Economic Update

Sammy Wilson Excerpts

Monday 11th January 2021 Commons Chamber

[Rishi Sunak]

I can confirm that the £9,000 is in addition to the monthly grants of up to £3,000, which means that over the next three months, businesses could receive up to £18,000 of total cash support. I will bear in mind other avenues for future support. As we come out of this, it will be important that the hospitality industry is given every possible chance to succeed and flourish.

[Sammy Wilson (East Antrim) (DUP) [V]]

The Chancellor has said that we are now seeing signs of hope, especially because a deal has been struck with the European Union. It does not look like that in Northern Ireland, where supermarket shelves are empty and thousands of people are being sent letters from suppliers in England saying that neither they personally nor their businesses will any longer be supplied with goods. The steel industry today has received a letter from Her Majesty’s Revenue and Customs saying that engineering firms will have a 25% tariff imposed on steel that they bring here, and companies that sell goods to GB have been told that they will not get a refund on the taxes they have to pay, even though their goods are not going into the EU. All this has been brought about as a result of either a lack of knowledge by officials in HMRC or a reneging on the promises the Government made that there would be unfettered trade and access for UK firms selling in Northern Ireland and vice versa. What is the Chancellor doing about the impact that his Department is having on businesses in Northern Ireland?

[Rishi Sunak]

I am sorry to hear about some of the examples that the right hon. Gentleman raised. I know that goods in aggregate continue to move smoothly between Great Britain and Northern Ireland, and I am not aware of any significant queuing. Individual issues are being addressed by UK authorities. My right hon. Friend the Chancellor of the Duchy of Lancaster is talking with colleagues across the House to make sure that we are kept abreast of any particular issues, so that we can look to resolve them as we can.

Taxation (Post-transition Period) (Ways and Means)

Sammy Wilson Excerpts

Ways and Means resolution & Ways and Means resolution: House of Commons
Tuesday 8th December 2020 Commons Chamber

[Jesse Norman]

My right hon. Friend will be aware that under the terms of the Northern Ireland protocol, we have agreed arrangements for Northern Ireland with the European Union. The goal of the legislation is to make sure that, as far as possible, it is a completely seamless and straightforward process for those who are trading and that it is unfettered in regards to trade from Northern Ireland into Great Britain. That seems to me to be a very important technical fact.

[Sammy Wilson (East Antrim) (DUP)]

On the VAT issue, which comes to the sovereignty issue once again, under article 8 of the Northern Ireland protocol, Northern Ireland traders will be subject to not just UK VAT rules, but EU VAT rules. Do the provisions that the Minister is now putting forward exempt Northern Ireland traders from being subject to dual VAT rules, given the costs that that would present and the huge administrative issues which would arise from it?

[Jesse Norman]

We do not expect the vast majority of any trade into Northern Ireland to be subject to any dual VAT arrangements. The whole purpose of these rules is to put in place the simplest and most straightforward arrangements that can be put in place and that replicate in so far as possible the current experience that people will have when they trade with the EU.

[Sammy Wilson]

Will the Minister give way?

[Jesse Norman]

I will give way once more, and then I will make some progress.

[Sammy Wilson]

The Minister has said that he would not expect that Northern Ireland traders will be subject to VAT rules of another jurisdiction, but article 8 of the protocol makes it clear that they will be subject to a dual VAT regime. Do these provisions remove that requirement from all traders in Northern Ireland, or are we giving away some of our sovereignty by accepting that some parts of the United Kingdom and some sectors in that part of the United Kingdom will be subject to VAT rules from another jurisdiction?

[Jesse Norman]

I am afraid that inadvertently the right hon. Gentleman has misrepresented my position, or misdescribed my position. I am saying that we are following the Northern Ireland protocol and, therefore, following any provisions that he refers to, but what we are doing is putting in place mechanisms that make them as easy and as facilitated as possible, so that the experience of someone trading in Northern Ireland should be as close as possible to that which they would have today.

The Bill will allow us to amend or modify certain provisions in relation to VAT and excise, including mechanisms to ensure that, in so far as possible, VAT will be accounted for in the same way as it is today, as I have said. In addition, it will make provision for amending current legislation for excise duty. Most of these changes are necessary to ensure that there is comprehensive VAT and excise legislation in place in relation to Northern Ireland at the end of the transition period.

In addition to those steps, there is also a small number of other taxation measures that need to be in place before the end of the transition period. They include provision for an increase in the rate of duty on aviation gasoline, which will apply across the UK. Otherwise known as avgas, the fuel is a form of leaded petrol predominantly used in private aviation.

--- Later in debate ---

[Bridget Phillipson]

In fact, I had just indicated that very point. Everyone on the Opposition Benches is delighted that the Government have in recent days managed to conclude a trade deal with North Macedonia, but what message does it send to our friends in the USA, who have made their position on this point very clear, that the Government no longer regard it as at all times non-negotiable that they will uphold the rule of law? It is because of our concerns on that point that we have tabled the selected amendment to the first resolution. We wish to append the text of the first resolution, at the end, with a clear limitation that provisions under that resolution may not place this country in breach of its obligations under law. The amendment would insert new text at the end of the current text of the first resolution to ensure that

“any such provision must not place the United Kingdom in breach of its obligations under the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community…and specifically its obligations under the Protocol on Ireland/Northern Ireland of that Agreement.”

Obviously, in the last two hours the Government have announced that they have reached an agreement in principle with the European Union on that protocol and will therefore resile from their expressed intention to enact legislation that would have breached those agreements. Of course, Opposition Members welcome that news, even as we find it astonishing that it should ever have been delivered and shambolic that it arrives so late. We would not, until this autumn, have ever imagined it necessary to make it clear in a resolution of the House that the Government, in exercising their powers, must obey international agreements into which they freely entered. Yet, as a result of the deep irresponsibility of the Government, that is precisely where we find ourselves today. We will not oppose the substantive resolutions, and we shall wait to see what further reassurances the Minister can provide before deciding whether to press our amendment to a vote.

We recognise that there needs to be a lawful basis for the collection of VAT, customs duties, aviation fuel duty and insurance premium tax, even while we do not yet know what the Government propose to table by way of a Bill. Let me repeat that: we do not yet know what the Government propose to table by way of a Bill—less than 24 hours before its Second Reading and Committee of the Whole House. Less than a month before we leave the European Union, we simply do not know with any certainty what measures the Government intend to set out. This extraordinary state of affairs undermines the ability of Members to give such important legislation the scrutiny it rightly deserves, not to mention the ability of businesses to plan. Is the Minister really telling us that it was not possible before today to set out the Government’s proposals on aviation fuel duty or insurance premium tax? Of course it was. These clauses were held back—they still are—so that the Government could, until a few hours ago, continue to brandish the threat of breaking international law as part of their negotiating tactics with the European Union, believing they have an ace up their sleeves, when in fact the whole world sees the Government as a pack of jokers.

Although we will not oppose these resolutions, we cannot and will not vote for any measures that the Government introduce that would breach agreements into which this country has entered with her friends and allies, because the consequences of such unlawful acts have been made clear to us. The Speaker of the United States House of Representatives said:

“The U.K. must respect the Northern Ireland Protocol as signed with the EU to ensure the free flow of goods across the border. If the U.K. violates that international treaty and Brexit undermines the Good Friday accord, there will be absolutely no chance of a U.S.-U.K. trade agreement passing the Congress.”

[Sammy Wilson]

I note the hon. Lady’s concern for Northern Ireland, the Good Friday agreement and the people of Northern Ireland, but does she not recognise that if the protocol goes through in its present form, the EU has made it clear that it will require measures to be implemented that have already led to supermarkets saying that they will no longer operate in Northern Ireland—that they will withdraw from Northern Ireland? The goods that would be supplied from here to Northern Ireland will no longer be supplied. I am only talking about one limited area. How can she defend that protocol, which would so adversely affect people in Northern Ireland?

[Bridget Phillipson]

I am grateful to the right hon. Gentleman. I understand the point he raises, but I am afraid I do not share his assessment of the situation. I say to him sincerely that I think it is important that we have certainty around this area. The Government’s approach on this has been misguided and has caused real damage. However, while understanding his concerns, I am afraid I do not recognise his assessment of the situation.

We hope the commitments announced earlier today by Ministers will be further repeated in this place, and that the assurances regarding the withdrawal of the offending clauses of the United Kingdom Internal Market Bill will be honoured. Ensuring that the UK’s forthcoming tax legislation does not breach our international treaty commitments, and in so doing put the Good Friday agreement at risk, is the sole purpose of our amendment. I do not doubt that there will be those on the Government Benches who regard such an amendment as weakening their hand, even as they too welcome the Government’s recent announcement. To them, seeking to legislate to break international law may have seemed a way of showing that they mean business. The delusion would be comic were the consequences not so grave. A negotiation in which one party makes it clear that it cannot be trusted—not inadvertently, but by what passes for strategy—is not one on which strong future relationships will be built, nor one that will commend us to other nations as a reliable partner for trade or security. What the Government have tossed away this autumn in the search for a fleeting advantage is a reputation that will take our country many years to regain.

Ways and Means resolutions enable the House to give effect to the taxation decisions of the Government for the year ahead. Some of those taxes and duties will fall more heavily on some of us than others. But for the Government’s extraordinary irresponsibility, which today’s events illustrate so powerfully, I fear the price will be paid by all of us, not just next month or next year but for many years to come.

--- Later in debate ---

[Sammy Wilson (East Antrim) (DUP)]

I note that the hon. Member for South Cambridgeshire (Anthony Browne) talked of being part French, part Norwegian and part Irish—he had other bits as well that I did not quite pick up. Can I assure him that I am 100% British and want to remain 100% British? I have taken the stance I have against the withdrawal agreement, and the approach that people have taken to it, because it diminishes my Britishness.

I am not quite clear what is in the legislation that the Minister is introducing today, and I am even less clear now, because, according to the statement issued by the Chancellor of the Duchy of Lancaster at lunch time, whatever is in the Bill today, some of it will not be in it tomorrow. As far as I am concerned, the parts that are important seek to manage the parts of the withdrawal agreement that are damaging to the Northern Ireland economy and to the internal market of the United Kingdom, which are underpinned by the Act of Union. Those are the important parts for me. It seems that they might well be removed from the Bill before it even gets to the Floor, or certainly they will not be exercised.

Why do I believe that protections are needed? The withdrawal agreement intervenes and undermines many parts of the Northern Ireland economy. It also damages the Northern Ireland economy’s relationship with the biggest market for Northern Ireland businesses, which is the market in Great Britain. It interrupts the supply of goods from the main source of the supplies that we receive in Northern Ireland, right down to basic foodstuffs, the equipment required by manufacturers and the parts required by producers in Northern Ireland who then export their goods across the world. The withdrawal agreement seriously undermines that and the interpretation of the withdrawal agreement by the EU even goes beyond what the agreement said and what the Government expected from the agreement.

Let me give just one example: goods at risk. According to article 5 of the protocol, exemptions could be made, determined on the basis of

“the final destination and use of the good; the nature and the value of the good; the nature of the movement; and the incentive for undeclared onward-movement into the Union, in particular incentives resulting from duties payable pursuant to paragraph 1.”

Yet despite the fact that some goods clearly do not present a risk under any of those criteria, the EU was insisting up until this week—I do not know what has happened at the Joint Committee; we will hear from the Minister tomorrow—that even supermarket goods brought from GB to Northern Ireland for shops that did not even have outlets in the Republic would be regarded as goods at risk. Goods that had been freely consumed across the EU for the last 40 years, made in GB, from which nobody died of poisoning or had their health affected, were no longer acceptable.

[Kevin Hollinrake]

The right hon. Gentleman is making some very good points. He is clearly saying that the European Union is being difficult in these negotiations. Is he therefore surprised that there was not one word of criticism for the EU’s role in the negotiations from the SNP or the official Opposition?

[Sammy Wilson]

No, I am not, and the reason for that is that from the day that the people of the United Kingdom voted to leave the EU, the cheerleaders for the EU have been those sitting on the Opposition Benches—apart from the Members from my own party. At every stage, it has almost been as if the EU had its representatives sitting in this Parliament. The Labour party in particular suffered from that, because many of its patriotic supporters asked, “What kind of representation are we getting, where these people are seeking to undermine our country, rather than uphold our sovereignty and the result of the free vote that the people of the United Kingdom undertook in the referendum?”

[John Redwood]

Did the right hon. Gentleman note that when I intervened on Labour and SNP Members to invite them to support just something in the current UK negotiating position, they could not bring themselves to support a single thing that this country wants from the negotiations?

[Sammy Wilson]

Again, that does not surprise me, because most Members on the Opposition Benches wish, first, that the referendum had never happened; secondly, that the result had not been as it was; and thirdly, that they could find some Machiavellian way to undermine it, as they have been doing for the last number of years. It is unfortunate that we are in the position that we are partly because the EU knows that there are people in this Parliament who will undermine the Government’s negotiating position. That, of course, makes it more difficult for the Government to negotiate. I do not give that as a justification for some of the things that the Government have agreed to in the withdrawal agreement, whether they relate to Northern Ireland or to the impact on the rest of the United Kingdom; to me, the withdrawal agreement is poison that will infect any future trade arrangements that we might get with the EU.

The point that I am making is that protections are needed because the EU has taken the withdrawal agreement. Even where the agreement does give some latitude to allow the internal market of the United Kingdom not to be disrupted and the economy of Northern Ireland not to be undermined, the EU has refused to give that interpretation. In fact, it has done the exact opposite and looked for the most draconian interpretation of the agreement. Only last Friday, the EU insisted that anyone travelling from GB to Northern Ireland would have to have their personal baggage searched to ensure that they were not taking any contraband into Northern Ireland, despite the fact that article 5 of the Northern Ireland protocol states that the “nature and value” of the goods should be considered.

I hope that the hon. Member for Houghton and Sunderland South (Bridget Phillipson) can understand that when she and the Labour party table amendments such as the one she moved today, saying that the withdrawal agreement must be guarded and protected at all costs, she is in effect saying, “We put the value of this piece of paper above the interests of the people of Northern Ireland.” This is putting that piece of paper above the interests of the people of Northern Ireland to have the range of goods that they want and at the best prices, and above the interests of businesses that export from Northern Ireland to GB. In effect, that is what her amendment says.

I am even more amazed that any representative from Northern Ireland dares to put their name to that amendment. I wonder what the consumers and businesses in their constituency think about somebody who values protection of the EU, and an agreement that the EU has with the UK, above the interests of their constituents.

[Ian Paisley (North Antrim) (DUP)]

Does my right hon. Friend accept that the Republic of Ireland’s interests with regards to Northern Ireland are many times predatory in terms of our businesses? They wish to stifle the competition that exists on the island and to stifle the thrifty economy of Northern Ireland. They have done so in many ways and the withdrawal agreement gives them further opportunity to do that.

[Sammy Wilson]

Yes, the worrying thing is that, with the withdrawal agreement in place, Northern Ireland is subject to laws made in Europe—laws into which the Irish Republic will have an input; laws into which, because we have left, the UK will have no input; laws into which Ministers in the Northern Ireland Assembly will have no input. We are at the mercy of those who wish to engage in this predatory behaviour and use EU legislation to damage Northern Ireland.

That is why the protections are needed. The protections that I would like to see in the Bill—unfortunately, it appears the Government are prepared to withdraw the protections before they have even introduced the Bill—would apply where the EU insists that goods that come into Northern Ireland have tariffs and would have tariffs imposed on them if they were going into the EU. That barrier should not be in place. Northern Irish consumers and businesses which bring in goods that will clearly be sold and consumed in Northern Ireland should not have to pay those taxes. I heard what the Minister said. It appears that, even with the Bill, he is not ruling that out. If I noted him correctly, he said that there would be a waiver where tariffs are incurred that should not have been incurred. He is almost admitting that, in the Bill that he has introduced, there will be provision to repay those tariffs. However, producers in Northern Ireland will find themselves in a situation where they have to pay EU tariffs, prove that the goods on which they paid the tariffs did not go into the EU, and then get the money back.

That presents a number of problems. First, the trade itself is not free. Secondly, the business that has to pay the tax has a cash-flow issue. Thirdly, there are additional administrative costs involved in proving that some of the goods on which it paid tax did not leave Northern Ireland. If there is anything that will put a chill on trade between GB and Northern Ireland, it is that. I am concerned—perhaps the Minister in his response will be able to give me some comfort—that the Bill, even though it will carry some protections, still does not give that absolute protection for businesses in Northern Ireland because of the terms of the protocol. I could provide many other examples of the EU’s draconian interpretation of the Bill. Someone who takes their pets from GB to Northern Ireland would be affected, or someone going on holiday there. Someone taking their pet from Northern Ireland to a dog show in Scotland will now have to have a pet passport, a rabies vaccination, and all the documentation surrounding that—probably about £400 a trip, yet we are part of the United Kingdom.

That is why protections are needed. I implore the Minister—I know what has been said in the statement today—not to remove the notwithstanding clauses in the Bill until it is sure that the issues that are likely to arise have been dealt with properly, because we have not even seen the detail of the particular things that have been agreed.

In conclusion, it is a pity that we do not have the detail of this Bill today. It is a pity that we do not have the assurances. I note what the Minister said about the VAT regime, which is that Northern Ireland businesses will remain under the UK VAT regime. That is true, but what he failed to say was that, as a result of the Bill, they will not also remain under the EU VAT regime. Article 8 of the Northern Ireland protocol makes it clear that we will and that has all kinds of implications. We have to have two different VAT systems. We have to have different means of VAT recording. Will we be subject to the EU conditions when it comes to VAT exemptions, or the various tiers of VAT rates? Will the EU exemptions for small businesses apply to Northern Ireland—the €85,000 or whatever it is—so that small businesses find themselves caught in a net that they would not have found themselves caught in had we been truly under the UK VAT system? It is not enough to say that we will remain under the UK VAT system. The important thing is: will we be exempt from article 8 of the protocol as a result of the measures in the Bill?

Those are the kind of issues that people in Northern Ireland are looking for. Traders in Northern Ireland—people who sell used cars, for example—will now be subject to EU rules. It used to be that they incurred only the marginal VAT rate, on the profit made on the car. Now the VAT rate will apply to the whole price of the car, putting up the price of second-hand cars for people in Northern Ireland. They will be paying above what they would pay if they lived in the rest of the United Kingdom.

Perhaps in his summing up, the Minister can let us know whether the Government are addressing any of those issues, because those are the issues that concern my constituents and those are the issues that stem from this protocol. That is why this protocol is poisonous to the internal market of the United Kingdom.

UK-EU Future Relationship Negotiations and Transition Period

Sammy Wilson Excerpts

Monday 7th December 2020 Commons Chamber

[Penny Mordaunt]

I supported Brexit—I voted for it—and I think there are many positives and opportunities that will come from it, not least being able to increase our collaboration and co-operation with many countries around the world. Unless we eradicate covid, and unless we ensure that every nation has access to vaccines and can benefit from the science, whatever its provenance, we will not defeat this pandemic. We are an incredibly connected nation, and we need to do that. With the future that we have, we will be able to be a major player in ensuring that that happens.

[Sammy Wilson (East Antrim) (DUP)]

The Government are doing the right thing in resisting any demand from the EU to take the power to impose penalties on the UK at some time in the future if Brussels deems that we have not kept pace with laws made outside the United Kingdom. Taking back control is the whole point of Brexit. In resisting the level playing field demands of the EU, the Government must also ensure that the EU’s demand for Northern Ireland to be included in its level playing field is resisted. If the Government do not do that, we have not taken back control—we have surrendered part of the United Kingdom to EU demands.

[Penny Mordaunt]

The right hon. Gentleman makes very good points that he has made many times over. The level playing field is the most difficult issue facing the negotiating teams at the moment, and I thank him for his comments, which will have been heard by the team today.

Oral Answers to Questions

Sammy Wilson Excerpts

Tuesday 1st December 2020 Commons Chamber

[Kemi Badenoch]

My hon. Friend is, as ever, a great champion for his local area. I understand that Transport for West Midlands, in partnership with Staffordshire Council and the local rail executive, has already engaged with the Restoring Your Railway fund. Regarding the specific proposal he is referencing, the Department for Transport has announced that there will be a further round of bidding for the fund. Other aspects of the proposal might be eligible for support from the £4 billion levelling- up fund; the Government will set out more details on eligibility in due course.

[Sammy Wilson (East Antrim) (DUP)]

How many contractors have worked for HMRC while using disguised remuneration schemes.

[The Financial Secretary to the Treasury (Jesse Norman)]

Her Majesty’s Revenue and Customs are aware of 15 contractors who have used disguised remuneration schemes while engaged either by the department or by Revenue and Customs Digital Technology Services. In each of the cases, the contractors were engaged via an agency or a company providing this service. It is important to be clear that Revenue and Customs does not engage in or enter into disguised remuneration schemes. It is possible for a contractor providing services to HMRC to use a disguised scheme without the department’s knowledge or by participation through a third party.

[Sammy Wilson]

I am amazed at the Minister’s answer—that firms can use methods of payment that HMRC then declares to be illegal and that no checks have been done by HMRC on those contractors. Does he not accept that it is unfair to put the burden on taxpayers who first of all entered into payments through disguised remuneration because we were forced to do so, and who declared that on tax returns which HMRC did not challenge, yet HMRC is now telling us that it did not even check that contractors it employed were paying in that way? How many of these contractors have HMRC actually pursued for forcing employees to use schemes that have been deemed illegal?

[Jesse Norman]

I think the right hon. Gentleman is slightly unclear on this. HMRC takes careful steps to ensure that the people whom it deals with as agencies employ on a proper and appropriate basis. When, in very rare cases among hundreds and hundreds of contractors in a fast-moving market, it may become clear that someone has in fact been hired under such a scheme, it takes immediate steps to end that relationship and then to follow up, of course, and to pursue as may be required under law. If he is concerned about the interests of taxpayers, may I remind him that many of the people who benefit from disguised remuneration have not been paying tax, from which our public services benefit, and it is those taxpayers whose interests we are also seeking to protect.

Spending Review 2020 and OBR Forecast

Sammy Wilson Excerpts

Wednesday 25th November 2020 Commons Chamber

[Rishi Sunak]

As ever, my right hon. Friend speaks fantastically good sense. He is right; we will need to return to a sustainable fiscal position, not least to build resilience for the next crisis or shock that comes along. We want to be able to react in the same comprehensive and generous way that we did this time, and that requires us to have a strong set of public finances going into it.

My right hon. Friend is right about the Restart programme, which will help, we hope, around 1 million of those who are long-term unemployed; it will be an exciting and ambitious programme. The Institute for Employment Studies has spoken very well about the evidence in favour of that type of high-quality, individual work-focused approach making an enormous difference in getting people back into work. If we can do that, we can reduce some of the long-term scarring that they will face. So I have high hopes for what that programme can achieve.

[Sammy Wilson (East Antrim) (DUP)]

I first welcome the £900 million that will be available to the Northern Ireland Executive, which is a reminder to the people of Northern Ireland of the economic security that we have as a result of being part of the United Kingdom. The Barnett consequentials for Wales and Scotland should also be a reminder to the people there of the benefits of the Union.

May I ask the Chancellor one thing about the levelling up fund, the infrastructure bank and the shared prosperity fund? When will he have the details of access to those, and can he assure us that the access to all those funds will be equally available to different parts of the United Kingdom?

[Rishi Sunak]

I can give the right hon. Gentleman that assurance. Those are UK-wide programmes and we hope to have more details about the infrastructure bank in the spring, so that we can get it up and running, at least in shadow form, as quickly as possible and make a difference to communities all around the United Kingdom.

Lockdown: Economic Support

Sammy Wilson Excerpts

Tuesday 3rd November 2020 Commons Chamber

[Steve Barclay]

I agree with my right hon. Friend that we need to ensure that the economy is able to bounce back quickly. That is why we have provided over £13 billion of support to the self-employed, which by international comparisons—I know my right hon. Friend looks at international comparisons—he will see is extremely generous. I have set out previously in the House part of the operational difficulties, for example with owner-directors in terms of what is dividend income and what is not. The point is that we have set out a generous self-employment income support scheme, but we need to deliver that operationally in a way that meets the tests set by, for example, the Public Accounts Committee, which has asked whether we have the right level of controls in place, given the speed at which these schemes were deployed.

[Sammy Wilson (East Antrim) (DUP)]

The latest ill-advised lockdown is going to present an enormous burden for the economy in terms of lost tax revenue, additional Government spending and reduced GDP. It is right that since the economic pain is being imposed by the Government, those affected should be compensated for the pain that they will suffer. I welcome the Chief Secretary’s assurance that the furlough scheme will apply across the whole United Kingdom, but can he tell us what Barnett consequentials will be received by Northern Ireland, Scotland and Wales for the business support grant that he announced in this package?

[Steve Barclay]

The right hon. Gentleman raises a valid and fair point. As I said on my call with the First Minister yesterday, I hope to be in a position to update her this week about the additional Barnett guarantee that we can give. The right hon. Gentleman is right to point to the consequentials that flow from the £1.1 billion of additional local authority funding that the Chancellor set out. He will also have seen, for example, the additional support that the UK Government gave to Transport for London, the rail support measures that we have provided, and so on. Those are the issues on which the Barnett consequentials will be shaped. He is right that it is important for them to have sight of that. That is why we have taken the unprecedented decision to give that up-front guarantee, and I hope to be able to give an update on that later this week.

Public Health Restrictions: Government Economic Support

Sammy Wilson Excerpts

Tuesday 13th October 2020 Commons Chamber

[Steve Barclay]

In some ways, that is slightly more of a Health question than a Treasury question, but I recognise that there is read-across from those businesses into the economy. In short, the opinion of the chief medical officer and the chief scientific officer is that those businesses do carry significantly more risk, which is why they have been harder hit in the guidance that has been issued. The package of support that the Chancellor set out recognises that businesses that are closed need additional support, which is why the measures announced by the Prime Minister and the Chancellor yesterday spoke exactly to the issue of businesses that have been closed due to the guidelines.

[Sammy Wilson (East Antrim) (DUP)]

The wisdom and necessity of some of the restrictions introduced yesterday have been questioned by leaders of cities in the north of England, by businesses and by the workers who are going to be affected, so it is right that the Government should introduce a package of support for businesses that are forced to close. However, there are many businesses that have not been instructed to close, but which will be forced to because of the restrictions placed on them. For example, the hospitality industry faces curfews, restrictions on table numbers and on who can sit at tables, and so on. How does this package of support assure those businesses that they are not going to be killed off by the restrictions that have been placed on them? They have been put in the firing line, yet seem to have been left without any level of support at all, given the conditions attached to this economic package.

[Steve Barclay]

The right hon. Gentleman speaks to an important issue, which was at the heart of the job support scheme’s design: recognising businesses that are not in closure, but which have difficulty bringing people back full time. The scheme provides support. The employer pays the first third, and the remaining amount is split three ways, with the Government supporting. Additionally, there is the wider package of measures, including support to local authorities to get better compliance, which is in the interests of businesses. The £1 billion to local authorities, the £500 million for local test and trace services, the business loans and the tax deferrals are all targeted at the sector that the right hon. Gentleman is talking about: businesses that can still trade and are not closed, but which do face further pressure. The winter plan sets out that support.

Oral Answers to Questions

Sammy Wilson Excerpts

Tuesday 15th September 2020 Commons Chamber

[Jesse Norman]

I am very grateful for the suggestion. Now that the right hon. Gentleman has placed it on the public record, I will ask my officials to look more closely at it and to engage with him on it. He will know that we have already introduced, in a quite different context, a digital services tax. We are open to these potential ideas. We will be looking very carefully at this area. Intelligent and well thought through feedback is always of great interest to us.

[Sammy Wilson (East Antrim) (DUP)]

What discussions officials from (a) his Department and (b) HMRC have had with businesses in Northern Ireland on potential additional costs for exporting goods to Great Britain from Northern Ireland under the withdrawal agreement.

[The Financial Secretary to the Treasury (Jesse Norman)]

The Government have been actively engaging with businesses and fully committed to providing them with the information and support needed to prepare for the end of the transition period in Northern Ireland. As was set out in the Command Paper, the Government’s position is that there should be no additional process, paperwork or restrictions on Northern Ireland goods arriving in the rest of the UK.

[Sammy Wilson]

While I welcome the provisions of the United Kingdom Internal Market Bill debated yesterday, they do not cover the issue that the EU is demanding that goods coming into Northern Ireland have tariffs imposed on them until it is proven that they have not left Northern Ireland and gone into the EU. This is damaging to business, because it requires additional paperwork, will affect cash flow, and will put up costs. Given that the Government are committed to keeping Northern Ireland in the UK customs union, that the Act of Union says that there should be no tariffs on trade between countries within the United Kingdom, and that 75% of goods do not leave Northern Ireland once they enter anyhow, will the Minister give a commitment to ensuring in the Finance Bill that the EU demand for those tariffs to be collected will be removed so that Northern Ireland businesses are not disadvantaged?

[Jesse Norman]

As the right hon. Gentleman will know, these topics are currently very live matters of discussion between this country and the EU, and I am not going to comment on that. However, we are, as a Government, very engaged with this issue across a number of different Departments, and we will be looking to support the principles and positions set out in the protocol as we go forward.

--- Later in debate ---

[Rishi Sunak]

My hon. Friend makes an excellent point and I thank her for it. She will know that some of the interventions we have already put in place last through into next year, for example the removal of the need to pay business rates for businesses in hospitality, which has been particularly affected. She may be reassured to know that we recently introduced the new business support grant for businesses forced to close as a result of local lockdown, where the Joint Biosecurity Centre gold command has instituted that measure, and those grant payments will be available up to £1,500 per few weekly cycles.

[Sammy Wilson (East Antrim) (DUP)]

  The aviation industry is on its knees: airports are deserted, planes are grounded and travellers are frustrated. In large part, the plight of the industry is due to the inconsistent, illogical and contradictory policies being followed by the Government to attack coronavirus. Will the Chancellor consider what actions he can take to support this vital industry, which we depend on for our connectivity, by either reducing or suspending air passenger duty, or through targeted job support?

[Rishi Sunak]

The right hon. Gentleman is absolutely right to highlight the importance of the aerospace industry to our economy. It is, in common with aerospace industries across the globe, suffering a deep depression in demand for all the obvious reasons. He can rest assured that we engage regularly with the companies in that sector. In particular, to support their future success, we are investing heavily in R&D alongside those companies to make sure we remain on the cutting edge of advanced manufacturing capability.

Economic Update

Sammy Wilson Excerpts

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

I thank my right hon. Friend for his kind support and also his advice. He is of course absolutely right, and I hope that he was heartened by what he heard me say in the statement about the importance of returning our public finances to a sustainable footing in the medium term. We can and will do exactly that. He is right to highlight the sensitivity of our debt to interest rates, which was why he was right to introduce into our fiscal framework the notion of an interest service rule, and that is something that I will look at keenly in the coming months.

[Sammy Wilson (East Antrim) (DUP)]

I welcome the announcements that the Chancellor has made today to undo some of the economic damage caused by the actions taken to deal with the health crisis. I echo his point that these measures benefit places such as Northern Ireland only because we are part of the fifth biggest economy in the world and we have the umbrella of the UK to protect us against these economic crises. I am sure that the hospitality industry will welcome the measures that he has announced today, although they are quite time-limited. Clothes shops might welcome similar measures as well, because once we have eaten our way through a month’s half-price meals, we might need to visit them!

Other sectors that are important to Northern Ireland in terms of their export potential, high-value jobs, tourism and connectivity with the rest of the United Kingdom are the aerospace and aviation sectors, but there has been no mention of those sectors today. The Chancellor has said that these are the first of his steps, so I hope that we will quickly see some action taken to deal with those areas.

[Rishi Sunak]

I am grateful for the right hon. Gentleman’s support. Perhaps alongside the “eat out to help out” scheme, we can make progress on reopening our gyms, to deal with that side of the equation at the same time. He is absolutely right to suggest that airlines and aviation are experiencing a difficult period. I remain in close contact with the industry and with individual companies to understand what is happening, and if there are things that we can and should do, of course we will.

Finance Bill

Sammy Wilson Excerpts

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

[Bridget Phillipson]

Amendments 18 and 19 would require the Treasury to conduct a review of the digital services tax within a year of Royal Assent and to report to Parliament on the tax annually thereafter with a specific consideration of the effect of this measure on taxation revenue.

We welcome the introduction of the digital services tax, although this support is qualified. The Minister will be well aware that we like to be thorough even with proposals that we broadly welcome. It is deeply disappointing that it has not been possible to reach multinational international agreement, hence the need for this unilateral approach. This Government should demonstrate much more leadership in pressing for international efforts to tackle this scourge. Ensuring that companies that operate across national borders pay the tax that they should requires us to co-operate, to lead, to persuade, to negotiate and to set an example.

More troubling is the fact that, in the crisis we are living through today, when ambitious and decisive action is demanded of Government, Ministers have only managed to put forward such a modest measure, when other countries are willing to go further. Many of the companies that will be affected by this tax are the same ones that will have benefited from the impact of covid-19. Before the pandemic struck, they were the beneficiaries of an uneven playing field, while much loved high street businesses struggled.

Local firms and UK chains have faced a real battle competing with companies that base themselves overseas, do not have the same overheads as physical shops and go to great lengths to minimise their tax liabilities. The impact of lockdown has only exacerbated this tension. It has provided an unexpected boon to tech giants, which have managed to rake it in as demand soars and business is directed online. Meanwhile, our high street businesses, which were already struggling, have only seen their worries increase as footfall has understandably plummeted.

Even with the easing of lockdown, there is a real challenge ahead in ensuring the continued success of our bricks-and-mortar retail sector. If shoppers will not venture on to our high streets and the Government fail to provide an effective test, track and isolate system, many businesses that are just starting to open up will soon be forced to close their doors again, perhaps even permanently. These businesses are the bedrock of our communities. They help create a sense of place, and are often a lifeline for older and vulnerable residents and for those in more isolated communities. Government must do more to ensure that there is a level playing field, and that those who have benefited the most from this situation—as I have noted, those that have not exactly paid their fair share in the past—make more of a contribution to the national effort.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. Member accept that not only is it right that the Government intervene to ensure that taxes are paid on a level playing field, but that, at a time when public finances are under pressure, we should not be allowing large firms to escape paying the tax revenue that is due and should be paid?

[Bridget Phillipson]

The right hon. Gentleman is absolutely right, and I sincerely hope that the Minister will respond to that point, because we have seen this unfairness built into our system. We recognise that this measure takes some steps towards levelling the playing field, but we need to see much more from Government in clamping down on the kind of tax avoidance that we have seen far too often in recent years, because it is not right.

--- Later in debate ---

[Mr Mitchell]

Yes, the extractive industry transparency initiative, which has been led by a former Member of this House, Clare Short, for some time, did a huge amount of good as, of course, have open registers, because open registers have continued that agenda of transparency. As I said at the outset, this agenda was championed and driven forward internationally through the British at the G8.

[Sammy Wilson]

I agree with all the points that the right hon. Gentleman has been making. Does he accept that unless we can dig behind the accounts to see where companies, for example, inflate costs in countries where they can get lower tax rates and deflate costs in countries with higher tax rates, a tax strategy in itself is simply not going to ensure that we get behind how companies avoid paying tax in the countries where they earn the profits?

[Mr Mitchell]

There is an important principle: while commercial confidentiality should not be compromised, we should move to greater transparency to tackle the problems that lie behind what the right hon. Gentleman is saying. I agree with that and I think that there is common cause across the House that that is what we want to do. Clearly, getting a multinational standard will be the right result, but these things have to be led.

In summary, the new clause is part of the noble campaign that is supported across the House, to shine a light on the profit shifting, transfer pricing and tax haven abuse that is used to minimise tax liabilities. The House has already voted in favour of public country-by-country reporting through an amendment to the Finance Bill in 2016, which gave the Treasury the power to make the information public. My right hon. Friend the Financial Secretary will no doubt rely on the prayer of St Augustine, “O Lord, make me chaste, but not yet,” and argue that the UK would not want to implement this reform unilaterally, and he has already acknowledged, in a letter to the right hon. Member for Barking (Dame Margaret Hodge) dated 27 February this year, that a multinational agreement to do country-by-country reporting would be a good achievement, but I put it to him that that is too timid an approach.

As we contemplate Britain’s role post Brexit and we set out what we mean by global Britain, let my right hon. Friend stand tall, show leadership internationally, and follow the proud, confident example of David Cameron and George Osborne. Let global Britain lead by example, to the huge benefit of our domestic taxpayers and taxes, and for those in the poorest countries, whose mineral wealth is so often developed without their citizens reaping the benefits they should receive and that they deserve. This reform would be in the finest traditions of Britain’s past international development leadership, and I commend the new clause to the House.