Investing in Britain’s Future

Debate between Julian Smith and Danny Alexander

Thursday 27th June 2013 Commons Chamber

[Danny Alexander]

I am committing to undertaking the improvements that are necessary to bring that road up to a proper standard. There is clearly the need for a detailed feasibility study to consider precisely what is needed at every stage of the route. The money is set aside for that investment between now and 2020, so it will take place.

[Julian Smith (Skipton and Ripon) (Con)]

Superfast North Yorkshire is about to make North Yorkshire one of the first counties in England to deliver 90% broadband coverage, but we need a bit more help to get to 95%. We also have the Tour de France coming next year, and there is a big risk that the cyclists will come a cropper on our potholes. Can we have a conversation soon about how North Yorkshire can get the cash quicker?

[Danny Alexander]

I am sure that Ministers at the Department for Transport would be happy to have that conversation. As the hon. Gentleman will know, in the autumn statement last year, we set aside additional funds this year and next year for road maintenance and dealing with pinch points. I dare say that some of that money could be used to ensure that the Tour de France passes off without pothole-caused incidents.

Finance (No. 4) Bill

Debate between Julian Smith and Danny Alexander

Monday 16th April 2012 Commons Chamber

[Danny Alexander]

I shall return to the subject of tax avoidance and I want to make some progress, as I know many hon. Members wish to contribute to the debate. We are taking decisive action to clamp down on avoidance. It is utterly abhorrent that a minority of the population seek to avoid paying their full and fair share of tax, distorting the tax system to the detriment of the vast majority who pay their fair share of taxes in full. Whereas the previous Government allowed avoidance to grow and spread, we are putting a stop to it.

In total, this Finance Bill contains 15 measures to close loopholes and tackle avoidance. For example, clause 212 introduces a new stamp duty rate of 15% to deter those seeking to put their high-value property into a corporate structure to avoid tax—so-called enveloping. In a future Finance Bill, we will put in place an annual charge on properties that are enveloped in this way. Residential properties should be within the stamp duty system, full stop. It is shocking that the previous Government did so little on this matter. We are not being so complacent about the tax position of the most expensive properties in the country.

[Julian Smith (Skipton and Ripon) (Con)]

Will the right hon. Gentleman give way?

--- Later in debate ---

[Danny Alexander]

I will, but then I am going to make some progress.

[Julian Smith]

The Yorkshire Post has recently established that the police chief constables’ body ACPO—the Association of Chief Police Officers—has been paying money to ex-chiefs of police forces through special purpose companies. Will the Chief Secretary confirm that the rules on this process will be tightened up under Government proposals?

[Danny Alexander]

I certainly can confirm that, and I shall bring some proposals before the House in due course. The hon. Gentleman may recall that it was the case of the chief executive of the Student Loans Company that brought this issue to light. We have conducted an investigation into this practice in and across government, which has highlighted the fact that this process is far too widespread. As I say, I shall announce the details in due course, but the hon. Gentleman can rest assured that the Government take this issue very seriously indeed.

Debt buy-back measures announced last month will raise more than £500 million from banks that tried to avoid paying their due tax. In addition, the introduction of the UK-Switzerland agreement into legislation will help to ensure that we can tackle the tax loss from those who put their money into Swiss banks to evade paying tax.

Through the anti-avoidance measures in this year’s Finance Bill, we are already increasing revenue over the next five years by around £l billion and are protecting a further £10 billion that could have been lost. Going even further, we will consult on the potential for a general anti-avoidance rule—a new rule that will at last put the Government one step ahead of the tax avoiders. It is because of these far-reaching reforms that we will raise £500 million more each and every year from the wealthiest in our society. That is five times more than we lose by cutting the ineffective and uncompetitive 50p tax rate.

The 50p rate raised just a fraction of the amount that the previous Government said it would raise, but by cutting the rate to 45p, the direct cost to the Exchequer is only £100 million—a figure certified by the independent Office for Budget Responsibility, which I thought the Labour party welcomed, which described the figure as “central and reasonable”. Instead, the measures we have announced in the Budget will raise considerably more from the wealthy—five times more in total—allowing us to help millions of people on lower incomes to keep more of their earnings through the largest ever increase in the income tax personal allowance.