Religious Slaughter of Farm Animals

Roger Gale Excerpts

Tuesday 2nd July 2019 Westminster Hall

[George Eustice]

I was going to come on to that. Even within the kosher community, there is not a universal view on whether post-cut stunning should be permitted.

A couple of years ago, I visited Kuwait and talked to a meat importer about the issue of halal production. He explained to me that the main requirement in Muslim countries in the middle east is that there is no pork contamination in the food they eat, which is why all their protocols focus predominantly on not sharing machinery between pork production and lamb, chicken or beef production, to ensure that there is no pork DNA. That is their primary concern, alongside ensuring that there has been an Islamic blessing of the food. When I explained to him that the issue of non-stun slaughter was contentious, he said it is predominantly a western cultural interpretation of the Muslim faith. Interestingly, non-stun slaughtered meat is not a particular requirement in middle eastern countries. There are exceptions, but generally speaking that is not their primary concern. Indeed, non-stun slaughter is banned in Australia and New Zealand, which are the largest lamb exporters to all countries across the middle east, from Israel right through to Kuwait and Saudi Arabia.

The other point about kosher meat is that Shechita UK insists that it is most certainly not a religious ritual, and a Hebrew blessing is not given. It is simply the case that the ancient holy books describe a method of slaughter that they believe remains the most humane approach. The principal concern for Shechita is that there should be no injury to an animal before it is presented for slaughter. They regard stunning as an injury to the animal—that is their particular concern—but that is not a universal view. There has been some rabbinical support for the idea of post-cut stunning, and we know that some abattoirs producing kosher meat allow post-cut stunning of bovine animals.

I turn now to some of the options that we could consider. My hon. Friend the Member for Clacton (Giles Watling) mentioned labelling, which is a complex area because there is no single definition of halal. The simplest way would be to label meat as un-stunned, because that is a clearly definable legal definition. That causes some concerns for Jewish communities. They argue that if we did do that, we should also list whether an animal has been killed through anaesthetic gas or electrocution, or all manner of other things. Farmwell, which is a leading charity in this area, established a system that all religious groups are willing to buy into: a coded approach of numbers from one to 10, denoting the method of slaughter. However, it does not deal with the problem of food entering the service trade, where unwitting customers would buy it.

There are a number of other things that we could do, including increasing the standstill time on bovine animals. The current limit of 30 seconds was probably due to a drafting error—we know that cattle do not lose consciousness that quickly. We could therefore move the minimum standstill time to at least one minute and 30 seconds or two minutes, to ensure that there is no movement of a bovine animal while it is still conscious. In conjunction, we could require a post-cut stun on all bovine animals, recognising that there is an issue with the physiology of bovines, which leads to a long and protracted death. I do not believe that a post-cut stun would violate the religious beliefs of either the Halal Food Authority or Shechita UK.

As an alternative, we could simply ban the non-stunned slaughter of bovine animals, recognising that there are issues with that. We could introduce a maximum standstill time, which is the approach taken in countries such as the Netherlands and France, where there is a requirement to use a bolt gun if a period of, say, 40 seconds has elapsed after a cut has taken place and the animal has still not lost consciousness.

We could introduce more formal quotas for abattoirs, which is an interesting idea. It is already the law that only food destined for Muslims and Jews is permitted to be slaughtered under our current religious derogation, but we know that there is a real problem with the mainstreaming of religious slaughter. We know that that provision, as drafted in our law, is unenforceable. When I discussed that with departmental lawyers, their response was that if somebody maintains that they thought that the animal was destined for a religious community when they committed the slaughter, that is sufficient to satisfy the requirement, so it is entirely unenforceable. In Germany they have a much more sophisticated quota system. They make an assessment of the need of orthodox religious communities, and abattoirs must apply for a licence and demonstrate that they have an actual market for the food they are producing.

[Sir Roger Gale (North Thanet) (Con)]

If I am fortunate enough to catch your eye, Mr Rosindell, I will come back to the basic principle. On this specific point, Germany can do it, so why can we not do it? It is not good enough for departmental lawyers to say, “Oh, it’s all far too difficult,” which is effectively what my hon. Friend has said. There is a way through this. We know the market is oversupplied. It should be limited, should it not?

[George Eustice]

I agree that adopting a German-style model, whereby we put in place the measures and mechanisms necessary to enforce something that has been a facet of our law since at least 1933, makes a lot of sense, and is probably the easiest option for the Government, given the alarm that there has been about the growth of religious slaughter.

We could increase the period of standstill time before chickens move on to the next process. There is a very real concern at the moment that there is typically a moving shackle line for chickens, whose throats are cut randomly by people as they go past, but what happens if they miss a chicken? What happens if the chicken is not stunned through a water bath and they fail to cut its throat? The answer is that it probably proceeds to the next stage of production, which if I am not mistaken is a scalding tank to remove the feathers. It could enter that while fully conscious, which is horrific. We should be doing more to check that those birds genuinely lose consciousness before they move on to the next stage. It should not just be a moving shackle line.

Pet Identification

Roger Gale Excerpts

Monday 17th June 2019 Westminster Hall

[James Frith (Bury North) (Lab)]

The hon. Gentleman is making a compelling opening speech, which will resonate well beyond this Chamber. I put on the record my admiration for the determination and passion shown by Helena and her team of volunteers. At its heart, their argument is about our compassion at the worst moment for a pet owner or parent—for all intents and purposes, pets are family members. We are asking for standard and consistent practice across the country that is supported by law—a Government looking for a legacy could implement that now—to ensure that a cat that has been involved in a traffic accident or killed in some other way is returned to his or her mum or dad through scanning. It is a simple process and many local authorities are already picking such animals up.

Pets should not end up in landfill but be returned to the arms of their mum and dad. Otherwise, even in this time of austerity, we risk having councils with all the parts but no heart. I hope that the attention and support shown by the 100,000-plus signatures collected by my constituent Helena and her team set a trend of expectation of changes in law to end that practice quickly and reunite parents with their cats.

[Sir Roger Gale (in the Chair)]

It is a good job Sir Nicholas Winterton is not in the Chair. I ought to explain to hon. Members that Mr Frith very kindly and courteously indicated that he has to be in two places at once. I am not normally quite so relaxed about interventions, but on this occasion, it was fair for him to make his point.

[James Frith]

Thank you, Sir Roger.

Wild Animals in Circuses (No. 2) Bill

Roger Gale Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 4th June 2019 Commons Chamber

[Sir Roger Gale (North Thanet) (Con)]

I could possibly have tested your patience by making an overlong intervention on the Minister, Madam Deputy Speaker, but rather than do that I thought I would make a brief observation now.

I think I am right to say that on Report the Minister said that the Bill had been six and a half years in preparation. In fact, it was in 1997 that, as the then chairman of the all-party animal welfare group, I presented to the incoming Minister of State at the Home Office in Mr Blair’s Government—who, I think I am right in saying, was the now right hon. Member for Knowsley (Mr Howarth)—the group’s report on performing animals in circuses. It is comforting to know that matters in this place move so swiftly and that it has taken only 22 years for these measures to reach the statute book.

The fact is that the persistence of colleagues on both sides of the House of Commons has driven us to where we are today, in the hope and expectation that the Bill will get a fair wind in the House of Lords and become law and that performing animals in circuses will be consigned to the dustbin of history along with very many other animal abuses that we have managed to deal with.

In the spirit of total co-operation and in gratitude to the hon. Member for Ipswich (Sandy Martin) and my hon. Friend the Minister, I say that other things that are not contentious can, and should, be going through the House much more quickly. I am proud that this Government and this Minister are in the process of putting the Bill on to the statute book, and I hope that we shall now see a succession of other animal welfare measures following it.

[Sir Mike Penning]

My right hon. Friend the Member for North Thanet (Sir Roger Gale) has addressed exactly the memory loss that I had during my speech on Report. I could not remember the dates when the all-party group dealt with this. I was here in a different capacity at that time. All of us would understand the situation in ’97, when there was so much legislation from a new Government. Finding time was difficult, but there was a huge majority on this issue and it was not contentious. I remember the discussions absolutely vividly. People were saying, “Would you do this private Member’s Bill? Would you take this forward? Would you go into the ballot?” It has taken until today to get the Third Reading of a Bill that, frankly, is a no-brainer in this day and age.

I am thrilled that the Minister has taken on this Bill and by the way in which he has done so. I was not invited to go on the Public Bill Committee, and I was genuine when I said that I would have loved to. I was not here on Second Reading, so people obviously thought that I was not interested, and so on—but we are where we are.

I hope that when this very short Bill goes to the Lords they will look at what this House has done—how we have come together—and move the Bill through the other place quite fast so that it can be on the statute book in time for what the Minister is looking at doing.

People out there will say, “We miss this” and “We miss that”, but there is not very many of them. As the Minister said, the country has changed. If we had tried to bring this Bill through in the ’70s and ’80s, we might have struggled, because people were different. I am not saying that they were bad, but what was acceptable then is not acceptable now. Making animals do things that are completely unnatural to them is not acceptable. I vividly remember one of these fly-on-the-wall videos that was taken at one circus—I will not name it, because a lot of circuses were bad. People were abusing and torturing animals to make them do things that were not natural. I hope that the Bill means that that never, ever happens again.

Other legislation needs to come forward, and I am conscious of what the Opposition spokesman, the hon. Member for Ipswich (Sandy Martin), was saying. We have legislation on the statute book but we have to be good and strict on this issue. Dogfighting is on the up in this country. Cockfighting, believe it or not, continues to this day. There is badger-baiting.

[Sir Roger Gale]

Trophy hunting.

[Sir Mike Penning]

To me, a trophy-hunting Bill is the simplest thing in the world. If someone wants to do that sort of thing, do not bring trophies—the animal’s head—to this country. That is so abhorrent to 99.9% of the British public.

We have set a line in the sand and shown that we can bring such Bills through the House—it is a shame that more people are not in the Public Gallery to listen to us when we get things right. I am sure that, tomorrow, in Parliament this will get thruppence, because of President Trump and other things that have been going on, but this indicates what this House can do and is right morally and ethically. We should be very proud of what has happened in this House today.

Puppy Smuggling

Roger Gale Excerpts

Tuesday 2nd April 2019 Westminster Hall

[Chris Evans]

Sorry. I know my hon. Friend is a Sheffield Wednesday supporter. If the change cannot be brought in by Government, they should at least provide time for a private Member’s Bill so we can introduce it forthwith. The change has been promised for a long time, and the issue is ongoing. Action needs to be taken now.

[Sir Roger Gale (North Thanet) (Con)]

rose—

[Mr Philip Hollobone (in the Chair)]

Ah! Sir Roger, I am afraid you have only a minute, but you are welcome to it.

[Sir Roger Gale]

That is fine, Mr Hollobone. I will make three points very quickly in a minute. First, I live 15 miles from Dover. I use the cross-Channel ferries about 16 times a year. I am subjected to regular checks. The police are searching for firearms, drugs and terrorists. I cannot believe they cannot find puppies too.

Secondly, this is about money. We have to kill the trade, and the way we do that is by taking away the vehicle and crushing it in front of the owner on the quayside at Dover.

Thirdly, my son is a vet in a small animal practice. He picks up the bits of this trade time after time. It is miserable. The people who buy the puppies face considerable distress. The short answer is public education: if it is cheap, it is probably also nasty.

Finance (No. 3) Bill

Roger Gale Excerpts

Committee: 1st sitting: House of Commons
Monday 19th November 2018 Commons Chamber

[Grant Shapps]

I rise briefly to address clause 89, which is on an amendment to tax legislation in consequence of EU withdrawal, and to make one specific comment to the Minister that I hope he will take on board and do something about.

I chair the all-party parliamentary group on general aviation, which has as its membership 177 Members from across this House and other place. There is a particular issue that I am very keen for the Minister to know about in relation to pilot training. According to Boeing, the world will need 790,000 more pilots in the next 20 years. The UK, with English as our language and with our history in aviation, should be in an absolutely key place to train new pilots, but there is a massive problem: in this country, people have to pay for that training themselves. It costs about £100,000, and then the Government charge £20,000 VAT on top of that. The all-party group has taken up this issue with the Chancellor of the Exchequer. He tells us that it is tracked into EU regulations and there is nothing that we can do about it during our time within the EU. However, I want to make an impassioned plea to the Minister to have a really good think about what we could do with regard to clause 89.

It is clear and obvious—one need only travel on an aircraft anywhere to realise this—that the pilots in this country, and indeed worldwide, but in this country generally, are nearly all male, nearly all middle-class and nearly all from backgrounds where families might say, “I’ll tell you what—we’ll remortgage our home and let you go and spend £120,000 on learning to be a commercial pilot.” That puts off too many people from too many hard-to-reach sections of society. That puts off a lot of people, particularly women, who we want to persuade into these very well-paid STEM—science, technology, engineering and maths—jobs, which really should be the future for this country.

[Sir Roger Gale (North Thanet) (Con)]

The ambassador for the all-party group is Carol Vorderman, who has probably done more than any other single living person to try to encourage young women to take up aviation as a profession, but the young women she is trying to persuade are hitting the buffers all the time because they are coming up against this cost. That is driving our trainee pilots overseas to places like Spain, which does not have the VAT, when we ought to be training them at home. Should this not be taken on board by the Treasury?

[Grant Shapps]

My hon. Friend is absolutely right. This is a crazy situation. We are driving pilot training out of the UK, but English is the language of the air and should be our natural advantage. Our ambassador for the all-party group Carol Vorderman regularly reminds us that she wanted to go into the Air Force but was rejected, not through any lack of knowledge, STEM education or mathematical ability, but because she was a woman. It cannot be right that our Government are not able to address this.

I am very hopeful that the Minister will take on board clause 89, which will allow the amendment to tax legislation in consequence of leaving the EU, to do what other EU countries have somehow already managed to do—such as Spain, which does not charge VAT on pilot training. This gives us an enormous opportunity as a country to take a big chunk out of the global pilot training market, which should be, in effect, a massive export for the UK.

While we are on the VAT issue, I have one other point. This country has the ability to lead aviation into a much quieter, cleaner and more environmentally friendly future. The future of aviation eventually is to have electricity in planes—electric planes—but that will not happen without having the same dedication and enthusiasm that this Government and the previous one showed towards electric vehicles transferred to electric aviation.

This is a revolution in aviation that is coming, but it would be very encouraging if we saw the UK lead the way, and, again, this is in no small part down to how VAT is treated, in terms of not only pilot training but the inquiry, investigation, research and development that goes into electric aircraft.

The all-party group is starting a STEM aviation working group headed by a fantastic woman called Karen Spencer from Harlow College. It has the aviation STEM college at Stansted airport, where it is training 294 youngsters this year and over 500 young people next year in STEM aviation qualifications. I encourage the Minister to go and see it for himself. I believe that if we work together on this we can make aviation a much more inclusive profession, and it starts with clause 89 and what can be done under these amendments to tax legislation in consequence of EU withdrawal.

Step-free Access: Battersea Stations

Roger Gale Excerpts

Tuesday 16th October 2018 Westminster Hall

[Ms Ghani]

I think you are conflating two very separate things—

[Sir Roger Gale (in the Chair)]

Order.

[Ms Ghani]

Forgive me, Sir Roger—I should not have referenced you.

[Sir Roger Gale (in the Chair)]

Quite right. It is not the Chair’s responsibility to respond to questions, and I take the opportunity to say the same thing to the hon. Member for Battersea (Marsha De Cordova). We really must work in the third person.

[Ms Ghani]

Forgive me, Sir Roger. I will make sure not to do that again.

The hon. Lady is conflating two issues. There is the 2025 aspiration, but the 2030 target is to ensure that we come into line with the UN’s ambition to ensure accessibility across all modes of transport. We mentioned £300 million for Access for All, and we also have £2 million to help bus operators install new audio-visual equipment on buses, and £2 million to enable the installation of more Changing Places toilets in motorway service areas. The strategy also requests that local authorities pause the installation of new “shared-space” schemes.

Finance (No. 2) Bill

Roger Gale Excerpts

Committee: 1st sitting: House of Commons
Monday 18th December 2017 Commons Chamber

[James Cartlidge]

It is very kind of the hon. Gentleman to take so many interventions on the trot. [Laughter.] This is not a minor issue. Let us not forget that Marxism destroyed the economy of half our continent. I very much admire the hon. Gentleman, but he did mention ideology in the first place. It is therefore not only in order for me to raise the question in his terms, but pertinent. Is he a Marxist—or is he perhaps a Leninist, a Bolshevist, or an adherent of one of the various other isms?

[The Temporary Chair (Sir Roger Gale)]

Order. It may be in order in the hon. Gentleman’s terms, but it is not in order in my terms. I should like to return to the bank levy.

[Peter Dowd]

Thank you for bringing us back to the land of reality, Sir Roger. I very much appreciate it.

--- Later in debate ---

[Stephen Kerr]

I do not think that I have mentioned the word “subsidy”. I am talking about corporate social responsibility. [Interruption.] Corporate social responsibility has nothing to do with subsidy.

[The Temporary Chair (Sir Roger Gale)]

I am listening with interest to the hon. Gentleman. He is talking about social responsibility, but I need to remind him that he should be talking about the bank levy.

[Stephen Kerr]

I appreciate that reminder, Sir Roger. My comments about social responsibility are in the context of why we have a bank levy at all and why it has been an important part of the Government’s focus in, quite rightly, raising the billions of extra revenue.

I promise that I will take only a few seconds more. There was some comment earlier about the effect of taxation. Someone mentioned the Laffer curve, which is well known to Members. It was certainly well known to the former Member for Gordon and the former First Minister of Scotland, Alex Salmond, who used to regularly quote the Laffer curve in his models. He argued with great eloquence in many places—perhaps he even did so here, I cannot be sure—for lower corporation tax. That was one of the things that Alex Salmond absolutely stood for. The lack of any intervention on me means that I am obviously not going to be corrected on that score.

Beer Duty

Roger Gale Excerpts

Tuesday 7th March 2017 Westminster Hall

[Several hon. Members rose—]

[Sir Roger Gale (in the Chair)]

Order. Graham Evans, Jim Shannon, Helen Whately and Claire Perry are all seeking to speak, and I intend to call the Front-Bench speakers at 10.30 am. I am not going to impose a limit, but do the maths.

Finance Bill

Roger Gale Excerpts

Tuesday 28th June 2016 Commons Chamber

Question proposed, That the clause stand part of the Bill.

[The Temporary Chair (Sir Roger Gale)]

With this it will be convenient to take the following:

Clauses 42 to 44 stand part.

Clauses 65 to 71 stand part.

[Mr Gauke]

The Bill introduces measures on small business investment that will simplify the tax system and ensure that allowances are fair and not open to abuse.

Clause 41 charges corporation tax for the financial year beginning 1 April 2017. Corporation tax is an annual tax approved by Parliament each year. This is an essential provision that enables us to collect tax. The key reform announced in the Budget to support business investment and back Britain’s economy is set out in clause 42, which cuts the rate of corporation tax to 17% with effect from 1 April 2020. I expect that our debate will focus on this provision, so I will start here, before commenting more briefly on the other clauses.

I will begin by setting out our broader strategy on corporation tax. The Government have been clear that taxes should be low but must be paid, and since 2010 we have made progress towards those goals. The main rate of corporation tax was 28% in 2010. By 2020, we will have cut the UK main rate by more than a third to make the UK more competitive and to support growth and investment. It will be one of the biggest boosts British business has ever seen. Further corporation tax cuts will increase the returns companies receive on their investments, and by 2020 corporation tax cuts delivered since 2010 will be saving businesses almost £15 billion a year. This will ensure that the UK has by far the lowest rate of corporation tax in the G20 and make Britain even more attractive to inward investors.

At the same time, we have taken significant measures to clamp down on tax avoidance and aggressive tax planning. The Government successfully helped initiate the G20-OECD base erosion and profits shifting project and worked internationally, including with G20 and OECD partners, to bring this to a successful conclusion in October 2015. We spent the earlier part of today’s debate considering some of the measures introduced in the Bill to address avoidance and evasion, but the Bill also takes further steps elsewhere. Key measures include tackling hybrid mismatch arrangements, introducing a restriction on the tax deductibility of corporate interest and expense, extending the UK’s withholding tax rights over royalties and ensuring non-resident property developers pay tax in the UK on profits they make in this country.

Low corporation rates enable businesses to increase investment, take on new staff, increase wages or reduce prices. This is borne out in receipts data: onshore corporation tax receipts have risen by almost 20% since 2010, despite lowering corporation tax rates. The Treasury and HMRC have modelled the economic impact of the corporation tax cuts delivered since 2010 and those announced at Budget 2016. This modelling suggests that the cuts could increase long-run GDP by more than 1%—almost £24 billion in today’s prices. The corporation tax cuts and other reforms we introduced have completely changed perceptions of the UK tax regime. The UK is now regularly cited in surveys as one of the most competitive regimes in the world.

As the Chancellor has said, in the last six years, the Government and the British people have worked hard to rebuild the British economy. We have worked systematically through a plan that means that today Britain has the strongest major advanced economy in the world. Cutting corporation tax rates has been a central part of the Government’s economic strategy, and that strategy is working.

The UK has been one of the fastest-growing economies in the G7, and the OECD forecasts the UK to be the fastest-growing G7 economy in 2016. There are 2.3 million more people in employment since 2010, and business investment is now 30% higher than it was in 2010. Tax competition is dynamic. In the last few decades, we have seen countries across the world cut their corporation tax rates. We cannot afford to stand still while others rush ahead. The UK needs to be as competitive as possible. A new 17% rate of corporation tax sends out the message loud and clear around the world that the British economy is fundamentally strong and highly competitive and that Britain is open for business. For those reasons, I urge the Committee to support the clauses, and to speak in anticipation of what we are about to hear, I hope the Committee will reject amendment 21, tabled by the hon. Member for Wolverhampton South West (Rob Marris), which would cancel the corporation tax cuts.

Let me move on to the other measures in this group. Clause 43 abolishes vaccine research relief from 1 April 2017. This relief is available only to large companies and is claimed fewer than 10 times a year, with a value below £5 million. The Government believe that direct spending programmes such as the recently announced £1 billion Ross fund offer a more effective and flexible approach to supporting the development of medicines and vaccines, and will have a far greater impact.

Clause 44 makes a small change to ensure that the introduction of the research and development expenditure credit does not have the unwanted effect of reducing the amount of relief available to certain small businesses. The expenditure credit replaced the old large company R and D tax credit scheme in 2016, following a period of three years in which both were available simultaneously. We recognise that R and D tax relief plays a vital role in supporting productive investment in the UK. These two changes will ensure that R and D tax support remains effective in meeting this objective.

Clause 65 extends the current time limit for claiming enhanced capital allowances in enterprise zones to eight years from the date on which the enterprise zones are announced. Businesses operating in the 46 enterprise zones across the UK can opt either for a rebate on business rates or enhanced capital allowance covering 100% of investment. Extending the time limit for claiming enhanced capital allowances to eight years will allow all zones to enjoy it for the same duration. I am sure that hon. Members of all parties will welcome this.

Clause 66 will strengthen the existing capital allowance anti-avoidance revisions to ensure that artificial and contrived arrangements cannot be used to gain excessive capital allowances. Capital allowances allow businesses to write off amounts that they spend on plant and machinery against their taxable profits. This reflects the depreciation in the value of the assets over time. When the business disposes of the asset, the legislation is designed to subtract this disposal value so that the allowances are reduced to reflect the net cost of the asset to the business. HMRC has received several disclosures of tax-avoidance schemes where the disposal value has been manipulated to an artificially low level. This leads to excessive capital allowances being received; the tax result does not reflect commercial reality and so constitutes an avoidance of tax. Clause 66 prevents this and ensures that business pays the correct amount of tax.

Finance Bill

Roger Gale Excerpts

Monday 27th June 2016 Commons Chamber

[The Temporary Chair (Sir Roger Gale)]

With this it will be convenient to discuss clauses 133 and 134 stand part.

Amendment 183.

Clauses 135 and 136 stand part.

[The Exchequer Secretary to the Treasury (Damian Hinds)]

Clauses 132 to 136 set out changes to the climate change levy, or CCL, which is a tax levied on the supply of energy to businesses and the public sector. It was introduced in 2001 to incentivise industrial and commercial energy efficiency. The Finance Act 2015 removed the climate change levy exemption for renewable electricity generated on or after 1 August 2015. A consultation was then held to seek views from industry on the appropriate length of time for the transitional period.

Clause 132 sets the length of the transitional period during which electricity suppliers can continue to exempt from the climate change levy renewably sourced energy generated before 1 August 2015. The clause provides for an end date for the transitional period of 31 March 2018. Setting a transitional period will minimise the administrative impact on electricity suppliers by giving them time to retain the benefit of renewably sourced electricity acquired before the date of the change.

Following a review of the business energy tax landscape and consultation with industry, it was announced at Budget 2016 that the Government would abolish the complex and unduly burdensome carbon reduction commitment energy efficiency scheme and move to a single tax—the existing climate chance levy—from 2019. Moving to one tax will provide a clearer price signal for business energy use, incentivising energy efficiency while reducing administrative burdens.

Clauses 133 and 134 set the main rates of the CCL from 1 April 2017 and 1 April 2018 to increase by the retail prices index. Legislating for those increases now provides certainty for businesses before the wider business energy market reforms take place.

Clause 135 will increase the climate change levy rates above RPI from 1 April 2019, to recover the revenue that will be lost from abolishing the CRC. Increasing climate change levy rates will strengthen the incentive for businesses with the greatest potential to save energy. At the same time, rebalancing the rates for different taxable commodities from 1 April 2019 will update an outdated ratio and more closely reflect the carbon content of the energy used. That will help to deliver on our commitment to achieve greater carbon savings.

Clause 136 will increase the levy discount for energy intensive sectors with climate change agreements. That will ensure that businesses in those sectors will pay no more in the climate change levy than the expected RPI increase in April 2019, thereby enabling them to maintain their international competitiveness. Those reforms will take place in 2019, providing a three-year lead-in time for businesses to adjust to the new business energy tax landscape.

Several hon. Members have in the past voiced concern over the impact of the clause to remove the climate change levy exemption from renewably sourced electricity, so allow me, if you will, Sir Roger, to repeat the reasoning for the removal of that exemption. There is no doubt that the exemption was increasingly providing poor value for money for British taxpayers. Without action, the exemption would have cost almost £4 billion over the course of this Parliament, providing only indirect support to renewable generators.

Other Government support for UK low-carbon generators demonstrates this Government’s commitment to renewable energy. Since 2010, nearly £52 billion has been invested in renewables, and that has led to a trebling of the UK’s renewable electricity capacity. There was another record year in 2015, with £13 billion invested in renewable electricity. Removing the exemption will provide better value for money for UK taxpayers, contribute to fiscal consolidation and maintain the climate change levy price signal necessary to incentivise business energy efficiency.

The Government’s consultation with industry showed that the current business energy tax landscape was too burdensome and complex. Clauses 132 to 136 demonstrate the Government’s commitment to simplify and improve the effectiveness of business energy taxes in order to meet our environmental targets.

Amendment 183 stands in the name of the hon. Member for Salford and Eccles (Rebecca Long Bailey) on behalf of the Opposition. If I may pause for a moment, I want to take this opportunity to congratulate her on her elevation today. It is an extremely well-deserved promotion and we wish her all the best in her new role. On this occasion, however, I am afraid that her amendment has slightly less merit. It would require the Chancellor to publish a report detailing the impact of the climate change levy in reducing carbon emissions within 12 months from the passing of the Finance Bill, but such a review is unnecessary.

Following a hearing on the 2015 summer Budget, the Chancellor wrote to the Treasury Committee on the impact of the removal of the CCL exemption. He made it clear that the exemption would not directly affect our commitment to reduce carbon emissions. In addition, the Department of Energy and Climate Change already intends to publish a consultation on a simplified energy and carbon reporting framework later this year. That will be accompanied by an impact assessment, which will examine the removal of the carbon reduction commitment and propose adjustments to reporting requirements.

The impact of ending the exemption from the climate change levy for renewable electricity has been discussed at length over the course of debates. It has been confirmed to Parliament in writing by the Chancellor that removal of the exemption will not impact on the UK’s ability to meet its carbon budget targets. I therefore urge the hon. Lady to withdraw the amendment, but should she be minded not to do so, I urge the Committee to reject it.