National Insurance Contributions (Employer Pensions Contributions) Bill
As there are no further Back-Bench contributions, I call the shadow Minister.
Showing every spoken contribution, including 5,731 under 12 words. Hide short remarks
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National Insurance Contributions (Employer Pensions Contributions) Bill
Order. Before I call the Minister, I want to put on the record that the behaviour I have seen on both Front Benches this evening has been about the worst I have ever witnessed. The debate should take place across the Dispatch Box, not from a sedentary position. [Interruption.] No—not “He started it!” This is not a classroom.
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Local Government Finance
Talking about local government finance, I was shocked to read in The Times yesterday that Reform-led Worcestershire county council has sought permission from the Government to increase council tax by a maximum 10%. Will the Minister take this opportunity to rule that out, and will she tell us if Labour is in cahoots with Reform to whack up council tax?
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Northern Ireland Troubles: Legacy and Reconciliation
Notwithstanding the fact that the Secretary of State has said that the chances of a successful prosecution are very limited indeed, the punishment is in the process of investigation and trial in the first place. Will the Secretary of State look sympathetically at appropriate amendments to the Bill to make sure that the bar is raised very high, so that it is almost impossible for one of our brave veterans to be prosecuted in our courts?
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Local Government Finance
May I welcome the focus on reducing deprivation in this statement? How confident is the Minister that deprivation in rural areas will not be missed in the funding formula? I should refer Members to my entry in the Register of Members’ Financial Interests, because I am still a councillor on Central Bedfordshire council. That council is looking at having to find more than £20 million to balance its budget. That will be a real struggle in central Bedfordshire, which is a high-growth area with high needs and a lot of spending. Will the Minister commit to meet with me and local council leaders to discuss the unique circumstances in central Bedfordshire and what can be done to alleviate the financial pressures and to support them in balancing their budget?
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Engagements
Where’s the defence investment plan?
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Puberty Suppressants Trial
Children struggling with gender dysphoria and their families are trying to find their way through very difficult and often distressing times. We should be helping them, not experimenting on them. Should we not be following the example of other European countries, such as Denmark and Finland, which have shifted their policies towards counselling rather than medical interventions?
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INEOS Chemicals: Grangemouth
I thank the Minister for the advance copy of his statement. The steps announced today by the Government to secure the ethylene plant at Grangemouth are welcome news, especially for the workers at the site who can now look forward to the new year, assured that their jobs will remain at the strategically vital site—and Grangemouth is vital, as the UK’s last plant producing ethylene, a key ingredient in plastics used in advanced manufacturing and the automotive and aerospace sectors. To have lost domestic production capacity for such a core product would have been unconscionable. However, this move, welcome as it is, demonstrates just how exposed sites such as Grangemouth have become under this Government. This Government’s policies are leading to the deindustrialisation of this country, with unemployment rates soaring and the economy shrinking as a result. From potteries in Stoke to the Prax Lindsey oil refinery in Lincolnshire and, most obviously and glaringly, our oil and gas industry in the North sea, this Government are not just overseeing but engineering the decline of energy-intensive industries in this country. Of course, I am genuinely glad that 500 jobs at Grangemouth will be protected, but that will be cold comfort for the thousands of workers in and around the wider oil and gas industry who have already lost their jobs, or those who will spend Christmas next week not knowing whether they will have a job next year because of Labour party policy. Last week it was Harbour Energy, and before that it was the Port of Aberdeen, Apache and Petrofac. TotalEnergies has had to merge with NEO NEXT Energy to operate, while Shell has merged with Equinor. Those businesses all say the same thing: the exorbitant taxation regime, increased and extended until 2030, is driving away investment. Couple that with the utterly astronomical cost of energy here in the UK, pushed ever higher by unnecessary green levies and carbon taxes, and it is no surprise that, in his response to today’s announcement, Sir Jim Ratcliffe said that “high energy costs and punitive carbon” taxes were “driving industry out of the UK at an alarming rate. If politicians want jobs, investment and energy security, then they must create a competitive environment.” Week after week, more jobs in the sector are lost and critical national assets shut up shop as a direct consequence of policy decisions made by this Government. Since Labour stepped into office, more than 15,000 manufacturing and industry jobs have been lost—that is the scale of the crisis we are dealing with. Great Britain has a proud manufacturing legacy, but current Government policy towards energy is squandering that legacy, damaging Scottish jobs, and damaging an important national asset. “There are 200,000 jobs in the UK associated with oil and gas, and they are all at risk unless the government changes course.” Those are not my words, Madam Deputy Speaker, but those of the chairman of Ineos at Grangemouth. Today’s announcement is timely, however, as tomorrow I will be visiting Mossmorran to meet the team following the news that the polyethylene plant there will be closing. ExxonMobil’s chairman there has explained that he does not have two of the keys needed for success because of Government policy. He said: “We’ve had windfall taxes, we’ve had a ban on production licences—I need cheap sources of abundant ethane, and I do not have them, because the North Sea—because of Government policy—is declining rapidly…we paid £20 million last year in CO2 taxes, that will double in the next four or five years.” What is shocking, though, is that for some inexplicable reason the Secretary of State for Scotland chose today to attack ExxonMobil when explaining why it was not receiving the same support as Grangemouth, saying that the management “weren’t able to give us a pathway to profitability.” Of course they cannot do that—at every turn this Government are putting up hurdles, shutting down the North sea and taxing these businesses until they burst. Honestly, this Government just do not get it. They are not listening. Today’s announcement does not even scratch the surface when it comes to rectifying the damage and pain that this Government have inflicted on industry in this country. Given that this is the second time this Government have launched an unprovoked attack on a leading investor in the United Kingdom, does the Minister want me to pass on an apology from the Government when I visit Mossmorran tomorrow? Today’s announcement is welcome, but this Government could do so much more. We should scrap the energy profits levy and remove the punitive carbon taxes—we are not getting an exemption to the EU emissions trading scheme anyway, according to the EU Commission. We should incentivise, not punish. A Conservative Government will do all this and more when we return to office in three years’ time—unfortunately, those are three years I do not think British industry has.
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Digital ID System
7. What discussions she has had with the Chancellor of the Duchy of Lancaster on introducing a nationwide digital ID system.
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Digital ID System
A very happy Christmas to you, Mr Speaker. More than 5,300 of my constituents have signed a petition opposing digital ID, alongside nearly 3 million people nationally. In my own local survey, two thirds opposed it outright. Digital ID did not appear anywhere in Labour’s manifesto. The Government have no mandate for it and no consent from the public, so when will the Minister explain to the House on what democratic basis the Government believe they are entitled to enact their nationwide digital ID plan?
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Northern Ireland Troubles: Legacy and Reconciliation
(Urgent Question): To ask the Secretary of State for Northern Ireland to make a statement on the draft Northern Ireland Troubles (Legacy and Reconciliation) Act 2023 (Remedial) Order 2025.
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Northern Ireland Troubles: Legacy and Reconciliation
Thank you very much, Mr Speaker, for granting this urgent question, which I have asked because I think there is a very real danger that the Government may be about to break the law. It is very important that the House is aware that the Joint Committee on Human Rights was not in possession of all the facts when it wrote its report. [Interruption.] Last year, the High Court in Belfast found parts of the legacy Act to be incompatible with the European convention on human rights. At the time of the election, the Conservative Government were appealing that highly disputable decision. The incoming Labour Government, for reasons they have never disclosed, chose to drop that appeal, and have subsequently laid a draft remedial order to amend the legislation. The problem is that earlier this year the Northern Ireland Veterans Movement was granted permission to intervene in the case before the Supreme Court. On 15 October, Lord Wolfson KC, acting for the movement, did just that and made written and oral submissions that the Court is now considering. Consequently, it is entirely possible that the declarations of incompatibility relied on by the Secretary of State to lay the remedial order will be quashed. The case is very much live. That is very important, because under section 10 of the Human Rights Act 1998 a Government have the authority to use a remedial order only unless and until all appeals in relation to declarations of incompatibility have been “determined or abandoned”. That test is not met. If the Government decide to push ahead with their remedial order, not only will they be acting ultra vires, but they will be setting a terrible precedent that will mean that future Governments may use remedial orders in ways they were never intended to be used. To avoid that, all the Government need to do is commit to not pushing their remedial order to a vote until the Supreme Court has finally ruled. Will the Secretary of State make that commitment?
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Finance (No. 2) Bill
Does my hon. Friend agree that farmers across South Shropshire have been devastated by the family farm tax? It is going to impact them far beyond what the Government are even considering, and it will impact national food security.
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Planning Reform
We do not have green belt in east Kent. We used to have something called farmland; it is now called blighted land, because it has been zoned for housing, but it is not being built on. House building in east Kent has virtually come to a grinding halt, and houses are not selling as a direct result of this Government’s policies. How many unbuilt-out housing consents have already been granted? Should we not be using those before we start taking further agricultural land for building?
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Planning Reform
Within a mile of the well-connected stations of Radlett, Cuffley, Borehamwood, Potters Bar and Bushey there is pristine countryside that is treasured by local communities and prevents urban sprawl. The opening up of this green belt to a development free-for-all runs totally contrary to the promises made by the Labour party at the last election. What radius around those stations is envisioned in these proposals, and what will the Minister do to protect the character and integrity of existing villages and towns in my constituency and others up and down the country?
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Finance (No. 2) Bill
Will the Minister give way?
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Finance (No. 2) Bill
I thank my neighbour. The Minister did not answer this point made by the hon. Member for Angus and Perthshire Glens (Dave Doogan) about the effect of the jobs tax on unemployment. In my constituency, I have met countless businesses that have laid off staff, or have shifted staff to being self-employed. Does he accept, particularly given the unemployment figures today, that there is a direct link between the jobs tax and higher unemployment?
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Finance (No. 2) Bill
I beg to move an amendment, to leave out from “That” to the end of the Question and add “this House declines to give a Second Reading to the Finance (No. 2) Bill because the Bill includes provisions breaking the Chancellor of the Exchequer’s promise, given after the Autumn Budget 2024, not to raise taxes, and breaking the Chancellor’s promise at the last Budget that there would be no extension of the freeze in Income Tax and National Insurance thresholds and that, from 2028–29, personal tax thresholds would be uprated in line with inflation once again; because the Bill implements changes to Agricultural Property Relief and Business Property Relief for Inheritance Tax which will devastate family farms, businesses and food security; because the Bill is the result of a Budget that will lead to higher spending and borrowing, while damaging growth and living standards with £26 billion of tax rises; and because this House is opposed to raising taxes on working people to pay for increased welfare spending.” In the middle of Leicester Square, in the heart of our great city, there is a statue of perhaps one of the greatest Englishmen who ever lived: William Shakespeare. In his hand there is a scroll, which reads, in his own words: “there is no darkness but ignorance”. This Government have brought plenty of darkness to our country—indeed, during the run-up to the Budget, we had so many kites flown as to what taxes were going to be put up or not that the sun was blotted out of the sky, and a huge, dark shadow was cast across consumers, who stopped spending, and businesses, which stopped investing and employing people. Don’t take my word for it, Madam Deputy Speaker: the Bank of England itself says precisely that it damaged the economy. Indeed, we have seen this in the latest figures on growth, which the Minister was most eager to tell us about in his speech. For the three months to the end of October, growth in the economy was negative—it was minus 0.1%—which is further evidence of the darkness that this Government have cast upon the animal spirits in our economy. To return to Shakespeare, were he here today, he would be appalled by the ignorance that this Government have shown of the basic rules of economics. It is a basic fact that if you focus on redistribution, as socialists always do—of course, there is always an argument for redistribution—at the expense of getting the incentives right in the economy, you will damage growth. That is exactly what is at the heart of this Budget. The key choice that has been taken is to increase taxes on hard-working people and spend at least a substantial proportion of the money raised on increasing the benefits bill. The second rule that this Government seem incapable of grasping is that if you tax something, you get less of it. That is a simple fact. That brings me to the topic of work. This Finance Bill further freezes the income tax threshold, meaning that 800,000 people or thereabouts will be dragged into the basic rate of income tax, and 1 million or thereabouts will be dragged through fiscal drag into the higher rate of income tax. By 2030, it is estimated that around one in four taxpayers will be in either the higher rate of income tax or the additional rate—an £8 billion tax grab in the target year, rising to £12.7 billion in 2030. That is on top of various other issues that are coming down the track, such as the freezing of the threshold for repayment of student loans, which is effectively a stealth tax on younger people. It is also on top of the freeze in the employer national insurance threshold, which will raise around £1 billion by 2030. Once again, that comes straight out of employers’ pockets—it is a further instalment of the extra jobs tax. All of this will reduce the incentive to work, as we have seen. In an intervention a moment ago, my hon. Friend the Member for Keighley and Ilkley (Robbie Moore) raised this very point in the context of hospitality. We have seen 90,000 jobs destroyed on this Government’s watch—and whose jobs are they? They are predominantly young people’s jobs, because increasing national insurance and reducing the threshold at which that tax kicks in disproportionately impacts those on lower incomes, which includes younger people. Of course, we also have the Employment Rights Bill coming down the track, which will make employing people, particularly younger people, even more risky and expensive. We see in this Finance Bill an outright attack on savers —those who are doing the right thing, putting money by for their retirement—and a 2% increase in taxes on savings income, which the OBR suggests will ironically lead to more people putting cash into individual savings accounts. That is quite the reverse of the effect that the Chancellor is attempting to achieve. According to the OBR, three quarters of the impact of that tax will be borne by working people by way of reduced pension contributions and lower wages. Indeed, the Association of British Insurers says that this measure is “a short-sighted tax grab which will lower pension saving and undermine people’s retirement security.” Then we get to inheritance tax. When we shuffle off this mortal coil—to get back to our friend Shakespeare—there will be a tax charge for those who have the temerity to have left something by way of a pension. It is a £1.5 billion tax grab by the Chancellor on those unused pensions.
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Finance (No. 2) Bill
Sadly, I think the gravediggers are still alive and well under this Government. We are seeing that in the destruction of jobs, businesses, farms and livelihoods up and down this country.
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Finance (No. 2) Bill
My right hon. Friend is absolutely right. What businesses, including farms, need to succeed is lower taxes and not to be spending most of their time worrying about how they will cover the impact of future taxation. They need to be planning for the future of their businesses and investing in them.
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Finance (No. 2) Bill
I would not naturally defer to the results of a Lib Dem survey over the work of His Majesty’s Treasury. However, I get the gist of what the hon. Lady is saying—perhaps a bar chart with a slightly dodgy scale would be a good way of putting the point. The Chancellor says that those who are in receipt solely of the state pension should not worry about being dragged slightly into taxation, because that will be dealt with, but we do not know what that actually means. We do not know what the plan is, nor the cost. Perhaps in the wind-ups the Minister can tell us exactly what is envisaged for the very large number of pensioners who, under the Bill, will be dragged into paying tax on their state pension for the first time. What a mess! The Government are working against the instincts of those who are doing the right thing to save for their future. The same is the case in respect of investment. The 2% increase in tax on dividends—a £1.2 billion tax grab—will simply have the effect of disincentivising investments in equities. That will mean less capital being invested in businesses, which is what drives up productivity. Part of the story of low productivity in our country is the fact that private investment has been too low for too long. This tax increase will weigh in the opposite direction. The Minister spoke about the importance of increasing investment in plant and machinery; the reality is that the Bill cuts the writing-down allowances, unless they relate to new plant and machinery, which will weigh against that very objective. This is an unfair Bill. My right hon. Friend the Member for New Forest West (Sir Desmond Swayne) raised the issue of the farm tax, and he was absolutely right to do so. Farms up and down this country are now worried about the future. Farms in my constituency, which have sometimes been in the family for decades or generations—in some cases even for centuries—are now having to stare down the barrel of a very uncertain future. What an irony and what a tragedy that, during the run-up to the general election, the then shadow Secretary of State for Environment, Food and Rural Affairs, the right hon. Member for Streatham and Croydon North (Steve Reed), looked the president of the National Farmers Union in the eye, and said that, when it came to inheritance tax, farmers had nothing to fear from a future Labour Government. How wrong they were. As Tom Bradshaw said, this whole tax increase is “morally wrong and economically flawed”, and he is right.
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Finance (No. 2) Bill
I welcome the hon. Lady’s intervention. She is absolutely right on the matter of APR, but the issue is not just APR.
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Finance (No. 2) Bill
The hon. Lady is absolutely right. The value of farming goes above and beyond successful businesses simply contributing to the economy in the traditional way. Farming also underpins our food security as a nation.
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Finance (No. 2) Bill
My hon. Friend is right. I was out there this morning speaking to farmers, including a group up from Newbury, who have taken the trouble to come here to make exactly that case powerfully to us on the day of this debate.
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Finance (No. 2) Bill
How could I resist my right hon. and gallant Friend?
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Finance (No. 2) Bill
I notice that my right hon. Friend is being restrained in his use of language, given the severity of the matters we are discussing. He is absolutely right. Business property relief is being changed in broadly the same way as agricultural property relief in this Bill. That will have a devastating and similar consequence for family businesses across the UK, and I have been up and down the country to meet many of them. One of the foremost in campaigning has been Steve Rigby of the Rigby Group. He is the head of Family Business UK, and he put it perfectly when he said that family businesses are spending too much time protecting their legacy and succession, not on promoting growth. That is the whole point. If this Government want growth, they will have to do things that get businesses to think about growth, rather than having to worry about being broken up because of onerous tax measures.
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Finance (No. 2) Bill
My right hon. Friend is absolutely right. It shows a complete lack of understanding of business, and it reflects the lack of true business experience on the Government Front Bench. It also goes right to the core of the difference in principles and beliefs between the two principal parties in this Chamber. We on the Opposition Benches believe that if someone works hard, saves hard and has something left at the end of their life, they should be allowed—because they love those who they wish to look after in their absence—to pass on that inheritance without the taxman taking a huge, disproportionate amount of what they have accumulated. All the Labour party believes in is mounding up ever more debt in a statist world in which that debt is to be passed on to future generations to be paid back. We believe in supporting the little platoon, as Burke put it—the families that together form a mighty army. We believe in personal responsibility and for that to be rewarded.
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Finance (No. 2) Bill
I will give way to the hon. Gentleman and then I will come to the hon. Lady.
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Finance (No. 2) Bill
As I have to say so often following his interventions, the hon. Gentleman is absolutely right. There is a huge difference between the position of a dynamic, growing organism of a company and the other situation that he has described. Loading up these taxes on the death of the principal owner or one of the significant owners of a business means loading it up with uncertainty, and quite conceivably the business must be broken up as a consequence.
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Finance (No. 2) Bill
It is interesting that the hon. Lady should raise the issue of inflation. Inflation is currently at about twice the target of 2%, and it was bang on target on the day of the general election, at 2%, because of the action that we took, alongside the Bank of England. The International Monetary Fund is forecasting that inflation in our country will be the highest in the G7 this year, and the highest in the G7 next year. If we ask why that has happened, the answer is relatively simple. If national insurance increases are imposed on employers, they pass on some of those additional costs by way of higher prices, and that is inflationary. If vast amounts of money are borrowed, and, notwithstanding what the Minister had to say earlier, vast amounts of money are spent, too—about half a trillion pounds more than was the case under the plans that Labour inherited—that also stokes inflation. Those on the Government Front Bench may trumpet the fact that interest rates have come down five times, but if they had not mismanaged the economy, rates would have come down an awful lot faster. Interest rates are higher, and for longer, because we have sticky inflation, which is due to the choices made by this Government.
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Finance (No. 2) Bill
My hon. Friend is right to suggest that we have become an economy that has closed the door on international investment. In fact, the door has been blown wide open by those fleeing to go to the United Arab Emirates, Milan and other places around the world to escape the high-tax jurisdiction that we have become, and it comes with great cost. Given the 16,000 high net worth individuals who have fled under this Government, about a third of a million to half a million people on average earnings would probably be needed to cover the tax that has just walked out of the door. I can also tell the hon. Member for Angus and Perthshire Glens (Dave Doogan) and others that we will reverse the APR and BPR changes if we form the next Government. I will now make swift progress. Let me just say that the wrong choices have been made. Tax should not be going up and spending should not be going up in this way, and I do not even believe that the Chancellor’s heart is in the benefit changes that have occurred, including the two-child benefit cap change. If it were, why was the Whip removed from several Labour Members? The reality is that the Prime Minister and the Chancellor are lashed to the same mast. This is all about their survival. They lost control of their own Back Benchers. Let me go back to Shakespeare, and “The Tempest”. The storm has no respect for rank, so they pitch and roll solely at the command of those behind them. The great man also wrote: “All the world’s a stage…And one man in his time plays many parts”. However, this Chancellor has played but one part, that of recklessness. At heart, she has taxed that which is good, and in this Bill she has incentivised that which is not. By so doing, with this Bill she will diminish us all.
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Mandatory Mediation
5. Whether he has made an assessment of the potential merits of the further use of mandatory mediation in civil law.
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Mandatory Mediation
Time pressure is one of the best routes to encourage alternative dispute resolution, as the Minister knows, but in the commercial court in 2024 the median time to judgment was 786 days. The UK law sector is up against huge pressures from Singapore and the middle east, which are offering six months to judgment and six months for appeal. May I urge Ministers to look at the competitive challenges facing UK law against such tough international competition?
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Chagossians: Trust Fund and Resettlement
Is, in the Government’s opinion, Mauritius a free society, and what is the Government’s assessment of the nature of its relationship with communist China?
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Africa: New Approach
Following on directly from that, what can the Minister tell us about any military advice or assistance that our experts in counter-insurgency are giving to the Governments of friendly Commonwealth countries like Nigeria that face vicious jihadist extremist attack from organisations such as Boko Haram?
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Electoral Resilience
I hope that the Rycroft review will take account of the fact that the giving of money is by no means the worst aspect, or the main aspect, of treacherous behaviour, because very often these people do what they do out of a genuine belief in a potential enemy’s point of view. It would be interesting to know whether the crime would have attracted such a large sentence as it did if, instead of just money being given, it had been a matter of clandestine contact because the person was willing to spout the Russian line anyway. Let us not be overconcerned with the giving of the bribe, which is often a bonus to people who want to betray us to a potential enemy in any case.
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Strategic Lawsuits against Public Participation
9. What steps his Department is taking to tackle the use of strategic lawsuits against public participation.
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Strategic Lawsuits against Public Participation
I welcome the Minister’s answer, but is she aware that in the space of one week the Solicitors Regulation Authority has lost two tribunal cases relating to SLAPPs? Do the Government consider the SRA fit for purpose in this area? Is further legislation not needed to prevent lawyers from pursuing abusive cases?
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Prisoner Early Release: Earned Progression
16. What estimate he has made of the number of prisoners eligible for early release under the earned progression model.
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Prisoner Early Release: Earned Progression
The salient difference between the Government and the people is that the public expect vile, vicious, violent people to be locked up, so that they can ruin no more lives, whereas the Government want to let them free. About two thirds of rapists and 83% of child sex offenders will be eligible for early release. Is it any wonder that the Domestic Abuse Commissioner and the Victims’ Commissioner have criticised these plans? Will the Government at least exclude those kinds of offenders before implementing this policy? Otherwise, they will wreak harm, hurt and hate on every part of our country.