between Manchester and Cheltenham in an affordable way. Oddly, not only is this travel expensive, but there is a strange discrepancy; someone who wants to go north from Cheltenham has to re-mortgage their house, whereas someone who wants to go south from Cheltenham finds that a return to Bristol costs £25.40—[Interruption.] I appreciate that it is a bit closer, but there is an enormous discrepancy.
Overcrowding is a really important issue for my constituents, a number of whom write to me about it. When we drill into the service that is put on, we see why there is overcrowding. The 7.10 am train from Cheltenham to Birmingham, which Members might feel is at a peak time, has just four carriages and the 7.41 am has just five. That means trains are running at or beyond capacity. To put that in context, trains running from Cheltenham to London on the Great Western Railway line have about 10 carriages. So CrossCountry really needs to resolve that.
The final point I wish to raise is the business of these trains finishing too early. Cheltenham residents who want to go to Bristol have to get the 10 pm train back and Cheltenham residents who want to go to Birmingham have to get the 10.12 pm back: the trains finish quite early. By comparison, a Bristol resident who wants to get the train back from Cheltenham gets to stay in Cheltenham until 10.50 pm and if they want to go to Birmingham they get to stay there until 10.58 pm. In other words, these trains need to run until later in the evening.
I wanted to make those short but none the less important points. As I say, it is an issue not only of convenience for my constituents, but of how we provide opportunity and social mobility to people in Cheltenham so that my town can continue to provide great opportunities for young people and for people across its demographics, and so that they are well connected to some of our great conurbations, including Bristol, Birmingham, Manchester and beyond.
Customs and Borders
Alex Chalk Excerpts(6 years ago)
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Kate Hoey
My point, of course, is that if we were to stay in the customs union, that would be seen as a transition before going back in again. For a start, staying in a customs union is not taking back control of our trade, and I will come back to that in a moment.
Members who want to stay in the single market have lost that argument because the previous Prime Minister was very clear in public, on television and in the House that a vote to leave the European Union would be a vote to leave the single market. The public who voted to leave, and even those who voted to remain, understood that a vote to leave was a vote to give up the treaties of the European Union. Within those treaties, of course, is where we find the customs union.
I have been in this place long enough to remember the great and wonderful MP for Eton and Slough, Joan Lestor. She was a principled and doughty champion of the developing world. I remember, and have since looked up, one of the speeches she made back in 1971 opposing the UK joining the European Economic Community. I cannot remember whether the right hon. and learned Member for Rushcliffe was here in 1971—I know he was here a very long time ago—but he knew Joan Lestor well. Sadly, she is no longer with us. It is worth reading part of that speech:
“The political significance of British entry into Europe will have far-reaching effects upon the third world, the developing world.
Because of the protectionist policies of E.E.C. we shall not close the narrow channels between the rich and poor nations but rather widen them. Much has been said about the ability of E.E.C. to increase assistance to the developing world and to guarantee that the Community will continue to be outward looking in the future.
I cannot understand—and nobody has explained this to me from either side of the House—how an organisation like E.E.C., which everybody agrees is based on a protective tariff wall to which this country must agree as part of the price of entry and which will mean erecting a fresh tariff barrier against helping other parts of the world, can be said to be outward-looking. I do not believe the interests of the E.E.C. are identical with the interests of the smaller, developing and weak nations of the world.”—[Official Report, 21 October 1971; Vol. 823, c. 954.]
I will take Members back a little further to 1962—I genuinely do not think the right hon. and learned Gentleman was here then—and the words of Clement Attlee:
“I think that integration with Europe is a step backward. By all means let us get the greatest possible agreement between the various continents, but I am afraid that if we join the Common Market we shall be joining not an outward-looking organisation, but an inward-looking organisation.”—[Official Report, House of Lords, 8 November 1962; Vol. 244, c. 428.]
All these years later, some things have changed, but the European Union is still an inward-looking organisation. Do we really want our future arrangements to be tied to that?
The EU customs union is not a progressive policy, and it is certainly not one that anyone who vaguely calls themselves of the left should desire to retain. That is probably why there are so few customs unions in the world. The protectionist external tariff around the entire European Union prevents poor developing countries from accessing our markets on equal terms, as many of us saw when we met members of the Commonwealth who were here last week. They are desperate for the changes that would come about if we were no longer in the customs union. For months if not years, we have heard the people behind the motion proclaiming that the EU market is singularly valuable, yet this policy denies the poorest people in the world the ability to freely trade with us or with the rest of the EU market. To make matters worse, the tax paid is largely siphoned off to Brussels, with UK consumers seeing little or no return.
In 2018, surely we want the development and growth of the poorest nations so that they are successful through trade, not reliant on aid. The customs union is a deliberate and persistent barrier to realising that. Outside the customs union, the UK could immediately reduce or remove these tariffs, becoming a great friend to the world’s poor.
Alex Chalk (Cheltenham) (Con)
I am listening carefully to the hon. Lady but, with respect, she is rehearsing familiar arguments. What is her answer to the point on Northern Ireland that has been expressed?
Oral Answers to Questions
Alex Chalk Excerpts(6 years ago)
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Alex Chalk (Cheltenham) (Con)
Nigel Mills (Amber Valley) (Con)
The Chancellor of the Exchequer (Mr Philip Hammond)
Since 2010, Her Majesty’s Revenue and Customs has secured more than £175 billion that would have gone unpaid and introduced more than 100 new measures to crack down on tax avoidance, tax evasion and other forms of non-compliance, so that the tax gap is now at a record low, and one of the lowest in the world, at 6%.
Alex Chalk
It is extremely encouraging that the UK tax gap is at a record low, but it appears that multinationals are trying to run rings around HMRC, so will my right hon. Friend outline what further steps the Government are taking to build on that excellent success?
Mr Hammond
I am grateful to my hon. Friend for raising this issue. It is a great achievement to have got the tax gap down to one of the lowest in the world, but we are not complacent. We are currently calling for evidence on whether online platforms should play a greater role in ensuring tax compliance by their users; we are consulting on an innovative split payment method to tackle online VAT fraud; and we will continue to lead in the G20 and other forums on seeking agreed multilateral solutions to the challenge of where and how to tax global digital companies, which are particularly difficult to tax under the current system.
Mr Hammond
As the right hon. Gentleman will well understand, I much prefer a system based on mutual recognition. There are problems with the EU’s equivalence regime: it is arbitrary, it is unilateral, and it can be withdrawn with zero notice. No one can operate a multitrillion-dollar business on the basis of such arbitrary arrangements. However, we are working with the Commission and key member states, and I am optimistic that we will reach a satisfactory solution.
Alex Chalk (Cheltenham) (Con)
Mel Stride
As my hon. Friend will know, this morning we were given the good news that we are now back in positive real-wage territory. He will also know from the projections of the Office for Budget Responsibility at the time of the last Budget that we anticipate an increase in real wages throughout the projection period.
The Economy
Alex Chalk Excerpts(6 years, 1 month ago)
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Jim Shannon
It would be remiss of me to say other than that the value of the pound has enabled our exports to grow and our manufacturing base to maintain its position. The hon. Gentleman is absolutely right.
The DUP’s confidence and supply agreement with the Conservative party has brought in money for everyone in Northern Ireland, regardless of whether they are Unionist, nationalist or anything else. Everybody gains from that agreement.
The House has seen progress on business rates and the small business rates relief scheme. I am very pleased that the Government have continued to ensure that that happens, because it will definitely bring benefit to all the high streets across the United Kingdom. Rates relief has brought opportunities and retained employment in shops in places in my constituency such as Newtownards, Comber and Ballynahinch. Rates relief ensures that we do not have empty shops. Those involved in the retail business say that we have some of the best shopping opportunities in the whole of Northern Ireland.
We have pursued the issues of air passenger duty and tourism VAT, negotiating and consulting with the Conservatives on how the confidence and supply agreement can benefit us, as well as the whole of the United Kingdom. There are advantages for others across the United Kingdom in a reduction to air passenger duty and tourism VAT. We need to be on equal terms with the Republic of Ireland to be able to grow our tourism sector. The DUP is continuing to work on issues that affect the local economy in Northern Ireland, as well as the whole of the UK economy. We are pleased to be part of the economic success story we have in the whole of the United Kingdom of Great Britain and Northern Ireland.
As the briefing paper succinctly put it, in terms we can understand, in 2016-17 the Government borrowed £46 billion to make up the difference between their spending and the income raised from taxes and other sources. Since 2009-10, the UK’s borrowing—often referred to as the deficit—has fallen by 70%, which again is good news. Borrowing is now at a similar level to that before the 2007-08 financial crisis, and the OBR forecasts that it will fall each year to just over £1 billion in 2022-23, which is equivalent to around 1% of GDP. If anyone thinks that this is not good news, they need to take another look at what it is saying. In laymen’s terms, we still have a massive debt—there is no doubt about that—but, in fairness to the Conservative party, it is trying hard to reduce the deficit, and if we continue along the lines we are on, it will be to the benefit of everyone in the Chamber and every one of our constituents.
Alex Chalk (Cheltenham) (Con)
Does the hon. Gentleman agree that it will be to the benefit not just of this generation but of the next generation, given that we currently spend on debt interest alone a sum greater than the entire NHS wage bill? We have to get that down so that future generations can have the public services they deserve.
Jim Shannon
The hon. Gentleman is right. It is not just for us as MPs and our constituents; it is for our children and our grandchildren. We are building a base here, as we have done in Northern Ireland through the Assembly, for a stronger economy in years to come. It is important that we move towards that.
I agree with the Government’s goal of reducing the deficit yearly, but while we must aim to do this, things arise outside of our control, and we must always be able to access spending power to meet those needs. We seem to be stabilising, and yet I am aware of the adverse effect of the roll-out of universal credit. I must put on the record my concern about its effect on the disabled and vulnerable. Opposition Members who have sat with me through many debates will understand my concern.
I am also very aware of the needs of the NHS, which the hon. Member for Cheltenham (Alex Chalk) referred to in his intervention, and the importance of providing advantages and opportunities to the NHS when it comes to funding. In the words of an elderly constituent of mine, the NHS “needs to rubbed out and drawn again, as our highly trained NHS staff are at the end of themselves and living on their nerves with no breaks and crisis management from one hour to the next”. That is why I welcome the Government’s commitment to a 6.5% wage increase for NHS staff over three years. That is good news, and we should all welcome it, because it is a step in the right direction. The DUP asked for that in our negotiations and discussions with the Conservative party, and the Conservative party has accepted it.
Fishing, which has come up on both sides of the House, is hugely important to me and my constituency, particularly in the village of Portavogie. Since we have an absentee MP for South Down, I should add that it is also important to those from Ardglass and Kilkeel. It is very important that we have a good fishing industry and sector. We are sick and tired of EU bureaucracy and red tape, of quota restrictions and days-at-sea restrictions, of boat numbers reducing in my village of Portavogie from 120 to about 75—the reductions are similar in Kilkeel and Ardglass.
The fishing sector is under pressure, but with Brexit we will have what the hon. Member for Angus (Kirstene Hair) said: a stronger fishing sector and industry, more employment, more opportunities and more jobs. I, like others, would like to see landings landing on UK soil. That is important. The voisinage agreement is a legal agreement under which we will take back some of the waters that are ours but which under another legal agreement the Republic of Ireland looks after. That will happen, and we will have more control over our own waters. So Brexit brings good news for the fishing sector.
I say the same thing to the Minister today that I said to the Secretary of State for Environment, Food and Rural Affairs the other day. I want us to make sure that in 2020 we are out. It is the responsibility of Ministers to make sure that happens. The Secretary of State gave me that commitment, and other commitments have been given as well. Those who represent fishing villages understand our concern and angst.
My constituency has seen enormous growth in the agri-foods sector. I think of businesses such as Willowbrook Foods, Mash Direct and Pritchitts—also known as Lakeland Dairies. The latter has three factories, two in the Republic and one in Northern Ireland, and if ever we needed an example of why we need to transition to a soft border, that company is it. Its process involves milk crossing the border three times: first, it comes across in fluid form; then it goes back in powder form; and then it comes back again to Newtownards, where it is packaged and processed, and sold across the world. Rich Sauces is another agri-food business in my constituency that is doing extremely well, and we must remember that this is about not just the guys in the factories doing the production and manufacturing, but the farmers supplying the milk, and those providing arable goods for vegetable firms. Those are the success stories, and we need to reach a satisfactory arrangement for them.
We have also seen new markets created. Lakeland Dairies, for example, is marketing a new milk powder in China. The Minister has been involved with that. He has been helping us to get through the red tape we sometimes have so that we can secure that opportunity. Pharmaceuticals, insurance and light engineering are other growth industries in my constituency, like others. We have many small companies that started off with perhaps half a dozen employees and then grew. Patton’s is one that comes to mind right away. It started off with a van and three people; it now has a dozen vans and a workforce of 65.
Good things are happening, so let us talk about them. I do not mean to be disrespectful to anyone—that is not my nature—but if people talk things down enough, they will be down. We must talk them up. Let us talk up the good things—we should not ignore the negatives—and be positive. Positivity is what we want—it is certainly what I want.
I am aware that even small tax rises—for example, the 4.5% rise in rates for Northern Ireland, coupled with the almost 3% local rise in my constituency, results in a 7.5% rate increase for families slightly above the threshold for help through tax credits—can have an impact on people’s quality of life. We tell parents not to feed their children crisps as a lunchtime snack. Crisps cost 10p, but we tell them to give the children an orange, which costs 20p, so that is financially illogical. We tell parents to take their children to after-school clubs to help their social development, but they have to fund that themselves, because cuts have stopped Sure Start and other places from funding classes for children.
Members have referred to food banks. People are always being negative about food banks, but we should be positive. The Trussell Trust food bank in Newtownards in my constituency—we were the first to have one in Northern Ireland—has brought the churches and many individuals together. Every one of them is concerned for those who have nothing. Is it not a good thing when people come together to do something really good, substantial and positive to bring about change?
Spring Statement
Alex Chalk Excerpts(6 years, 2 months ago)
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Mr Hammond
I do not have the figures to hand, but if my memory serves me correctly, I was able to confirm at the Budget last year that Wales will receive over £1 billion of additional funding, including as a result of changes to the agreed formula. So funding is not down, but up. The failure of services in Wales, mainly in the Welsh health service, that we regularly catalogue across the Dispatch Box is a result of decisions made and priorities set by the Welsh Government, not the UK Government.
Alex Chalk (Cheltenham) (Con)
Economies move in cycles. Does my right hon. Friend agree that there is a moral case for ensuring that our public finances are in a state to help the poorest in society, some of whom live in my constituency, when the next slowdown comes? Does he also agree that the Labour party manifestly failed to take that approach?
Sanctions and Anti-Money Laundering Bill [Lords] (Sixth sitting)
Alex Chalk Excerpts(6 years, 2 months ago)
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Sir Alan Duncan
This has been a lively and interesting debate on an issue that we all agree is of importance. It boils down to how we think it appropriate for the Government to act. I am grateful to hon. Members for tabling new clauses, and I appreciate the desire for the overseas territories and Crown dependencies to adopt public registers. However, we should acknowledge the significant steps already taken by those jurisdictions in this area and continue to build on that progress.
While we continue to push for public registers to become the global standard, we should recognise that the arrangements that the territories and dependencies have concluded with the UK exceed the international standards set by the Financial Action Task Force, which do not require private registers, let alone public registers. Nevertheless, should public registers become the global standard, we would expect the overseas territories and Crown dependencies to meet that standard.
As the Committee knows, the overseas territories and Crown dependencies are separate jurisdictions with their own democratically elected Governments. We have therefore legislated for them without their consent only in exceptional circumstances—for example, to decriminalise homosexuality in certain territories, to ensure they were compliant with international human rights obligations. By contrast, financial services are an area of domestic responsibility for territory and dependency Governments.
Legislating for those jurisdictions without their consent effectively disenfranchises their elected representatives and risks harming our overall relationship with them. It also risks leading to a flight of business to other, less regulated jurisdictions, with the undesirable consequence that our law enforcement authorities would not have the same level of access to beneficial ownership information as under the existing bilateral arrangements. Imposing public registers of company beneficial ownership on the overseas territories would carry with it the risk that the territories would be less willing to work with us on this important issue.
[Dame Cheryl Gillan in the Chair]
I would like to draw parallels with the devolved Administrations and the Sewel convention. The hon. Member for Glasgow Central addressed the point on Second Reading:
“Much as I do not wish the House to legislate on Scottish matters, I do not want us to legislate for overseas territories or Crown dependencies without consent.”—[Official Report, 20 February 2018; Vol. 636, c. 92.]
I agree with her that that is the right approach.
The overseas territories and Crown dependencies have already made significant progress on beneficial ownership. Since we concluded our exchanges of notes with them in 2016, they have passed new primary legislation and delivered technological improvements to comply with the terms of the arrangements. They have committed to provide UK law enforcement authorities with automatic access to beneficial ownership information within 24 hours of a request being made, or within one hour in urgent cases. Those arrangements strengthen our law enforcement authorities’ ability to investigate serious organised crime, including money laundering and tax evasion.
The hon. Member for Oxford East asked about what are termed similarly effective systems. Some jurisdictions have opted under the bilateral arrangements concluded with the UK to establish an electronic search platform, allowing them to gain access to beneficial ownership information held by their authorities or by corporate service providers.
The exchanges of notes permit such similarly effective arrangements, provided that the following criteria are met. Law enforcement authorities can obtain beneficial ownership information without restrictions, and that information is available for use in both civil and criminal proceedings. Law enforcement authorities can also quickly identify all corporate and legal entities connected to a beneficial owner, without needing to submit multiple and repeated requests. Corporate and legal entities, or those to whom the beneficial ownership information relates, are not to be alerted to the fact that a request has been made or that an investigation is under way. We will monitor that arrangement to ensure that it does indeed provide the same results.
I hope that hon. Members agree that the overseas territories, in some cases in the most challenging circumstances, and the Crown dependencies have made significant efforts to move forward on this agenda. The effective implementation of the exchanges of notes will put them ahead of many G20 countries and many individual states of the USA, and demonstrates what can be achieved through working co-operatively.
Alex Chalk (Cheltenham) (Con)
Does my right hon. Friend agree that, as a result of the steps that have been taken in the Crown dependencies, there is a far greater degree of transparency in Jersey and Guernsey than in Delaware in the United States, for example?
Sir Alan Duncan
My hon. Friend is absolutely right. It is exactly that comparison that we need to see in the round, in order to understand that there could be unforeseen detrimental consequences of any kind of imposition proposed for the overseas territories.
Sanctions and Anti-Money Laundering Bill [ Lords ] (Sixth sitting)
Alex Chalk Excerpts(6 years, 2 months ago)
Public Bill CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Sir Alan Duncan
This has been a lively and interesting debate on an issue that we all agree is of importance. It boils down to how we think it appropriate for the Government to act. I am grateful to hon. Members for tabling new clauses, and I appreciate the desire for the overseas territories and Crown dependencies to adopt public registers. However, we should acknowledge the significant steps already taken by those jurisdictions in this area and continue to build on that progress.
While we continue to push for public registers to become the global standard, we should recognise that the arrangements that the territories and dependencies have concluded with the UK exceed the international standards set by the Financial Action Task Force, which do not require private registers, let alone public registers. Nevertheless, should public registers become the global standard, we would expect the overseas territories and Crown dependencies to meet that standard.
As the Committee knows, the overseas territories and Crown dependencies are separate jurisdictions with their own democratically elected Governments. We have therefore legislated for them without their consent only in exceptional circumstances—for example, to decriminalise homosexuality in certain territories, to ensure they were compliant with international human rights obligations. By contrast, financial services are an area of domestic responsibility for territory and dependency Governments.
Legislating for those jurisdictions without their consent effectively disenfranchises their elected representatives and risks harming our overall relationship with them. It also risks leading to a flight of business to other, less regulated jurisdictions, with the undesirable consequence that our law enforcement authorities would not have the same level of access to beneficial ownership information as under the existing bilateral arrangements. Imposing public registers of company beneficial ownership on the overseas territories would carry with it the risk that the territories would be less willing to work with us on this important issue.
[Dame Cheryl Gillan in the Chair]
I would like to draw parallels with the devolved Administrations and the Sewel convention. The hon. Member for Glasgow Central addressed the point on Second Reading:
“Much as I do not wish the House to legislate on Scottish matters, I do not want us to legislate for overseas territories or Crown dependencies without consent.”—[Official Report, 20 February 2018; Vol. 636, c. 92.]
I agree with her that that is the right approach.
The overseas territories and Crown dependencies have already made significant progress on beneficial ownership. Since we concluded our exchanges of notes with them in 2016, they have passed new primary legislation and delivered technological improvements to comply with the terms of the arrangements. They have committed to provide UK law enforcement authorities with automatic access to beneficial ownership information within 24 hours of a request being made, or within one hour in urgent cases. Those arrangements strengthen our law enforcement authorities’ ability to investigate serious organised crime, including money laundering and tax evasion.
The hon. Member for Oxford East asked about what are termed similarly effective systems. Some jurisdictions have opted under the bilateral arrangements concluded with the UK to establish an electronic search platform, allowing them to gain access to beneficial ownership information held by their authorities or by corporate service providers.
The exchanges of notes permit such similarly effective arrangements, provided that the following criteria are met. Law enforcement authorities can obtain beneficial ownership information without restrictions, and that information is available for use in both civil and criminal proceedings. Law enforcement authorities can also quickly identify all corporate and legal entities connected to a beneficial owner, without needing to submit multiple and repeated requests. Corporate and legal entities, or those to whom the beneficial ownership information relates, are not to be alerted to the fact that a request has been made or that an investigation is under way. We will monitor that arrangement to ensure that it does indeed provide the same results.
I hope that hon. Members agree that the overseas territories, in some cases in the most challenging circumstances, and the Crown dependencies have made significant efforts to move forward on this agenda. The effective implementation of the exchanges of notes will put them ahead of many G20 countries and many individual states of the USA, and demonstrates what can be achieved through working co-operatively.
Alex Chalk (Cheltenham) (Con)
Does my right hon. Friend agree that, as a result of the steps that have been taken in the Crown dependencies, there is a far greater degree of transparency in Jersey and Guernsey than in Delaware in the United States, for example?
Sir Alan Duncan
My hon. Friend is absolutely right. It is exactly that comparison that we need to see in the round, in order to understand that there could be unforeseen detrimental consequences of any kind of imposition proposed for the overseas territories.