The Economy and Living Standards
Lindsay Hoyle Excerpts(12 years, 1 month ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I think that the Chancellor has got the message.
Mr Osborne
Well, Mr Deputy Speaker, that was the definition of a cheap political pot shot, and it rather sums up the tone of Labour Members’ approach. They started with a whole spiel about new politics and having to engage with the disenchanted, but after only a few minutes, it has swiftly deteriorated.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Many Members want to speak, so it would help to keep interventions brief. If Members continue to intervene, they will go to the bottom of the list. We are on a six-minute limit, but it will have to be reduced if we do not show consideration for others. Anything Members can do to shorten their speeches will be much appreciated.
Margaret Beckett
I have heard that argument in the House so many times. Indeed, the Chancellor used it today. However, there is a bit that I have missed: the bit where the right hon. Gentleman explained how the last Government also brought about the crashes in the United States and Japan, and in Spain and Italy and throughout the European Union. I am looking forward to hearing him give that explanation.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We need short interventions, and, in fairness, Members should not bait others who have just spoken. I do not think that that helps to ensure that everyone else will have a chance to speak.
Sir Gerald Howarth
I am delighted to assist the right hon. Lady, who I know is very reasonable. The Chancellor of the Exchequer has just identified one of the causes of the problem that we faced, namely the Labour Government’s decision to remove responsibility for the supervision of the banks from the Bank of England. I know that that is the case, because I was an international banker myself. The Tory party warned the Labour Government that if they removed that responsibility from the Bank, there would be problems. [Interruption.]
Mr Deputy Speaker
Order. I want to hear Sir Gerald, but I cannot hear him when Members are shouting him down.
Sir Gerald Howarth
Thank you, Mr Deputy Speaker.
Let me be the first Government Member to congratulate my right hon. Friend the Chancellor on sticking to his guns, and on the long-term economic programme, which has unquestionably benefited the United Kingdom—not least my constituents in Aldershot, where unemployment has now fallen to 1.8%. We have done fantastically well, and, in my view, that was undoubtedly a factor in the Newark by-election success, on which I congratulate my right hon. and hon. Friends. There is no doubt that the sheer weight of Conservative effort helped, as, indeed, did the contribution made by Patrick Mercer, who was very popular in the constituency, and had done good work over 13 years.
However, as the shadow Chancellor pointed out, we should not be lulled into a false sense of security. One of the key reasons for UKIP’s success is that it has homed in on the public’s rising concern about immigration. That concern is not new; it has existed since the 1960s. What is new is that while there was an understandable reluctance to vote for the British National party, no such inihibitions apply to UKIP.
For 50 years, those of us who have expressed concern about the impact of mass immigration on our country have been reviled and denounced as racist. All argument was effectively closed down, as perfectly decent people expressing perfectly reasonable fears were intimidated into remaining publicly silent.
Things have now changed, however. People feel that at last they can break free from the shackles of political correctness in which they have been chained. It is no longer racist to want to preserve our British way of life, our religion and our culture; it is not racist to express pride in our nation’s history and, indeed, in our imperial past.
It is not just the Conservative party that has been affected by the public’s concerns, as the shadow Chancellor’s comments again made clear. Labour has seen white working-class support desert to UKIP. Furthermore, many of those who have arrived from abroad and have integrated in our society are also concerned about the continuing flows of migration.
The main parties have to recognise the effect that this unprecedented tidal wave of migration has had on the UK, including our economy. Of course migration has not been without its benefits, some of which are only too evident on the Benches around us here, and companies such as Tata have made, and continue to make, a very valuable contribution. However, this week’s Ofsted report on Birmingham schools has revealed the extent to which people newly arrived here not only reject our values and customs, but want to impose their own on the rest of us. I have a very clear message for them: this is a Christian country, a tolerant country, we speak English, we shake hands with ladies, and open facial recognition is a key part of our culture. If they find that offensive, they should please feel free to leave and move to a country that is more to their liking—for there are plenty of repressive regimes around the world that clearly are more to the liking of people like that. As the T-shirt worn by a young man whom I saw on the underground earlier this week said: “Speak in English; Think in English; Dream in English”. I thought that was rather good advice to a lot of people in our country.
What we all need to understand is that it is numbers that are the issue. As that excellent organisation MigrationWatch has pointed out, between 1951 and 1991 the population born overseas grew by less than 2 million, yet after the election of the Labour Government in 1997 the scale of immigration increased to a level without historical precedent. Between 1991 and 2011, the foreign-born population more than doubled, increasing by 4 million. Much of this was deliberately encouraged by the Blair Government, partly, as we were helpfully told by a Labour speechwriter, Mr Andrew Neather, to rub the noses of the right in diversity.
All this has had an impact on our country. The Prime Minister has been at the forefront of the campaign to denounce the growth of Islamic fundamentalism in the UK, but there are practical challenges, too. My right hon. Friend the Chancellor mentioned the housing issue. We need to build a new home every seven minutes just to accommodate new migrants to this country. England is already the most crowded country in Europe, yet unless tougher action is taken the population will grow by 7 million in the next 15 years, 5 million of which will be attributable to immigration, which is the equivalent of the towns and cities of Birmingham, Leeds, Glasgow and Manchester.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I want to hear the Financial Secretary, but I am struggling. I am sure that Members want to hear the answers.
Nicky Morgan
The right hon. Member for Oldham West and Royton showed in his opening paragraph that he understands the Government’s economic policy perfectly. It is a shame that he did not stop there, because he summed up so beautifully all the Government’s achievements over the past four years.
My hon. Friend the Member for Montgomeryshire (Glyn Davies) talked about the dairy industry in his constituency, and I heard what he had to say.
The hon. Member for Eastleigh (Mike Thornton) talked about the increase in the personal allowance. His kind offer to advise the Treasury on the reform of stamp duty has been noted and I am sure that we will take note of what he has to say in the run-up to the next fiscal event.
The hon. Member for Huddersfield (Mr Sheerman) offered to write the Labour party manifesto for the next election. I wonder whether those on the Labour Front Bench were listening.
My hon. Friend the Member for Richmond Park (Zac Goldsmith) talked about recall, about which he is passionate. I suspect that there will be many debates on that issue in this House before the recall Bill is passed.
My hon. Friends the Members for Rugby (Mark Pawsey) and for Stroud (Neil Carmichael) talked about how the Government are delivering for manufacturing and rebalancing manufacturing. It is worth noting that manufacturing is expanding faster in the UK than in any other country in the G7.
The hon. Member for Birmingham, Erdington (Jack Dromey), whom I cannot see in his place, spoke of an era of discontent and disconnection. I agree with him. There is an era of discontent and disconnection in the Labour party—discontent with the leadership and disconnection from what this country needs to rebuild the economy.
My hon. Friend the Member for Halesowen and Rowley Regis (James Morris) talked about the Labour party’s promise to end boom and bust. He was right to say that it delivered only one half of that promise.
My hon. Friend the Member for Bury St Edmunds (Mr Ruffley) talked about trusting people with their pension savings.
The hon. Member for Redcar (Ian Swales) talked about the successes and investment in his constituency, and mentioned the Tees valley city deal. I am sure that all Members wish him and everybody who will sign it next week the best of luck.
The hon. Member for Coventry South (Mr Cunningham) talked about the 10p tax rate. He laid claim to the fact that the last Government introduced it. The last Government also got rid of it, which caused great unfairness to those who were being taxed at that rate.
The hon. Member for Bolton South East (Yasmin Qureshi) made a spending commitment of £1.9 billion, which only reminds us that the amendment would cost £14 billion.
The hon. Member for Liverpool, Wavertree (Luciana Berger) talked about zero-hours contracts. I think she said that 1.4 million people are on zero-hours contracts. In fact, the ONS estimates that there are 1.4 million zero-hours contracts and that 583,000 people are on them. She should be careful, because the ONS recently warned the shadow Business Secretary about his interpretation of those figures.
The hon. Member for Hartlepool (Mr Wright) gave an eloquent speech and demonstrated to all of us the dangers of someone turning up at a local party meeting and saying, “I want to get involved.” Many years later, they find themselves here on the green Benches—we have all been there.
Many hon. Members made points about the cost of living. Of course the Government want to see rising living standards for households up and down the country, and we have helped households by freezing fuel duty and council tax, taking money off energy bills, capping rail fares and introducing free school meals. However, the best way to improve living standards is to stick to our long-term economic plan to improve productivity, get as many people in work as possible and ensure that they take home as much of their pay as possible.
As the House will know, we have already made real progress on that front, but this Queen’s Speech introduces measures that will further increase employment. It offers tax-free child care, which will make a return to work more financially viable for thousands of mothers and fathers and, for the first time, help those who are self-employed or setting up businesses. It offers a small business Bill, which will make it easier to establish and grow small businesses, and an Infrastructure Bill that will help businesses both large and small by creating the transport and digital networks that they will need to thrive in the long term. All those steps will help our businesses get more people into work, which will support our households and grow our economy.
Consumer Rights Bill
Lindsay Hoyle Excerpts(12 years, 2 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
With this it will be convenient to discuss the following:
New clause 7—Debt management plan regulation—
‘The Financial Conduct Authority shall bring forward recommendations within a year of the commencement of this Act regarding the practice of directly charging consumers fees or charges for the provision of debt management plans, including recommendations on the phasing out of such practices.’.
New clause 9—Credit broker fees—
‘(1) The Consumer Credit Act 1974 is amended as follows.
(2) In section 160A (Credit intermediaries) after subsection (4) insert—
“(4A) Persons engaged in credit intermediary activity under this section or credit broking activity under section 145 shall not charge or take any fee from a debtor in respect of these activities until such time as an introduction results in the debtor entering into a relevant agreement.”.’.
New clause 11—Practices of rent to own companies—
‘(1) This section applies to credit agreements and consumer hire agreements taken out in respect of household goods specified in rules by the Financial Conduct Authority.
(2) The rules under subsection (1) shall—
(a) include a requirement on lenders to include in pre-contractual information adequate explanations and information allowing prospective customers to compare both the cash price of goods and the total cost of the credit agreement to a representative retail price for those goods;
(b) prohibit lenders from requiring customers to take out insurance sold or brokered by the lender as a condition of obtaining credit;
(c) set out specific steps lenders must take before taking action to enforce the agreement or recover possession of goods; and
(d) set out the steps lenders should take to check that the agreement is affordable and suitable for prospective consumers.’.
New clause 23—Consumer credit: bill of sale—
‘(1) Where a person is a purchaser of goods subject to a bill of sale, made in connection with a regulated agreement under the Consumer Credit Act 1974, in good faith and without notice of the bill of sale, title to those goods shall pass to that person.
(2) A creditor is not entitled to enforce a bill of sale made in connection with a regulated agreement by recovering possession of the goods except through an order of the court.
(3) If goods are recovered by the creditor in contravention to subsection (2)—
(a) the bill of sale will be treated as invalidly made; and
(b) the debtor shall be released from any outstanding liability under the regulated agreement.
(4) If the creditor has disposed of goods taken in contravention of subsection (2) the debtor shall be compensated to the value of those goods.’.
Stella Creasy
The new clauses lie at the heart of consumer issues: if consumers have no money in their pockets, they will not do very much consuming. A personal debt crisis is brewing because millions of people are trying to make ends meet and pay for the debt they took on to try to make ends meet previously. Household debt is at its highest since 2009, with people owing £1.6 trillion in personal debt. Some 43% of us say that we often or sometimes struggle to make it to payday—little wonder, given the way in which the cost of living has escalated. The new clauses come into play because debt repayment is increasingly the reason that people struggle to make it to payday. They reflect an attempt not to continue the good work that has been done in this House to address the consumer credit market, but to recognise that the Government’s belated conversion to the Opposition’s approach on payday lending needs to be just the start of the conversation on how we ensure that people have the pounds in the pocket they need. This is intrinsic to our economic future, given that consumer spending has accounted for so much of the growth we are now seeing. That, in itself, is perhaps one of the problems we face.
Let me explain the new clauses I wish to speak to today, because I know that other Members want to speak to the new clauses they propose. New clause 6 concerns what Members might call my bête noir—payday lenders. There are now 8 million loans annually, which are worth £2.2 billion. Those loans come with a cost. The National Audit Office estimates that they cost consumers £450 million a year of direct consumer harm, because of the failure to regulate the payday lending industry. For several years we proposed regulation of the industry, but it will come in only next year.
One in 10 British adults are likely to take out a payday loan in the next six months. That figure is going up, not down. It is little wonder that companies such as Wonga are making £1 million a week from our constituents—a 36% increase on the previous year—even though it is writing off huge swathes of its loan book. Some 40% of those who took out a payday loan said that it made their financial position worse, but many feel that they have little alternative. Credit unions are desperately trying to fill the gap, but it is an impossible gap to fill with the current level of need. It is time for payday lenders to pay their way. New clause 6 would enable an additional levy to be made on high cost credit companies to ensure that they provide funding for the debt advice and extension of credit unions that this situation requires. In fact, we believe the pressure on debt advice agencies and, indeed, credit unions is likely to increase, not subside, in the years ahead. We therefore think it time for the payday lenders to pay for the damage they have done.
New clause 7 also speaks to the growing personal debt bubble in our society, and to the conduct of the cowboy debt management agencies. We have already talked about legal loan sharks, and now it is time to look at the cowboys, but these are not just the stuff of nightmare. These companies are profiting from the misery of our constituents, exploiting the way in which debt management is done in this country.
The Government themselves admit that in excess of 1 million consumers each year are seeking advice on how best to deal with their financial difficulties. Many of us will know from our constituency surgeries the people who come to us in desperate need, often because they are about to be evicted for falling behind with their rent. We also encounter people who are struggling financially and who need help forming a debt management plan to deal with their creditors. That is the gap that these companies have filled.
About 7% of British adults report struggling to payday due to debt management payment plans, and 6% blame their payday loan problems on debt repayments. Bank loan repayments are the cause of 13% of those who struggle to payday. People are struggling because they are trying to pay back the debts they have accrued, especially over the last couple of years. It equates to about 2.5 million people that we know of who are already in a debt management plan.
Some debt management plans are available free, and I pay tribute to organisations such as Christians Against Poverty and StepChange for the work they are doing in providing people with free debt advice. After all, it is the most perverse of experiences for people struggling with financial debt to be charged to get out of the hole they are in. That is the challenge we are facing. It was estimated in 2010 that commercial debt management companies were making about £250 million a year from over-indebted clients. As I say, that was back in 2010. The Money Advice Service now tells us that there are 9 million people in our country who are over-indebted, so these are the people for whom these sorts of services may well be apposite. The need to reform how they work therefore becomes even stronger.
Ministers admitted in 2002 in response to questioning by the BIS Committee that there was evidence of some abuse of upfront fees, so let us talk about what is meant by that. We have an example from Clear View Finance of a gentleman for whom 90% of the money he was paying to the company was being taken in a fee, so a mere 10% of the money he was paying to clear his debts was going to his creditors—little chance for him to get out of the cycle of debt he was in any time soon! Yet when the Minister admitted that there was such abuse, he said that these companies had a role to play, so there was not really any need for any further regulation of them. We disagree, and we were disappointed when the Government voted in Committee against our proposals to deal with debt management companies.
We recognise that the Financial Conduct Authority has taken over the management of these companies, and it proudly trumpets that it is going to limit to 50% the amount a company can take in fees rather than pay out to creditors. We believe that we should go much further. We do not believe that people should be charged for being in debt when they come forward for help, and we want to see the phasing out of fees for debt management altogether.
Let me provide an example of why that would make a difference. StepChange, which provides this service for free, found that a client with a typical debt of £30,000 would have to pay for a commercial product almost an extra £6,000 in fees—£6,000 over and above the loan repayments. That extended the plan by approximately 18 months in comparison with one that StepChange had put together.
Taken in concert with new clause 6, which would provide the funding to increase debt advice, we believe that we can phase out fees for debt management, and we believe that that is the right thing to do—not to charge people for getting into debt, but to help them get out of debt. As millions of Britons are already in this cycle and millions more are likely to get into it as interest rates rise and they have increasing problems with their credit card and personal debt repayments coming home to roost, the case for reforming our debt management cowboy firms grows all the stronger.
Finally, new clause 23 speaks to another legal loan sharking practice in this country, which we believe is long overdue for overhauling. Citizens Advice chief executive Gillian Guy has said:
“The logbook industry is still in the dark ages and has been getting away with lawless practices. It is absolutely absurd that a firm should be able to take away someone’s possessions without any due legal process.”
Millions of people are affected, both those who take out logbook loans and those who buy a second-hand car without knowing that there is a charge against it, only to find that the car is being repossessed and that they have no recourse to any legal practice.
Mr Deputy Speaker
With this it will be convenient to discuss the following:
New clause 12—Right to full refund: ticketed events—
‘An event organiser must issue a full cash refund where their tickets are returned to them up to 24 hours before the start of the event.’.
New clause 13—Goods to be as described: meat products—
‘(1) All products containing halal and kosher meat shall be labelled as such at the point of sale by retail and food outlets.
(2) A food outlet is anywhere where food is served to the public.’.
New clause 14—Communications services: change of service provider—
‘(1) Section 3 of the Communications Act 2003 is amended as follows.
(2) At the end of subsection (2)(b) insert “with a switching process that is led by the receiving communications service provider”.’.
New clause 15—Right to corrective action—
‘(1) This section applies if either—
(a) the responsible economic actor has identified that goods supplied present a health and safety risk to the consumer; or
(b) the appropriate authority has identified that goods supplied present a risk to the public safety; and
as a result, the product is subject to corrective action by either party (a “recall action”).
(2) The consumer has the right to expect that the responsible economic actor for any goods supplied subject to a recall action must take all reasonable steps to inform all persons affected, or likely to be affected by the safety risks from the goods, within the shortest period of time practicable.
(3) The consumer, if placed at risk by goods subject to a recall action, has the right to prompt and effective action by the economic actor of that product to ensure that—
(a) the defect posing a safety risk to any persons affected or likely to be affected is eliminated;
(b) the actions required to achieve (a) do not cause significant inconvenience to the consumer; and
(c) all costs associated with the recall action are borne by the responsible economic actor.
(4) The Secretary of State will periodically gather and make publicly available information relating to safety incidents caused by recalled goods, and estimates of how many such goods still remain unaccounted for.
(5) The effectiveness of recall actions, and the procedures in place to achieve successful recalls, will be the subject of periodic review by the Secretary of State, with reference to public information on recalls in subsection (4) and any other relevant data.
(6) The Secretary of State may create or designate a body to act as a consumer product safety and recall authority.
(7) The Secretary of State may by regulations provide for the authority to—
(a) act to protect the public from identifiable and unreasonable risks of injury, death or household risk from consumer products;
(b) review products, test products, or receive or commission reports from other competent persons;
(c) direct corrective action to be taken by relevant economic actors, regulators or authorities;
(d) ensure and direct forms of consumer registration, from purchase of products, with databases which will be conducive to optimal fulfilment of (a) and (c) above;
(e) require notification by economic actors, including manufacturers, brand suppliers or traders, of significant evidence of concern in respect of the consumer safety of relevant products; and
(f) provide for accessible, intelligible information and advice to be available to consumers and relevant economic actors in respect of product safety, corrective actions and other guidances relevant to the authority’s work.
(8) For the purposes of subsections (4), (5), (6) and (7), the Secretary of State must consult with—
(a) market regulators;
(b) relevant authorities; and
(c) any other bodies he thinks appropriate.
(9) For the purposes of this section “economic actor” means—
(a) a “trader” as defined in section 2(2); or
(b) a manufacturer of “goods” as defined in section 2(8).’.
This new clause would enable new provision to be made regarding recall actions where a level of consumer safety risk has been identified. It would allow the Secretary of State to review and add to arrangements for corrective action for the protection of consumer safety.
New clause 16—Secondary ticketing platforms: product and seller information—
‘(1) The Secretary of State shall issue guidance to all traders who operate as secondary ticketing platforms on the application of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.
(2) Guidance issued under section (1) shall include how secondary ticketing platforms must inform consumers of—
(a) the chosen identity of the seller;
(b) the country of residence of the seller;
(c) information provided by previous buyers on the reliability of the seller and the tickets he has sold;
(d) information on any complaints made against the seller for failing to supply tickets;
(e) information on any complaints made against the seller for supplying fraudulent or invalidated tickets; and
(f) information on all other accounts currently or previously held with the secondary ticketing platform linked to the seller by virtue of personal, financial and contact information provided by them.
(3) Guidance issued under section (1) shall set out how information required under Part 2 of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 shall be—
(a) accurate; and
(b) prominently displayed before a buyer is able to purchase.
(4) Guidance issued under section (1) shall set out how secondary ticketing platforms must disclose clearly if the seller of the ticket is—
(a) the secondary ticketing platform themselves;
(b) individuals employed by the secondary ticketing platform;
(c) other companies linked to employees, directors or shareholders of the secondary ticketing platform;
(d) the event organiser or an agent acting on their behalf; or
(e) any other party connected to the event organiser of the event.
(5) Guidance issued under section (1) shall set out the status of tickets as unique goods with distinct characteristics which would affect—
(a) the enjoyment of the good by the consumer;
(b) the use of the good by the consumer; or
(c) the inherent value of the good in questions.
(6) Where a ticket is sold through a secondary ticketing platform, guidance issued under section (1) shall set out how the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 apply to tickets as unique goods, including—
(a) how sellers must provide all relevant information about the ticket including but not limited to the face value of the ticket and a designated seat or ticket number;
(b) how secondary ticketing platforms will publish all the information about a ticket provided by the seller in a prominent and clear way; and
(c) what sanctions will apply for failing to provide this information under the regulations.’.
New clause 17—Secondary ticketing platforms: fraudulent tickets—
‘(1) Where a secondary ticketing platform becomes aware that sellers using their service have acquired tickets through illegal methods, or are selling fraudulent tickets, they have a duty to report this to the relevant law enforcement agency immediately.
(2) A secondary ticketing platform must meet any lawful requests for information on sellers made by law enforcement agencies or courts.
(3) Where a law enforcement agency has notified a secondary ticketing platform that a ticket advertised through their service is, or is suspected to be, fraudulent, the secondary ticketing platform must remove that ticket and suspend the seller’s activities immediately.’.
New clause 18—Secondary ticketing platforms: seller profiles—
‘(1) Secondary ticketing platforms must provide a profile of information on sellers using their service.
(2) Profile information provided under subsection (1) must include, but is not limited to—
(a) the name of the seller;
(b) the country of residence of the seller;
(c) if the seller is a company or business, its registered number, if any;
(d) if the seller is a company or business, its registered office or address for service;
(e) a list of all current and past inventory sold or offered for sale by the seller;
(f) information on all other accounts currently or previously held with the secondary ticketing platform linked to the seller by virtue of personal, financial and contact information provided by him;
(g) information provided by previous buyers of the reliability of the seller and the tickets he has sold;
(h) information on any complaints made against the seller for failing to supply tickets, and the resolution of those complaints;
(i) the VAT registration number of the seller, if applicable; and
(j) information on any complaints made against the seller for supplying fraudulent or invalidated tickets, and the resolution of those complaints.
(3) Information provided under subsection (1) must be—
(a) accurate; and
(b) prominently displayed before a buyer is able to complete their purchase.
(4) Secondary ticketing platforms must disclose clearly and prominently where the seller of the ticket is—
(a) the secondary ticketing platform themselves;
(b) individuals employed by the secondary ticketing platform;
(c) other companies linked to employees, directors or shareholders of the secondary ticketing platform;
(d) the event organiser or an agent acting on their behalf; or
(e) any other party connected to the organisation of the event.
(5) Where a seller offers for sale more than 20 tickets to the same event, the secondary ticketing platform must take reasonable steps to verify the validity of the tickets.’.
New clause 19—Secondary ticketing platforms: ticket information—
‘(1) Where a ticket is sold through a secondary ticketing platform—
(a) the seller must provide all relevant information about the ticket; and
(b) the secondary ticketing platform must publish all the information about a ticket provided by the seller in a prominent and clear way.
(2) Information to be requested by the secondary ticketing platform and provided by the seller for the purposes of subsection (1) should include, but is not limited to—
(a) the face value of the ticket;
(b) any age or other restrictions on the user of the ticket; and
(c) the designated block, row, seat or ticket number, where applicable.
(3) Where tickets are being resold in contravention of the terms and conditions agreed to by the original purchaser, this must be stated prominently by the secondary ticketing platform at every stage of the purchasing process.
(4) Information provided by virtue of this section must be—
(a) accurate; and
(b) prominently displayed before a buyer is able to complete their purchase.’.
New clause 20—Secondary ticketing platforms: compensation—
‘(1) Secondary ticketing platforms must reimburse reasonable costs to a buyer where a ticket sold through their service is fraudulent or invalidated.
(2) For the purposes of subsection (1), reasonable costs must include, but are not limited to—
(a) the price paid for the ticket by the buyer, inclusive of all service and delivery charges;
(b) all travel expenses incurred by the buyer in travelling from their place of residence to the location of the event for which they had purchased the ticket; and
(c) any accommodation expenses incurred by the buyer for the sole purpose of attending the event for which they had purchased the ticket.
(3) For the purposes of subsection (1), reasonable costs should be defined as a total amount not exceeding twice the total purchase price of the ticket or tickets in question, including all additional fees and taxes paid.
(4) Claims made by a buyer against a secondary ticketing platform under this section must be proven by receipts or other documentary proof.
(5) The secondary ticketing platform must settle any claims under this section within 40 working days, other than where a suspected fraud or abuse related to the transaction in question is the subject of an ongoing investigation by the relevant statutory authority.
(6) Secondary ticketing platforms are permitted to take all necessary action to recover any monies paid out to consumers under this section from the seller of the ticket.’.
New clause 21—Secondary ticketing platforms: definitions—
‘(1) A “secondary ticketing platform” means a person or company operating an internet-based facility for the resale of tickets to events including in the United Kingdom, regardless of the country in which the owner of the service is registered.
(2) A “ticket” means anything which purports to be a ticket, including any item, tangible or intangible, which grants the holder entry to an event.
(3) An “event” means any sporting, music or cultural activity taking place at a specified time and place for which tickets are issued and required for entry or attendance.
(4) An “event organiser” means the person or persons responsible for organising and holding an event and receiving the revenue from the event.
(5) A “fraudulent ticket” means a forged or duplicated ticket.
(6) An “invalidated ticket” means a ticket which has been cancelled by the event organiser, or an agent acting on their behalf, after being issued.’.
New clause 22—Prohibition of fees in contracts for services: letting of residential accommodation—
‘(1) The provisions in this section apply to a contract for a trader to supply a service in connection with the letting of a residential premises.
(2) Subject to the provisions of this section, any person who demands or accepts payment of any sum of money from a person (“P”) for services in connection with a contract for the letting of residential premises shall be guilty of an offence.
(3) For the purposes of subsection (2), P is any person—
(a) who seeks to enter a contract to let residential accommodation, or
(b) who has a tenancy of, or other right or permission to occupy, residential premises.
(4) For the purposes of subsection (2)—
“letting” shall include any service provided in connection with the advertisement or marketing of residential accommodation or with the grant or renewal of a tenancy;
“services shall —
(a) include, and are not limited to—
(i) the registration of persons seeking accommodation,
(ii) the selection of prospective occupiers, and
(iii) any work associated with the production or completion of written agreements or other relevant documents.
(b) not include credit checks of person seeking accommodation.
(5) Where a person unlawfully demands or accepts payment under this section in the course of his employment, the employer or principal of that person shall also be guilty of an offence.
(6) A person shall not be guilty of an offence under this section by reason of his demanding or accepting payment of rent or a tenancy deposit within the meaning of section 212(8) of the Housing Act 2004.
(7) A person shall not be guilty of an offence under this section by reason of his demanding or accepting a holding deposit.
(8) A “holding deposit” for the purposes of subsection (7) is—
(a) a sum of money demanded of or accepted from a person, in good faith for the purpose of giving priority to that person in relation to the letting of a specific property, which is to be credited towards the tenancy deposit or rent upon the grant of the tenancy of that property, and
(b) not greater than two weeks rent for the accommodation in question.
(9) Costs incurred by persons seeking accommodation for the undertaking of credit checks shall be reimbursed upon the signing of a tenancy agreement.
(10) In this section, any reference to the grant or renewal of a tenancy shall include the grant or renewal or continuance of a lease or licence of, or other right or permission to occupy, residential premises.
(11) In this section “rent” shall include any occupation charge under a licence.’.
Amendment 6, in clause 2, page 2, line 15, at end insert—
‘(3A) The Secretary of State may by order made by statutory instrument provide that those who represent businesses with fewer than 10 employees and are purchasing goods or services for use within their commercial activities will be considered consumers.’.
Government amendments 9 to 14.
Amendment 5, in clause 48, page 30, line 3, leave out from ‘(5)’ to ‘resolution’ and insert ‘may not be made unless a draft has been laid before and approved by’.
Government amendment 15.
Amendment 20, in clause 84, page 43, line 14, at end insert—
‘(2A) Section [Prohibition of fees in contracts for services: letting of residential accommodation] extends only to England.’.
Wales Bill
Lindsay Hoyle Excerpts(12 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Hywel Williams (Arfon) (PC)
I beg to move amendment 32, in page 6, line 20, after ‘description’, insert ‘, a tax credit of any description’.
This amendment would allow the Welsh Government, by resolution of the National Assembly for Wales, to introduce new tax credits.
The Chairman of Ways and Means (Mr Lindsay Hoyle)
With this it will be convenient to discuss the following:
Amendment 33, in line 32, leave out ‘, each House of Parliament and’.
This amendment would enable the Welsh Government, by resolution of the National Assembly for Wales, to introduce a new tax without the need for approval by resolution of both Houses of Parliament.
Amendment 40, in page 7, line 13, at end insert—
‘(10) In the event that the power to add new devolved taxes under Section 116C, or the power to add new devolved taxes under Section 80B of the Scotland Act 1998 is used, the Chancellor of the Exchequer must undertake a review of the benefits of symmetry in the devolution of taxes between Wales and Scotland.’.
Clause 6 stand part.
Government amendment 20.
Clause 7 stand part.
Amendment 7, in clause 14, page 19, line 5, at end add—
‘(3) The Secretary of State shall review the historical volatility of stamp duty land tax revenues in Wales, and place a copy of the review in the Library of the House of Commons.’.
Clause 14 stand part.
Clause 15 stand part.
That schedule 2 be the Second schedule to the Bill.
Clause 16 stand part.
Amendment 8, in clause 17, page 20, line 29, at end add—
‘(3) The Secretary of State shall review the historical volatility of landfill tax revenues in Wales, and place a copy of the review in the Library of the House of Commons.’.
Clause 17 stand part.
Clause 18 stand part.
Amendment 42, in clause 28, page 29, line 34, leave out paragraph (2)(b).
Amendment 43, in line 36, at end insert—
‘( ) Part 2, except the referendum-related provisions and sections 19 and 20, will come into force the day after the Secretary of State has laid a report before each House of Parliament on the further legislative steps needed to move to a model of reserved powers for the National Assembly for Wales; the report must be laid within six months of this Act receiving Royal Assent.’.
Hywel Williams
Recommendation 11 of the cross-party commission on devolution in Wales states that the National Assembly should be given a power to introduce specified taxes and any associated tax credits in Wales. This recommendation was not included in the Bill. That might have been merely an oversight by the Government, although those of us who are a little more sceptical suspect that they deliberately omitted it from the Bill. Whatever may be the case, amendment 32 seeks to align the Wales Bill more closely with the Silk commission recommendations.
We in Plaid Cymru welcome the inclusion of an ability to introduce specified new taxes. We note that the Silk commission recommendation 11 states that the Welsh Government should retain the revenue from these new taxes without a deduction from the block grant. I hope the Government will ensure that that is indeed the case. Perhaps the Minister will confirm that when replying to the debates.
Although the issue of Barnett was not within the remit of the Silk commission or this Bill, it is a closely related issue and I hope we will be able to debate at least some of it when we look at new clauses. It is important not least because Labour, if I correctly understand its position, has said that Barnett reform is a necessary condition before it will support greater financial powers for Wales. That is a significant statement on its part, I think.
The ability to vary income tax and access to potential borrowing for investments that can boost the economy and create jobs in Wales are the central tenets of this Bill, but there are several areas within the Bill that, if fully developed, could bring real benefits to the Welsh economy. That is why, in addition to the ability to introduce new specified taxes, the ability to introduce associated tax credits is so important. Although much careful research and preparation would be needed before introducing a new tax and associated tax credits, and it would be unwise to pre-judge where and when that might be done, at least giving the Welsh Government the ability to do this would give them much more freedom to act and take greater responsibility for developing our economy, which hon. Members on both sides of the House wish to see. We could raise the revenue, where necessary, and provide tax credits in order to stimulate activity or to provide assistance wherever it was felt necessary, be it for individuals, businesses or areas of industry.
The amendment aims to preserve the integrity of the original cross-party Silk recommendations. For Plaid Cymru it makes perfect sense, and I urge hon. Members on both sides of the House to support it. Should we not press the amendment to a vote, or were we to do so and it were to fall, Government Members might consider tabling their own similar amendments on Report. Given that the principle of new taxes has been conceded in the Bill and that tax credits could be introduced, we would wish that to be the case.
Wales Bill
Lindsay Hoyle Excerpts(12 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Temporary Chairman (Mr Christopher Chope)
With this we may take new clause 5—The National Assembly for Wales—
‘The Government of Wales Act 2006 is amended by adding at the end of section 1 (The Assembly)—
(a) The Assembly may change its name by means of a resolution agreed to by a simple majority;
(b) on the first occasion a resolution under subsection (6)(a) is passed, the expression “National Assembly for Wales” shall be replaced wherever it occurs in the GOWA 2006 by the name contained in that resolution;
(c) on any subsequent occasion, the name contained in a resolution under the terms of subsection (6)(a) shall replace the previous name in the same manner;
(d) unless the context requires otherwise, in any enactment, instrument of other document passed or made before this subsection comes into force any reference to the National Assembly for Wales is to be read as, or as including, a reference to the Assembly as renamed.”.’.
Stephen Crabb
Let me begin, Mr Chope, by welcoming you to the Chair. It is a pleasure to serve under your chairmanship.
Following the 2011 Assembly election, the First Minister of Wales announced that the Welsh Assembly Government wished to be known instead as the Welsh Government. That change was made in order to make clearer the respective roles of the Welsh Government and the National Assembly for Wales following the devolution of full law-making powers. Since then, the term “Welsh Government” has increasingly been used by people throughout Wales, and it is now the commonly used term for the Executive. However, “Welsh Government” remains an informal moniker, and “Welsh Assembly Government” is still the formal legal name in statute.
In recognition of the widespread use of “Welsh Government” as the generally accepted term, and following the request from the First Minister, clause 4 provides for the name of the Executive to be changed formally. That will mean that, for the first time, the new title can be used in formal legal documents, in keeping with common parlance. The clause provides that any reference to “Welsh Assembly Government” in existing legislation should be read as a reference to the “Welsh Government”, unless the specific context requires the former name to be used.
As usual, Plaid Cymru Members wish to go even further and have tabled new clause 5, which seeks to devolve to the National Assembly for Wales the power to change its name through a resolution passed by a simple majority. In renaming the Welsh Assembly Government we are simply reflecting what the Executive are now commonly known as. The same is not the case in respect of the National Assembly; people within and outside Wales know the legislature as the “National Assembly” or the “Welsh Assembly”, and I detect no popular clamour in my constituency or any other part of Wales I visit for a change in the name of Wales’s legislature.
Finance (No. 2) Bill
Lindsay Hoyle Excerpts(12 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
I beg to move amendment 3, in page 8, line 25, at end insert—
‘55F Review
(1) Within six months of the passing of the Finance Act 2014, the Chancellor of the Exchequer must undertake a review of the impact of the tax relief for married couples and civil partners introduced under this Chapter.
(2) The review must in particular include—
(a) a calculation of the proportion of married couples and civil partners who are eligible for the tax relief in the financial year 2015-16;
(b) an assessment of the impact of this tax relief on those who are neither married nor in civil partnerships;
(c) the cost to the Exchequer of this tax relief; and
(d) an assessment of alternative tax reliefs that would benefit a greater number of families.
(3) The Chancellor of the Exchequer must publish the report of the review and lay the report before the House.’.
The Chairman of Ways and Means (Mr Lindsay Hoyle)
With this it will be convenient to consider clause 11 stand part.
Catherine McKinnell
It is a pleasure to serve under your chairmanship today, Mr Hoyle. I rise to speak to the Opposition’s amendment to clause 11 regarding the coalition’s proposed tax relief for married couples and civil partners. Before I begin, let nobody be in any doubt that the Opposition believe that marriage and civil partnerships are a force for good in society. Making a binding lifelong commitment to a partner in that way is truly to be celebrated. Let us not pretend, however, that the Government’s marriage tax allowance, introduced by clause 11 of this year’s Finance Bill, is anything other than a complete and utter dud of a policy.
Steve McCabe (Birmingham, Selly Oak) (Lab)
Does my hon. Friend agree that one difficulty with this proposal is shown in the analysis by the Institute for Fiscal Studies? Robert Joyce, the senior research economist there, says:
“The policy is not a general recognition of marriage in the income tax system”.
So the argument that has been made by the Government is false, in the sense that it gives an impression about this policy which is not actually true. He goes on to say that
“it is difficult to escape the conclusion that an income tax system which makes some people worse off after a pay rise has something wrong with it.”
The Chairman of Ways and Means (Mr Lindsay Hoyle)
Order. I think we need shorter interventions rather than speeches—I would sooner save your voice for later.
Catherine McKinnell
On the basis of my hon. Friend’s insightful intervention, I am looking forward to his speech on this matter. He makes the point well, and it is the point that I am seeking to make. As the Chief Secretary to the Treasury has said:
“This policy is not about children and families…it does nothing for millions of families with children struggling to make ends meet.”
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
I am grateful to my hon. Friend for giving way and for making such powerful points. When these points are put to the Government, they always say that the financial circumstances are such that there must be cutbacks somewhere. Is it not ironic that the Government are putting forward a policy that is so badly thought out that if anyone were asked to choose a priority for public spending, this would not be it? Should we not be taking real measures to tackle problems such as the bedroom tax and the changes in universal credit, all of which will cause much more damage than any benefit that this will bring about?
The Chairman of Ways and Means (Mr Lindsay Hoyle)
Order. I appeal for shorter interventions. We have time, but Members cannot make a speech as an intervention.
Catherine McKinnell
I thank you, Mr Hoyle, and also my hon. Friend whose intervention was powerful and to the point.
Catherine McKinnell
Indeed. Government Members often lament red tape and the complexity of the tax system. I am not entirely sure that they will be thanked for adding to it in this way and putting the burden of implementation on employers.
The apparent onus on taxpayers proactively to apply for this allowance is a concern that has been raised more widely. The Low Incomes Tax Reform Group has pressed the Government to ensure that a claim for the marriage tax allowance can
“be made on paper, as well as online; digital exclusion affects disproportionately people on low incomes, the very people to whom this relief is directed. It is particularly important that a paper copy is available since, in some cases, taxpayers will seek assistance from the voluntary and charitable sector with, perhaps, only one spouse being physically present at such meetings.”
LITRG goes on to urge that
“the claim/election process will be made as simple as possible—preferably a joint election rather than separate claim and election.”
I look forward to the Minister’s response to those concerns.
The complexity of the Government’s marriage tax allowance proposal has been commented on by the IFS, which stated, when the measure was first announced:
“One striking feature of the policy is that it complicates the income tax system. A transferable personal allowance for married couples capped at £1,000 and then withdrawn using a cliff-edge at the higher-rate threshold is not the simplest to understand. It is three years since another cliff-edge at the higher rate threshold was announced at the 2010 Conservative Party conference as a way of effectively means-testing Child Benefit, only to be removed and replaced with a less egregious taper at Budget 2012. The amounts involved here are less than in that case, which perhaps explains the willingness to cliff-edge again rather than implement a taper. Nevertheless, it is difficult to escape the conclusion that an income tax system which makes some people worse off after a pay rise has something wrong with it.”
One might think that, as my hon. Friend the Member for Edinburgh East (Sheila Gilmore) pointed out, a Government who have so boasted about being committed to tax simplification would want to avoid further complicating the system. At the launch of the Office of Tax Simplification, the Chancellor commented:
“A decade of meddling and intervening has made the tax affairs of millions of families and businesses across the UK extremely complicated. We need to sort out this mess.”
What does the Office of Tax Simplification make of the marriage tax allowance, which will clearly make the tax affairs of couples and employers more complex? We do not know because, in the words of the Exchequer Secretary in response to a written question I tabled:
“The Office of Tax Simplification (OTS) has not made an assessment of the proposals for a transferable tax allowance.”—[Official Report, 12 February 2014; Vol. 575, c. 642W.]
Why on earth not? What could Ministers possibly fear from the outcome of such an assessment?
It may be clear now that the Opposition oppose the Government’s marriage tax allowance and will vote against clause 11. We believe that the marriage tax allowance is perverse and unfair. It is a poorly targeted use of resources and is overly complex, and our amendment to clause 11 presses the Government to undertake a proper review of the cost, the impact and the benefits for those who will receive it and for the overwhelming majority of married couples and families who will not benefit at all.
Amendment 3 calls on the Government to ensure that any such review includes an assessment of alternative tax reliefs that would benefit a much greater number of families, because we are not just opposing the marriage tax allowance today. Indeed, we have said that a future Labour Government would scrap this policy and use the money saved, together with funding from a mansion tax on properties worth over £2 million, to reintroduce the 10p starting rate of tax, meaning a tax cut for 24 million people on low and middle incomes, by contrast with the 4.2 million couples who will benefit from the marriage tax allowance. Crucially, almost half of those benefiting from a new 10p tax rate would be women.
We know that the Liberal Democrats are apparently implacably opposed to the policy introduced by clause 11 and secured a deal in the coalition agreement to go so far as to abstain on the measure. I believe it was before the 2010 general election that the now Deputy Prime Minister described the Conservatives’ proposal for a transferable tax allowance for married couples as
“patronising drivel that belongs in the Edwardian age.”
I know that Liberal Democrats have, as some might say, an irritating habit of saying one thing before a general election, then doing precisely the opposite—university tuition fees and the VAT bombshell spring to mind—or of saying one thing at any point in the electoral cycle and doing precisely the opposite: for example, 46 Lib Dem peers voted to retain the bedroom tax just 24 hours after their party president, the hon. Member for Westmorland and Lonsdale (Tim Farron), said it was something his party could not “continue to support”. Although the Liberal Democrats may be thinking about abstaining on clause 11 as it stands, it is difficult to see how they could sit on their hands this afternoon and vote against our reasonable amendment.
We know that the Lib Dems apparently secured the policy of free school meals for every child in reception, year 1 and year 2 from September 2014, reportedly in exchange for agreeing to abstain on the marriage tax allowance. We of course back the policy, having piloted the idea in government in County Durham and Newham, with excellent results, but there are very real concerns about the way in which the policy was announced, and how it will be implemented. The initial pledge was for a “hot, nutritious meal at lunchtime”, but that is now being described as an aspiration. Ministers are now simply referring to a free, nutritious school lunch.
Many thousands of schools across the country simply do not have the facilities to ensure this provision. The Liberal Democrats have stated that around £80 million of the additional £150 million capital funding required for the project will come from an underspend in the Department for Education and an additional £70 million would be new money from the Treasury. [Interruption.]
I hear hon. Members on the Government Benches chuntering from a sedentary position. They seem very disturbed by the Liberal Democrat policy of free school meals and do not see how it is linked to the marriage tax allowance. Would they like to confirm that that was not an agreement, as has been reported?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The advice is not needed. There is a definite link, and if Members were to listen a little more closely, they would understand where the link is between the choice and where the money can be spent. Less advice and more listening might help all of us.
Catherine McKinnell
I thank the Deputy Speaker for his clarification. The link is clear. It is to do with the allocation of resources and the agreement that has been made. It also goes fundamentally to the heart of the Liberal Democrats and how they intend to vote on the matter. We believe they are likely to abstain on the measure, although we have not had that confirmed. We hope and assume that although they will abstain on the Government’s motion in relation to implementing the marriage tax allowance, they will support our call for a review. If the measure goes through, they would have as much of an interest as we would in ensuring that it is properly reviewed and monitored in the months to come, and that the Government take seriously the proposals for possible alternatives that benefit a larger number of families throughout the country.
The Opposition believe that the money allocated to the marriage tax allowance could be put to much better use elsewhere. That is why we have pressed the Chancellor to scrap it, and to use the money to give tax help to many more working people instead, including more married couples and more families.
Susan Elan Jones (Clwyd South) (Lab)
Does my hon. Friend agree that one of the problems of the married couples tax allowance as proposed by the Government is the situation of what might traditionally have been called the deserted spouse, often the wife who was left? What would happen in that situation? That is a very real issue to be answered.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. May I say once again that we must have shorter interventions? I know that many Members wish to speak. We have been going for a long time and have not even got to the Back Benches yet.
Catherine McKinnell
Although my hon. Friend’s intervention took longer than Mr Deputy Speaker might have liked, it was a very good intervention.
I would be interested to hear what Government Members think about the fact that this provision could very much reward men who desert their spouses, leave them with the children to care for, and then receive a tax benefit, but only if they marry the woman they ran off with.
The Chairman of Ways and Means (Mr Lindsay Hoyle)
Order. We are not having two Members on their feet. Let us see if I can help—Mr McCabe, are you giving way?
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
I beg to move, That the clause be read a Second time.
The Temporary Chair (Mr Peter Bone)
With this it will be convenient to discuss the following:
New clause 6—Air passenger duty: Scotland
‘(1) The Scotland Act 1998, Schedule 5, section A1 (exceptions) is amended as follows.
(2) After “rates)”, insert—
“(1) Air Passenger Duty on all flights that are—
(a) originating from an airport or aerodrome in Scotland; and
(b) not part of a connecting flight from—
(i) a domestic UK airport or aerodrome; or
(ii) a territory specified in Part 1 of Schedule 5A of the Finance Act 1994.”.’.
New clause 7—Rates of air passenger duty (Scotland)
‘After section 30A of the Finance Act 1994 there is inserted—
“30B Scotland rates of duty
(1) This section applies to the carriage of a chargeable passenger if—
(a) the carriage begins on or after the relevant day; and
(b) the only flight, or the first flight, of the passenger’s journey begins at an airport or aerodrome in Scotland.
(2) Air passenger duty is chargeable on the carriage of the chargeable passenger at the rate set by an Act of the Scottish Parliament for the purposes of this paragraph.
(3) The rate of £0 may be set for the purposes of paragraph (2).
(4) Any rate set must not exceed the rate which would apply if this section were not in force.
(5) “The relevant day” means the day appointed as such by an order.
(6) Section 42(4) and (5) does not apply to any order under subsection (5).
(7) An “Act of the Scottish Parliament” means an Act passed under section 28 of the Scotland Act 1998.”.’.
New schedule 1—‘Air Passenger duty: Wales
Part 1
Rates of Duty from 1 April 2014
1 Section 30 of FA 1994 (air passenger duty: rates of duty) is amended as follows.
After subsection (4D) insert—
“(4DA) Subsection (4D) applies if—
(a) the passenger’s journey is a relevant Wales journey; and
(b) apart from subsection (4DB), subsection (2) would not apply to the journey.
(4DB) The applicable rate in subsection (2) applies to the journey instead of the applicable rate in subsection (3), (4) or (4A) (as the case may be).
(4DC) A passenger’s journey is a “relevant Wales journey”—
(a) in the case of a journey which has only one flight, if the flight begins in Wales; and
(b) in any other case, if the first flight of the journey—
(i) begins in Wales; and
(ii) is not followed by a connected flight beginning at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A.”.
The amendments made by this Part of this Schedule have effect in relation to the carriage of passengers beginning on or after 1 April 2014.
Part 2
Devolution of Wales long haul rates of duty
2 Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.
3 (1) Section 30 (rates of duty) is amended as follows.
(2) After subsection (1) insert—
“(1B) Subsection (1) does not apply to the carriage of a chargeable passenger to which section 30B below (Wales long haul rates of duty) applies.”.
(3) Omit subsections (4DA) to (4DC) (as inserted by paragraph 1 above).
(4) The amendments made by this paragraph have effect in relation to the carriage of passengers beginning on or after the relevant day as defined in section 30B of FA 1994 (as inserted by paragraph 4 below).
4 After section 30A insert—
30B Wales long haul rates of duty
“(1) This section applies to the carriage of a chargeable passenger if—
(a) the carriage begins on or after the relevant day;
(b) the only flight, or the first flight, of the passenger’s journey begins at a place in Wales;
(c) the passenger’s journey does not end at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A; and
(d) if the passenger’s journey has more than one flight, the first flight is not followed by a connected flight beginning at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A.
(2) Air passenger duty is chargeable on the carriage of the chargeable passenger at the rate determined as follows.
(3) If the passenger’s journey ends at a place in a territory specified in Part 2 of Schedule 5A—
(a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph; and
(b) in any other case, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph.
(4) If the passenger’s journey ends at a place in a territory specified in Part 3 of Schedule 5A—
(c) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph; and
(d) in any other case, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph.
(5) If the passenger’s journey ends at any other place—
(e) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph; and
(f) in any other case, the rate is the rate set by an Act of the National Assembly for Wales for the purposes of this paragraph.
(6) The rate of £0 may be set for the purposes of any paragraph.
(7) The same rate may be set for the purposes of two or more paragraphs.
(8) Subsections (5) to (7) and (10) to (12) of section 30 apply for the purposes of this section as they apply for the purposes of that section.
(9) “The relevant day” means the day appointed as such by an order.
(10) Section 42(4) and (5) do not apply to an order under subsection (9).
(11) A Bill containing provision authorised by this section may not be passed by the National Assembly for Wales except in pursuance of a recommendation which—
(g) is made by the Minister of Finance; and
(h) is signified to the Assembly by the Minister or on the Minister’s behalf.
(12) “Passed”, in relation to a Bill, means passed at the final stage (at which the Bill can be passed or rejected but not amended).
(13) Duty paid to the Commissioners in respect of the carriage of chargeable passengers to which this section applies must be paid by the Commissioners into the Consolidated Fund of Wales.”.
5 (1) Section 33 (registration of aircraft operators) is amended as follows.
(2) After subsection (2A) insert—
“(2B) If the Commissioners decide to keep a register under section 33B below, an operator of a chargeable aircraft does not become liable to be registered under this section just because the aircraft is used for the carriage of chargeable passengers to which section 30B above applies.”.
(3) In subsection (3)(b) after “applies”, insert “or, if the Commissioners have decided to keep a register under section 33B below, that no chargeable aircraft which he operates will be used for the carriage of chargeable passengers apart from the carriage of chargeable passengers to which section 30B above applies.
(4) In subsection (7) after “section 33A”, insert “or section 33B below”.
6 After section 33A insert—
33B (1) The Commissioners may under this section keep a register of aircraft operators.
(2) If the Commissioners decided to keep a register under this section, the operator of a chargeable aircraft becomes liable to be registered under this section if the aircraft is used for the carriage of chargeable passengers to which section 30B above applies.
(3) A person who has become liable to be registered under this section ceases to be so liable if the Commissioners are satisfied at any time—
(a) that he no longer operates any chargeable aircraft; or
(b) that no chargeable aircraft which he operates will be used for the carriage of chargeable passengers to which section 30B above applies.
(4) A person who is not registered under this section and has not given notice under this subsection shall, if he becomes liable to be registered under this section at any time, give written notice of that fact to the Commissioners not later than the end of the prescribed period beginning with that time.
(5) Notice under subsection (4) above shall be in such form, be given in such manner and contain such information as the Commissioners may direct.”.
7 In section 34 (fiscal representatives) in subsection (5)—
(a) in paragraph (a) after “33A”, insert “or 33B”.
8 After section 41B insert—
41C Wales long haul rates of duty: disclosure of information
“(1) An officer of Revenue and Customs may disclose to the Secretary of State, the Treasury or the Department of Finance in Wales any information for purposes connected with the setting of rates under section 30B above, including (in particular) to enable the setting of rates under that section to be taken into account for the purposes of section 118 of the Government of Wales Act 2006 (payments by Secretary of State into Welsh Consolidated Fund).
(2) Information disclosed under subsection (1) above may not be further disclosed without the consent of the Commissioners (which may be general or specific).
(3) In section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful disclosure) references to section 18(1) of that Act are to be read as including a reference to subsection (2) above.”.
9 In section 44 of CRCA 2005 (payment into Consolidated Fund) after subsection (2)(cb) insert—
(cc) sums required by section 30A(15) of the Finance Act 1994 (air passenger duty: Wales long haul rates of duty) to be paid into the Consolidated Fund of Wales,”.
10 In column 2 of the Table in paragraph 1 of Schedule 41 to FA 2008 (penalties for failure to notify), in the entry relating to air passenger duty, after “33A(4)”, insert “or 33B(4)”.
11 The amendments made by this Part of this Schedule have effect in relation to the carriage of passengers beginning on or after 1 April 2014.
12 The rate of duty in force under section (30B) shall not be greater than the rate which would be in force if the section had not been enacted.’.
Clauses 72 to 74 stand part.
Jonathan Edwards
Diolch yn fawr iawn, Mr Bone. It is an honour to serve under the chairmanship of the best slow left-arm bowler in the Westminster cricket team.
It is with pleasure that I rise to support new clause 2 and new schedule 1, and I will be pushing for a vote at the appropriate time. The UK Government commission on devolution in Wales, headed by Paul Silk, published the first phase of its report in November 2012, which concentrated solely on fiscal powers. Some 18 months later we are still waiting for an essential part of the cross-party Silk commission recommendations to come to fruition: the devolution of responsibility for long-haul air passenger duty. The original cross-party report recommended that responsibility for APD be transferred to Wales at the earliest opportunity and that the Finance Bill was the appropriate vehicle for doing that. The commission had the 2013 Finance Bill in mind, following the precedent set during the 2012 Finance Bill when APD was devolved to Northern Ireland.
It therefore comes as no surprise that I am here yet again attempting to transfer APD to Wales, as was agreed by all the parties in the commission. I will seek to divide the House and to hold other parties to what their representatives on the commission said and, perhaps more importantly, what their representatives in the National Assembly say back in Wales. I would of course be ecstatic if by some divine intervention their masters here in London listened to them for once and voted in favour of the policies they advocate—I do not hold my breath in much hope.
I will go on to speak about the discrepancies between what the Unionist parties say in Wales and how they vote here on devolving APD. First, let me inform the House a little about the background to the UK Government commission’s recommendation to devolve APD as part of a comprehensive package of financial powers and about the stage we are at now. In short, the cross-party Silk commission recommended that powers over stamp duty land tax, the aggregates levy, long-haul APD, landfill tax and business rates be devolved in their entirety. It also advocated a sharing arrangement for income tax, with Wales having the ability to vary each individual income tax band and rate.
After having been made to wait for more than a year by the London Government to grace us with a response to the commission which they themselves set up, we find ourselves already having debated the Second Reading of the Wales Bill in this Chamber. We expect it to be confirmed tomorrow morning that the whole House will return to consider the Committee stage of that Bill after the Easter recess. Yet the Wales Bill has some glaring omissions. It seems like a long time ago now when, last autumn, the Prime Minister and Deputy Prime Minister swept into the Senedd building in Cardiff, to flashing camera lights and an adoring paparazzi, in order to announce new financial powers for Wales. Very few questioned what exactly was being proposed. Only later did it emerge that the Westminster Government were prepared to accept the cross-party commission recommendations only in part and that they would be ignoring some. That is despite the fact that they had representation on the commission in the form of a commissioner representing the Conservative party and a commissioner representing the Liberal Democrats.
In essence, the Government have cherry-picked the commission’s recommendations, even though they were agreed on as a comprehensive package of reforms. It is therefore greatly disappointing that the Westminster Government have decided to ignore the will of the people of Wales, who believe that Wales should have greater power over its own affairs, according to successive polls, not least the ones conducted by the commission while it gathered evidence as part of its reports. Those polls represent some of the most detailed research undertaken on attitudes towards devolution since we first had our own devolved legislature in 1999.
Finance (No.2) Bill
Lindsay Hoyle Excerpts(12 years, 3 months ago)
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Shabana Mahmood (Birmingham, Ladywood) (Lab)
I beg to move amendment 2, page 3, line 28, at end insert—
‘( ) The Chancellor of the Exchequer shall undertake a review, within six months of the passing of this Act, on the impact of an additional cut of one per cent to the main rate of Corporation Tax for financial year 2015-16, with particular reference to—
(a) the impact on businesses with fewer than 50 employees;
(b) the impact on investment by businesses with fewer than 50 employees; and
(c) alternative tax measures, including non-domestic rates, which would have a greater benefit for businesses with fewer than 50 employees.
( ) The Chancellor of the Exchequer must publish the report of the review and lay the report before the House.’.
This amendment would require the Chancellor of the Exchequer to publish a report on the impact of a cut of one per cent to main rate Corporation Tax on businesses, including small and medium sized enterprises (SMEs).
The Chairman of Ways and Means (Mr Lindsay Hoyle)
With this it will be convenient to consider:
Clauses 5 to 7 stand part.
That schedule 1 be the First schedule to the Bill.
Shabana Mahmood
Our amendment would require the Chancellor to publish a review of the impact of an additional cut of 1% to the main rate of corporation tax for 2015-16 with reference to the impact on businesses with fewer than 50 employees, their levels of investment and the impact of alternative tax measures such as a reduction in non-domestic rates—business rates—which we believe would have a greater impact on small and medium-sized enterprises, which tend to be businesses that have fewer employees and in the main occupy premises with a rateable value of less than £50,000.
Our amendment and our approach highlight the difference between us and the Government when it comes to business taxation. The Government have made a number of significant cuts to corporation tax. The main rate has been cut a number of times, and is due to be cut again from 21% to 20% next year. The main rate is paid by companies with profits of more than £1.5 million—about 40,000 or so businesses. The small profits rate is paid by companies with profits of under £300,000, and there is a marginal rate, which applies to companies with profits between £300,000 and £1.5 million.
The Government have announced cuts to the corporation tax rate in almost every fiscal event that we have had since 2010, with the rate falling from 28% in 2010 to 20% in 2015-16. This has brought the UK rate lower than most developed economies. As I said, the Government are planning another cut for April 2015 from 21% to 20%, at a cost of £400 million in 2015-16, rising to £785 million the following year, and £865 million the year after that. The cumulative corporation tax cut over this Parliament has been in the region of £10 billion. The Government’s central argument for cutting corporation tax is that a lower rate makes the UK more attractive as a destination for businesses to locate. They claim that a reduction in the main rate of corporation tax will reduce capital costs for businesses and promote higher levels of business investment.
Finance (No. 2) Bill
Lindsay Hoyle Excerpts(12 years, 3 months ago)
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Julie Hilling (Bolton West) (Lab)
Mr Deputy Speaker, I find these financial debates deeply frustrating and often very bad for my blood pressure, particularly when I follow—
Mr Deputy Speaker (Mr Lindsay Hoyle)
We do not want you to collapse—the hon. Lady does not have to speak if it has such a great effect.
Julie Hilling
I assure you, Mr Deputy Speaker, that I will not collapse. I might just get a little excited.
I find speeches such as that just made by the hon. Member for Redcar (Ian Swales) exceedingly frustrating. The Government say that they want to build a fairer society, but fairer for who? Their actions certainly are not fair for the 2.5 million people seeking work and the nearly 1 million young people still being left on the scrapheap. The Chancellor says that this is a Budget for makers, doers and savers, but it does nothing for those who are making do and who, far from saving, find themselves deeper and deeper in debt.
The worst thing is the continual ridiculous comment that the global financial crash was caused by my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown). Powerful though he is, he did not bring down the world economy. Labour’s public investment did not cause the global credit crunch. Building new hospitals and schools and recruiting tens of thousands of extra nurses, doctors, teachers and police officers in Britain did not cause the sub-prime mortgage defaults in the USA that started the collapse of financial institutions throughout the world. It was not Labour’s public spending that triggered the world’s economic crisis but the global interdependency of reckless banking that triggered an economic meltdown in Britain and across the globe.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The hon. Member for Macclesfield (David Rutley) should answer the first intervention before we start on the next. I am sure that we can allow the hon. Member for North East Somerset (Jacob Rees-Mogg) to intervene after that.
David Rutley
Thank you, Mr Deputy Speaker, but I hear a noise coming from North East Somerset, so I will give way at this point.
Mr Deputy Speaker
Order. The problem is this. I think that the hon. Member for Macclesfield rather than his hon. Friend the Member for North East Somerset is meant to answer the intervention from the hon. Member for North Durham (Mr Jones).
David Rutley
I will gladly do that. Throughout the debate, the hon. Member for North Durham has persistently made points that have been answered by Government Members, and many of them have been incorrect. He needs to focus on the work that we have done to reduce the deficit, which he clearly has not welcomed.
Charter for Budget Responsibility
Lindsay Hoyle Excerpts(12 years, 4 months ago)
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Ed Balls
I will make my speech on the welfare cap in a moment. I want to go back to the remark the Chancellor just made about last night’s vote. We have said that we do not think we should go ahead with the next cut in corporation tax and instead use all the money for a freeze in business rates for small businesses. Is the Chancellor really saying that large companies are business, but small businesses do not count? [Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Just to remind everybody, shorter interventions would be helpful. We have 11 speakers to follow and I know the Front Benchers are desperate to hear the Back Benchers.
Mr Deputy Speaker
Order. I want to hear the Chancellor. All the howling behind the Chancellor is not helping me, or other people who want to listen to him. I want to hear the Chancellor as, I am sure, do those on his own side.
Mr Osborne
If the right hon. Gentleman has something useful to say, let us hear it.
Mr Deputy Speaker
Seriously, I could not hear the Chancellor and I want to hear the shadow Chancellor. I want a little bit more respect to both sides.
Ed Balls
We are proposing that all the money from deferring the cut in corporation tax goes to small business in a business rates freeze. That is not a rise in the taxes on business, unless the Chancellor thinks that somehow small businesses are second class and do not count. Is that really what the Chancellor is saying?
Mr Deputy Speaker
Order. I think we have heard enough noise. I want to hear the question that has been posed to the Chancellor of the Exchequer and I want to hear the reply. If people do not want to hear, I can explain where the door is. Somebody will be going through it if we do not have calm.
Ed Balls
The Chancellor must not mislead and misrepresent on the welfare state or on business taxes. Labour is not committed to an increase in business tax. He has said that three times. Every time he has said that, he has misled this House. I am saying that all the money from the corporation tax rate will go back to small business. That is the right position. Every time he misleads this House I will correct him, Mr Deputy Speaker.
Mr Deputy Speaker (Mr Lindsay Hoyle)
It was not aimed at an individual; it was aimed at the speech, I presume.
Ed Balls
We have said, Mr Deputy Speaker, that all the money from not proceeding with a further cut in corporation tax will go to small business with a business rates—[Interruption.] When the hon. Member for Skipton and Ripon (Julian Smith) and the Chancellor say that is a tax rise for business, that is only true if they do not think small businesses are proper businesses, which is a bit like saying, “If you didn’t go to Eton, you didn’t go to a proper public school.”
Ed Balls
First, I went to an even lesser private school than the Chancellor of the Exchequer. [Interruption.] Neither of us went to Eton, unfortunately. [Interruption.] I agree with the hon. Member for The Wrekin (Mark Pritchard) that the rise in employment is good news, but I am concerned that in his—[Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Mr Shelbrooke, we missed you on Budget day, but I am not missing you today, am I?
Ed Balls
The thing I am concerned about—this relates directly to the welfare cap—is that in the constituency of the hon. Member for The Wrekin long-term youth unemployment has gone up by 129% since 2010. I presume the hon. Gentleman would agree that that rise, based on the jobseeker’s allowance claimant count, is a real concern. I think he should be backing our welfare reforms. The fact is—[Interruption.] If the deputy Chief Whip, the right hon. Member for Chelsea and Fulham (Greg Hands), is saying that because the hon. Member for The Wrekin has got a large majority, he does not have to worry about youth unemployment, that would be rather revealing. I hope he was not saying that.
Let me get on to the subject of the welfare cap. The Chancellor has failed to balance the books, he is contradicting his own charter by increasing national debt when it says he should be reducing it in 2015, and he has failed to control welfare spending. We have had plenty of tough talk and divisive rhetoric from the Chancellor, but his failure to tackle low wages, to deal with the cost of living crisis and to get more homes built means that he is spending £13 billion more than he planned in the spending review of 2010, and in last week’s Budget that was revised up by £1 billion in social security spending next year and the year after.
I want to explain where we are. We support the welfare cap. We support what is in the welfare cap. We agree that long-term bearing down on the costs of ageing is a good idea, but it should not be in the welfare cap in the next Parliament; we have agreed with that all along. We have also said we would match the Government’s spending in 2015-16, and the welfare cap over these five years, which we support, would rise on that basis. Although we support that, however, we will make different—
Mark Pritchard
On a point of order, Mr Deputy Speaker. I said that the shadow Chancellor is a fair and reasonable man, and I know he would not want, even unintentionally, to mislead the House. He has got a lot of figures before him, so I have a great deal of sympathy for him, but the fact is that in my constituency of The Wrekin there has been a fall of more than 27% in youth unemployment over the past 12 months.
Mr Deputy Speaker (Mr Lindsay Hoyle)
That is a point of correction, rather than of order.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Mr Burns, I think you need to relax as well. No hon. Member will mislead this House, and I am sure that is not what the shadow Chancellor intended to say and I am sure he will be happy to withdraw it.
Ed Balls
I will not give way. We know from the head of the OBR that if an agreement is reached by this summer, this reform independently to audit all tax and spending commitments, including all issues referring to social security spending, can be done in time for next year’s general election. It is a matter of political will. The Chancellor seems to be happy to spend his time, and that of the House, trying to set political traps—traps that keep backfiring on him—but he does not seem happy, and neither do other Government Members, to join the hon. Member for Ipswich and allow the OBR to audit the Conservative party manifesto or our manifesto, so that we can have a proper, open and transparent debate at the next election. Why does the Chancellor not join this cross-party consensus and let the OBR play that role? What has he got to hide? This is really not a trap—it is just the right thing to do.
Mr Deputy Speaker (Mr Lindsay Hoyle)
May I just announce that we will start with a five-minute limit and see how we go from there?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Mr Burrowes, you have nothing to hide, and I certainly do not want to hear you shout again—I want to hear Mr Gummer. You may not. If you do, you know where to go. Mr Gummer, you have the Floor.
Ben Gummer
Thank you, Mr Deputy Speaker. To return to the core of the matter, this is important because it will hold both Governments and Oppositions to account. The shadow Chancellor might have wished to misconstrue the purpose of my private Member’s Bill. It is a pity he does that when he claims he is trying to forge a cross-party consensus, because it is wrong—
Ben Gummer
Not at all. Now his Back Benchers may wish to draw their own inference from that. In private, the shadow Chancellor has been going round saying that he would change it. He would put one in and take one out. [Hon. Members: “Ah.”] Even in the House, he will say that he will supplement one benefit—withdrawing the winter fuel allowance from richer pensioners will raise £100 million and he would use it to pay for the reversal of the under-occupancy charge, which will cost £500 million. How does he make up that £400 million difference? He has been forced to come to this House to explain his maths. That is precisely why this cap is important. It forces a degree of accountability on the shadow Chancellor in making him explain to the British public how his sums add up, when it is clear that they do not. How does he account for the £400 million difference between the two? [Interruption.] I wish to know the answer as does the British public. [Interruption.]
Mr Deputy Speaker
Order. The hon. Gentleman has only 30 seconds remaining. Stop shouting him down. I want to hear him.
Ben Gummer
The cap is good for Government finances and it is good for accountability because it forces the Opposition to be honest, even though they are seemingly unwilling to be so. It is also important in terms of how we deal with this welfare crisis. It will force Governments to deal with the underlying causes of welfare dependency rather than just jacking up the bill every time they are faced with a difficult problem.
amendment of the law
Lindsay Hoyle Excerpts(12 years, 4 months ago)
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Alec Shelbrooke (Elmet and Rothwell) (Con)
First, I offer my condolences to the right hon. Gentleman, as a fellow Leeds MP, for the loss his family has suffered. As a fellow Leeds MP, he will know some of the pressures of development in Leeds, with some 70,000 units to be built in the city, despite talk in the Leeds core strategy. Does he agree that we must be careful about where these large-scale developments are built? If we are massively to change the shape of the village of Scholes in my constituency, say, that would have the unfortunate effect of lowering house prices and putting people into—
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I think that the right hon. Gentleman, as he knows the area so well, has the message.
Hilary Benn
I am grateful to the hon. Gentleman for his kind words. If he will bear with me, I shall directly address his point about where the houses should go in a moment.
We need to build more homes. Everybody recognises that. That is why, for example, we called for a help to build fund supported by Treasury guarantees to assist small and medium-sized builders in accessing finance to build some of those homes. I welcome the fact that the Government have listened and set up a builders’ finance fund, but history teaches us that we need to do more if we are successfully to change the way in which the market works.
Let me reflect on that for a moment. In the 1930s, when we reached the highest level of private house building ever achieved in the UK, the top 10 house building companies had a market share of 6% or 7%. In 1988, firms completing fewer than 500 units a year produced about two thirds of UK housing but by 2012 that had fallen to less than a third. In other words, as the number of small and medium-sized builders has declined and the big firms have grown larger, it has become easier for the more dominant firms to buy up the land. That is why small and medium-sized builders and custom builders say that it is hard for them to get access to land, so I agree that it is about helping them with finance, but it is also about enabling them to get the soil they need to build on.
The Secretary of State spoke about self-build and the House will remember that the former Housing Minister, now the chair of the Conservative party, promised a self-build revolution and pledged to double––double––the self-build sector. But the facts show that, last year, far from doubling the size of the sector, the number of self-build homes fell to the lowest level for 30 years. That is some revolution.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. There will be a six-minute limit on speeches—I have increased it by one minute.
Nicholas Soames (Mid Sussex) (Con)
May I join in the expression of condolence to the right hon. Member for Leeds Central (Hilary Benn) and say how sad I was to hear his news?
I want to welcome the Budget and reflect for a moment on the Chancellor’s considerable achievement. Fortified by a coalition and stronger for it, with the most appalling legacy left by the last Government, he has managed to turn things around so that our country is now well on the path to better days, with a growing economy, a remarkable number of new jobs emerging and an exciting future about which we can all be optimistic —in particular, I hope, our young people, many of whom are having a tough time of it.
I want especially to mention the Chancellor’s wise decision to freeze fuel duty, which is now 20p lower than it would have been under a Labour Government. Together with a well judged freeze in the council tax, on which I congratulate my right hon. Friend the Secretary of State for Communities and Local Government, that will make a real difference to hard-pressed families in Mid Sussex and elsewhere. I want particularly to congratulate the Chancellor on the welcome plans that have been set out for supporting exports, science and innovation, and of course on the game-changing package of support for savers and pensioners, which has undoubtedly commanded the broadest support possible, and rightly so.
I hope that people now realise—I truly think that they do—the profound difference between the wilful, almost grotesque irresponsibility of the last Labour Government and the steely, genuine determination of the current Administration to get on top of the serious difficulties with a long-term economic plan whose success is now quite clear for all to see. However, the new networked world in which we in this country have to make our way, and for which it must be said we are ill prepared, is manifesting every day a global flow of ideas, innovations, new collaborative possibilities and new market opportunities, not only here but all over the world. To be frank, if we get it right, the world should be our oyster.
There are plenty of businesses and people who understand that. They understand that by tapping into the global flow of new ideas and opportunities, they can become the key to something that we badly need in this country: far greater productivity. It is nowhere near good enough here, and it is the key to growth and increasing prosperity.
All of that will inevitably, and sadly, involve seismic change. I congratulate the Government on the announcement in the Budget of £42 million for the new Alan Turing institute and £74 million for the cell therapy manufacturing centre and the graphene innovation centre, all of which will greatly increase our chances of helping to export our way out of financial difficulties by accessing the fastest-growing markets around the world, particularly in the life sciences, agricultural products, science, medicine, energy and of course services.
My great anxiety is how our country will cope as we try to respond to changes in technology, globalisation and markets that have, in a very short time, made the decently waged, medium-skilled job increasingly unavailable. That is very serious for an economic model such as that in our country, and it is my firm belief that in not too short a time, most of the decently paid jobs will inevitably be those where high skills are at a premium.
I applaud the work of my right hon. Friend the Education Secretary and the Department for Business, Innovation and Skills as they try to answer those challenges, but we must now acquire a new level of political imagination, a combination of further, large education reforms, and an unprecedented collaboration among schools, businesses, universities and the Government, to change fundamentally how people are trained, and enable them to keep on training and learning throughout their working life. That will require major tax reforms and for us to consider in a more careful manner—I say this very deliberately—some of the immigration changes that are under way, in the interests of our economic growth.
Those ideas need to come from across the political spectrum. They will not be the prerogative of any one party, and there will need to be a willingness to meet people half way. We need to attract and enable the kind of talent to come to this country that can constantly spin off new ideas and start-ups, which are undoubtedly already the cause of most new, good jobs. It makes perfect sense: if we are to have more employees, we need more employers. Although that huge transformation, driven by the networked world and all that it involves, takes place—
Amendment of the Law
Lindsay Hoyle Excerpts(12 years, 4 months ago)
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Ed Balls
The site for that new and welcome investment was designated under the last Labour Government as a result of my hon. Friend’s campaigning. We all want manufacturing investment to rise, but what worries me is that over the past two years, since the Chancellor’s “march of the makers” speech, manufacturing output has actually fallen by 1.3%. That is the reality.
As for house building, it is at its lowest level since the 1920s. We believe that the new Governor of the Bank of England is right to be worried that the recovery is not yet secure or balanced. That is why it is vital that the Chancellor does more to get more homes built for millions who aspire to get on to the housing ladder but find it hard at the moment. I have to say to him, we backed Help to Buy, but he should have reduced the limit from £600,000. There should not be a taxpayer guarantee for people buying homes for £500,000 or £600,000. We also need to do more to invest in affordable housing. That is the only way to avoid a lop-sided recovery, demand running ahead of supply and rising prices, putting pressure on the Governor of the Bank of England to slow the housing market through higher mortgage rates earlier than we need in the recovery. That would put business investment at risk and undermine the budgets of hard-working people across our country.
The Chancellor should have listened to the CBI, the International Monetary Fund and the Opposition and acted more boldly to boost investment in housing supply. He should have listened to Labour, and he should have listened to the Business Secretary, too. We have both warned of the danger of lop-sided and unbalanced growth. Like us, the Business Secretary was right to warn back in 2010 that the pace of deficit reduction risked choking off recovery. The Prime Minister was wrong last autumn to dismiss the Business Secretary as a Jeremiah when he warned about the unbalanced nature of the recovery by saying:
“We mustn’t now settle for a short-term spurt of growth, fuelled by an old-fashioned property boom…there are already amber lights flashing.”
I also remind the House of what the Business Secretary said about unbalanced growth just a few weeks ago:
“The shape of the recovery has not been all that we might have hoped for”.
He was right to make those warnings, but time after time over the past few years when he has publicly made such warnings about the risks, he has been ignored. The problem is, the Business Secretary is a member of the Cabinet that is doing the ignoring. How can he keep on ignoring himself again and again?
As for the top-rate tax cut, which I know a number of Government Members have criticised, I remind the Business Secretary that he said at the weekend:
“I don’t understand why people need a million quid a year.”
What we do not understand is why he has given people on a million quid a year a tax cut of £42,500 each and every year. He asks for sympathy—he told The Guardian a few weeks ago that
“since being in government I have become much more enslaved these days”.
I say “Free the Cable One”. Is it not the sad truth that he is not enslaved but in hock? He is not captive, he has capitulated. It is a Tory agenda, and he is part of it. He knows it, and he should get out of it before it is too late.
As for the Chancellor, he has certainly been busy in recent weeks, and not just preparing his Budget. The manifesto is being written, the team is being assembled, the campaign is under way. But the enemy is not called Ed, and it is not the general election that is preoccupying him. He has his eyes on a different prize. This is what his new best friend, the Education Secretary, said to The Mail on Sunday—[Interruption.] Government Members do not want to hear what he said, do they? [Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I think we do want to hear what the right hon. Gentleman has to say.
Ed Balls
They do not want to hear this, so before I remind people of what the Education Secretary said, let me tell the House what was said yesterday about the cost of living, the Budget, and all those matters, by the outgoing Conservative hon. Member for Thurrock (Jackie Doyle-Price): “The biggest impediment”—[Interruption.] I really think that hon. Members, especially those with small majorities, should listen to what she said.