Spending Round 2019

Sarah Wollaston Excerpts

Wednesday 4th September 2019 Commons Chamber

[Sajid Javid]

My hon. Friend is right on every count; it has been delivered by Scottish Conservatives, and may I take this opportunity to thank him for all the representations that he made to me, along with his colleagues, and for achieving this result? It just shows that Scottish Conservatives really care about their constituents, unlike the SNP.

[Dr Sarah Wollaston (Totnes) (LD)]

This morning I met with NHS trust leaders from around the country; they painted an absolutely shocking picture of infrastructure that is crumbling, unsafe and broken. They welcome the unfreezing of £1 billion so that they can get on and fix some of that, but it does not go far enough; there is a £6 billion backlog, and they are asking for us to reach the levels of comparable countries in spending on NHS infrastructure. Will the Chancellor meet me to discuss their serious concerns and the measures that we need to take to move this forward?

[Sajid Javid]

I thank the hon. Lady for welcoming one of the changes I made a few weeks ago, which was to unlock or bring forward £1 billion of new capital investment in our hospitals and an additional fresh £850 million on top of that to upgrade 20 hospitals. She makes an important point, but today’s announcement is about day-to-day resource spending whereas she is talking about another important area, which is capital. I will make sure she gets the meeting with Ministers she wants.

NHS Pensions: Taxation

Sarah Wollaston Excerpts

Monday 8th July 2019 Commons Chamber

[Elizabeth Truss]

I can assure my hon. Friend that I spoke with the Health Secretary earlier today. We are seeking to get the consultation out as soon as possible. The Government have been working on this now for a number of weeks.

[Dr Sarah Wollaston (Totnes) (Ind)]

This matters first and foremost because of the impact on patient care, not only through increased waiting times in hospitals but in patient’s ability to see a general practitioner out of hours. May I stress the urgency of the situation, as others have? Patients cannot afford to wait for the extended process of finding a new leader of the Conservative party.

May I briefly flag up another issue? One of my constituents, who wrote to me recently to say that he had requested an update on his pension, was told that it would take three months. He was then informed that Primary Care Support England had not updated his pension records for three years and that he would have to wait a further three months once they had been updated. Will the Minister also look at the delays facing doctors trying to get an update on their situation?

[Elizabeth Truss]

I thank the hon. Lady for her question. I will raise that matter with the Health Secretary. It is for the NHS to make sure that its pensions are properly administrated. As I have said, we are dealing with this issue urgently. We are not waiting for the election of a new Conservative Prime Minister to do that. My point about a new Prime Minister was that general tax and pension reforms are not likely to be happening in the next two weeks.

Oral Answers to Questions

Sarah Wollaston Excerpts

Tuesday 21st May 2019 Commons Chamber

[Mr Hammond]

The British Medical Association has been vocal, I think is probably the right word, in making the case around the disincentive effect of annual allowance charges, in particular, but also lifetime allowance charges. The Health Secretary and I have been discussing this for some time, and I think we are close to reaching a conclusion.

[Dr Sarah Wollaston (Totnes) (Change UK)]

The workforce shortfall is the greatest challenge facing the NHS. What discussions has the Chancellor had with the Health Secretary about the combined impact of these changes together with the disastrous consequences for the NHS workforce that would follow a no-deal or WTO Brexit?

[Mr Hammond]

As the hon. Lady says, recruitment and retention is one of the big challenges facing the NHS. Clearly, anything that were to impede the NHS’s access to overseas workers coming into the UK to serve in our health service would have an impact on that. But I have also recognised and acknowledged today that the operation of the pension annual allowance charge does have a significant effect—particularly, it seems, on partners in GP practices.

Loan Charge

Sarah Wollaston Excerpts

Thursday 11th April 2019 Commons Chamber

[Stephen Metcalfe]

I do not know what the rules are on my hon. Friend reading the next line of my speech over my shoulder, because it says here that my constituent continued with these arrangements and, each and every year, dutifully declared on his tax return the amount he had received in loans and the amounts he had returned thereof. It came as a surprise that, years later, HMRC intends to use its newly granted powers—in what my constituent describes as “winding back the clock”—to retrospectively claim that the arrangements my constituent and others had used were not legal, had never worked and that the tax on the loans was always due.

[Dr Sarah Wollaston (Totnes) (Ind)]

I thank the hon. Gentleman for making these excellent points. Like me, does he find that he has several constituents who had no option but to be self-employed and were required to enter such vehicles?

[Stephen Metcalfe]

The hon. Lady makes an excellent point. For many there was no option. In many cases, as in the case of my constituent, people had to enter these schemes. My constituent even checked whether there were alternative options and checked the legitimacy of it, never thinking it would come back to haunt him.

I have to say that I do not like it. It feels wrong. I would like to think that I am a fairly reasonable chap, and when I feel that something is wrong or off and does not feel like natural justice, it tends to be true. Eventually, the Government will come round to my way of thinking, or I very much hope so.

As I said, I am not an expert on tax in general, but the charge is retrospective and HMRC failed to notify scheme users of the tax liability. Users sought professional advice or were advised to enter these schemes and, as in my constituent’s case, annually declared what they were doing.

Exiting the European Union (Agriculture)

Sarah Wollaston Excerpts

Monday 18th March 2019 Commons Chamber

[Neil Parish]

I very much welcome that comment, because two or three weeks ago, the Environment, Food and Rural Affairs Committee went to DEFRA, where we saw the regulations being laid out and had a look at what was happening. I welcome what my hon. Friend said, but I reiterate that as much as I may love our French cousins, they can be very difficult when it comes to trading into the European Union. Much of our produce will have to pass from Dover through into Calais, and we have to be absolutely certain that they will process our food and let it into the EU.

[Dr Sarah Wollaston (Totnes) (Ind)]

My hon. Friend rightly makes the point that we can unilaterally decide to be freer about letting goods come across our border. However, surely one issue is that a free-for-all and a lack of proper checking could put the organic sector at risk.

[Neil Parish]

The hon. Lady raises a good point. Milk production is a good example. Organics is a selected market; although a good number of people buy organics, there is a ceiling of around 10% of people who actually buy organics overall. Therefore, exporting organic food is as important as importing it. On the dairy side of organics, the big milk co-operative Omsco trades very successfully into the United States, but that has to be maintained—and we must have the certification, and all these other things must work, in order for that to happen. That is why we have to be very careful to ensure that we can trade successfully in a no-deal situation.

I spent a number of years in the European Parliament, so I know that our great French cousins are able, for example, to stop cheese coming in from Holland when they suddenly decide that there might be a problem with it and that it might actually help the French market to keep it out for a while. The European Commission then challenges them, and eventually they capitulate and the cheese comes back in from Holland. The point that I am making quite clearly tonight is: let us go in with our eyes open to the fact that there could well be a problem in the future if we do not get these rules right and recognised, and if we do not actually get that produce back into the EU. As we leave the European Union, it is very important that we take as much of trade with us as possible, and then we can also have future trading relationships across the world.

Thank you for letting me speak in this debate, Madam Deputy Speaker.

Oral Answers to Questions

Sarah Wollaston Excerpts

Tuesday 5th March 2019 Commons Chamber

[Robert Jenrick]

The stronger towns fund announced this week will provide support for the south-west and all regions of the country, both in terms of direct funding to be paid to local enterprise partnerships and the competitive fund of £600 million that towns in the my hon. Friend’s constituency and those of other right hon. and hon. Members across the country should bid into.

[Dr Sarah Wollaston (Totnes) (Ind)]

The port of Brixham in my constituency lands the most valuable catch in England, but it has now reached capacity and needs urgent infrastructure investment to expand opportunities. Will the Minister assure me that our strategically important fishing industry and processing sectors will be fully considered in future infrastructure plans, and will he meet me to discuss Brixham port’s exciting plans for development, which need only modest investment to help them get rapidly off the ground?

[Robert Jenrick]

I would be happy to meet the hon. Lady. We are investing in port infrastructure, as indeed in other infrastructure projects across the south-west. I believe it was she who asked the Chancellor in the lead-up to the Budget to make that national commitment to Dawlish, for example. We are keen to listen to her opinions in this respect, and I would be very happy to meet her.

Finance (No. 3) Bill

Sarah Wollaston Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 8th January 2019 Commons Chamber

Unless Parliament agrees a deal, the UK will leave the European Union on 29 March with no deal, as that was the agreement we all knew when we voted to trigger article 50. That is now the law, and amendment 7 does not change that simple truth.

[Dr Sarah Wollaston (Totnes) (Con)]

Will the Minister clarify his last sentence? Is he saying that if the deal is voted down next week, it will become the Government’s stated objective to deliver no deal?

[Robert Jenrick]

The point I have just made is that the law of the land is that the UK will leave the European Union on 29 March, and nothing contained in amendment 7 will change that. As I will come on to say, the only difference that the amendment will implement is to make the UK somewhat less prepared for that eventuality. The purpose of clause 89 is to provide taxpayers and—

--- Later in debate ---

[Mel Stride]

Given the limited time that is available to me to summarise a debate that has covered a large number of amendments and new clauses, I shall confine my remarks principally to the issue that has been raised most frequently, which relates to new clause 26. The new clause requires the Government to lay before the House a report reviewing the effects of changes made by clauses 79 and 80 no later than 30 March 2019. While I should note that such a report will come too soon for the measures to have had a real effect, the Government of course remain committed to setting out the rationale for their policies as well as their impact, and in that spirit we will not oppose the new clause.

I do, however, echo many of the comments made by Members about what these schemes are truly about, which is gross aggressive tax avoidance. The way in which disguised remuneration typically works is that, instead of an employer’s paying an employee by way of a salary in the normal way, which attracts PAYE income tax and employees’ and employers national insurance, the payment is made as a loan. Typically, those so-called loans, which are not really loans at all—there is no intention of ever repaying them—are routed out via an offshore trust in a low or no-tax jurisdiction, and then routed back to the United Kingdom to be received by the end recipient. That is extremely unfair. It is unfair to our public services, because we have a duty as a Government to collect the tax that is due to fund them, and it is unfair to the vast majority of taxpayers who do the right thing, which is not to get involved in aggressive tax avoidance schemes in the first place and to pay their fair share of tax.

One issue that has been raised on a number of occasions is the question of whether HMRC’s loan charge arrangements are themselves retrospective. They are not retrospective because, critically—this is where I take issue with the right hon. Member for Kingston and Surbiton (Sir Edward Davey)—at the time when they were entered into they were defective. No matter how far we go back, the scheme typically—I have described the way it works—was defective. It did not work then, it does not work now and the tax is due.

These schemes have been taken through the courts on many occasions. A scheme used to the benefit of Rangers Football Club was taken to the Supreme Court—the highest court in the land—and was found to be defective.

[Dr Wollaston]

Will my right hon. Friend give way?

[Mel Stride]

I will not, simply because I have two minutes and 30 seconds left and I want to cover some of the other issues raised this evening.

However, as I have said, the Government will accept this new clause. It is absolutely right that, when HMRC deals with the public, it has a strict duty of care, a duty of proportionality and a duty to be as sympathetic as it can be relevant to the circumstances of those with whom it is dealing. In my dealings with HMRC, I have made those points forcefully clear. As the right hon. Gentleman will know, HMRC has recently come forward to say that those earning £50,000 or less—which is over twice the average national salary of somebody working in our country—will automatically be granted, without requirement for additional paperwork, a minimum of five years’ time to pay as an arrangement to settle their affairs. Of course for those who come forward before April there is effectively in most cases no penalty as such; they will simply be required to pay that tax which was due in the past—and it was always due in the past—plus the interest that is rightly applied.

I have less than a minute left and want to say a little about amendment 12, tabled by the hon. Member for Aberdeen North (Kirsty Blackman), on the national minimum wage lock. She will know that, because we have increased the personal allowance now to £12,500 for every year of the forecast period, there will be no necessity for that lock to be in place. She makes the point that there could be a projection beyond that point. That will be a matter for a future Government of course and it is not for this Parliament to bind its successors.

I conclude on the suggested entrepreneurs’ relief review and new clause 2, which the hon. Member for Oxford East (Anneliese Dodds) spoke to. We had a review that was published in December 2017, which reported on this particular matter, and it showed that a third of those using entrepreneurs’ relief went on to reinvest in new businesses and half of those who were aware of entrepreneurs’ relief said that it significantly influenced their decision to enter into an entrepreneurial activity. It is an important element of the business tax landscape and we will of course, as we do with all taxes, keep that relief under review.

In the six seconds I have left, I urge that the House accepts the Government new clauses and, with the exception of new clause 26, rejects the Opposition amendments.

Finance (No. 3) Bill

Sarah Wollaston Excerpts

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

[Chuka Umunna]

I have to say that when I gave way to the hon. Gentleman I did not imagine I would actually end up agreeing with what he said. He pre-empts my final point, which is that I understand the general worry about the accuracy of official forecasts. The bottom line is that we are never going to get forecasts that are 100% accurate, but we have to work with a certain number of assumptions to make policy, as I am sure he will discover if he has the privilege of serving in government.

On the point he makes about the OBR, I was quite careful in how I drafted the amendment. Its powers and capacity from a resource point of view are circumscribed, but there is no reason why we should not change the statutory remit of the OBR. At the very least, for those who worry about the accuracy of forecasts, we could see whether the OBR would be prepared to do an evaluation on the methodology and the techniques it uses to produce the forecasts by the Treasury.

[Dr Sarah Wollaston (Totnes) (Con)]

Does the hon. Gentleman agree that this issue relates not just to future forecasting? The Health and Social Care Committee has been hearing that hundreds of millions of pounds are already being spent by pharmaceutical companies on no-deal contingency planning—money that would be far better invested in our NHS.

[Chuka Umunna]

I could not agree more with the hon. Lady.

I will finish by saying this: the reason we tabled the amendment, and why I think so many colleagues on all sides of the House supported it, is because ultimately it is an assertion of parliamentary sovereignty. If the House were denied this really important information in order to come to a considered informed view, it would make a mockery of the argument that says the reason for withdrawing from the European Union is to assert parliamentary sovereignty.

I did not expect to be in this position at the beginning of today. I am grateful to the Minister for making this important concession and for making the promise, at the Dispatch Box, that we will get the economic impact assessments that we sought to secure through the amendment. Given the firm commitment he has made to the Committee, I will not be pressing the amendment to a vote. I would like to take this opportunity to thank all Members who supported it. Ultimately, we have done this because we think it is important that our constituents understand why we make the big decision that we are going to have to make in the next few weeks.

Customs and Borders

Sarah Wollaston Excerpts

Thursday 26th April 2018 Commons Chamber

[Dr Sarah Wollaston (Totnes) (Con)]

Outside an effective customs union there is no such thing as a frictionless border. There is no escape from border checks, rules of origin and expensive infrastructure, and that means costs, delays and red tape. There will be implications for future investment, for people’s jobs and livelihoods, and for the stability of peace in Northern Ireland. But there is one area that has not been touched on: the implications for patient safety.

I am privileged to chair the Health and Social Care Committee, and we have been hearing detailed evidence about the implications of leaving the customs union on patient safety. These consequences go far beyond the economic consequences for individual pharmaceutical companies, about which my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) and my right hon. Friend the Member for Broxtowe (Anna Soubry) have spoken compellingly. In fact, these are consequences that directly affect patient safety.

The Committee heard clear and compelling evidence about the extent to which NHS care is dependent on a network of highly integrated, complex and time-sensitive supply chains for the delivery of medicines. For years, we have taken it for granted that when a prescription is issued, it will be available on the pharmacy shelf. I am afraid that we will not be able to take that for granted in the future, because the complex supply chain—from the research lab right through to the pharmacy shelf—will be disrupted by delays at the border, and that will affect costs.

Delays at the border will also directly affect the delivery of patient care. For example, every year in this country, about 700,000 diagnostic tests take place that rely on the availability of medical radioisotopes, which are very time-sensitive. Very many other products would be affected, such as blood plasma derivatives. There are products and devices that are not manufactured in the UK but which we know from past experience have very fragile supply chains, such as dialysis equipment. We have had problems with this before and it could happen again.

[Mr Ben Bradshaw (Exeter) (Lab)]

Speaking as a member of the hon. Lady’s Committee, can I ask her to confirm that every single witness who provided written and oral evidence to our recent inquiry said that their preference was for us to stay in the customs union and the single market?

[Dr Wollaston]

I thank the right hon. Gentleman; I can confirm that.

There are other very worrying examples. After the Manchester Arena attack, a very rapid supply of 500 highly specialised trauma-related items was flown in at very short notice from a Belgian-based company. There are very many serious patient safety issues.

There is also an issue of cost. A report today from the King’s Fund highlights the increasing cost of drugs to the NHS. The cost of medicines has grown from £13 billion in 2010-11 to £17.4 billion in 2016-17. However, that cost has been held down by the impact of the supply of generics and the way that primary care has actively switched to these products. Generics are pharmacologically equivalent products that become available when a medicine comes off patent. The British Generic Manufacturers Association told us in evidence that once a medicine comes off patent, a dozen to 20 companies will pick it up. The risk is that as costs and other non-tariff barriers go up, some companies will relinquish their licences and their marketing authorisations. Why would they bother with all the red tape and extra costs? That immediately means that the number of manufacturers goes down, and the likelihood of the cost of generics to the NHS increasing goes up.

I am afraid that the fast and unhindered free movement of medical equipment, medicines, devices, organs and blood products between the UK and the EU that has evolved over decades is at risk if we leave the single market and the customs union. I think there will be a huge crunch moment of reality. The public will never forgive us if, after we leave the European Union, people’s drugs and life-saving equipment are not available. This is where we are starting to run into Brexit reality, as opposed to the overly optimistic, unrealistic prospectus that has until now been sold to the British public. It is time for the Government to respond to our request in the Committee to hear when the Ernst and Young-commissioned report on the supply chain will be available. We need far greater contingency planning and a great dose of reality.

Draft Immigration Act 2014 (Current Accounts) (Excluded Accounts and Notification Requirements) Regulations 2016

Sarah Wollaston Excerpts

Tuesday 6th December 2016 General Committees

[Dr Sarah Wollaston (Totnes) (Con)]

Further to the point made by the hon. Member for Glasgow Central, I want to ask the Government about the position of families with dependent children. I can think of a family in my own constituency who have a severely disabled child and are awaiting the outcome of an appeal. As it happens, they are already heavily dependent on the generosity of others. To throw such families into a position where they would not be able to continue to support that child would be very regrettable and I do not feel I could support the Government unless there was a reassurance that individual circumstances would be taken into account, particularly where there were dependent children who, through no fault of their own, would be left utterly destitute.

[The Chair]

Did anyone else want to speak? Minister? No—sorry, Mr Shapps, I did not see you standing.

--- Later in debate ---

[Dr Wollaston]

I thank the Minister for his reassurance. He says that “exceptional circumstances” will refer to vulnerable people who face an obstacle to leaving the UK. Can he clarify that that could include exceptional circumstances involving child dependants?

[Simon Kirby]

My understanding is that the Home Office can consider any exceptional circumstances. If I have heard correctly, my hon. Friend’s case involved an appeal. Someone appealing a decision would not be subject to this legislation in the first case. I reiterate that only those people who have no right to remain and who have exhausted all the avenues available to them will be subject to it.