Sikhs: Contribution to the UK
Debate between Seema Malhotra and Adrian Bailey(5 years ago)
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Seema Malhotra
My right hon. Friend makes an important point that goes to the heart of what this debate is about. Whatever our heritage, as we play our part in British public life, it is vital that we respect each other and show that, in a time of rising hate crime not just across our country but across the world, we take the time to value each other, respect each other, understand each other’s history, and understand our nation’s history through the context and lens of all those who make a vital contribution.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
I thank my hon. Friend for giving way, given that she is coming to the end of her speech. I thank her for an admirable and comprehensive contribution to the debate. The contribution of Sikhs to public life has gone unrecognised so far. I had the privilege of being the deputy to Lord King when he was leader of Sandwell Council. He was the first Sikh leader of a major metropolitan authority and subsequently became a Member of the House of Lords. I put on record his contribution to breaking down barriers and providing inspiration for subsequent generations of Sikhs to enter public life.
Seema Malhotra
I thank my hon. Friend for his intervention. We all remember Lord King and the contribution that he made.
I will also make reference to our two Sikh Members of Parliament who are here today: our first turbaned Sikh Member of Parliament, my hon. Friend the Member for Slough; and our first female Sikh Member of Parliament, my hon. Friend the Member for Birmingham, Edgbaston. They do us all proud and make a huge contribution, not only to debates in this House but to making sure that, as a minority community, we play our part and are seen to play our part in Britain’s mainstream public life.
With those words, I will end my speech. I thank you, Sir Edward, for chairing this debate, and the House for allowing me to call this debate and make my contribution to it.
Loan Charge
Debate between Seema Malhotra and Adrian Bailey
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
I congratulate the hon. Member for Aberdeen South (Ross Thomson) and his colleagues in the all-party group on the way they have taken up and pursued this issue, and on the incredibly well informed report they have delivered. Many of the points I wanted to make have already been made, but I think one or two are well worth underlining and reaffirming.
The first point is on the retrospective approach taken. The people caught by the charge are, by and large, on ordinary, or perhaps slightly better than ordinary, incomes and are law-abiding; they were advised, perhaps beguiled, and in some cases even coerced into being part of the schemes; and they filled in their tax returns and declared everything. There was no attempt to hide their tax status in returns to HMRC. Although it may be true that HMRC did not approve the schemes, it is self-evident that HMRC ignored the evidence in front of them that may have justified taking action, so to take action now, after 20 years, is totally unfair and defies all laws of natural justice.
Mr Bailey
Sorry, but I will not take interventions.
The Government need to do something about this problem. Astonishingly, it appears that, during those years, the Government had adequate legal redress available to them, had they wanted to take action. The loan charge legislation they introduced was designed to recoup the money simply, in a way that avoided the time and hassle involved in taking action under previous legislation. It smacks of trying to maximise income from the softest targets with the minimum of cost. The high volume of complaints that I have had about the process used to achieve that aim underlines that point.
It has been mentioned that the deadline is Friday for people to give evidence of how they will settle their outstanding bills. I have people in my constituency who are scared witless because they are not in a position to do that. It is not that they ignored HMRC; they provided it with the evidence, but they have not had the figures necessary to make the decision on how to settle their affairs. They are being threatened by HMRC that if they do not do that, penalties will be invoked, but HMRC has not provided them with the figures they need to do it. It is absolutely incredible, and it underlines the impression that HMRC is trying to maximise the amount of income that it can get from individuals who are trapped in this situation.
I looked at the HMRC document on the subject, particularly the “Supporting people” section. Unbelievably, it says that people must realise their assets, if necessary. I suppose that with a multimillionaire, that is a reasonable approach, but for ordinary people—especially retired people on low incomes, whose home may be their main asset—it is a totally inappropriate way to “support” people. One person who came into my surgery told me they think—they have not had the figures—that, after 5 April, they will have to sell their house. It is all right for HMRC to say people will not have to sell their house, but if that is their only asset and they have to realise their assets, they have no alternative.
The HMRC document goes on to say that people can remortgage. A retired person on a low income who goes to a financial institution and says, “I need to remortgage my property so I can pay off my tax debts” is unlikely to get a sympathetic response. Frankly, that document contains a lot of honeyed words that actually give no help or succour to those who are confronted with this potentially devastating and life-changing financial experience.
HMRC holds surgeries in the House of Commons that we can go along to. That is praiseworthy, but I went along with a couple of cases on loan charges and, unbelievably, there was no one there in a position to give me an answer. Given that this is the pre-eminent taxation issue that Members face at the moment, and HMRC is presumably trying to improve communication between constituents, MPs and itself, that is an amazing omission, which only underlines again the fact that HMRC appears to be totally indifferent to the plight generated by its processes and the culture that surrounds them.
I say to the Minister that there will be thousands of people watching us today, knowing that their future welfare, their livelihood and their happiness depend on the words of advice he gives at the conclusion of the debate. I just hope that his response will be favourable. Treasury Ministers do not often have a chance to make people happy, but here is an opportunity to do.