Tax Avoidance and Evasion
Chris Stephens Excerpts(8 years, 1 month ago)
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Mr Gauke
The vast majority of the additional money we have put into compliance, both the £800 million announced last year and the £1 billion announced in the last Parliament, is going to dealing with tax evasion. All of it is going into compliance, which is in the areas of dealing with tax evasion and tax avoidance, at its broadest points. I am happy to let the hon. Lady have details of the precise numbers and to write to her on that subject, but this money is going into compliance exactly to deal with these areas. We have taken this very seriously, substantial sums will be raised for us over the course of this Parliament and we are proud of our record on this.
Chris Stephens (Glasgow South West) (SNP)
First, on headcount, will the Financial Secretary confirm that there are 14,000 fewer staff in HMRC now than there were in 2010? Secondly, will he inform the House whether any HMRC staff currently have a compulsory redundancy notice?
Mr Gauke
I make no secret of the fact that HMRC is a smaller organisation than it was in 2010 in its headcount. That is because efficiency savings are capable of being found in an organisation that devotes a number of staff to processing pieces of paper when we are moving to a more digital world and we can make greater use of technology. On the area that is relevant to today’s discussion and is the concern of the House, the concern is to ensure that HMRC has the resources to deal with tax evasion and tax avoidance. In that area, headcount is not the be-all and end-all; it is about what we get out, not what we put in. As it happens, however, the numbers of people dealing with enforcement and compliance have gone up under this Government. That point sometimes seems to be missed from this debate.
In a globalised world, international action is clearly vital to stop cross-border tax avoidance, evasion and aggressive planning. The UK Government can be proud of having done more than any other country to stamp out these practices. On avoidance, we have already implemented the OECD recommendations for country-by-country reporting to improve transparency between business and tax authorities, and have advocated public country-by-country reporting on a multilateral basis. The Commission’s proposals for public country-by-country reporting are a step in the right direction towards new international rules for greater public transparency. However, we need to consider carefully the details of the Commission’s proposal, including how the reporting is done and how the information is broken down.
On transparency in the context of tax evasion, which is a key point, the UK will be the first major country to publish a register of company beneficial ownership, free for anyone to access, allowing everyone to see who owns what company. My right hon. Friend the Prime Minister made it a personal priority to use our G8 presidency to set a new global standard of tax transparency. As a result of our G8 presidency, 129 jurisdictions have committed to implementing the international standard for exchange of tax information on request, and more than 95 jurisdictions have committed to implementing the new global common reporting standard on tax transparency. This is a huge breakthrough. I recall that six years ago no one believed that we would get to that position, and I am delighted that we have done so. This is a step change in transparency.
Budget Resolutions and Economic Situation
Chris Stephens Excerpts(8 years, 2 months ago)
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Sammy Wilson (East Antrim) (DUP)
May I first welcome a number of measures in the Budget? The rise in income tax thresholds is important for those in work who wish to keep their income and spend it as they, rather than the Government, see fit. The changes for savers are also important, especially for those on lower incomes and perhaps those who are self-employed, given the incentives. I would however point out that although the Government have presented some of the changes as important, especially the lifetime ISAs and the help for low-income savers, many people will still struggle to put aside the money for such initiatives. The change in business rates is important for small businesses that are struggling, especially in town centres, as are the promises to deal with tax avoidance. However, we have heard such promises before, and, very often, nothing has come of them.
Chris Stephens (Glasgow South West) (SNP)
Is the hon. Gentleman not concerned, as I am, that the whole tax-avoidance strategy is rhetoric, rather than reality, given that HMRC wants to close 90% of its offices, some of which are in Northern Ireland?
Sammy Wilson
There has to be a connect between the promises that the Government make and the ability to deliver on them, whether through legislative changes or, indeed, through having the resources to deal with the issues.
The Northern Ireland Executive will benefit, from Barnett consequentials, to the tune of about £220 million over the comprehensive spending review period. Many people will welcome the fact that £5 million has been set aside to establish an air ambulance in Northern Ireland, for which we have called for a long time.
I want to deal with two areas. I will start where the hon. Member for Stroud (Neil Carmichael) finished, with the Chancellor’s references to the European Union. I notice that the Chancellor made fairly scant reference to it in his statement. Indeed, I think many people were probably surprised about that, given the way in which the Government have tried to drive this issue. On the other hand, I am not surprised, because what does he really have to say about retaining membership of the EU?
The Chancellor talks about struggling with the budget deficit and with the public finances, yet he is quite happy to give £10 billion a year to the EU. In the EU, the money is often so badly spent that its accounts are qualified every year. Such money goes on fraudulent activities; it disappears into black holes; it goes on vanity projects—[Interruption.] I notice that some of the most vociferous supporters of giving public funds to the EU are from the Labour party, while its Members are complaining about cuts in services for their own constituents.
The other point that the Chancellor has to address is that, although he will give £6 billion to companies in corporation tax cuts, he will, over the same period, take £7 billion more off them in environmental levies, most of which are driven by European directives. On the one hand he is giving money to businesses, and on the other, European directives ensure that he has to take it from them.
The hon. Member for Stroud got it wrong when he mentioned what the OBR has said about leaving the EU. The OBR has not been definite that certain things would happen. Indeed, its report says that leaving the EU “could usher in” uncertainty, “could have negative” impacts and
“might result in greater volatility in financial…markets”.
That is also what the Chancellor said. The ironic thing is that he had no sooner uttered his comments about threatening and slaughtering jobs, investment and everything else than, in his very next sentence, he pointed out that since the autumn statement—we have had all the uncertainty about the referendum and the fact that the United Kingdom might vote to leave the EU—the Government had
“created…150,000 more jobs than the OBR expected.”
There is all this volatility and uncertainty, yet in the face of a referendum businesses are not reflecting uncertainty or fear. Indeed, according to the Chancellor they are creating 150,000 more jobs than the OBR expected.
DRAFT Tax Credits (Income Thresholds and Determination of Rates) (Amendment) Regulations 2016
Chris Stephens Excerpts(8 years, 2 months ago)
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Damian Hinds
The 800,000 recipients are households, and the majority of them will be couples. The majority of those couples will be male and female couples. However, let us be clear, come the end of the tax year, whatever the income rise disregard and with or without today’s statutory instrument, their tax credit award will be adjusted downwards to take account of their higher income—by which time they may, of course, have become accustomed to what was to be a temporarily higher award.
The measure ensures fairness to the taxpayer, because a system of large income disregards unnecessarily increases costs. The Exchequer—hon. Members’ constituents— bears the cost of paying tax credit recipients a much higher award than they would get if their increased income were taken into account. Rather than continuing with that, the Government are taking action to make tax credits more responsive to income changes, which ensures that more claimants receive the entitlement that more closely reflects their actual income.
Real-time information will ensure that the changes to income can be identified earlier. From September 2016, the majority of claimants will be prompted to report increases of income to HMRC through a text message, voice message or letter, with the default action, in the event of non-response, that the award will be adjusted to reflect the income change. That will mitigate the likelihood of overpayments, and will make clear to claimants, in a fair way, their responsibility to report an increase in their income.
HMRC will provide information to those affected by the change, in tax credits renewals packs and updated guidance and notes to claimants, as well as in briefing lines for the tax credit helpline, to ensure that claimants are aware of the change and what it means for their tax credit award. The Government are committed to seeing the change implemented correctly, and are taking a considered approach to both the operational IT delivery and engagement with claimants, to ensure there will be a reduction in tax credit overpayments and the number of claimants falling into debt.
I will now answer some of the points raised by the Opposition during the debate. The hon. Member for Salford and Eccles asked about the rationale for the precise number, and we have had a similar discussion in previous debates. There is never one single magic number that can be applied to such a threshold.
As the hon. Lady said, the figure of £2,500 brings the design of the income rise disregard back to Gordon Brown’s original figure. It is a balance between on the one hand making sure that the system adjusts as quickly and smoothly as possible to someone’s rise in income—to reduce the fall they would otherwise experience at the end of the tax year—and on the other not having to make an administrative change, and change the tax credit award, when there is a very small increase, such as from an annual pay award or a small increase in hours. The big change compared with 2003 is real-time information. To answer the hon. Member for City of Chester, real-time information is already operational and has been since 2013. A lot of the debates he mentioned have happened, but it is an important part of the continuing development of our taxation system.
The hon. Members for Salford and Eccles and for Banff and Buchan mentioned people on zero-hours contracts. I think it is always worth repeating this point because sometimes one could get the impression from listening to the Opposition that people on zero-hours contracts are the overwhelming majority when they are not; something like 2.5% rely on a zero-hours contract. Some of those are coming back into the workplace, and some of them are students. On average, zero-hours contracts deliver 25 hours of work a week.
The important point, which also applies to later in the debate, is that tax credits are still based on an annualised estimate of income. It is not necessarily the case that every single time there is a change in someone’s hours in a particular month they will have to say that this year’s permanence level of annualised income has changed. Through the RTI system there is an opportunity for those on PAYE to be prompted to do so, and others still can do so. The point is what they expect their total annual income to be. That is what the tax credit architecture of the system is based on today. It has always been based on an annual view of income.
The hon. Member for Salford and Eccles also asked how we define no cash losers. It is very simple. People’s pay is going up, which is a good thing. Because the tax credits award cannot go down by more than the pay has gone up, therefore these people will be better off.
Chris Stephens (Glasgow South West) (SNP)
I have listened attentively to what everyone has said. We know that a large number of the Government’s employees are on tax credits. For example, the Department for Work and Pensions has 40% of its employees on tax credits. I ask the Minister whether any assessment has been done on what this proposed change would mean for the Government’s workforce.
Damian Hinds
I do not want to repeat myself as though I have nothing new to say. Those are people whose income is going up. This is good news for those people. The change is responding more quickly than would have happened anyway. That is a really important point. It is responding further and more quickly to that change in income, but their income has gone up.
There were quite rightly questions about the equalities impact. In response to the hon. Member for Brent Central, I have already talked about the proportion who are women. We have provided information to the Secondary Legislation Scrutiny Committee. As with all secondary legislation, the Government take into account the equalities impact, as we are legally obliged to do.
I think I have dealt with the questions around fluctuating incomes in relation to zero-hours contracts and the introduction of real-time information. I also want to respond to the point about HMRC and operational efficiency. The hon. Member for Bristol South is right to raise those important points. HMRC’s performance has improved significantly this year, answering more than 90% of calls with wait times averaging under six minutes. Of course, we still want those numbers to improve; do not misunderstand me. It brought in additional staff to cover some of the busiest times, recruited some 3,000 more staff and put on additional training.
In conclusion, this change to reduce the income disregard to £2,500 is fair to claimants, reducing inequalities in the tax credit system, and it is fair to the taxpayer, reducing unnecessary cost. There are no cash losers because these are people whose pay is going up quite substantially. It will reduce the incidence of temporarily inflated awards because the system will respond sooner and further to people’s change in income. I commend the regulations to the Committee.
Question put.
Tax Avoidance and Multinational Companies
Chris Stephens Excerpts(8 years, 3 months ago)
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Mr Gauke
I must press on. Tax avoidance is a global issue, which requires global solutions. Fruitful partnerships with other countries on the matter are part of the reason why the Government have been at the forefront of efforts to increase tax transparency. That appeared last year in the Conservative party manifesto, in which we pledged to
“review the implementation of the new international country-by-country tax reporting rules and consider the case for making this information publicly available on a multilateral basis.”
The Government are dedicated to increasing tax transparency, and we have already taken action. Just last week, the UK signed an agreement with 30 other tax administrations to share country-by-country reports from next year. We want such agreements so that information can be made public, as we spelled out in our manifesto. We will continue to lead any multilateral debates on tax transparency, as we have done in so many areas of international tax avoidance.
Reforming the international and domestic rules, investing in HMRC’s capacity and leading the way on global tax transparency—those actions were taken by this Government, but were sadly lacking during 13 years of Labour. The result of those actions has been £130 million to the Exchequer from Google, on top of the tax already paid. Under Labour, that sum was next to nothing. That is testament to the importance we have given to tackling the tax risks posed by multinational enterprises. Last month’s announcement represents an important result of our actions on the matter, and I assure hon. Members that we will continue to work hard on that agenda over the coming years, to give the Exchequer more money to fund the public services that we rely on. I urge the House to support the Government amendment.
Chris Stephens (Glasgow South West) (SNP)
Let me first declare that this morning I was elected chair of the all-party Public and Commercial Services Union group, succeeding the shadow Chancellor, who of course will be a hard act to follow. I will be referring to HMRC staff.
Such is the widespread scepticism and lack of public confidence following this deal that the term “to google it” now has a new meaning on the streets of the UK. No longer does it mean logging on to a computer and exploring a search engine; “to google it” now means something else. When members of the public grab their self-assessment forms, they might ask themselves, “Should I google it?”
The Minister had four opportunities—four tests, in my view—to address that widespread scepticism and lack of public confidence. The issue is about the messages that this sends. First, there was no real answer on what methodology was used to make the calculation. More worryingly, although the Minister praised HMRC staff, he did not address why 120 compulsory redundancies were issued to HMRC staff on 28 January. Worse still, there has been no explanation for why the chief executive of HMRC has refused to meet the PCS to try to help mitigate those job losses. That is a message that will be sent to multinational companies. They will wonder why HMRC offices are closing in towns, in many of which it is the largest employer, and why there are staff reductions. They will wonder whether the UK Government are serious about dealing with tax avoidance and tax evasion.
John Mc Nally (Falkirk) (SNP)
Does my hon. Friend agree that taxes are the price we pay for a civilised society and that these multinational companies should be paying their taxes willingly?
Chris Stephens
I agree. In such debates we usually hear Government Members praise the self-appointed TaxPayers’ Alliance. Interestingly, it has not been mentioned today. I agree that taxes are the price we pay for a civilised society.
We heard nothing from the Minister about a financial transactions tax. I support such a tax, particularly a global financial transactions tax, which could bring in £250 billion for national Governments. Surely the UK Government could take a lead in introducing such a tax.
The Minister made no mention of tax havens in UK overseas territories such as the Cayman Islands, which my hon. Friend the Member for Kirkcaldy and Cowdenbeath (Roger Mullin) mentioned. Research by the Tax Justice Network rates the Cayman Islands as the second most significant tax haven in the world. Of the 279 banks registered there, only 19 are licensed to operate domestically; the other 260 are there to shuffle money from country to country. The Cayman Islands have a population of 56,000, but there are 100,000 registered companies. My hon. Friend mentioned Ugland house. As President Obama has said:
“That’s either the biggest building or the biggest tax scam on record.”
I believe it is the latter. Where is the action to tackle this? The Government made no mention of that. The Tax Justice Network has said that the UK and its dependent territories and Crown dependencies remain
“by far the most important part of the global offshore system of tax havens and secrecy jurisdictions”.
The fact is that the widespread scepticism means that the public have no confidence in the Government’s handling of this affair or in their ability to deal with tax avoidance and tax evasion. That is why I will be supporting the motion today.
HMRC Office Closures
Chris Stephens Excerpts(8 years, 5 months ago)
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Hannah Bardell (Livingston) (SNP)
I beg to move,
That this House condemns the proposed closure of HMRC offices in Scotland and throughout the UK; believes that this will result in a reduced service to the public; is concerned about the potential loss of tax yield; is further concerned at the loss of jobs and expertise in local communities; further believes that this will undermine efforts to reduce the tax gap which currently stands at £34 billion; also believes that this proposal will undermine the ability of SMEs to access information and advice and that the proposed closure programme is flawed and counterproductive; and calls on the Government to halt its programme of HMRC office closures.
The UK Government’s recent announcement of the planned closure of 137 local Her Majesty’s Revenue and Customs offices across the UK is part of their continued drive to rain down a regime of austerity cuts on our family of nations.
HMRC employs 8,330 people across Scotland, which represents 13% of all UK HMRC staff. Although we do not have the full information from the Government on how many jobs will be lost, the BBC has reported—
Chris Stephens (Glasgow South West) (SNP)
Does my hon. Friend agree that it was a democratic outrage that the Government produced a statement on this matter during a parliamentary recess, and that a Government statement was not made at the Dispatch Box of this House?
Hannah Bardell
I could not agree more with my hon. Friend. It is yet more evidence of this Government’s lack of respect for Scotland and for Scottish workers.
Following the announcement, the BBC reported that more than 2,000 jobs could be lost in Scotland. As yet, we have no detail. With your indulgence, Madam Deputy Speaker, I will list the offices that are set to close across Scotland to highlight the scale and impact of the decision: one office to close in Aberdeen by 2021; one office in Bathgate and Livingston, my own constituency, by 2020; one office in Cumbernauld by 2020; two offices in Dundee; three offices in East Kilbride; three offices to close and consolidate into one large office in Edinburgh; and two large offices to close and consolidate into one large office in Glasgow.
Mr Gauke
I am certainly happy to meet my hon. Friend. I have had a request from my hon. Friend the Member for Rochford and Southend East (James Duddridge) to discuss this matter. Again, I am happy to meet him and I suspect that my hon. Friend the Member for Southend West (Sir David Amess) would also like a meeting. I am happy to meet them. I think that HMRC is right to move in this direction, although I appreciate that it creates certain issues. Some of the constituents of my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst) will have the option to work in the Maidstone office, which will stay open for four years longer than the Chatham office. I am sure that a number of them will take that up.
Chris Stephens
The Minister has been most generous. Many MPs and tax experts support the view that a visible and local HMRC presence is essential to maintaining confidence in the tax system. Does he not believe that the measures that have been announced by HMRC will open the way for more tax avoidance?
Mr Gauke
No, I do not. As I have made clear, the number of HMRC officers has been falling since its creation in 2005, including over the past five years, and we have seen the closure of inquiry centres, as has been touched on, but HMRC’s success in dealing with tax avoidance and evasion over that period has been marked and has improved. The truth is that HMRC deals with tax avoidance and evasion principally through sophisticated data analysis and by bringing together highly skilled people. The more that we can do of that, the bigger the difference we will make.
Chris Stephens
Does the hon. Gentleman agree that HMRC will have to publish an impact assessment in respect of the social and economic changes and staff with a disability or caring responsibilities?
Rob Marris
I do agree, but I will say more on that in a couple of minutes. Views vary on whether the closure programme is wise. Last week, the Financial Secretary to the Treasury and I again met Stephen Herring from the Institute of Directors, who broadly—this is paraphrasing his position—welcomes this kind of move because he thinks that technology has transformed, and should further transform, how HMRC operates, and that it should be driven by business efficiencies and so on. The Association of Chartered Certified Accountants is broadly in favour of this sort of change, too. Its head of taxation said it was
“reasonable to restructure the offices and we support there being higher skills”.
Correspondingly, the Public and Commercial Services Union, which does a great job representing its members in HMRC and across Government, has grave misgivings —to say the least—about the programme, as does the Association of Revenue and Customs, which is part of the FDA union and represents senior people in HMRC.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
The hon. Member for Wrexham (Ian C. Lucas) mentioned that this announcement had been a surprise. The skilled staff of the HMRC office in Inverness were anticipating some changes, but instead they received a hammer blow. The plan to close 137 local offices and replace them with 13 regional centres by 2027 hid the news that that will happen in Inverness in 2017-18—hardly time to draw breath on the decision. HMRC employs 8,330 people in Scotland, which is 13% of all UK HMRC staff—hardly a dividend worth retaining if that is the way we are to be treated.
The Public and Commercial Services Union has said that 11,000 full-time equivalent staff posts had been cut from HMRC since 2010, and that any further cuts would be “absolutely devastating.” Its general secretary, Mark Serwotka, stated:
“Closing this many offices would pose a significant threat to the operation of HMRC, its service to the public and the working lives of staff, and the need for parliamentary scrutiny of the plans is undeniable and urgent.”
I am delighted that the SNP has initiated this debate in the House to provide just that.
In my constituency, more than 50 staff face losing their jobs. Many are women and over 50 years old, and—most importantly—all are skilled in dealing with complex tax problems for people across the UK. Not only do they save money for HMRC and the taxpayer, but they save businesses from going into administration and provide people with vital advice. I have met those workers, and I was impressed with how flexible they can be, and how they operate in a virtual team. They have been retrained many times in the past.
The Government talk about creating a more modern HMRC, but why have they not taken time to look at Inverness, the fastest growing city in Scotland? The hon. Member for Dudley South (Mike Wood) spoke about the expense of London, but there is nothing expensive about Inverness. It has great people and a great facility, yet that is being taken away. That is not the best way to deal with the issue. There is no evidence of any assessment of the impact on staff with disabilities or caring responsibilities, or of the social, economic and environmental effects of this move.
Chris Stephens
Do not the points raised by Members from across the House show that, given the lack of a basic impact assessment, the proposals should be ripped up and we should start again?
Chris Stephens
I extend the solidarity of my constituents to those of the hon. Gentleman. This is an insult to his constituency, given the pressures it is already under. Is it not extraordinary to hear Government Members say that this is about modernisation and people filling out tax returns online, given we were told only a fortnight ago that a trade union member could not use online balloting?
Andy McDonald
The hon. Gentleman makes a good point. It is interesting how that rationale is adopted for certain arguments, but not universally spread.
It was a disgrace how the announcement was made. It was not made at the Dispatch Box by a Minister answerable to Members, but was snuck out on the internet during the recess. It was disrespectful to the people losing their jobs and to the House. The Government should be ashamed of themselves. I rang the chief executive and said, “What on earth are you playing at?”, and I asked whether a socioeconomic assessment had been done. The Minister is not interested in the impact on people’s lives, but Opposition Members are. I am sick to death of hearing Government Members say, “I feel your pain,” and “We’re doing everything to help.” I was told that about Teesside staff. Well, it is a funny way to look after staff—to say, “By the way, your job’s going.” It is ridiculous.
Ministers say that more than half of staff will retire in situ, so that is okay: they will not suffer because they can stay until they retire. Those jobs will disappear. There will be no continuity or benefit for future generations. Every time we have this consolidation in the north-east of England, it is always Teesside that loses out, and the jobs go north. On this occasion, we are talking, in the first instance, about consolidation at Waterview Park in Sunderland. It is only 30 miles away, but it is two hours 25 minutes by bus. It will add five hours to people’s working day. How on earth will people go to their school open evenings, attend to their elderly parents, or run the girl guides, or whatever it might be? What sort of quality of life is that? There is never any regard for these things.
These jobs will not come back, and there is no way people can maintain a decent pattern of life. This will simply mean more pain for Teesside. The Government must stop these closures, on which there has been no proper consultation, and use the comprehensive spending review tomorrow to provide targeted assistance to help Teesside attract the high-quality, well-paid work that is so urgently needed.
Budget Resolutions and Economic Situation
Chris Stephens Excerpts(8 years, 10 months ago)
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Mr George Howarth (Knowsley) (Lab)
I should start by saying a few words about the three maiden speeches that I have recently heard. All were passionate, witty or lyrical, and one was all three. We will look forward to hearing more from those hon. Members in the future.
I want to concentrate my remarks on young people, especially those in Knowsley. Three years ago I carried out a project over the summer in my constituency. I think we called it, “What young people in Knowsley think”. It is not a very original title, but it summed up what we were trying to do. Without going through the whole process and perhaps spending too much time on an analysis of what we did, I just want to talk about two conclusions that I drew from the questions that we asked some 80 young people.
The first conclusion was that young people in Knowsley are no less ambitious than young people anywhere else in the United Kingdom. Like other people, they want to have their own business, to join one of the professions or to be in the entertainment business. Some of them were remarkably specific about what they wanted to do: one young man wanted to be a diesel fitter in Canada. I never did get to the bottom of that story. In any case, they were all very ambitious.
The second conclusion, however, came from asking the young people what barriers they saw to achieving what they wanted to achieve in their lives. Most of them were between 14 and 18, and it was staggering that at that young age they recognised that in an area such as Knowsley—one of the poorest in the country—the barriers to achieving what they wanted in life were enormous. Some of the barriers were to do with educational qualifications—they thought that they would not get the requisite number of GSCEs to go on to do A-levels or to higher education, and that there was a lack of availability of training in the things they wanted to do.
Others feared that they did not have the right connections to get into professions they wanted to follow. In other words, mum and dad could not buy them an internship in a firm of national accountants so that they could get a head start to put on their CV. I say that not with any sense of bitterness, but at the tender age of 14 to 18 young people in Knowsley already know the limits of their potential owing to the poverty of their background. I am not saying that some will not get out of that—some will—but at that point in their lives they realise that there are enormous barriers to their achieving what they want to do.
What will the Budget do for children and families with children, particularly for those in receipt of tax credits? There are 9,900 such families in Knowsley, compared with the average in English constituencies of about 3,342—we have more or less three times the number. The number of families affected by the changes to tax credits will be nearly 10,000, which is an enormous number. That will have an impact on the children in those families. The percentage of children in families receiving tax credits in Knowsley is 71%, compared with 55% for England as a whole. On top of that—I am grateful to the Children’s Society for these statistics—the Government have allocated just £6.8 million in early intervention funding to Knowsley Council for the current year. That is £10 million less on early intervention than in 2010, yet we know that to overcome the sort of barriers I referred to earlier early intervention support is crucial. Children need that head start at an early age, but fewer resources will be available.
We also know from the Children’s Society that nationally there are 3 million children living in poverty. Some 5,290 of them are in Knowsley alone, of whom 3,840 are living in families who are the working poor. In other words, the families are in employment but they are still classified as being in poverty. I know the Government might like to redefine poverty in such a way that a lot of these statistics fall out of the definition, but there is real poverty in many of those families. We know that from some of the things that have already been mentioned.
For example, two weeks ago I spent Saturday morning collecting food for the Big Help Project food bank in Knowsley. As always when I do that, I am struck by the incredible generosity of people. They were going around Tesco, as it happened, buying their own food and then setting aside one or two bags full of food to donate to the food bank. Other hon. Members have referred to food banks. I am a huge supporter of the Big Help Project and I recognise the necessity of food banks because of the situation some families are in—many of them, by the way, are in employment, not on benefits. I never thought—a number of customers in Tesco made the same point to me—that I would live through a time when we saw families dependent on food banks to feed their children.
Chris Stephens (Glasgow South West) (SNP)
Does the right hon. Gentleman agree that in many communities across the United Kingdom the food bank is the only growth industry?
Mr Howarth
The hon. Gentleman is probably right. In some areas, a food bank has an enormous impact. It is something I honestly never thought I would live to see.
The Economy
Chris Stephens Excerpts(8 years, 11 months ago)
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Chris Stephens (Glasgow South West) (SNP)
Thank you, Mr Deputy Speaker, for giving me the opportunity to participate in this debate and to make my maiden speech. I congratulate you on your re-election and praise the maiden speeches we have heard so far today from the hon. Member for Bexhill and Battle (Huw Merriman) and the hon. and learned Member for South East Cambridgeshire (Lucy Frazer), despite our political and, as has been outlined, historical differences.
I hope that you will be patient with new Members, Mr Deputy Speaker, as we get used to our new surroundings. As a trade unionist, I am getting used to the rules not just of this House but of this great city. That fact was underlined to me when I was on the London underground and my hon. Friends told me that I had to stand to the right at all times. I retorted, “Never.” However, I have been assured by many experts that that is to do with health and safety and regulation, so I can assure the House that I will comply with that request—on the tube, not in this place.
I thank the voters of Glasgow South West for giving me the honour and privilege of representing them in this Parliament. I pay a genuine and gracious tribute to my immediate predecessor, Ian Davidson. Ian Davidson served this House for 23 years, latterly as Chair of the Select Committee on Scottish Affairs. He was a strong champion for workers’ rights, including his work on blacklisting, and I pledge to take on that work during my time in this place. He was a robust debater and he was always civil and respectful to me although, as they say in Glasgow, there was always a fair bit of banter. Indeed, in his maiden speech, he said of his immediate predecessor, Jim Sillars:
“I think my predecessor made a contribution to Scottish politics which should not be underestimated or overlooked even by those who disagree with his content or style, or both.”—[Official Report, 19 October 1992; Vol. 212, c. 264.]
Let me gently but firmly associate myself with the words of my immediate predecessor, about my immediate predecessor. I wish Ian well in whatever he decides to do next.
Glasgow South West is an area rooted in the history of the struggles of the working class, with a long tradition of representatives who fought for the underdog and gave voice to the voiceless. The constituency stretches from Govan to Pollok, featuring Ibrox Stadium, the home of Rangers football club. As a proud Partick Thistle supporter—a pleasure I share with my hon. Friend the Member for Paisley and Renfrewshire South (Ms Black)—I recognise what Rangers football club means to its supporters around the world as well as in Glasgow.
The constituency also includes Bellahouston Park, with the beautiful House for an Art Lover, designed by the world-famous Charles Rennie Mackintosh. It is a site where not one but two Popes have celebrated mass, which I was privileged to attend on both occasions. The Govan shipyards are iconic and serve as a reminder that heavy industry and manufacturing should have a place in our economy.
My constituency is rich in history, but I want to highlight just one more point. Over the next three years, all the nations of the UK will commemorate the sacrifices our forebears made in the first world war. It is my belief that all aspects of that period should be taught and remembered. In Govan, the great Mary Barbour led rent strikes fighting against unscrupulous landlords who increased rents on the home front during that time of sacrifice on the western front. That might have been a century ago, but we have come full circle as the exploitation of one of the most basic human needs, shelter and a place to raise a family, is once more a key issue in this Parliament. The Remember Mary Barbour Association does fantastic work.
There is not enough time for me to tell all the stories and outline all the hopes of the people in my constituency, but I was struck by the fact that they all want the message delivered loud and clear that they and their families deserve better. We have heard much about the importance of fostering aspiration and celebrating wealth creators. I believe that everyone has aspiration, and it concerns me when the welfare debate is reduced to judging who is deserving and undeserving, seeking the politics of grievance and envy, sowing the seeds of division within our communities.
Welfare sanctions are dragging people to the point of despair, food banks are the only growth industry in too many communities, and the daily grind of low-paid workers on insecure but highly flexible contracts is a world away from the privileged workplace I now find myself in.
I was elected to speak truth to power in this place and to stand up for the real wealth creators—the low-paid, long-hours, insecure workers who keep the economic wheels turning despite the poor treatment too many receive at the hands of their employers.
I come to this House after 25 years working in public services, and almost 20 serving as a Unison activist, representing working people on a daily basis. The trade union movement gave me a political education and the confidence to stand for election, and I know that this experience is shared with other Members who did not have a privileged start in life.
We live in a global world, and I believe that a different approach needs to be taken in the 21st century. We need to step away from the 19th century world of work and the devil-take-the-hindmost approach to social security. That is an economic illiteracy that is not only immoral but ends up costing more in the long run in damage to individuals, families and communities.
We in the SNP come to this House to argue that social justice must be at the heart of the economic debate—that we should put people before profits and bairns before bombs—and, as the STUC puts it, that a better way is possible.