Small Businesses: Tax Reporting

Rachael Maskell Excerpts

Monday 25th January 2016 Westminster Hall

[Oliver Dowden]

That is an important point. While there are questions to raise, it is important not to get carried away. The overall direction of Government travel is towards having a digital system for tax returns, and I hope that Members agree that that is the right thing to do. The questions are about the speed and pace of roll-out and appropriate consultation.

The difference between VAT and what is contemplated here is that VAT returns have a threshold, so the very smallest businesses do not fill them out, but they will do so in this case. That is an argument for caution. Another concern raised by petitioners is the nature and financial cost of digital reporting. It would therefore be helpful if the Government gave greater clarity on the scale, cost and nature of the information to be provided. Estimates suggest that businesses already pay on average £3,600 a year to ensure that they are compliant with their tax and regulatory obligations and we, as a Government, must take away from that, not add to it. Surely, that is the measure of any successful tax reform. It is therefore vital that the net effect of the measure is to reduce, not add to, that regulatory burden.

[Rachael Maskell (York Central) (Lab/Co-op)]

Is it not right that, before the Government proceed any further with their proposals, they make a full analysis of not only the financial cost and burden they will put on small businesses, but the cost in time and infrastructure?

[Oliver Dowden]

I hope that all that will be considered in the consultation that the Government have committed to undertake.

Education (Student Support) (Amendment) Regulations 2015

Rachael Maskell Excerpts

Thursday 14th January 2016 General Committees

[Dawn Butler]

Isn’t that the truth? I would hate to put this pressure on you. You have my sincere apologies, Mr Percy.

This Government know that the change will not help to balance the books. Instead, it will cause more poor people to plummet into debt. Genuinely, what have poor people ever done to the Minister? Why are the Government intent on victimising poor people? Governments are supposed to help people succeed. Instead, this Government are sending a clear message: if you are young, disabled, a woman, black, Asian, minority ethnic, Muslim or if you are not wealthy, they are going to make sure that if you aspire to go to university, you will leave with debts of up to £53,000, compared with well-off counterparts whose debts will be £40,500, which is eye-watering enough in itself.

[Rachael Maskell (York Central) (Lab/Co-op)]

Does my hon. Friend agree that there will be an impact on universities? The University of York, for example, has incredible diversity and has really reached out to people from diverse backgrounds. All of that work will go to waste if the regulations are introduced.

[Dawn Butler]

I agree. I am sure that universities are thinking, “Help us, but not in this way.” This Government’s decision does not help them at all.

The Minister will no doubt say that students will have a little more money in their pockets as a result of the change. As with all good cons, that is partly true, but it is a little like loan sharks or payday loans. They will get a bit up front, but they will be paying an awful lot more in the end. We again see a situation in which those who can least afford to pay are being asked to pay more than their wealthier counterparts.

Cynics might say that this is a PR stunt because, as grants count towards current borrowing, the Government can remove the figure from their books by turning grants into loans so that it looks like they are borrowing less. One might call it creative accounting. The Institute for Fiscal Studies states that

“the national accounts...will fall by...£2 billion per year”,

as the shadow Minister stated, but it adds that, in

“the long run, savings will be much less”.

This is another betrayal of parents and young people in Britain.

In 2012, the coalition Government raised tuition fees, resulting in fewer people in my constituency going on to further education. One thing that helped to soften the blow, however, was the acknowledgment of the centrality of maintenance grants, which ensured that the most disadvantaged could still access higher education. Today’s proposals were not in the Conservatives’ manifesto. Why are they doing this? Why are they doing it in such a secretive, underhand, clandestine way? I just do not understand.

The National Union of Students did a great thing in fighting to force the Government to do a full equality impact assessment. That revealed a concerning risk to the participation of students from poorer backgrounds—women students, black and minority ethnic students, mature students, disabled students and Muslim students. It seems that the only group that is not really affected are white, wealthy men.

Individual Electoral Registration

Rachael Maskell Excerpts

Tuesday 20th October 2015 Westminster Hall

[Helen Hayes (Dulwich and West Norwood) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate my hon. Friend the Member for Blaenau Gwent (Nick Smith) on securing this debate. I am pleased to have the opportunity to speak on an issue that is of the utmost importance to many of my constituents.

The key question on individual electoral registration is why the Government appear set on ignoring the advice of the Electoral Commission, an independent body that has undertaken rigorous research in this field. It clearly stated:

“Taking into account the data and evidence which is available to us at this point, and the significant polls which are scheduled for May 2016, we recommend that Ministers should not make an order to bring forward the end of the transition to IER. We recommend that the end date for IER transition should remain, as currently provided for in law, December 2016.”

The reasons for the Electoral Commission’s concerns are twofold: concerns about the completeness of the register and about the lack of participation by eligible voters who will drop off the register, who total some 1.9 million. In one of the boroughs I represent, Lambeth, an estimated 7% of the current electorate will drop off the register in December 2015 according to the best estimate of the local authority.

What do we know about those most likely to be in that 7%? We know from experience in Northern Ireland that they will be young—students who have moved away but whose main home remains their parental home, who may be away at the time of the electoral register canvass visit and mailing, but who may be at home at the time of the next election. In the past, they have been able to rely on their parents completing the form on behalf of the whole household. We also know that the 7% will include people who move frequently, such as the 40% of residents of Lambeth who currently live in the private rented sector, which the Government refuse to regulate properly. As their tenancies come to an end, they are forced to move on. Registering to vote will often be the last thing on their mind in what is often a stressful situation.

We also know that the 7% will disproportionately include voters from black and minority ethnic communities. I commend the work that Operation Black Vote has been doing on individual electoral registration. I visited its well-equipped voter registration bus a few months ago. Despite that work, it will nevertheless remain the case that the 1.9 million voters who drop off the register will disproportionately be from minority communities. I am not clear that the Government have undertaken an equality impact assessment of the decision to bring forward IER. The decision will have significant equalities impacts and those should be properly measured and taken into account before it is implemented.

We also know that voters who will drop off the register will disproportionately be on low incomes. They are exactly those voters who by May 2016 will be suffering the impacts of the Government’s decision to cut tax credits, which is being debated elsewhere this afternoon. We know that for all those people the consequences of dropping off the register will extend beyond their disenfranchisement, affecting their credit rating and forcing them to borrow where they need to from more expensive and unscrupulous sources.

Voting is a universal right. It is not the preserve of residents whose housing has been settled for many years, who have higher incomes or who are older or white. The Government should be taking their responsibility to ensure universal voting rights seriously and follow the recommendations of the Electoral Commission to stick with December 2016 as the start date for IER. In the meantime, the Government should be resourcing local authorities to extend their canvassing work, particularly in areas with a high proportion of students or private rented accommodation and in areas of high deprivation.

[Rachael Maskell (York Central) (Lab/Co-op)]

One of the problems we have with local authorities is the resourcing to be able to support the process. Does my hon. Friend recognise that authorities such as York will next week be sending out their first tranche of people to canvass constituents? That leaves only a two-week window to get people on to the register, because it is now taking three weeks to process the family inquiry form to put people on the register.

[Helen Hayes]

My hon. Friend makes a very good point, and I agree with her entirely. The resourcing for local authorities on this issue has been entirely inadequate.

The Electoral Commission report explicitly says that it does not consider the 1.9 million voters who would drop off the register to represent a high risk of fraudulent voting activity, so I do not think that a proportionate reason for bringing forward the introduction of IER when the risks of disenfranchisement remain so high. I remain completely baffled about why the Government are not taking the Electoral Commission’s recommendation seriously. I hope that they will look again at the risks and change their decision.

Budget Resolutions and Economic Situation

Rachael Maskell Excerpts

Tuesday 14th July 2015 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to follow my hon. Friend the Member for Swansea West (Geraint Davies). I congratulate the new Members on making their excellent speeches, particularly the hon. Member for Paisley and Renfrewshire South (Mhairi Black), who drew on the wise words of the late Member for Chesterfield, who is a political hero of mine, too.

At the weekend in York, I talked to local businesses, our public services and those who support the poorest in our community. There were no cries of “Fantastic!” for the Budget—quite the reverse. Those are the people who will live with the consequences of what the Budget creates.

Three themes stand out from my conversations, but they were all left out by the Chancellor, who is more set on driving down our public services and our public sector workers, who, we must remember, have already had a 15% cut to their pay, than he is set on driving up exports and the prospects of so many who are left to flounder as they are stripped of essential resources to help them get by each week. The first theme was generating productivity and good-quality, high-skilled jobs; the second was strengthening public services; and the third was addressing the shameful inequality in our nation that the cuts to 30 million people will increase, and addressing the staggering nearly £2 trillion of personal debt that is being built up.

Today, I will focus on productivity. Unless we grow our productivity—our base—the long-term poverty in our country will be sustained. It is therefore not an either/or strategy, but both. We need to address inequality and to drive up our economy: investment now for future growth.

Obviously, there was deep concern at what came out last week not just in the Budget, but in the productivity plan, which should fix the foundations to create a more prosperous nation. I took the plan and put it through what I call the York test. I asked how the plan would drive the economy in the city I represent, a northern city that is so much at the centre of rhetoric at the moment.

York has so much potential. It could have high-quality, well-paid jobs, and with the considered interconnectivity of a productivity plan we could recreate the city as an engine in the north. I read in the plan lots of suggestions to bring together experts to write a strategy for productivity. If there are many gaps in the road map, having experts come together can help to grow the economy for the future, but time is wasted as we wait for the plan to be developed.

One of the loudest cries that I hear from my constituents —but it is not in the plan—is the need to address the needs of small businesses in York. They desperately want business rates to be addressed, so that our local entrepreneurs and business leaders can confidently build a sustainable employment strategy in the light of the ridiculously high cost of premises—another issue that must be addressed.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Does the hon. Lady welcome the 75% reduction in unemployment in York since 2010, and the 45% reduction in 2014?

[Rachael Maskell]

I do not accept that those are the high-quality, highly skilled jobs that are so important for growing our economy. In fact, many jobs in York are now zero-hours contracts in the tourism industry, retail and other trades, and the number of people on the minimum wage is a real concern.

While the apprenticeship levy sounds good—I will examine the initiative as it makes progress, in particular to ensure that the apprenticeships are of high quality and not just learning experiences for people in work—we need to view that alongside the cuts in education. York college has experienced a 24% cut in funding for adult courses. Those cuts are in direct conflict with the warm words about supporting a technical curriculum. The small print of the plan also includes higher and higher tuition fees, at the same time as the removal of the maintenance grant—money that people will be expected to pay themselves. Those are disincentives for people to engage in education in the future, so the plan fails the York test on skills.

It is a scandal that the links between education and work have been severed in this country. In schools, colleges and universities, courses do not lead directly to high-quality, good jobs. Education is often in one silo and work in another, and the bridges have not been built between the two. How is it that someone can spend £50,000 on their development to end up in a zero-hours job or having to volunteer to get the necessary experience to get a decent job—experiences that a couple of people reported to me over the weekend? When people embark on a course, we want to see a guaranteed good-quality job at the end of it—a student to job guarantee. That is the sort of initiative that I expected in the Budget last Wednesday to kick-start careers and growth, and to start to help to clear up student debt, which is a scandal in itself, but one for a separate debate.

When I looked at the productivity plan, I had to ask, “Where is the manufacturing strategy?” I could not find it and I did not hear it in the Budget—nothing on good-quality, highly skilled jobs. Where was the real opportunity to develop the housing infrastructure—and the construction jobs that would go with that—that we desperately need? The plan talks of a growth in the number of houses of 40,000 a year, but we need at least 200,000—possibly 300,000—a year. Labour had a programme to ensure that by 2020 we would be building 200,000 houses a year. Of course, the OBR and the IFS believe that the right to buy and the cuts in social rent will slash that already under-ambitious building programme. So the productivity plan fails the York test on housing, even though more housing is central to the city’s ability to grow the local economy.

Where was the environmental strategy on retrofits for our businesses, public services and the domestic market, on growth in renewables, and on science and manufacturing? As Labour promised, that would create 1 million more jobs. I am committed to developing a sustainable economy, but the Government’s approach to climate change puts us at further risk of missing our 2050 carbon reduction targets. Not only is there investment in road instead of rail, but the removal of subsidies for onshore wind and the charging of renewable energy users through the climate change levy. This will chase away another potential boom area for our future economy. The Budget fails the York test on sustainability and productivity.

There was nothing in the Budget on upgrading our infrastructure and providing good construction jobs in our schools and hospitals through new build. The state of our schools and hospitals means that this is desperately needed in York. We are seeing a strategy that will not deliver.

I would like to question the Minister more closely on investment in science and research, and on whether any of the money will be coming to our universities to give us the opportunity to ensure that York benefits from good solid jobs by 2020. I would be interested to hear his reply.

Finally, on the northern powerhouse, we have heard much about rail and the northern power cut. York is famed for its rail heritage and the national rail museum. We are at the intersection of the trans-Pennine route and the east coast main line, so we should be the rail hub of the future. We have a real opportunity to grow the northern economy, but that was not in the Budget and that was not in the productivity plan. Will the Minister sit down with me and local MPs to ensure that we have an opportunity to kick-start the economy?

[Several hon. Members]

rose—

Greece

Rachael Maskell Excerpts

Monday 6th July 2015 Commons Chamber

[Mr Osborne]

My hon. Friend is right to remind us that, although we are talking about a financial crisis, there is real human suffering in Greece, because the banking system has effectively shut down for many Greek citizens and businesses. There are reports of a shortage of medicines, which is why I drew attention in my statement to the Foreign Office’s advice—I was reiterating advice that has been in place—to take adequate supplies of prescription medicines, in particular. On his specific point, we have been talking with the British pharmaceutical companies, which have continued to supply the Greek market, and of course we stay in touch with them regularly.

[Rachael Maskell (York Central) (Lab/Co-op)]

Infant mortality has doubled and there has been a sharp rise in HIV, TB, suicide and other physical and mental health conditions in Greece. Therefore, I want to see that we ensure that we make provision for emergency medical and humanitarian support in these vital discussions this week.

[Mr Osborne]

The hon. Lady is perfectly right to draw to the House’s attention the very difficult situation that Greek families can find themselves in at the moment. That is all the more reason why we need to find a resolution. As I have said, the British pharmaceutical companies, which are important suppliers to the Greek medical system, are continuing to make those supplies, despite the imposition of capital controls. The whole question of what should happen if Greece falls out of the eurozone is something that I think we should return to if that eventually arises. Greece is one of this country’s oldest allies and of course we will always stand by it.