Oral Answers to Questions

Hannah Bardell Excerpts

Tuesday 7th December 2021 Commons Chamber

[Mr Clarke]

Skills are at the heart of our wider work on levelling up, which is why £3.8 billion has been allocated throughout the course of this Parliament to make sure we get the right skills for the right people in the right sectors, so that we can grow the economy in the way that is needed. I warmly commend what is going on in my right hon. Friend’s constituency, because it is precisely that kind of work that will ensure that jobs and growth really level up opportunity throughout the country.

[Hannah Bardell (Livingston) (SNP)]

9. What recent assessment he has made of the effect of his fiscal policies on gender equality.

[Mr Speaker]

Does anybody want a question? Ah, Minister.

[The Chief Secretary to the Treasury (Mr Simon Clarke)]

Our fiscal policies support the Government’s ambition of creating a fairer and more equal society, and women are among those who will benefit the most. For example, women are expected to benefit disproportionately from the Government’s increase to the national living wage to £9.50 for workers aged 23 and above, as well as the rise in the national minimum wage for young people and apprentices.

[Hannah Bardell]

I am glad you found someone to answer, Mr Speaker.

Some 6,500 women in my Livingston constituency are WASPI women and they are furious. When I recently met them with the Women Against State Pension Inequality co-ordinator Carla O’Hara, there was anger and anxiety and there were many, many tears. Will the Minister tell me and the WASPI women from his constituency and from the constituencies of Members throughout this Chamber whether the

“fresh vigour and new eyes”

that the Prime Minister promised back in July 2019 is still on the table? Or is it, yet again, another broken promise?

[Mr Clarke]

The Government have always considered this issue, which goes back over the past decade, very carefully. For the purposes of intergenerational fairness and the wider sustainability of our pension settlement into the future, it is vital that that settlement is reflective of longer life expectancy. I am afraid that is the underpinning principle of the Government’s work and we stand resolutely behind it.

Community Debt Advice Services

Hannah Bardell Excerpts

Wednesday 1st December 2021 Westminster Hall

[Emma Hardy]

I thank my right hon. Friend, who has been campaigning on this issue from the very beginning. He is absolutely right: all the forecasts—all of them—show that demand for debt advice will only increase. We know that. We also know that cases can be complex and that it can sometimes be the first time that people have got into debt. So the idea that we would cut face-to-face advice at this time seems incomprehensible.

Under the new tender, MaPS will instead have three national contracts. Its staff met me—I credit them for that—and said that these will be a mix of face-to-face, digital and phone services, with one each for the north, the midlands and the south of England, and a separate arrangement for a national call centre. However, three regional contracts, instead of nine smaller ones, as it was before, means that small, local providers that currently rely on MaPS funding for the bulk of their income face having to drop face-to-face services or close entirely. Many already know that they are not included in tender bids because they do not have the size or resources to compete individually for these tenders. Sylvia Simpson, chair of the Leeds Debt Advice Network, described the impact as “catastrophic”, with three out of four local MaPS-funded debt agencies no longer able to provide debt advice after 31 March. There are serious doubts about the rationale for the decision to restructure funding. Where is the evidence to support it and its timing? Does MaPS have confidence in the outcome itself?

Debt advisers tell me that there has been no proper consultation. In the face of the national outcry from debt advice organisations, charities and trade unions, MaPS issued a two-week call for evidence concerning the impact of the covid-19 pandemic on access to debt advice. That concluded on 29 October, but the procurement exercise for the new contracts had already taken place. The consultation will not influence a procurement process that has already gone on, so what was its purpose? It is clear that the procurement exercise expected bidders to focus on digital and telephone-based services rather than face-to-face services, despite MaPS’ own evidence showing that demand for face-to-face services was almost double supply.

A 2019 MaPS assessment of the need for debt advice said:

“Face-to-face is the channel with the smallest gap between demand and supply at the national level. Nevertheless, the levels of unmet demand are high, with demand being over two times higher than supply. It is also the channel with the biggest variation in unmet demand between countries and regions. Face-to-face unmet demand is particularly high in London, where existing supply of face-to-face debt advice could meet only just over a fifth of current demand.”

MaPS does not seem to have evidence that the need for face-to-face services will fall. On 29 November, in reply to a letter sent on 16 November from the Chair of the Treasury Committee, the right hon. Member for Central Devon (Mel Stride), MaPS provided figures showing that, for the last pre-pandemic year, 2019-20, face-to-face services accounted for 34% of its consultations. That fell by only 3 percentage points, to 31%, in 2020-21, despite the fact, let us not forget, that this was during a global pandemic that involved lockdowns, compulsory mask wearing, the adoption of social distancing and people being afraid to leave their homes. Despite all that, the demand for face-to-face debt advice fell by only three percentage points. In its letter to the Treasury Committee, MaPS notes that its most recent modelling of future demand is from autumn 2020 which, as we will remember all too well, was just before another national lockdown and before the pandemic’s third wave brutally hit, killing thousands of people in our country. That is when the modelling was done. MaPS does not say whether the modelling includes the impact of the pandemic, but I think we can assume it probably did not.

On the importance of face-to-face appointments, MaPS said that the forecast

“did not make distinctions between case complexity or channel of provision.”

If someone has a simple debt inquiry, they would probably google it and look on a website, or they might phone someone up and check. If their case is extremely complex—I refer to my earlier points on domestic abuse, mental health and such concerns—accessing a website is not going to be suitable. MaPS needs to be looking at complex cases and how it provides support.

In other words, the modelling does not tell MaPS how much demand for face-to-face appointments to expect, and the contract does not give it control over how much can be provided. MaPS claims that changes will increase accessibility to advice in those difficult-to-reach places, but those changes could mean the opportunity for face-to-face advice would no longer exist in some areas of the country. I accept—I was discussing this point with the Minister earlier—that some areas could end up with more access to advice, but that is at the expense of other areas.

In the letter, MaPS mentions an equalities and vulnerability impact assessment. That has not been made available and I hope the Minister is able to use his influence to say to MaPS that it should be published. At the moment, MaPS is saying to me, “We do not know, because we are still commissioning. We are not sure how much will be face to face; we are not sure how much will be on the phone or remote. We haven’t made any decisions.” If that is true and it does not know where it is going to end up, how can it have done an equalities and vulnerability impact assessment? When MaPS has made up its mind about what it wants, I assume another impact assessment will be needed. I hope that one is made public.

I hope I have explained clearly why face-to-face advice is the only way of supporting a significant proportion of people in debt, and why a reduction in capacity and coverage will fail some of the most vulnerable in our society. I hope that MaPS does more to reach out more effectively to practitioners with a lifetime of experience and knowledge in the field. Debt advice groups such as AdviceUK believe that MaPS’ vision for debt advice is deeply flawed, does not meet the needs of the diverse communities across England and does not enable the provision of flexible, in-depth and sustainable debt advice services.

MaPS cannot explain why it has made the funding allocations it has done or what impact they will have on people with complex needs. Of course, the pandemic has been a huge disrupter. Its effects are still being played out and the future remains hard to predict, but we do know that there will be an increase in the number of families in debt. We know that we are only beginning to see the devastating impact of the cost of living crisis. I hope the Minister is able to use all the influence he has—accepting, of course, that MaPS is a separate organisation and that this is a commercial contract—to call on MaPS to place an immediate hold on the procurement of new debt advice contracts, pending a thorough and effective consultation into the likely demand for face-to-face services in the near future; and to insist that there should be no loss of debt adviser jobs and an increase in funding for community-based face-to-face services. Consultation with frontline advisers through their trade union should also be essential for all future decisions affecting jobs and service delivery.

I finish by reminding the Minister of my earlier comment: more than 100,000 people attempt suicide each year because of debt. The services these organisations provide can literally be life-saving. Having the right debt advice is too important to get wrong.

[Hannah Bardell (in the Chair)]

I now call the chair of the all-party parliamentary group on debt and personal finance, Yvonne Fovargue.

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[Several hon. Members rose—]

[Hannah Bardell (in the Chair)]

Order. Four more Back Benchers wish to speak before I call the wind-ups at 10.40 am, so I ask Members to be kind to one another and speak for no more than six or seven minutes.

Conduct of the Right Hon. Member for Uxbridge and South Ruislip

Hannah Bardell Excerpts

Tuesday 30th November 2021 Commons Chamber

[Richard Thomson (Gordon) (SNP)]

I would like to say what a pleasure it has been to listen to the single transferable Whip’s speech that seems to have passed from one end of the Tory Benches to the other, but I am comparatively early in my parliamentary career and I have no wish to be hauled up for misleading the House.

Plenty of criticism can be made of policy, but the bit that everyone on the Government Benches, from the Minister to the Back Benchers, seems to have completely missed is that this debate is about the probity and suitability of the current occupant of No. 10 Downing Street to be there and to continue carrying out his duties as Prime Minister.

When I first started taking an interest in politics, I was a student during the tail-end of John Major’s time in Downing Street. There were scandals aplenty then, like now, from the petty and the embarrassing through to the corruption of cash for questions and the outright duplicity of the arms to Iraq affair. It was hard to imagine that the UK might ever again be led by a Government so chaotic, so lacking in scruple, so willing to bend the truth and so willing to hawk themselves around the broadcasting studios to assert that forwards is backwards and black is white, yet here we are. Although we can all no doubt highlight points along that trajectory where things really started heading for the ground, I do not think any reasonable person could dispute that the present holder of the office of Prime Minister has taken us to this nadir of public trust in Government and politics.

It is all part of a pattern of behaviour. If you want a photo opportunity in a hospital but can’t be bothered to wear a mask, just ignore the instruction to wear one. If you don’t like the Electoral Commission investigating who funds your party, your takeaways or your flat renovations, emasculate the Electoral Commission. You don’t like the fact that people without ready access to ID tend not to vote for your party—try to introduce voter ID. You don’t like the fact that voters in devolved nations don’t elect enough representatives of your party to have any influence—try to bypass devolution. You accidentally create a border in the Irish sea—just pretend it does not exist and tell people that black is white.

This Government clearly think the rules do not apply to them; it is one rule for the Government and another rule for everybody else. It comes from the top, led by a Prime Minister who clearly does not think that there are any rules at all or that if there are, they should not apply to him.

[Hannah Bardell (Livingston) (SNP)]

Does my hon. Friend agree that for all this talk of the levelling-up agenda, when it comes to Scotland it is clear that it is a scorched earth agenda? Whether we are talking about carbon capture in his part of the country or the Valneva contract to deliver 100 million vaccines, which we need right now, this Prime Minister is not capable of doing the very basics and telling the truth.

[Richard Thomson]

I thank my hon. Friend for that intervention, and she says it very eloquently and succinctly. We have a crisis of confidence in this country. We have a crisis of confidence in the Prime Minister, who is clearly not fit for the job with which he has been entrusted. This is being aided and abetted by the silence and complicity of far too many Conservative Members, and I cannot wait to see which Lobby the Scottish Conservative contingent, in particular, chooses to go through this evening.

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[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

May I start by wishing you, Madam Deputy Speaker, and colleagues across the House, a very happy St Andrew’s Day. Perhaps after this heated and charged debate, we might all enjoy a little of Scotland’s national drink to toast what unites us and what divides us.

I will endeavour to reply to as many Members as possible in the few minutes that I have. I apologise if I am not able to pick up on everyone’s comments. As it is St Andrew’s Day, it is probably appropriate for me to start by referring to the hon. Member for North East Fife (Wendy Chamberlain) who is, sadly, not in her place at the minute, but her seat contains St Andrew’s. She made a couple of important points, but this debate is a wasted opportunity today. If the real concern for the separatists on the SNP Benches was to take forward the debate on standards in public life, we could have had a debate on the Committee’s report and some of the related issues on that, but, no, they chose not to do so. The hon. Lady also suggested that the centralising power of the Scottish Government could properly be examined—issues that really matter to people in Scotland. But no, we did not discuss that.

It is disappointing but not entirely surprising that we have spent our time today responding to the desire of SNP Members once again to engage in the divisive, splitting-up policies that appeal to their fan base in the wake of their recent conference. Perhaps, as my hon. Friend the Member for Burnley (Antony Higginbotham) pointed out, it is to give them fresh social media clips to post on Twitter and elsewhere. It was pointed out to me during the debate that SNP command and control was tweeting about this debate using an old photograph of the Chamber, so unless SNP Members have had a complete costume change during the debate, perhaps this is the fresh material that they need.

Of course, I did not expect SNP Members to arrive here with a long list of the ways in which membership of the Union benefits Scotland, or the many ways in which this Government are investing in the future of Scotland as we navigate our way through the pandemic. They want to talk of the Prime Minister’s conduct. I am happy to talk of the Prime Minister’s conduct in securing for Scotland the roll-out of the covid-19 vaccine, saving lives and stopping the spread of the virus. Today, the conduct of the Prime Minister has been to set out how we are going to ramp up the booster programme to give us the best possible defence against the current variant.

[Hannah Bardell]

Will the Minister give way?

[Iain Stewart]

The hon. Lady must forgive me; I have to respond to a lot of her colleagues.

We could have been debating the important issue of how we respond sensibly to this new variant. Of course, I would not expect the SNP to highlight the way in which this Government have supported thousands of businesses in Scotland, with more than £4 billion of loans through the bounce back loan scheme and the coronavirus business interruption loan scheme. It took 13 minutes only for the reality to be revealed—that this is actually all about separation and the SNP’s desire to achieve it. That is what this is all about, not the real issues that are of importance to the people of Scotland.

Let me turn to the contribution of the shadow Minister, the hon. Member for Oxford East (Anneliese Dodds). I do feel some sympathy for her, given the massed ranks of two colleagues with her—two and half perhaps; I am not quite sure where Labour is with that. The hon. Lady said something quite surprising. She said that Labour Members are not here today because it is an SNP debate, as if that exempts them from talking about these issues. Has Labour given up in Scotland? Does it fall solely to the Conservative party to be the defender of the Union? I really think that her colleagues should take a little bit more interest in this matter.

My right hon. Friend the Member for West Suffolk (Matt Hancock) made a hugely important contribution, spelling out the reality amid all the false accusations about the procurement of vital equipment during the early stages of the pandemic. We were in a race against time to get that equipment, and he rightly spelt out what happened. This nonsense about crony contracts is just not fit for purpose. He also made the important point that our vaccine programme was UK-funded, using universities across the UK; that is the reality of the Union.

The right hon. Member for Dundee East (Stewart Hosie), for whom I have a lot of affection—we have worked collaboratively on issues affecting his constituency or nearby—made a number of accusations that I really cannot allow to lie. First, he said that we were engaged in various acts of voter suppression regarding voter ID. I have to reveal to him that we already have voter ID in one part of the United Kingdom—Northern Ireland—and there is no evidence that it suppresses voter turnout. He also cited the boundary review, as if it was unnecessary. I looked up the electorate in his constituency, which is approximately 66,000. I have nearly 100,000 electors, and is it not a basic point of fairness that we each represent approximately the same number of voters? His final point was to reference a Supreme Court judgment. He seems to have forgotten that the Supreme Court recently ruled against the Scottish Government when they tried to exceed the powers of the devolution settlement—and this is a party that talks about respecting devolution. I have to say it was off the mark.

I am not going to be able to respond to many more contributions, but I do have to respond to the very important point made by my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie). At the moment his constituents are without power, heating and basic services. He wants to know how this Government and the Scottish Government can work together to help those people in his constituency. That is what we should be debating today, not partisan red meat to throw at the fanbase to cover up internal divisions over the next steps to independence.

This Prime Minister is passionate about the United Kingdom. He is setting out some of the long-term solutions to the challenges we face, like on social care—an issue that has been ducked by Government for too long. That is the conduct of this Prime Minister. It is a Prime Minister I am proud to serve in this Government, and I urge colleagues to reject the motion before us tonight.

Question put.

LGBT Conversion Therapy

Hannah Bardell Excerpts

Monday 8th March 2021 Westminster Hall

[Hannah Bardell (Livingston) (SNP)]

It is a pleasure to serve under your chairship, Mr Gray. I can think of no better way to open my speech than where the hon. Member for Walthamstow (Stella Creasy) finished, with a passage from Vicky Beeching, who gave me a lot of support before I came out publicly. In her book “Undivided: Coming out, becoming whole, and living free from shame”, she writes: “There was only one thing that had caused vast emotional shame in my life for years. I had known I was gay since I was 12 or 13. Keeping that hidden for two decades had been wrecking my heart and mind. Now, as I neared the age of 30, it seemed to be wrecking my body too. All these years I’d prayed and fasted, submitted myself to an exorcism, confessed to a Catholic priest, believed that conversion therapy could change a person’s orientation, read the Bible until my eyes were sore and never acted on my attractions even once. I’d done anything and everything to try and become straight or to shut down any desires for a life partner. My immune system, my adrenals and my sympathetic nervous system were all stretched to breaking point from years of living in fight or flight mode.”

If Members need any other first-hand accounts of how devastating conversion therapy is, a good friend of mine who wanted to remain anonymous shared this with me: “I had not known until today what they had endured. It’s only now, at almost 35 years old, that I even have some small level of strength to begin to deal with it. It cost me most of my teenage years and 20s. I still struggle with acceptance of my sexuality to this day, which has affected my ability to have any open and meaningful relationships. I went through years of really dark mental health battles because of this. The first time I tried to kill myself by suicide was at 12 years old, because I wasn’t who I was meant to be, and this was unfortunately the beginning of what was to become a very dark decade of self-hatred brought on because of these practices. It’s torture, and it has had lifelong debilitating effects that affect every part of my life. It has to stop.”

We should not have to choose between our religion and our sexuality, or between following the faith of our choice or the person we love. I might not be formally part of any faith, but I recognise what a huge part faith can play in many people’s lives and in our society. The national LGBT survey of 2018 showed that 51% of respondents who had undergone conversion therapy said that faith groups had conducted it, and 19% said it had been conducted by healthcare providers or medical professionals. As parliamentarians and legislators, we simply cannot allow such a practice to continue.

I was well into my 30s when I came out. Why I did not come out sooner will always be a mystery to me, but a big part of it was because I was from a single-parent family. I grew up in a loving family that I knew would accept me for whoever I was, but I did not grow up in a society that would accept me for whoever I was. I grew up in a society that said heteronormativity and having a parent of each gender was the ideal, and I could not face up to being a lesbian. Now, as the daughter of a single mother and as a proud out lesbian, I realise that they are my strengths, my superpowers, but that is not the case for so many in the LGBT community.

I know how hard it was to come out to a loving family and friendship group. I cannot imagine how difficult it is for people who are oppressed and subjected to conversion therapy, so we must draw a line in the sand. We must ask ourselves as parliamentarians, “What are we here for?” We are not here just to make grand speeches and gestures. We are here to bring about change, to change the law, and to outlaw that abhorrent practice.

[James Gray (in the Chair)]

We have 50 minutes to go and six speakers. I call Simon Baynes

Economic Update

Hannah Bardell Excerpts

Monday 11th January 2021 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

Let us see if we can go a bit faster to try to get everybody in.

[Hannah Bardell (Livingston) (SNP) [V]]

The Young Women’s Trust found that because of covid 1.5 million women are losing income; 69% are claiming benefits to the first time; half of young mums are unable to keep or find employment because of childcare costs; and a third of women will not report sexual harassment for fear of being fired. Can the Chancellor therefore tell me how his Government can possibly continue to justify the five-week wait, have statutory sick pay at a disgracefully low £94 a week, and exclude many female business owners from help? Will he take proper action for women, who are bearing the brunt of this pandemic?

[Rishi Sunak]

All the support that we have put in place is blind to gender; no one is excluded on the basis of gender and I do not think it is fair to suggest otherwise. One of the reasons that I have been so keen to try to support the hospitality industry throughout this period, and to encourage people to be able to go back to it when it was open, was because of the social justice aspect. It is an industry that disproportionately employs women and other groups that we want to try to see protected. That is why it is a very important industry to me, and we must get it back to its former glory.

Economy Update

Hannah Bardell Excerpts

Thursday 5th November 2020 Commons Chamber

[Rishi Sunak]

I can give my hon. Friend that assurance. Those are three-month grants for the self-employed. The system will open in November so that grants can be paid in December, in time for Christmas, as he says. As he knows, that builds on our significant support for the self-employed. More than 3 million people are eligible for that support, which is now worth more than £14 billion. Today’s announcement will mean an additional £7 billion of support to those people over the Christmas period.

[Hannah Bardell (Livingston) (SNP) [V]]

My constituent Douglas McCarthy has been running the bespoke travel business Travelyard for many years and has seen his livelihood completely evaporate. Despite the fact that he has been bringing folk home and providing a vital service in the community, he feels that his industry has been virtually ignored by the UK Government and the insurance sector, which is failing to pay out on his business interruption insurance. In addition to the uncertainty over UK Government support, my constituent has had to fulfil full refunds out of his own pocket with very little support. Will the Chancellor, or someone from his team, meet my constituent and me to hear the specific concerns on what can be done to support him and travel agents like him?

[Rishi Sunak]

Travel agents’ businesses, coming under the retail category, will benefit from business grants in England, and that money has been Barnetted to Scotland, so the Scottish Government can choose to do something similar to support their travel agents. My hon. Friend the Economic Secretary has previously worked with the insurance industry and the Financial Conduct Authority to provide clarified and updated guidance on business interruption insurance.

Tax Avoidance and Evasion

Hannah Bardell Excerpts

Tuesday 25th February 2020 Commons Chamber

[Steve Barclay]

The right hon. Gentleman raises an important point about the moving target of criminality and the ingenuity of approaches to evade tax or abuse the tax system. That is partly why I referred earlier to the fraud service set up within HMRC in 2016. It is also a key part of how technology is used in a dynamic way within HMRC to tackle that moving target of criminality. As I said in answer to his earlier intervention, if in their surgeries Members are told of case involving firms or local authorities in their constituencies, that intelligence is obviously of relevance to colleagues, and I can commit that the Financial Secretary would take those forward.

[Hannah Bardell (Livingston) (SNP)]

The right hon. Gentleman will be aware of the situation in my constituency, where the HMRC offices are being closed and moved to Edinburgh, at significant cost to the taxpayer. One of the key issues the unions raised with me time and again was the loss of expertise. The services and expertise of the many long-serving staff who cannot move for various reasons—financial reasons, caring responsibilities, and so on—will be lost, so there is a double cost to the Treasury. Does he not consider it a grossly bad decision by this Government?

[Steve Barclay]

The right hon. Member for Barking (Dame Margaret Hodge), when she chaired the PAC, looked at whether the Government were managing their estate efficiently. Through the PAC, the House regularly raised the concern that the Government were not properly managing their cost base by rationalising the estate, and often those concerns related to PFI—I do not know if the case the hon. Member has raised relates to PFI.

[Hannah Bardell]

The Pyramids, in Livingston in West Lothian, where the HMRC offices were based, was one of the most high-tech and best-connected sites in Scotland, yet the Government are moving them to Edinburgh to one of the most expensive sites in Scotland. It makes no sense financially, and the PAC agreed. There is still an opportunity for the Chief Secretary to the Treasury to rethink this decision or create a hub in West Lothian to save those jobs, which were put there as a result of the closure of Motorola.

[Steve Barclay]

I will not comment on that individual decision, which I have not been involved in, but the House has in the past questioned whether the Government have been moving quickly on the wider principle of using our estate in the most value-for-money manner, by pooling expertise to work more efficiently and offering career progression through the greater flexibility that bigger teams in bigger centres often allow. It is right that we look at what the right estate mix is and at how we can pool expertise to achieve our common goal of closing the tax gap, particularly by using technology.

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[Alison Thewliss (Glasgow Central) (SNP)]

The tax system in the UK is hugely complex. Every Finance Bill that comes along adds layers of complexity, leaving a taxation system that is unwieldy and difficult to understand, and even more difficult for the Government and HMRC to control. It leaves loopholes that incentivise tax avoidance and evasion. My SNP colleagues and I have long argued for a root-and-branch review of the entire system, and I am grateful for the opportunity to repeat those calls today.

The Scottish National party will continue to lead the fight against tax avoidance and evasion at Westminster. In the last Parliament, we were proud to secure the House’s support for a Finance Bill amendment seeking a review of the impact of UK tax avoidance measures. We forced the UK Government to accept the need to tackle the abuse of Scottish limited partnerships as money-laundering vehicles, and supported cross-party efforts by the right hon. Member for Barking (Dame Margaret Hodge) and her colleagues to drag the UK Government into the 21st century by adopting Magnitsky powers to sanction overseas officials guilty of human rights violations.

The SNP has just won a landslide of Scottish seats on a manifesto demanding tougher action on tax avoidance, including a review of the closure of HMRC offices in Scotland and across the UK; immediate action, including reform of Companies House, to uncover the beneficial ownership of SLPs and other companies and trusts; measures to improve the transparency of tax paid by international companies to ensure that they make a proportionate contribution to tax revenues; multilateral efforts to address tax challenges resulting from the digitisation of the economy; further action by the UK Government to tackle international tax avoidance; the full implementation of the fifth money laundering directive; a fit-for-purpose online retailer tax; a review of the tax rules governing intermediaries—known as the IR35 tax rules—and problems with implementation of the loan charge; and a comprehensive inquiry into the digitisation of tax, to uncover the reasons for HMRC and UK Government delays which mean that we still do not have the 21st-century tax payments system that could help to tackle avoidance and evasion.

We have heard a great many well-meaning arguments from the official Opposition this afternoon, but, unfortunately, this is a situation to which Labour contributed when it was in power. Instead of simplifying the tax system, it introduced policies such as the IR35 tax rules, which have made staffing extremely difficult for the NHS and other public sector organisations.

While some very welcome action has been taken, no UK Government have yet created a comprehensive anti-avoidance rule. Legislation has come to shut down loopholes as quickly they have appeared, and then, as night follows day, new schemes have emerged to circumvent the law. We saw then, as we do now, plenty of tinkering at the edges of the system but no meaningful action to align taxes for different kinds of workers. Successive Chancellors have passed up opportunities for radical reform, and have simply added layers of bureaucracy and complexities to the existing system. There are now ample places in which those who do not want to contribute can hide within the system.

Last year, Tax Justice UK published a report on the worrying scale of loopholes in, for example, inheritance tax. On the basis of HMRC figures, it states that the vast majority of those tax breaks go to properties worth more than over £1 million; and that is over and above the usual inheritance tax allowance. Instead of benefiting small farms or family businesses, the tax breaks constitute a massive tax giveaway to those who are already very wealthy. The report’s findings only highlight what we know to be true: that this UK Tory Government have ensured that the rich get richer, while at the same time the poorest people in society have experienced real cuts in their incomes, and are less likely to benefit from policies such as the increase in the income tax threshold.

I appreciate that the new Chancellor has not yet had time to outline his plans, and I hope that he will take a different approach. However, the accounts of his professional background by the shadow Chancellor and in this week’s Private Eye lead me to hae ma doots. Extremely worrying noises have been coming from the Government in respect of the post-Brexit regulatory landscape. Already this year we have seen the UK inch closer to the world’s top 10 countries for financial secrecy, rolling back progress made in previous years on increasing transparency. We have all heard talk of a ”Singapore-on-Thames” approach to the City of London. That would be bad news globally, but also for the people who live here.

With a Tory Government full of Thatcherites, who have no interest in creating a level playing field on tax with the EU, there is a real risk that the Prime Minister has set the UK on a race to the bottom on tax avoidance. Just weeks after the UK left the EU, the European Union has added a British overseas territory, the Cayman Islands, to a list of tax havens. Markus Ferber, of the group of the European People’s party (Christian Democrats), has said:

“The UK would be well advised to take note that EU finance ministers put a British overseas territory on the blacklist of tax havens.

This sends a clear signal that the idea of turning the UK into a tax haven will not be acceptable to the EU.”

The Minister who will wind up the debate should explain exactly what he is doing to address that blacklisting as a matter of urgency.

There are already significant holes in the system preventing dirty money from being moved around. My former colleague Roger Mullin and I have spoken on numerous occasions in this place about the problems surrounding Scottish limited partnerships, which still freely allow people to hide and move dirty money between countries.

[Hannah Bardell]

Scottish limited partnerships have a real human impact. Is my hon. Friend aware that money is being laundered from, for instance, Moldova through SLPs? That is having a hugely detrimental impact. One human rights defender whom I know from Moldova has been driven out of her own country, and is having to live elsewhere.

We must bear in mind that human impact, but we must also bear in mind the reputational impact on Scotland. Scotland wants no part of schemes of this kind, and the UK Government should clean up their act.

[Alison Thewliss]

I totally agree with my hon. Friend. Anyone who thinks that moving money around in this way is consequence-free should look very carefully at what actually happens to the proceeds of these funds when they are moved around.

SLPs have their own separate legal personality, which means that a firm can contract and own assets without lifting the veil to see who is really buying them. In 2016 the UK Government obliged SLPs to register a person of significant control, but there is virtually no enforcement and virtually no consequences for people who fail to register companies in the proper way. Last time I checked, thousands of partnerships had failed to register a person of significant control. I should be interested to learn from the Government how many fines have been recovered, and the value of those fines.

This scandal is still having an impact, despite legislation being in place. The dogged investigative journalist David Leask revealed in January that SLPs had been implicated in the payment of mercenaries in a private air war in Libya. If the United Nations is taking an interest in the abuse of SLPs, this UK Government should be taking action urgently. A quick Google search reveals umpteen companies advertising their services in setting up SLPs from abroad and extolling the virtues of this tax-free, opaque way of conducting nefarious business. There is no comeback for firms protecting those who will not register a person of significant control, and no comeback for the perpetrators either. It is well known that SLPs are being used for criminal activity and have been linked to international scandals, not least the Azerbaijani laundromat, in which £2.9 billion was laundered through four UK companies, which were able to file paperwork disguising their true ownership without any flags being raised.

At the heart of this is the gaping chasm in our regulatory system that is Companies House. Companies House is obliged only to register companies, not to carry out any verification or due diligence. This must change urgently, because it undermines the credibility of the UK. It is farcical that the only person convicted for filing false information has been a whistleblower, Kevin Brewer, who did it to highlight the nonsense of the registration process. I ask the Minister: what has changed since that prosecution? Why will the Government not reform a system that is open to such flagrant abuses? If I want to do my tax return online or get a passport, I would require to use the UK Government’s Verify scheme. If I want to set up a company, I can do so online for £12 with absolutely no checks. Why do the UK Government insist that people pay so much for driving licences, passports or UKVI applications but so little to set up a company, especially when those companies can go on to facilitate tax avoidance and evasion? It is high time the Tories sat up and took stock of the scale and extent of the tax avoidance and criminal activity linked to the lack of proper checks by Companies House and the abuse of SLPs. Only by doing so can they put forward a practical and effective solution that will adequately tackle the problem.

HMRC highlighted a loss in 2016-17 of between £1 billion and £1.5 billion on digital sales through VAT fraud. I note that the Association of Accounting Technicians has called for online platforms to be made liable for the collection and remittance of VAT. That money is going uncollected. We know where the goods are going—they are going into people’s houses and through retailers—so there is a digital chain there that we can follow. The UK Government should deal with this VAT avoidance.

I also ask for an update on the registration of overseas entities Bill, on whose pre-legislative joint scrutiny Committee I sat. Property is yet another way in which money can be hidden and taxes avoided, and that Bill will be a vital tool to clamp down on the flow of dirty money. The Committee also noted the abuse of trusts—as we close one loophole, another opens—and the Government must look into that as well. Trusts are being used as a means of hiding the true ownership of property and companies.

[Hannah Bardell]

My hon. Friend mentions the Bill on whose Committee we both sat. She led, admirably, for the SNP on that Committee. Does she recall that it was not until the attack on UK soil, in Salisbury, that the Government really sat up and took notice of the genuine issues that were raised in the Sanctions and Anti-Money Laundering Bill? It should not take an attack on UK soil for the Government to act on these issues.

[Alison Thewliss]

My hon. Friend is absolutely right. The change of tone during passage of the Sanctions and Anti-Money Laundering Bill was palpable. It really does say something that the Government only really took the issue of dirty money seriously when it arrived on their own doorstep. We cannot wait for that to happen again; we must take action now.

Another area where the UK Government are taking entirely counterintuitive action is in closing local HMRC offices. My hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) had an Adjournment debate in January on the closure of the Cumbernauld office, and I know that other colleagues share those concerns about the imminent closure of offices in Aberdeen, Bathgate, Livingston and other locations. While I have something of an interest, as the local Member for the proposed Glasgow regional centre, I cannot see the logic in cutting staff numbers and losing not only jobs in communities but the important local knowledge that can be brought to bear. My hon. Friend the Member for Livingston (Hannah Bardell) mentioned that a House of Commons Public Accounts Committee report last year criticised the Government’s lack of robust business planning ahead of the decision to base local HMRC offices in “expensive” cities. It is a colossal waste of public money to move offices into city centre locations where the rents will be significantly higher and the benefits will not be seen.

--- Later in debate ---

[Hannah Bardell]

On the matter of the movement of offices, another important issue is accessibility. A number of members of the union who have spent time in that new, expensive office in Edinburgh have said that the accessibility for people with disabilities is very poor. I wrote to the Government about this before the election last year but I got a very poor response. Does my hon. Friend agree that these new, expensive offices should at the very least be accessible, and that they should not have been moved in the first place?

[Alison Thewliss]

I agree. There is a strong argument that the value of the local offices in communities such as Livingston and Cumbernauld is significant. It is much easier for people to get to work there rather than commuting, which of course adds to the environmental damage. It is much better to have a shorter commute to work. The PCS union has also criticised the move and called into question HMRC’s rationale, as has my hon. Friend the Member for Glasgow South West (Chris Stephens), who may have more to say on these things later.

All of this comes at a time when the head of HMRC says that the authority may need to hire an extra 5,000 staff to deal with the logjam at the border because of Brexit. This is a time of growing complexity, and investment in staff and expertise is crucial. Without that expertise, the UK Government are leaving themselves open to a further loss of tax revenue and further potential evasion and avoidance as we head into Brexit.

It is only right that people should pay the taxes that they owe, but HMRC’s botched implementation of the loan charge is nothing short of a disgrace, leaving many people facing the prospect of bankruptcy. The UK Government must, of course, pursue vigorously the organisations that have facilitated those loans, and they must work constructively with those who are seeking a responsible and reasonable repayment plan—one that recoups the unpaid tax while avoiding the unacceptable risk of bankruptcy and homelessness. If HMRC cannot deliver that, an independent arbitration mechanism should be used.

This is not some kind of academic argument. This issue has implications for the real world, for the money available to our public services and for the growing gap between rich and poor. The shadow Chancellor set out the limitations of HMRC’s estimate of the tax gap at some £35 billion. There is a real implication here for all our constituencies when we see cuts coming down the line. Paying tax is a duty. It is the price of a fair society, not a burden to be avoided. Those who seek to avoid and evade their responsibilities, and those who facilitate their behaviour, need a strong message from the UK Government. The Government must explain why they are failing to stop the siphoning away of money that could be paying to educate children and care for the elderly. The SNP is committed to clamping down on tax avoidance and evasion, but we do not yet have the full economic levers to do so as they are still held by the Treasury and HMRC. My hon. Friend the Member for Aberdeen North (Kirsty Blackman) has pointed out on many occasions that small countries are much better and more efficient at gathering tax, so I suggest that if the UK Government will not act, they should devolve the powers to Scotland and let us get on with the job of building a fairer society.