Bankers’ Bonuses and the Banking Industry

Debate between Cathy Jamieson and Chloe Smith

Wednesday 25th February 2015 Commons Chamber

[Cathy Jamieson]

I thank the hon. Gentleman for what I think was a bit of a compliment about me making an intelligent speech. Of course, he then proceeded to make a party political point by trying to shift the emphasis back on to what happened before, and I understand why he would seek to do so. It is important to acknowledge that there have been changes, but there is no evidence yet to suggest that all the behaviours that led to wrong decisions being taken have changed, so we still need to keep an eye on that.

[Chloe Smith (Norwich North) (Con)]

I would like to give the hon. Lady an opportunity to rise above the party politics that the right hon. Member for Morley and Outwood (Ed Balls), were he here—I note that he is not—would no doubt be indulging in. Does she welcome the £5 million funding from LIBOR sources that has benefited charities up and down the country, including the East Anglia air ambulance in my constituency?

[Cathy Jamieson]

I thank the hon. Lady for her comments. The shadow Chancellor is not here, but neither is the Chancellor, so I am not sure what point she was trying to make in that regard. I recognise that a significant amount of money has gone to support valuable organisations such as the one she mentioned, but I hope that she was in no way suggesting that the banks should not be paying attention to their current ways of operating. We must ensure that we never again have a situation in which those fines are necessary, so hopefully things will change.

Oral Answers to Questions

Debate between Cathy Jamieson and Chloe Smith

Tuesday 9th July 2013 Commons Chamber

[Miss Smith]

The Government will certainly explore all possible ways, in discussion with the Electoral Commission and other interested parties, to encourage registration among overseas electors, as we do, of course, for any eligible elector who seeks to be registered. As I say, the measures that we are taking in the context of moving towards individual electoral registration will help. I urge the hon. Lady and all those here in the House to take this issue very seriously, because very many more overseas electors ought to be registered.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

Does the Minister agree that, given the importance she puts on this, the immediate priority must be the 6 million people in this country who are already eligible to vote but are missing from the register? What is she going to do about that?

[Miss Smith]

I have an entire programme of activities on individual electoral registration, about which I have always been happy to brief the House; in fact, I will do so again shortly by invitation to all right hon. and hon. Members. When it comes to deciding which voters are more important than others, all voters are equally important.

Small Charitable Donations Bill

Debate between Cathy Jamieson and Chloe Smith

Tuesday 4th September 2012 Commons Chamber

[Miss Smith]

I am aware of that point of view, and if my hon. Friend will allow me, I will deal it and some others. I think he will know that the Bill has been subject to a pilot of a particular type of scrutiny over the summer, so there have been many opportunities to start that kind of discourse, and I look forward to continuing that in this debate.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

I thank the Minister for mentioning the public reading stage. How many people engaged with that process? It has been brought to my attention that it was quite difficult to find the information, which was tucked away on the Cabinet Office website.

[Miss Smith]

I will be happy to come to that, but if the hon. Lady will allow me, I will make my points in sequence. I am starting to stack up—in a non-polycarbonate way, of course—the points I need to make, so I will set out a few more of the basics first.

The new scheme does not require individual donors to complete a gift aid declaration or the charity or CASC to collect and provide the donor’s details with every payment claim, as is required under gift aid. The aim of the scheme is to complement gift aid, not replace it, and we are keen that charities continue to make full use of gift aid wherever possible.

Oral Answers to Questions

Debate between Cathy Jamieson and Chloe Smith

Tuesday 26th June 2012 Commons Chamber

[Miss Smith]

My hon. Friend makes a valuable point that I am sure the independent pay review bodies will consider. If I were to put a number on the average premium for working in the public sector, I could name 18% in Wales.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

Last week, it was left to the Minister for the Cabinet Office and Paymaster General to come to the Chamber to explain the Treasury’s position on regional pay. Was that because the Chief Secretary does not support the policy and the part-time Chancellor does not want to make another U-turn?

[Miss Smith]

We had an extensive and rather premature debate on this last week in the Chamber, and I shall say again what I said then: the independent pay review bodies are producing a report, and it would be premature to review that without the evidence, which they are considering.

Finance (No. 4) Bill

Debate between Cathy Jamieson and Chloe Smith

Wednesday 18th April 2012 Commons Chamber

[Miss Smith]

My hon. Friend makes a fine point, and I acknowledge it in what I am saying about the regional aspects of the debate and the necessity of aviation in many different parts of the United Kingdom.

[Cathy Jamieson]

Briefly, I heard what the Minister said about looking again at the whole issue of devolution. Does she accept that there is also a need to look at aviation taxation generally in the round? Does she have any plans to do that, as well as looking further at the question of devolution?

[Miss Smith]

In brief, all taxation is, of course, kept under review. If the hon. Lady will allow me, I will proceed and I shall endeavour to answer her other points in doing so. My main point about the potential devolution of APD is focused on the wider-ranging impact such a move might have across the whole of the UK economy. We should not run the risk of replicating the same problems that Northern Ireland has faced with its land border and lower taxes in the Republic.

Let me reiterate here today the Government’s determination to examine the full range of effects that the devolution of APD could have on Scotland, Wales and the UK as a whole before any final decision is taken. As I think the hon. Member for Kilmarnock and Loudoun (Cathy Jamieson) knows, this sits in context with a number of other pieces of work that the Government are doing on aviation.

Let me briefly deal with the issue of rates, which the lead amendment is designed to alter. Hon. Members will know that the Government were able to freeze APD for a year in March 2011. At the high cost to the Exchequer of £140 million, I think people will appreciate that this was not easy. Looking to the future, if we are to stay on course with our deficit reduction plans, it is necessary for APD rates to rise. The fact of the matter is that, over the two years 2011-12 and 2012-13, the increase in APD rates equates to a rise of no more than inflation. Indeed, most passengers will pay only £1 more on their flights. That increase is necessary. To provide greater certainty, we have also set out in this Budget the APD rates for two years up to 2013-14.

Let me move on briefly to other issues in the amendments. As I said earlier, passengers on business jet flights currently do not pay APD, whereas ordinary passengers aboard commercial flights do. We have recognised that anomaly, and are introducing fair changes to include business jet flights for the first time.

I have touched briefly on the changes that we are making in relation to Northern Ireland. I think that they have been welcomed by Northern Ireland Members here tonight, and by others outside the House.

The Government have listened, and have taken on board many of the concerns that were expressed during the recent consultation. I believe that we are striking the right balance—

Pay and Consultants (Public Sector)

Debate between Cathy Jamieson and Chloe Smith

Tuesday 13th March 2012 Westminster Hall

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

It is a pleasure to serve under your chairmanship, Mr Howarth, in an important debate to which hon. Members have contributed with some thoughtfulness. I should like to mention my entry in the Register of Members’ Financial Interests for 2009.

Hon. Members are aware that we face a tough challenge to repair the damage to our economy resulting from the recent crisis. Restoring the economy to prosperity requires restraint in many sectors of society. It is right that public sector pay restraint plays a part in that fiscal consolidation. I shall start with general pay restraint and then refer to various areas mentioned by hon. Members.

I am confident that all hon. Members agree that public servants do a crucial job delivering the high-quality public services on which we all rely. It is right that we continue to offer rewards to those who have skills that would help and assist all our constituents who need those services. At the same time, however, given the pressures on public finances, public pay restraint can help to protect jobs and services in the public sector. That is why, in the June 2010 Budget, the Chancellor announced that there would be a two-year pay freeze for public sector workers earning more than £21,000. At the autumn statement, the Chancellor announced that, for the two years following the freeze, public sector pay awards would average 1%.

On senior pay restraint, it is particularly important, in a context of overall pay restraint, that senior managers show leadership on pay. That is why, at the first meeting of the coalition Cabinet, Ministers announced that they would take a 5% pay cut and that their pay would be frozen for the rest of the Parliament. In May 2010, it was announced that the number of senior civil servants receiving bonuses would be reduced by two thirds, which I am sure hon. Members welcome. At the same time, it was also announced that the Chief Secretary to the Treasury would sign off any appointments for those earning more than £142,500, in areas where Ministers control pay. Of course, much of what we are discussing today can only cover the areas where central Government have control over pay. There is a certain amount of complexity in that landscape to which I may not have time to do justice, but I hope that hon. Members will understand what the Treasury could comment on today.

The Government asked Will Hutton to review senior pay in the public sector. The Government accepted his recommendation that Departments publish a top-to-median pay multiple each year, and Departments will include that as part of their annual reports from this year.

Likewise, the Government are also clear that any consultancy arrangements in the public sector should provide good value for money. In May 2010, we announced that the Cabinet Office and the Treasury would join forces to drive out waste, through a new group called the Efficiency and Reform Group. One of that team’s first priorities, with immediate effect, was to freeze all new consultancy spend unless it was an operational necessity. Where such spending was proposed, ministerial sign-off was required for £20,000 or above. This spending control remains in place. Because of that decision, in the 10 months from May 2010 to March 2011, £870 million was saved through a reduction in consultancy spending by central Government. I am sure that hon. Members welcome that.

On tax avoidance by senior staff, which has been of interest to hon. Members throughout this debate, the Government have been clear that we are committed to tackling all forms of tax avoidance. We do not believe that tax avoidance is appropriate in the public sector. Indeed, it is expressly forgiven—[Interruption.] It is expressly forbidden—I hope Hansard can hear this—in a document entitled “Managing Public Money”, which I know hon. Members have as their bedside reading. The hon. Member for Eltham (Clive Efford) asked whether an NHS trust would be covered by that guidance and I confirm that that would be so. All bodies covered by that guidance are covered by the Chief Secretary’s review, which has been mentioned in the debate.

The review occurred after it came to light that a senior public servant had been appointed in way that could be perceived as minimising his tax. The Chief Secretary therefore announced a review of the tax arrangements of senior public sector appointees. This review will consider the extent to which use is made of arrangements whereby the tax position of appointees can be perceived to be minimised, and will make appropriate recommendations. The review will include individuals being paid through PSCs, to use an abbreviation relevant to this debate.

Several hon. Members, including my hon. Friend the Member for Wimbledon (Stephen Hammond), have mentioned that there is much complexity here that the review should reasonably take into account. The review is not intended to be a witch hunt.

The hon. Member for Kilmarnock and Loudoun (Cathy Jamieson) asked specifically about IR35. She will know that in the Budget last year, following a review by the independent Office of Tax Simplification, the Chancellor announced that IR35 would be maintained, but that Her Majesty’s Revenue and Customs will take forward options for improving its administration. That is a separate point, but I hope that that answers the hon. Lady’s question.

[Cathy Jamieson]

I thank the Minister for that clarification, but I hope that she offers slightly more information in terms of how the administration will be improved and whether any of the guidance will be changed.

Working Tax Credits

Debate between Cathy Jamieson and Chloe Smith

Wednesday 30th November 2011 Westminster Hall

[Miss Smith]

Let me move on to the change that the hon. Gentleman highlighted, which is the move from 16 to 24 hours. As he explained, under the current system couples with children can claim working tax credit if one partner works 16 hours a week. The hon. Gentleman will know that at the moment lone parents must also work at least 16 hours to qualify for the working tax credit. As he said, however, under the 2010 spending review, from April next year couples with children will have to work 24 hours between them, with at least one partner working 16. In response to the interventions made, this change makes the system fairer by reducing that disparity between couples and lone parents. I would not like to stand here to defend why those two groups should be treated differently. I can see the hon. Member for Stalybridge and Hyde twitching but I must move on in order to tackle two of the points he specifically asked me to address.

There are exemptions where couples may have a limited capability to work. That means that couples with children will continue to qualify for working tax credit where one member works at least 16 hours a week and that person is eligible for the working tax credit disability element. In addition, there will be an exemption for some couples with children where only one member works at least 16 hours a week and the other adult does not work, for example where one adult is incapacitated. A couple with children will continue to qualify for working tax credit at 16 hours if one partner is in receipt of disability living allowance.

Moving on to how else we can increase support for lower and middle income earners and improve the rewards to work. On work incentives, which I said I would cover, universal credit has already been mentioned and it is in that area—

[Cathy Jamieson]

I thank the Minister for giving way. Before she moves on to work incentives, will she address the point about low-paid workers who would find it difficult to get that extra eight hours to stay on the working tax credits, and who will potentially see their incomes drop from £18,000 to £14,000 in a year? What consideration has the Minister given to transitional arrangements or help for that particular group?

[Miss Smith]

The point I was about to make was that the introduction of universal credit is where the Government anticipate making the most major transitional arrangements, and I note the hon. Lady’s points—and those of other Members in earlier interventions—in particular in relation to retail sector work, for example. Everybody appreciates that the economic climate is hard at the moment—the ideal world is not out there for everybody. I take her point.

Moving on very briefly to the work incentives provided by the universal credit, the phrase has already been used that work must always pay and be seen to do so. One of the key features of universal credit—the hon. Lady will know this—is that it will be paid in and out of work, and that the hours rule will disappear to smooth the transition into work and ensure that that it pays.

Oral Answers to Questions

Debate between Cathy Jamieson and Chloe Smith

Tuesday 1st November 2011 Commons Chamber

[Miss Smith]

I certainly do welcome that, and it is important to combine that with taking women out of income tax, as I have already mentioned.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

May I genuinely welcome the hon. Lady to her new post? I have no doubt that we will have many exchanges across the Chamber, and I hope we will focus on policy.

Back in May, the Minister claimed that the Government’s approach to the economy was working because there were 14 fewer unemployed claimants in her constituency. What is she saying now that women’s unemployment in the UK has risen to its highest rate since 1988, and, more importantly, what is she going to do about it?