Oral Answers to Questions

Debate between Peter Grant and Steve Barclay

Thursday 31st March 2022 Commons Chamber

[Peter Grant (Glenrothes) (SNP)]

Every one of the 65 million or so people in these four nations who has a mobile phone, tablet, iPad or Alexa-enabled device is a potential target for hostile nations seeking to damage our cyber-security, but the National Cyber Force budget amounts to 10p a month for each of those citizens. What representations has the Minister made to the Chancellor to raise that budget to a more reasonable level?

[Steve Barclay]

I have some exposure to this, having been Chief Secretary to the Treasury. Of all the budgets, the agencies’ budgets have increased more than most, if not the most. Significant funding has been put into the National Cyber Force as part of the cyber corridor in the north-west. There are sometimes limits to how much detail one gives on some of those budgets, but I am happy to interact with the Intelligence and Security Committee to provide any reassurance the House needs that significant funding is being provided on our resilience and our national cyber-response. That builds on a number of points raised this morning, including our work on the skills needed as part of that resilience and the situation centre in which we have invested.

Oral Answers to Questions

Debate between Peter Grant and Steve Barclay

Thursday 25th November 2021 Commons Chamber

[Steve Barclay]

I do welcome that announcement. As the Energy Minister, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), said, the backing for tidal steam power is opening up a new chapter for Britain’s coastal communities and advancing the possibilities for Britain’s marine energy sector to play a significant role in delivering the UK’s green energy revolution.

[Peter Grant (Glenrothes) (SNP)]

A large number of small and medium-sized enterprises play a crucial role in the UK’s supply chain and many rely on imports from the European Union to keep that supply chain going. Such businesses were let down badly last year when import controls were introduced on the other side of the channel; what guarantees can the Minister give that when the UK starts to impose import controls in January the needs of small businesses will be kept in mind?

[Steve Barclay]

We are working in collaboration across the United Kingdom: I joined a call with the First Ministers, including the First Minister of Scotland, to discuss supply chain issues. We have also brought in expertise such as Sir Dave Lewis, former chief executive of Tesco, to work with us. How we maintain the resilience of our supply chains involves shared issues that we are working together on across the UK.

Health and Social Care Levy

Debate between Peter Grant and Steve Barclay

1st reading
Wednesday 8th September 2021 Commons Chamber

[Steve Barclay]

I have just given way and addressed my right hon. Friend’s points head on. Let me, in turn, address head on the points raised by the shadow Chancellor, the hon. Member for Leeds West (Rachel Reeves).

In the shadow Chancellor’s speech, she said that she opposed the levy despite, as a number of Members pointed out, the previous Labour Government taking a similar approach in 2002-03, because she supports taxing wealth. The problem with that is that only a broad-based tax base, such as income tax, VAT or national insurance contributions, can raise the sums needed for such a significant investment. Again, that was a point made by critics of the Government, including my good friend, my hon. Friend the Member for Wycombe (Mr Baker). It could not be raised by taxes on wealth. Currently £6 billion is raised from inheritance tax, £8.7 billion from capital gains tax and £12.3 billion from property transaction tax. Indeed, that case was demolished by the Chair of the Treasury Committee, my right hon. Friend the Member for Central Devon (Mel Stride), as well as by my hon. Friends the Members for Dudley South (Mike Wood) and for Thirsk and Malton (Kevin Hollinrake), who highlighted that to raise the revenue required requires a broad-based approach.

[Peter Grant]

On the subject of cases being demolished, one of the cases that the right hon. Gentleman’s colleagues have made great deal of play of today is that of the fictional Yusuf in the Government’s own document. According to the Government, Yusuf’s care home costs are £700 a week. They claim that under the current system they would have had to spend £293,000 before they reached the current cap. The Minister will be aware—I hope he can count—that in order to spend £293,000 at £700 a week—

[Peter Grant]

What percentage of people going into a care home have any chance of still being alive in nine years’ time?

[Steve Barclay]

One of the features of the Dilnot proposals—Dilnot has been very frank about this—is that his costs ramp up over time. That is why the initial funding is £5.4 billion, but obviously, the social care element will increase. I will come to the case put forward by SNP Members, who seem bizarrely not to want the Union dividend that is offered and to not be seeking that additional funding. Let me finish on the Opposition amendment—

Lockdown: Economic Support

Debate between Peter Grant and Steve Barclay

Tuesday 3rd November 2020 Commons Chamber

[Steve Barclay]

First, I refer to the answer I gave earlier about the universal nature of the package. Another such area that my hon. Friend did not mention is the fishing sector, which was particularly impacted not only through its supply of the restaurant trade but through its exports, which were also hit. We have listened to concerns there and put in some additional support. But the best way we will support businesses, whether in the wedding sector or elsewhere, is by getting the virus down. That is why we have taken the comprehensive measures that we have for the next four weeks. That is the best way to be able to open up these sectors and get the people who have been furloughed or supported through the self-employed scheme on to the job support scheme, where they will then qualify for the furlough bonus, which will be further support that is available.

[Peter Grant (Glenrothes) (SNP) [V]]

For all the Minister’s sweet talking, the simple fact is that nearly eight months after the first lockdown was imposed, millions of self-employed people and small businesses are still being excluded from Government support. He has spoken approvingly today of comments from a recent Public Accounts Committee report, so may I draw his attention to the Committee’s 20th report of this Session, unanimously agreed by a Committee with a Conservative majority?

The report says:

“The Committee is disappointed that, so long after the beginning of the pandemic, HMRC has still not made sufficient use of its data to identify small businesses which have been left out of previous support packages, and therefore maximise taxpayer eligibility for grant support.”

Can the Minister not accept that the Committee’s disappointment reflects a view widely held among all parties in the House and that it is time for the excluded 3 million to be supported by actions, not just words?

[Steve Barclay]

I am somewhat surprised that the hon. Gentleman talks of actions when, as a result of our ability to operate UK-wide, we have been able to support nearly 1 million jobs in Scotland. Some 65,000 businesses in Scotland have benefited from the UK Government loan schemes and, as of 31 August, 242,600 employments were furloughed, at a take-up rate of 10%. Significant support has been offered to businesses in Scotland, as indeed it has been to businesses throughout the UK. It is odd that the hon. Gentleman talks about actions and ignores the nearly 1 million jobs that have been supported as a result of the actions that the UK Government have taken.

Tax Avoidance and Evasion

Debate between Peter Grant and Steve Barclay

Tuesday 25th February 2020 Commons Chamber

[Steve Barclay]

As a point of principle, HMRC always seeks to collect the tax that it is due. One of the areas of innovation—I will come on to such areas as Making Tax Digital—is about making that easier for HMRC, but I appreciate that the right hon. Gentleman is making a point more about fraud than error. The underlying principle is that HMRC always looks to collect the tax that it is due, but if he has a specific point on a constituency basis, I know that my right hon. Friend the Financial Secretary to the Treasury will always be keen to discuss it with him, because he has a zeal for cracking down on any such practice.

The Government have done much to squeeze the tax gap: by ensuring that companies increasingly pay their way; by cracking down on offshore avoidance and evasion; by tackling tax avoidance schemes; by helping people to get their taxes right first time; and by investing in HMRC’s toolbox. If one looks at the actions being taken in terms of large businesses, they will see that there is an exceptional level of scrutiny. At any one time, HMRC is engaged with half the UK’s largest businesses and we have introduced specific measures to shape behaviours. For example, the diverted profits tax was introduced in 2015 to ensure that multinational companies pay UK tax in line with their UK activities. Under our rules, those companies either declare the correct amount of profits in the UK and pay the full amount of corporation tax on them, or they risk being charged a higher amount of diverted profits tax at a rate of 25%. It raises tax directly through encouraging changes in groups’ behaviour that, in turn, leads to increased tax receipts.

[Peter Grant (Glenrothes) (SNP)]

The Chief Secretary quoted a figure of 25% as a potential penalty. Will he tell us how much has been raised from those penalties so far? Has anyone been penalised as a result of failing to fall into line with this new incentive?

[Steve Barclay]

It is always good, 10 days into the job, to get specific challenging questions on the detail, but to answer that question—and I do not want to tempt hon. Members who usually come with in detailed questions such as that—the tax has raised £5 billion in additional revenue. On this occasion, I can satisfy the House, but I do not want to tempt fate with too many colleagues on this outing.

It is interesting that attitudes in large companies are changing. I am sure that there will be Members who will want them to change further, but since 2013 the proportion of large businesses agreeing that tax avoidance is acceptable has more than halved, moving from 45% to 21%. There is clearly more to do, but that shows a change in attitude within many large companies.