Finance Bill

Nusrat Ghani Excerpts

Tuesday 31st October 2017 Commons Chamber

[Peter Dowd]

The tax gap fell in every year between 2005 and 2010. The Minister brings my attention to his record, but I am bringing his attention to Labour’s record. As I have said, if we want to have a debate about the tax gap, we can do that. I am more than happy to do so, as are my colleagues, but as I have said many times, this is also about trying to look forward. We can all talk about our record—how good or bad it might have been—but let us move on and try to deal with the issues we are facing, not those we used to face.

[Ms Nusrat Ghani (Wealden) (Con)]

I accept that you do not want to talk about the tax gap and want to move forward, but if you want to move forward, will you at the very least welcome the fact that we have collected more than £1 billion—

[Mr Speaker]

Order. I am not doing anything. It is not that I do not want to talk about this or I do not want to do that. That is simply not germane. The debate goes through the Chair, as the hon. Lady knows on her best days.

[Ms Ghani]

I am sorry, Mr Speaker.

The hon. Gentleman might not want to talk about the tax gap, but will he at the very least acknowledge that an extra £1 billion has been collected under this Government compared with under Labour? Surely he wants to take this opportunity to welcome that.

[Peter Dowd]

As much as I would like to debate the tax gap with the hon. Lady, I think that shows an ignorance of the issues involved in the nature of the tax gap. As far as I am concerned, I am quite happy—more than happy—to debate this issue in due course, but I am simply making the point that we must move on.

--- Later in debate ---

[Ms Ghani]

The hon. Gentleman has been very generous in giving way. I am a little concerned about the messages he wants to send out, but one message that we most definitely should send out is that the Government proposals will bring in an additional £1.6 billion over five years. That is money that will support all our public services for everyone.

[Peter Dowd]

That is a starter and I am sure that much more could be brought in. Again, I am sure that in an effort to get that figure up, the hon. Lady will support the new clause. I am really pleased that she agrees with us on that matter.

The only message this Government want to send is one of supine support for tax dodgers. The dodgers may want to hear that message, but public sector workers who have not had a pay rise for years do not want to hear it, the people waiting months for an operation do not want to hear it, and the police and firefighters do not want to hear it. I assure Government Members that at the next general election, the public certainly will hear that message loud and clear, because Labour will be there to remind them of a Government in chaos and disarray that is beginning to have a putrefying decay about it.

Oral Answers to Questions

Nusrat Ghani Excerpts

Tuesday 24th October 2017 Commons Chamber

[Ms Nusrat Ghani (Wealden) (Con)]

7. What comparative assessment the Government have made of the level of spending on public services in the UK and other developed countries.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

Last year, public spending was 38.9% of GDP, which equates to about £28,500 per household. This is comparable with other leading countries.

[Ms Ghani]

Does the Minister agree that it is due to this Government’s responsible management of the public finances that we are able to spend more on education than Germany and Japan, and more on defence and policing than any other European country?

[Elizabeth Truss]

My hon. Friend is absolutely right. We spend more per student on education than Germany or Japan. Because of our management of the public finances, we have been able to push £1.3 billion more of education spending to the frontline, where it is going to make the most difference in classrooms.

Finance Bill

Nusrat Ghani Excerpts

Committee: 1st sitting: House of Commons
Wednesday 11th October 2017 Commons Chamber

[Eddie Hughes]

I think I remember the hon. Gentleman saying, “Let’s not talk about the past. Let’s talk about what this Labour Government might do for you in the future.” Well, there is not going to be a Labour Government. There is going to be a Conservative Government who will continue to increase the minimum wage. If my constituents are going to trust anybody in the House, it should be the Conservatives. We have no intention of taking more tax off people. If we did, we would have to come back to the House to get approval anyway.

[Ms Nusrat Ghani (Wealden) (Con)]

Thank you Madam Deputy Speaker—sorry, I mean Dame Rosie. I have just been thrown by that magnificent speech by my hon. Friend the Member for Walsall North (Eddie Hughes). His constituents must be very proud of him.

Let us ground ourselves for a moment. I am proud of this Government’s record on tax avoidance. Since 2010, our policies clamping down on tax avoidance and evasion have collected more than £140 billion, ensuring that our tax system is just and that everyone pays their fair share. Clause 5 makes the tax system fairer, which should be the ambition of all responsible political parties. A fairer tax system means that we can fund our vital public services without increasing taxes or passing more debt on to future generations. It is not rocket science; these are the basic rules for responsible government. To that end, I welcome the clauses we are discussing today, especially clause 5. They tighten the rules and close loopholes that have been exploited for too long, denying the Treasury what it is owed and short-changing the vast majority of individuals and small and medium-sized enterprises that pay their fair share.

I cannot be the only Member of Parliament who represents a constituency whose jobs, prosperity and opportunities are dependent on small businesses thriving, and I take every opportunity to stand up in the Chamber and back small businesses across Wealden. But back to clause 5. The tax rules on termination payments are currently unclear and confusing. Clause 5 tightens and clarifies the rules governing the tax due on these payments. The changes make the rules fairer, minimising the potential for manipulation by some larger employers, which often give the most generous pay-offs.

[Colin Clark (Gordon) (Con)]

The oil downturn has had an enormous effect in my constituency and that of the hon. Member for Aberdeen North (Kirsty Blackman). Like my hon. Friend the Member for Redditch (Rachel Maclean), I am a business owner. There are already too many barriers to employment. The Bill seeks to give clarity and the amendment would add to the complexity of employment. We do not want further barriers to employment. Does my hon. Friend the Member for Wealden (Ms Ghani) agree that we want clarity, which will ultimately help employment and small businesses?

[Ms Ghani]

My hon. Friend is spot on. We want absolute clarity. As I continue with my speech, the Committee will realise that the changes in clause 5 will barely have an impact on most people in our constituencies.

The changes are not asking someone who has been made redundant to pay more tax. The first £30,000 of the termination payment remains exempt from tax as well as national insurance contributions. As a result, the changes in clause 5 will not have an impact on 85% of people who receive termination payments. If we have constituencies where 90% of businesses are SMEs, our figure will probably be even higher than 85%. On average, 25% receive a payment of more than £54,000, so they are not exactly the least well-off in society. Those who are not following the rules and are not manipulating the loopholes will pay no additional tax. It is simply about clarifying the fine details.

--- Later in debate ---

[Kirsty Blackman]

My complaint was about the fact that people are being allowed to not pay tax on stuff they are doing in this country. My complaint is that the background note provided by the Treasury does not mention anything to do with £1.6 billion and that the overview of tax legislation put forward in December last year does not mention £1.6 billion. Despite our asking the Government for that figure on a number of occasions, this is the first time it has been forthcoming. I am very pleased that it is and that we can have a reasonable discussion about whether we should increase the ability of people from other countries to come under this.

I did not want to talk for a very long time, because we have already had a number of votes and two hours of debate on the Bill. As I said, the House has spent an incredible amount of time on this, and it probably should not have. The Labour party has tabled a new clause along similar lines to the new clause tabled by the Scottish National party.

[Ms Ghani]

I am concerned that we must not put inaccuracies on record. The HMRC figures published in August 2017 show that over £1.6 billion has been invested in UK businesses under the BIR scheme. We must not say that figures are not available when they are; we just have to go to the right place to find them.

[Kirsty Blackman]

I am very glad that those figures are there, but sadly, when we asked about them in September during our discussion on the Bill, after their production, they were not mentioned. I appreciate that they are being brought up now—that is great—but they were not brought up then.

As I said, I do not want to take up much of the Committee’s time discussing this matter. We have asked the Government to provide us with more data. We have also asked them to provide data on what effect they think this change will have on the amount of investment coming in. We would very much like to see that.

Finance Bill

Nusrat Ghani Excerpts

2nd reading: House of Commons
Tuesday 12th September 2017 Commons Chamber

[Ms Nusrat Ghani (Wealden) (Con)]

It is an honour to follow the passionate and detailed speech made by my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton).

I am not sure, Mr Deputy Speaker, if, like me, you were reminded on reading the Bill of the reason you sought elected office: the desire to provide security and opportunity for our constituents. The Government have a proud record of 3 million extra jobs, Labour’s deficit cut by two thirds, and some of the strongest growth figures in the G7. The economy is in good shape thanks to the sound and responsible policies implemented over the past seven years, and we are delivering a strong economy with strong public services.

The Bill delivers an alternative to Labour’s black hole. It is about a fair taxation system that delivers for ordinary working families, that does not place a stranglehold on individual entrepreneurialism or burden people with tax bills they cannot afford, that is fair and robust, and that tackles tax avoidance and evasion. We have a good record on taxes, too. We have reduced corporation tax from 28% to 19%, meaning that SMEs, which are so important to our economy, including Wealden’s economy, can keep more of their own money. This has generated more income for the Treasury: corporation tax receipts have increased from £37 billion to £50 billion.

One nation Conservatism is perfectly explained by the raising of the personal allowance, which has given 30 million people a tax cut of £1,000 and lifted 1.3 million out of income tax entirely. In combination with the national living wage and the freezing of fuel duty for the seventh consecutive year, this means that ordinary families are better off thanks to a Conservative Government.

By contrast, over 13 years in government, Labour failed to deliver on tax avoidance. The tax gap—the difference between the taxes owed and the taxes received—stood at 10%, and it allowed the Mayfair loophole to go unchallenged, which let hedge fund billionaires off the hook to the tune of millions of pounds. Labour was weak on tax avoidance in the Finance Bill that the House debated before the general election, demanding that the measures we are discussing today be stripped from the wash-up Bill. Labour cannot be trusted on tax avoidance. Its Members occasionally talk the talk, but they will never walk the walk.

Where Labour failed, we are delivering. The Bill contains important measures to crack down on individuals and corporations when they do not pay what they owe. Tax avoidance by larger companies and wealthy individuals not only short-changes the Treasury, but short-changes the SMEs that drive the economy, and that is a message we are sending very clearly today.

Like every other Member in the Chamber, I have many small businesses in my constituency. It is our job to stand up for those businesses in this place. They are not able to use complex tax schemes and clever accounting to shuffle their money around the world, reducing their tax bills to near zero; instead, they pay their fair share. By 2020, the contribution that SMEs make to the economy will be more than £200 billion and, importantly, they will be employing more than 15 million people.

The Bill will deliver on our promises and commitments, helping to level the playing field. It will ensure that our public finances are in order, allowing us to invest more in our public services and better preparing our economy. Above all, supporting it is the responsible thing to do, and that is why I shall support the Bill tonight.

Public Sector Pay Cap

Nusrat Ghani Excerpts

Wednesday 5th July 2017 Commons Chamber

[Elizabeth Truss]

We have good rates of pay across the civil service. We need to make sure that that is sustainable, so we can carry on making sure that we have good services in both the civil service and the wider public sector.

[Ms Nusrat Ghani (Wealden) (Con)]

The public are rightly fed up with politicians playing politics with the NHS, so let us listen to what the NHS pay review body has evidenced and said. Is my right hon. Friend aware that the NHS pay review body stated:

“We do not see significant short-term nationwide recruitment and retention issues that are linked to pay”?

[Elizabeth Truss]

That is exactly why we have independent pay review bodies: they give us impartial advice and make recommendations. We accepted in full the recommendation of that body.

Oral Answers to Questions

Nusrat Ghani Excerpts

Tuesday 17th January 2017 Commons Chamber

[Jane Ellison]

The House will not be surprised to learn that the Treasury is receiving a number of suggestions as to what might happen to VAT when we are no longer members of the EU, and I am aware of the pressure from and representations made by the tourism industry. I am meeting the Northern Ireland Affairs Committee tomorrow; this is likely to be one of the issues on its mind. Of course we look at these issues carefully, but we are still members of the EU, and all our legal obligations and so on remain while that is the case.

[Nusrat Ghani (Wealden) (Con)]

3. What fiscal steps he is taking to encourage investment in innovative UK science and technology projects.

[The Chief Secretary to the Treasury (Mr David Gauke)]

As announced at the autumn statement, the Government are significantly increasing investment in research and development, which is rising by an extra £2 billion a year by 2020-21. That is the largest increase over a Parliament since records began in 1979. This includes an industrial strategy challenge fund, which will support collaboration between businesses and the UK’s world-leading science base. That will ensure that the UK remains an attractive place for business to invest in innovative research, and that the next generation of discoveries are made, developed and produced in the UK.

[Nusrat Ghani]

I thank the Minister for his answer. Scientifica, one of the largest employers in my constituency, won both business of the year and export business of the year for 2016 at the British Chambers of Commerce’s annual awards. I will be incredibly proud to join Scientifica when it opens the London stock exchange in March. Will he join me in congratulating Scientifica, and will he pledge to continue supporting such businesses, which export the best of British scientific innovation, collaboration and enterprise to the rest of the world?

[Mr Gauke]

I am delighted to join my hon. Friend in congratulating Scientifica, and I am happy to make that pledge. At the spending review, we committed to a £175 million reinvestment in UK Trade & Investment, now part of the Department for International Trade, to drive UK exports. We remain committed to ensuring that UK exporters receive world-class support. Indeed, as the Prime Minister will make clear today, maintaining the UK as one of the best places in the world for science and innovation is a priority for us.

Budget Resolutions and Economic Situation

Nusrat Ghani Excerpts

Monday 21st March 2016 Commons Chamber

[Nusrat Ghani (Wealden) (Con)]

I have just returned from my constituency of Wealden, where the topic over the past few days has been the Budget. I want to share with the House how my constituents are creating opportunities and jobs for their rural community with the support of Conservative Budgets. Wealden has seen at first hand the benefits of having Conservatives in government delivering a strong and stable economy. Unemployment is a little over 400, which is less than half what it was back in 2010 when Labour left office, and there are 380 more registered enterprises and hundreds of smaller businesses thriving across the constituency. In particular, I want to praise the support offered to small businesses by the Chancellor’s Budget measures. Doubling small business rate relief will help businesses up and down the country. More than 600,000 small businesses will benefit from a saving of up to £5,900. This will make it easier for them to flourish, with knock-on benefits for employment and local prosperity. Members on both sides of the House should welcome that.

I represent a rural constituency that the Secretary of State for Communities and Local Government knows well as I have the pleasure of being his constituency neighbour. We must not forget rural people, rural communities and rural businesses, and I am delighted that this Budget is extending the opportunity of devolution to rural areas. In East Sussex, we are hoping to join with West Sussex and Surrey to create a devolved authority, and that is something that I am proud to back. Local people know their areas best, so they know best how to run their affairs. I would welcome an update from the Minister on how this is progressing.

I stand here tonight to make a couple of requests on behalf of the good people of Wealden. The Chancellor has announced a number of infrastructure projects that will benefit local economies and communities, especially the investment in the northern powerhouse. However, I want to champion the rural powerhouse. In Sussex, we struggle with poor road infrastructure, especially on the A21 and the A27, both of which are in need of investment. These are key roads connecting commuter towns and the families who live in them, and they need real improvements, not just aesthetic ones. I hope that Ministers will be able to put gentle pressure on our Cabinet colleagues to look favourably on us in the next round of investment. This is vital to keep pace with the progressive Wealden Council, which is already fulfilling its duty to the next generation by building homes above and beyond what has been requested, and with East Sussex County Council, which is diligently working on infrastructure projects. Those councils’ commitment needs to be matched with real-terms funding for Wealden’s roads.

I was delighted that the Chancellor chose to extend the freezing of beer duty, as well as duty on spirits. I recently conducted a survey of 81 pubs in Wealden, and that is something they asked for, as well as requesting me to come along and pull some pints. But what about a good old glass of wine? What has the humble grape done to offend the Chancellor so much that it has been left out?

This is a Budget for the next generation and for entrepreneurs, but let us ensure that it works for rural and urban communities alike. I urge Members on both sides of the House to do the right thing by supporting communities, opportunities and the progress of small businesses in their constituencies by supporting this Budget with all the enthusiasm they can muster.

[Several hon. Members rose—]

Spending Review and Autumn Statement

Nusrat Ghani Excerpts

Wednesday 25th November 2015 Commons Chamber

[Mr Speaker]

Order. The hon. Member for Wealden (Nusrat Ghani) has perambulated around the Chamber, which of itself is perfectly legitimate, and we enjoyed hearing from her earlier. May I just ask, was she here throughout the statement?

[Nusrat Ghani (Wealden) (Con)]

Yes.

[Mr Speaker]

She was; we will hear from her.

[Nusrat Ghani]

Thank you, Mr Speaker.

A good education not only enables our children to reach their full potential but is empowering, and we now have 1 million children attending good or outstanding schools. May I thank the Chancellor for protecting our schools budget and for the good news about the commitment to a new funding formula, which will mean so much to my rural constituency?

[Mr Osborne]

The constituency of Wealden is dear to my heart, as my father grew up in Framfield, near the town of Uckfield, and I have been to see the area.

My hon. Friend is right that the support we are giving East Sussex in this statement is really compelling. It means that we can support the schools in her constituency, of which she has been such a strong champion.