Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 9th May 2023 Commons Chamber

[John Glen]

I think the whole House will agree that the hon. Gentleman must be the most effective advocate for his constituents. We will see what happens. There will be a rigorous process, including wide consultation, and we expect to have an outcome that benefits his constituents and people across Northern Ireland.

[Mr Speaker]

I call the SNP spokesperson.

[Stewart Hosie (Dundee East) (SNP)]

The incentives offered by investment zones include 100% business rates relief and enhanced capital allowances. With the exception of reduced national insurance contributions, it is hard to see the difference between an investment zone and an enterprise zone. What additional fiscal support are the Government providing to differentiate these investment zones from enterprise zones?

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[Layla Moran (Oxford West and Abingdon) (LD)]

Inflation is hitting not just individuals and families, but councils and potentially infrastructure projects. Lodge Hill junction on the A34 in Abingdon is one such key piece of local infrastructure, and when completed, will support jobs and housing across Oxfordshire and Science Vale and the economy as a whole. Homes England and the Department for Levelling Up, Housing and Communities say that the final piece of that funding now sits with the Treasury in the brownfield, infrastructure and land fund. Will the Minister meet me so that I can explain why this is such an important piece of funding to be released, and please can the Government supply the last piece of this puzzle so that we can deliver Lodge Hill junction once and—

[Mr Speaker]

Order. That has absolutely nothing to do with the question. It is a bit of a struggle, is it not? Do you think you can answer it, Minister? No. Okay.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

6. What assessment he has made of the potential impact of disguised employment practices in the hair and beauty sector on tax revenues.

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[John Glen]

Absolutely. It is right that we continue support for the cost of living challenges. I have mentioned the energy price guarantee; we are also sticking to that plan to avoid unnecessary inflationary pressure. [Interruption.] On average this year, as a result of Government decisions made from—[Interruption.]

[Mr Speaker]

Order. Members will have to continue their conversations at another time. Carry on, Minister.

[John Glen]

As a result of Government decisions made from autumn statement 2022 onwards, households in the bottom half of the income distribution will see, in cash terms, twice as much benefit from Government support as households in the top half of the income distribution.

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[Victoria Atkins]

I hope my hon. Friend has been listening to what the Chancellor said at spring Budget and in speeches since then about the need for fiscal responsibility. We have to be fiscally responsible; we have acknowledged that. We have had to make some very difficult decisions along the way, but we are clear that halving inflation, tackling our debt and growing the economy will enable us to make the sorts of tax cuts that he and I both want to see so much.

[Mr Speaker]

I call the shadow Minister.

[James Murray (Ealing North) (Lab/Co-op)]

Tens of thousands of people have been affected by the loan charge, with some having faced well-documented distress and harm as a result of HMRC’s approach. At the same time, HMRC has been issuing fewer than two fines a year against the architects and enablers of failed tax avoidance schemes. It is absolutely right that disguised remuneration schemes are tackled fairly and effectively, so how on earth can the Conservative Government justify such a light-touch approach for the promoters of such schemes, while many of those caught up in them face such a nightmare?

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[Victoria Atkins]

I am interested that the hon. Gentleman dismisses these incredibly successful unicorn start-ups in the UK economy. I hope that he will not dismiss their continuing success as we continue to support them through the various tax reliefs we are offering them and investment, including our most recent research and development tax reliefs. I would also point out to him that of course Scotland will benefit from some 73 trade deals secured with non-EU countries—benefits that include control of our fishing waters, something that I know is a matter of great concern to Scottish residents.

[Mr Speaker]

We now come to the shadow Minister.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

I am never quite clear why, if we do not like trade barriers, the answer is to erect even more of them. The Government said that through the Retained EU Law (Revocation and Reform) Bill, they would get rid of 4,000 laws built up during our time in the EU. The Prime Minister even got his shredder out to show us what this would look like, and the Government said there would be a sunset clause to make sure all this happened by the end of the year. Voices from both business and the trade unions have said that this could cause even more chaos and uncertainty and undermine workers’ rights, in breach of the promises made by Ministers at the time of the referendum. Can the Minister confirm whether, after marching their troops up to the top of the hill and getting the Back Benchers very excited, the Government are keeping the sunset clause to have all this done by the end of the year?

[Victoria Atkins]

I do not know whether I can speak on behalf of the Secretary of State for Business and Trade, who is the portfolio holder for that piece of legislation. What I do know is that the Bill is currently before the House of Lords, and will no doubt be scrutinised very carefully by their lordships. I can also reassure the House that we are taking a careful and considered approach to the benefits—the regulations, the laws—that Brexit presents to us, and we know from our discussions with businesses that business certainty is something that we all want to strive for and achieve. I am sure that once this Bill has been scrutinised by the House of Lords—[Interruption.]

[Mr Speaker]

Order. I have got another question to come. The Minister should not worry; there will be another chance.

[Mr McFadden]

I think business certainty might be improved by an answer to the question.

Inflation is at 10%, the highest in the G7, and food inflation is at 19%. The former Prime Minister—the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), to avoid confusion, because there are a few former Prime Ministers—promised us that

“there will be no non-tariff barriers to trade”,

but we already know that many small businesses are giving up exporting to the EU altogether because of costs and delays. With inflation already at those levels, the Government have picked this moment to impose a new system for checks on EU goods that is estimated to add £400 million a year to the cost of goods coming into the UK. Can the Minister tell us why the Government are picking this of all moments to add these new costs and price rises to UK consumers who are already struggling to make ends meet because of the biggest cost of living crisis in decades?

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[John Glen]

Our priority was clear throughout the covid crisis, and that was to get PPE to the frontline as quickly as possible. Due diligence was carried out on all companies that were referred to the Department. Despite all those steps being taken, some instances of fraud did occur with unscrupulous suppliers taking advantage of the situation. This Government take that fraud seriously, and the Department of Health and Social Care is exploring every available option to bring those who commit fraud to account. We have also made a number of other interventions, including investment in the taxpayer protection taskforce to normalise higher compliance activity in HMRC, alongside other measures to deal with fraud elsewhere in some of the emergency schemes that we set up to help this economy and this country get through covid.

[Mr Speaker]

I call the shadow Minister.

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

Last week, the Public Accounts Committee revealed that our country lost £9 billion-worth of tax revenue during the pandemic because HMRC redeployed 4,000 staff members whose jobs were to chase down tax avoiders. The Prime Minister was Chancellor at the time and presumably signed off that decision. Can the Minister tell me whether the Prime Minister did that as a deliberate act to give the green light to tax avoiders, or is it just another example of Tory incompetence?

[John Glen]

I think that is a ridiculous suggestion, to be honest. HMRC received £863 million to modernise the tax system, and that included £136 million invested over the spending period to deliver improvements in terms of a single customer record and account. On what happened over covid, I have already set out the investment we made, including the £100 million in the taxpayer protection taskforce. We take fraud very seriously. Now it is about HMRC looking at financial records of excessive trading to come to terms with those businesses that used some of those schemes fraudulently. We will continue to work on that.

[Mr Speaker]

I call Carla Lockhart. She is not here.

[Ashley Dalton (West Lancashire) (Lab)]

T2. If he will make a statement on his departmental responsibilities.

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[John Glen]

I could not agree more. Responsible public spending is at the core of getting our economy into a state where it can grow, and the £90 billion of unfunded spending pledges made by Opposition Members will be scrutinised very carefully, I am sure, by many in the months ahead.

[Mr Speaker]

I call the shadow Chancellor.

[Rachel Reeves (Leeds West) (Lab)]

The Conservatives have now had 13 years in office—wages lower, the weekly food shop astronomical, energy bills unprecedented, 24 Tory tax rises and the national debt has ballooned —so can I ask: after 13 years of Conservative Government, does the Minister think that people feel better off, or worse off?

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[The Financial Secretary to the Treasury (Victoria Atkins)]

I hope the hon. Gentleman knows that we are spending record amounts on the NHS. We are also mindful that non-doms pay some £7.9 billion in UK taxes on their UK earnings and have invested some £6 billion since 2012. So we are mindful of the very real impact that they make on our revenues, but we have managed to tighten the rules around non-dom status, and that is why—

[Mr Speaker]

Order. I call Jonathan Gullis.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

Day one on the job and Labour in Stoke-on-Trent talk about cancelling the £56 million of levelling-up funding, which is UK-leading, going to the great city of Stoke-on-Trent. Will the Chief Secretary to the Treasury confirm that the Conservative Government will have the backs of the people of Stoke-on-Trent and deliver this important levelling up?