All 4 Debates between Lucy Frazer and Rushanara Ali

Treasury

Debate between Lucy Frazer and Rushanara Ali
Friday 19th November 2021

(2 years, 4 months ago)

Ministerial Corrections
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Rushanara Ali Portrait Rushanara Ali
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The Minister mentioned fairness a few times, and also the challenges facing the country. Why have her Government decided to give banks a reduction in the surcharge taxes they pay, which will cost the taxpayer £1 billion a year, when increasing numbers of our constituents are going hungry because of the failure to support them in the challenges they have faced over the last 18 months?

Lucy Frazer Portrait Lucy Frazer
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I am grateful for the opportunity to answer that question, because the hon. Lady talked about a reduction in the amount banks are paying but that is not accurate: the banks will actually be paying a higher rate than previously. The hon. Lady might have noted that I referenced in my speech the fact that corporation tax was going up to 25%, and banks will be paying a higher rate than everybody else, who will be paying 25%; the banks will now be paying 28%, not the 27% they are currently paying. We are also ensuring that we have a competitive operating environment for these banks, because the banking sector not only contributes to the economy but employs 1 million people.

[Official Report, 16 November 2021, Vol. 703, c. 496.]

Letter of correction from the Financial Secretary to the Treasury:

An error has been identified in my response to the hon. Member for Bethnal Green and Bow (Rushanara Ali).

The correct information should have been:

Finance (No. 2) Bill

Debate between Lucy Frazer and Rushanara Ali
2nd reading
Tuesday 16th November 2021

(2 years, 4 months ago)

Commons Chamber
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Lucy Frazer Portrait Lucy Frazer
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I am grateful to the hon. Member for that question because I appreciate, since being in this role, that the loan charge is an issue that has affected many people across the country and that many MPs feel very strongly about. I have spent quite a considerable amount of time already talking about this issue not to only the chief executive officer of Her Majesty’s Revenue and Customs, but to officials. I have also had the opportunity to meet HMRC officials who are dealing with the vulnerable people who may be subject to the loan charge and to ask questions about how they are treating them.

The hon. Member makes a really good point, because the real perpetrators in relation to the loan charge are those who offer these schemes and getting people on low pay into them. An issue I have raised directly with HMRC is how we can further prosecute and bring these people to justice. Unfortunately, I understand that many of them are located offshore, but we will be doing everything we can to ensure that those who are responsible for promoting this are brought to justice.

This Bill deals with those who try to get out of paying tax, but it also creates a simpler and easier system. Its measures make capital gains tax easier to navigate, doubling the window for reporting and for paying CGT on residential property from 30 days to 60 days. This will give people longer to work out what they owe and make it less likely that they will make a mistake. For businesses, we are creating a simpler tax system through reforms to basis periods, leading to a simpler, fairer and more transparent set of rules for the allocation of trading income to tax years.

There is no doubt that the pandemic has cast a long shadow over this country and our finances, but just as our wartime predecessors rebuilt from the blitz, now is the time to open a new chapter in our national story—one of economic growth and renewal, and with it, transformed lives.

Rushanara Ali Portrait Rushanara Ali (Bethnal Green and Bow) (Lab)
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The Minister mentioned fairness a few times, and also the challenges facing the country. Why have her Government decided to give banks a reduction in the surcharge taxes they pay, which will cost the taxpayer £1 billion a year, when increasing numbers of our constituents are going hungry because of the failure to support them in the challenges they have faced over the last 18 months?

Lucy Frazer Portrait Lucy Frazer
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I am grateful for the opportunity to answer that question, because the hon. Lady talked about a reduction in the amount banks are paying but that is not accurate: the banks will actually be paying a higher rate than previously. The hon. Lady might have noted that I referenced in my speech the fact that corporation tax was going up to 25%, and banks will be paying a higher rate than everybody else, who will be paying 25%; the banks will now be paying 28%, not the 27% they are currently paying. We are also ensuring that we have a competitive operating environment for these banks, because the banking sector not only contributes to the economy but employs 1 million people.[Official Report, 19 November 2021, Vol. 703, c. 5MC.]

The hon. Lady also said people were going hungry, but it is important to recognise what this Finance Bill and Budget do for those on the lowest pay. I have talked about the universal credit taper rate, bringing in an additional £1,000 for those in work who will benefit from it. We have also increased the national living wage, which will benefit people by an average of £1,000. There are a number of other measures, too, that benefit people who are not in work.

Rushanara Ali Portrait Rushanara Ali
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But the reality is that there has been a UC cut, and the taper rate reduction, which is welcome, will help only a third of the 6 million affected. What about the 4 million others? This is not a fair Budget and it is wrong for this Government to treat the British people in this way given what they have faced in the pandemic over the last 18 months.

Lucy Frazer Portrait Lucy Frazer
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The UC taper sends out a message that it is important to get into work and that work pays. We on the Government side of the House believe that the way to help people is to get them into work and into good jobs so they can support themselves, and we have a number of schemes to help those on UC to get into work. It is also important that when they are in work, they are paid well for it.

The hon. Lady also asked about those who are not in work, and I remind her of all the measures we have put in place for them, because not everybody can work. Before the Budget the Chancellor announced half a billion pounds for the most vulnerable—millions of vulnerable people will benefit from that. There are also more than 2 million people benefiting from the warm home discount and all the people who benefit from the council tax rebates we help them with. So it is right that we support the most vulnerable, but the UC credit taper is about making work pay.

We will invest in people, in businesses and in public services, just as we are doing with the 40 new hospitals, the 20,000 new police officers and the extra money we are providing to schools.

Draft Civil Legal Aid (Amendment) (EU Exit) Regulations 2019

Debate between Lucy Frazer and Rushanara Ali
Tuesday 22nd January 2019

(5 years, 2 months ago)

General Committees
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Lucy Frazer Portrait Lucy Frazer
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I will make three points: two relate to the SI and the third is more global. First, it is extremely disappointing that, in opposing the regulations, the Opposition will not enable us to provide for a smooth transition by ensuring that our statute book is fit for purpose if we leave the EU without a deal.

Secondly, I am very disappointed by the suggestion from my friend, the hon. Member for Bolton South East, with whom I work very well, that the regulations will have a massive impact. What we are doing with the legislation is simple: we are ensuring that, as we leave the EU, its member states do not receive preferential treatment vis-à-vis other third countries. Under World Trade Organisation trade terms, we are not allowed to give preferential treatment to one portion of the world. We are ensuring that we do not give a more favourable position to EU member states. Under the SI, as with all the SIs introduced by the Ministry of Justice, individuals from those member states will still be able to get the same treatment as EU nationals in this particular provision of legal aid. They will still be able to get legal aid under the same conditions as our residents under LASPO, as long as the matter for which they are claiming is in scope and subject to means and merits.

Thirdly, the hon. Member for Bolton South East made a very broad point about other matters not relevant to the statutory instrument. We will debate those matters in due course. She mentioned the important point of civil jurisdiction and the enforcement of judgments, for which another SI will be introduced. She also mentioned family law. We, like the EU, think it is extremely important for us and the EU to get a deal to ensure that we have a reciprocal arrangement on family law. Indeed, a reciprocal arrangement on family law is one of the areas of mutual interest that the EU has identified and that it is willing to negotiate within a future framework. The matter under discussion, however, is a no-deal scenario.

Rushanara Ali Portrait Rushanara Ali (Bethnal Green and Bow) (Lab)
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May I remind the Minister that it is extremely disappointing that her Government are still leaving the prospect of a no-deal situation over us? That is irresponsible and she should be concerned about that. My hon. Friend the Member for Bolton South East raised legitimate concerns about British nationals who will continue to live in the EU. The Minister needs to focus on that. Thinking simply in terms of WTO rules is not appropriate because British nationals will still live in other countries, and in that context, we will need partnerships that allow them to have access to justice.

Lucy Frazer Portrait Lucy Frazer
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The best way to protect the citizens whom the hon. Lady talks about is to ensure that we have a deal. The Prime Minister’s deal will allow us an implementation period to negotiate the very points that the hon. Lady identifies. One of those points is an agreement in relation to families, on which we would be able to get a reciprocal arrangement in future.

Education Funding in London

Debate between Lucy Frazer and Rushanara Ali
Wednesday 4th May 2016

(7 years, 10 months ago)

Commons Chamber
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Rushanara Ali Portrait Rushanara Ali
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The hon. Gentleman will recognise that in boroughs such as mine and in Newham and Hackney, the unprecedented rise in house prices has been much greater than in outer London. I accept his point that house prices are a major issue, but the Government should be considering how to address that across London and the country, rather than dividing communities and areas. That is our point. We must build on our achievements and not close our ears to each other, because that does not serve our constituents or young people well.

Let me turn to population growth in London. When the population is growing by 100,000 a year in London, we cannot afford to have fewer teachers. If we are already looking at 6,000 fewer teachers with these cuts, imagine what will happen in the future. We need to plan ahead for the needs of cities such as London. If we want London to remain a world-class city with some of the best educated young people in the country, and help other areas to improve and replicate what we are achieving, we must ensure that we do not throw away that success.

Lucy Frazer Portrait Lucy Frazer
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Will the hon. Lady give way?

Rushanara Ali Portrait Rushanara Ali
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I will continue my remarks because other Members wish to speak and I have given way a number of times. Perhaps the hon. and learned Lady will also have the chance to speak.

As has been mentioned, the increased cost of living in London has meant that teachers find it increasingly difficult to survive on their current salaries, and they require the London weighting equivalent to enable them to live and work in London. Already in boroughs such as mine and elsewhere, local authorities are struggling to maintain teacher numbers, and with these cuts they will have to lay teachers off, which is not what local schools need.

In boroughs such as Tower Hamlets, Hackney and elsewhere, we have seen such as collaboration, partnership and the effective use of resources by teachers and local education authorities have helped to create a success story that has transformed our schools. We must build on that model. It is not about the academisation of schools in my borough—we did not have academies; it is the collaborative model and partnership, along with well-targeted resources into schools, investment in training, and support to teachers, that transforms schools in my constituency and elsewhere. That is well recognised around the country. Recent reports by the Brooking Institution and the Institute of Education highlight what it took to transform education, and spending resources effectively was critical to that.

My plea to the Minister is that he take back these plans, consider the formula again, and ensure that funding is targeted on those who need it. In London, given the inequality and deprivation, it is vital that we maintain that support. The Government should be looking at levelling up support to schools across the country, not taking resources away and punishing schools for doing well. It has taken a generation to transform schools such as those in my borough and across London, but it will take a matter of years—perhaps even less—if this funding formula is introduced and resources are taken away from schools, to decimate our education system. Surely the Minister will appreciate that it is far better to learn from one other and to build on our achievements rather than damage them.