House of Lords (Hereditary Peers) Bill
With the amendment, what the Government could do is reduce the number of paid Ministers in the Commons and have more paid Ministers in the Lords. That would be possible under the Lords amendment.
Showing every spoken contribution, including 5,750 under 12 words. Hide short remarks
- Hansard source
- Hansard source
House of Lords (Hereditary Peers) Bill
I am not sure whether his voters would be that impressed by the Ministers in the Commons at the moment, to be honest. The point of principle still stands: if somebody is a Minister of the Crown, it is perfectly reasonable that they should be paid for doing that job. I would be interested to know what the Government’s plans are to right that wrong. Finally, on Lords amendment 3, which covers a new status of peers, it was unfortunate to hear some hon. Members belittle the idea, including the sleepy, dreamy hon. Member for Maidenhead (Mr Reynolds) from the Liberal Democrats. [Hon. Members: “Dreamy?”] I appreciate how that came out, Madam Deputy Speaker, and I do not wish—[Interruption.]
- Hansard source
House of Lords (Hereditary Peers) Bill
Well, I don’t know—he looks like he has made an effort today, and he is looking at me in a particular sort of way. There is a suggestion that everyone is busting a gut to create a new status of peerage when it is unnecessary. Let us put it this way. I think a lot of people in our country recognise that getting a peerage is one of the highest recognitions for service to the country, but there are also a good many people whom I came across when I was a Minister dealing with the honours process who are either late in age—in their 80s or 90s—or infirm and would not want to commit to serving on the red Benches because of that. It seems a bit silly that such a small change should deny them the opportunity of recognition, which costs no one anything but enables us to reward good people who have done the right things by their country.
- Hansard source
House of Lords (Hereditary Peers) Bill
The hon. Gentleman makes a good point—there are other types of honour—but we already have peers who have stood down, and they get to keep their titles. They are called Members of the Lords but do not sit in the Lords, so the disjuncture already exists. [Interruption.] Would the Paymaster General mind passing me the water? I have got a terrible throat. We already have peerages that work the other way round. We are suggesting that it ought to be possible for somebody who is perhaps in advanced years or not well to accept a peerage without feeling that they are under an obligation to go and sit on the red Benches. That is a perfectly reasonable request.
- Hansard source
House of Lords (Hereditary Peers) Bill
Go on—one more time.
- Hansard source
House of Lords (Hereditary Peers) Bill
The hon. Gentleman is very well informed, and he is exactly right. This amendment, as was discussed in the Lords, would add clarity to the process and mean that it would become more routine than occasional. In that, however, he is entirely right. I will conclude by saying that good amendments have been sent back by their Lordships; amendments that improve this Bill in more ways than one and which would keep the considerable skill and expertise of the hereditary peers on the red Benches for a little time longer. They would not prevent the Labour Government from bringing in more peers if they wanted to and they also raise important questions about ministerial pay and how we use our titles. I am very pleased that we have reached common ground on the issue of advocate powers, and I look forward to hearing the Minister’s response.
- Hansard source
House of Lords (Hereditary Peers) Bill
If the hon. Gentleman believes that the Labour party has a moral obligation to implement every part of its manifesto, how does he feel about the bits that it has already ditched?
- Hansard source
House of Lords (Hereditary Peers) Bill
The hon. Gentleman is making a good speech. Does he think that, given the policy they have embarked on, the Government should have a duty to protect Cross Benchers who have no party representation in this House? The hereditary peers who are Cross Benchers will otherwise go by the wayside. Would he at least support his Government doing that?
- Hansard source
House of Lords (Hereditary Peers) Bill
We are under no obligation to support Government legislation in the Commons.
- Hansard source
House of Lords (Hereditary Peers) Bill
This is the Commons—we are not obliged to support you.
- Hansard source
House of Lords (Hereditary Peers) Bill
rose—
- Hansard source
House of Lords (Hereditary Peers) Bill
I am grateful to the Paymaster General for giving way, as I feel that he is drawing to the end of his comments. One thing he has not discussed in his round-up of the debate is ministerial pay. I appreciate the remarks that he made at the start, and that he does not believe this is the right way or place to do that, but does he accept in principle that in future the Government should find a legal mechanism for ensuring that all Ministers of the Crown, regardless of the House in which they sit, are paid?
- Hansard source
Business of the House
Following on from that question, Reform-led Leicestershire county council and Harborough district council have made a series of highly controversial decisions impacting on the people of Lutterworth and the surrounding villages. Does the Leader of the House agree that Freedom of Information Act requests that are made by constituents to public bodies should be answered, and will she help organise a meeting between me and the relevant Minister to discuss the lack of answers from those public bodies?
- Hansard source
Property Taxes
Will my right hon. Friend give way?
- Hansard source
Property Taxes
Would my right hon. Friend agree that correcting this loss of market confidence demands decisive action from the Government at the Budget, and that that decisive action cannot be taken solely on the tax side? The tax side is what has driven us into this loop. We need decisive action on spending and particularly on welfare if we are to see some restoration of market confidence and get ourselves out of this rut.
- Hansard source
Property Taxes
Further to the excellent point made by my hon. Friend the Member for Hinckley and Bosworth (Dr Evans), the Labour party denigrates wealthy individuals who choose to come to this country. However, it is about not just the tax that they provide, but the jobs and opportunities they create by investing in constituencies up and down the country. This country has prospered for hundreds of years by being open and welcoming to inward investment. If we lose that, we lose a key plank of the competitiveness and growth that have been associated with our economy.
- Hansard source
Property Taxes
I genuinely congratulate the hon. Gentleman on his appointment as Chief Secretary to the Treasury. I have always found him to be an honest and straightforward speaker in the House and he deserves his position. On the point about speculation, can he confirm reports that the Government are looking again at welfare? Surely he will agree with me that, in any process of fiscal consolidation, one must look to tax rises and to spending cuts. There has been a lot of reporting about there being further measures on welfare, so will there be further measures on welfare under consideration—yes or no?
- Hansard source
Property Taxes
I beg to move, That this House notes recent reports that the Government is considering a wide range of increases to taxes on property; notes the Prime Minister’s commitment last year not to impose Capital Gains Tax on primary residences; and calls on the Government not to introduce an annual property levy which would tax the family home, higher rates of Council Tax, or a land value tax, or to lower the thresholds or further increase liability to Inheritance Tax, for example, by changing the seven-year gift rule. I trust you had a good recess, Mr Speaker. I am absolutely certain that the Deputy Prime Minister also had a good recess. We saw many photographs of her down at the seaside, just off the coast in a rubber dingy—rather like many of the other photographs we saw over the summer, given this Government’s reckless policies on illegal migration. She was probably celebrating the acquisition of another property for her property empire, but that celebration was perhaps slightly tinged with a nagging doubt as to whether she had indeed paid enough stamp duty. Well, we will get to the bottom of that in due course. Those who could not avoid paying the taxes imposed by this Government are businesses right up and down our country, many of which I took the time to visit during the recess. In the leisure sector alone, some 80,000 jobs have been destroyed by the national insurance rises, and this has particularly affected those taking their first job, younger workers, part-time workers and female workers. Jobs are being destroyed. While the Deputy Prime Minister was lounging on her boat with her wine, this Government were all at sea, like a cork bobbing on the tide, with no control over the events swirling around them. When it came to the economy, although eclipsed by the calamities around illegal migration, we saw recently the panicked reshuffle of the Treasury Front Bench. I offer my congratulations to the Exchequer Secretary to the Treasury, the hon. Member for Chipping Barnet (Dan Tomlinson) and warmly welcome him to his new role. However, I should also tell him that he is joining a sinking ship, whose captain has just had all her authority stripped from her, while all his comrades down below deck are fiercely trying to bail it out. I also offer a fond farewell to the former Chief Secretary to the Treasury, the right hon. Member for Bristol North West (Darren Jones), who no doubt thought he was very clever when he leapt off the sinking ship. He will not be feeling quite so clever when he discovers that the place to which they have sent him is even more dysfunctional than the Treasury Front Bench. Among all this news of arrivals to our shores, we have had a cruel summer of speculation around tax. We have seen in the skies clouds of kites flown largely by the Treasury as to what taxes it is going to put up. It has all been tax, tax and tax. I am reminded of the Beatles’ song “Taxman”: “I’ll tax the street, If you try to sit, I’ll tax your seat, If you get too cold, I’ll tax the heat, If you take a walk, I’ll tax your feet.” When it comes to tax, it is not so much “Good Day Sunshine” as “Help!”[Laughter.] Okay—it was a bit hammy, but it was worth a try. I was going to try “Penny Lane” as well, but I drew the line there. It is worth examining how we got to this point, for a reckoning for our country is surely coming. This will be a story for all time.
- Hansard source
Property Taxes
I will do so momentarily. It started with broken promises. This was a party that said during the run-up to the general election that it had no intention of raising taxes left, right and centre, and yet within a month or two, this Government did precisely that, with devastating consequences: tax rises on businesses that stifle growth. They talked down the economy by confecting a £22 billion black hole that did not exist. What an irony it was that it was they who brought in the Office for Budget Responsibility to decide whether that £22 billion black hole existed and that the OBR said it could not legitimise the claim—the Government were wrong. What happened with spending and borrowing? It got completely out of control. The combination of passing on price rises because of the national insurance increases, and the extra borrowing and spending, has led to higher inflation. We are an outlier when it comes to inflation.
- Hansard source
Property Taxes
In a moment. That in turn has seen interest rates higher for longer and the servicing costs on our national debt now running at over £100 billion a year—more than twice our defence spend. I will now give way to whoever was trying to intervene behind me.
- Hansard source
Property Taxes
My right hon. Friend, as ever, is absolutely right. The reality, as we see in the bond yields at the moment, is that the markets have no confidence in the ability of this Government to get on top of spending. We saw the farce of a Government who came into office scrapping the £5 billion of welfare savings that were already baked into the OBR’s scorecard because we had brought them in, and attempting to bring forward their own reforms only for their Back Benchers to vote them down. My right hon. Friend is so right; this Government do not have the will or the plan to deal with spending, and that is at the heart of the reason why we will all be punished and pay the price of more taxes come the Budget in November.
- Hansard source
Property Taxes
The hon. Gentleman is entirely right. Of course, if the Government have got into a situation where they are having to scrabble around and look at property taxes, as we are debating this afternoon, than really nothing is safe from the taxman under this Government.
- Hansard source
Property Taxes
As the hon. Lady will know, interest rates are one of the key tools in monetary policy and are applied to bring down inflation. While she is right that there have been five reductions in the level of the base rate, there should have been many more. The reason is—the evidence is there—that this Government have stoked inflation. Inflation is still rising. It is at twice the level or thereabouts that it was on the day of the general election. When a Government stoke inflation, we pay the price through higher interest rates, and that is precisely what has been happening.
- Hansard source
Property Taxes
If the right hon. Lady wants to make the rules, she should live by them. That message will go out to businesses and families up and down the country. There is no way that they can avoid the juggernaut of taxes that are coming down the track.
- Hansard source
Property Taxes
I thank the hon. Gentleman for his kind words about the Conservative party—I am sure that they are deeply felt and very genuine. What the Deputy Prime Minister should be doing is delivering more homes. It is quite clear that the target of 1.5 million homes, which the Government claim they will deliver at the rate of 300,000 a year, will not be met. I am quite happy to be proven wrong, but I very much suspect that I will not be, unfortunately. We have ended up in a situation in which a huge black hole is looming. The National Institute of Economic and Social Research puts it at possibly as much as £40 billion. The economic mismanagement of the Labour party is a recurrent theme. In the October Budget—the Government’s first—there was headroom of about £10 billion against the fiscal rules. That, plus £4 billion more, was blown by the time of the spring statement—the emergency Budget. Once again, it appears that considerably more has been blown all over again. That is no surprise. The U-turns on winter fuel payments and on welfare reform, which we have already discussed in this debate, led to unfunded commitments of around £6 billion—unfunded commitments after the Chancellor had said that the Labour party would never find itself in that position. What she said has simply not happened. What signal does it send to the markets when the Government cannot control spending? In the long-term, it will be interesting to see what the Office for Budget Responsibility has to say about its forecasts for growth. In recent times, 30-year bond yields have hit a 27-year high. We are paying more to borrow than Greece. There is a potential debt crisis looming, and this country could be on the brink—all on Labour’s watch.
- Hansard source
Property Taxes
There is no doubt that under the previous Government there was a need to support the economy. That involved the expenditure of £400 billion, not least on the furlough scheme. I do not remember the hon. Gentleman’s party arguing at the time that we should not do that; in fact, it argued that we should go further still. The Conservative Government stepped in, supported jobs and saved us from going into mass unemployment that many feared would be worse than even in the 1980s, and I take great pride in that. But we are where we are now, and what the Government should be doing is growing the economy, stoking up business sentiment, getting taxes down and getting the economy moving, but they are doing precisely the opposite.
- Hansard source
Property Taxes
My hon. Friend is absolutely right. We are seeing high inflation, anaemic growth, high gilt yields and a pound that has been plummeting in recent times. All those are signals flashing red on the dashboard. Instead of getting a grip on spending and getting taxes down, the Government have been out there pitch-rolling yet more taxes. Over the summer, we have seen briefings to the press suggesting tax rises on property. The Labour party has an opportunity this afternoon to rule out those possibilities, and the Minister should do just that when he responds. First, there has been a suggestion that there will be changes to the private residence relief under the capital gains tax regime. That would strike at the heart of our country as a property-owning democracy. People would be penalised simply for selling up and moving home. It would have clear implications by bunging up the property market, and clear economic implications by causing friction in the process of people moving from one part of the country to another, often in search of work. It would discourage downsizing, even though that would be beneficial in providing more homes for people to live in. Before the election, the Prime Minister said that there never was a policy of that type so it did not need to be ruled out, but let us rule it out just in case anyone pretends that there was such a policy. When he responds, will the Minister confirm that he stands by the words of the Prime Minister? Secondly, there has been a suggestion of an annual tax on homes. What a tax on aspiration! What a tax on people who have saved hard and managed to get on the property ladder, but who will then be stuck with annual taxes. What about those who are asset-rich but income-poor and cannot afford to pay—are they expected to sell up? Will the Minister rule out that possibility and put people’s minds at rest? If that was not enough, we hear that the Government may be considering changes to the gifting regime in inheritance tax. They are not content just to pulverise farmers and family businesses, and to see those businesses and farms broken up when they are passed on from one generation to another, because of the imposition of tax. In fact, it was a Labour Government in the 1970s who brought in the reliefs that this Government have chosen to abolish. The inheritance tax yield will double over this Parliament. The Opposition say, “Enough is enough.” We should not punish parents who wish to pass something on to their children. Socialists do not understand that we do not all stand as atomised individuals; we work together as families and communities. We care about each other, we care about the people we love, and it is right that we have the opportunity to pass something on to them.
- Hansard source
Property Taxes
My hon. Friend has put it brilliantly and succinctly, and she is absolutely right. In their horror—in their recoil from the inheritance tax changes—that is exactly what farmers and family business owners have been doing: thinking about alternatives. The seven-year rule has been one of those alternatives, and it would be a really heartless and extraordinarily cruel moment if the Government were to shut that down as well.
- Hansard source
Property Taxes
My right hon. Friend raises his point in his usual eloquent manner. That is a question for the Minister, and I hope that, when he rises to the Dispatch Box, he will rule out our concerns in their entirety. In the event that he cannot, perhaps he will choose to answer my right hon. Friend’s inquiry. Is it not the case that those in the Labour party have a clear misunderstanding because they have no business experience? Those on the Government Front Bench have no business experience in setting up companies or understanding the meaning of business taxes—the experience is simply not there. Labour will talk about taxing wealth, but does it not understand that if we tax wealth, we will get less of it? It has been estimated that about 15,000 high net worth individuals have left our country in the period in which this Government have been in power. A consequence of that tax just walking out of the door is that we will require somewhere around a third of a million to half a million people on average earnings to make up the difference. This is not a case of good riddance to wealth; the Government should—as the Conservative party would—encourage and turbocharge wealth at every turn.
- Hansard source
Property Taxes
If I am an hon. Friend, I will certainly give way.
- Hansard source
Property Taxes
The hon. Gentleman refers to cutting spending. His party attempted to cut spending, but entirely failed to do so. My point is that if he wants money to spend on public services, he needs to cut welfare and should worry about how to do so. I do not know how he voted when that was put to the test in this House, but if he in any way voted against his own Government and against getting on top of the welfare bill, he should ask his own question of himself. As for those on low incomes, they are precisely the people who are now being devastated by the increase in national insurance. There is not just an increase in the rate, but a substantial reduction in the threshold at which national insurance kicks in, which has meant higher unemployment, in particular among younger workers, part-time workers, women and people getting that vital first job so that they can get themselves on a career path. They are the people whom the Labour Government are punishing most.
- Hansard source
Property Taxes
My hon. Friend is absolutely right. I have already shared with the House the classic example of the number of people who have left this country because of a punitive tax regime and the costs of that.
- Hansard source
Property Taxes
That is right. We live in a highly mobile world; it is easy for people with substantial wealth or money to invest to go anywhere in the world. We have to remain competitive, and this Government are making us less competitive. My right hon. Friend refers to unemployment, but just look at the record—should we have expected any more from this Government? No, not really. Every single Labour Government in history have left unemployment higher when they left office than it was at the time they came into office. What have we seen on unemployment since this Government have been in office? It has increased every single month since they have been in power.
- Hansard source
Property Taxes
The hon. Lady asks where we are getting our ideas from; where we are not getting them from is from academics and researchers who believe in taxing wealth and who now sit there on the Treasury Bench, or in other places where they advise No. 10. They talk on a regular basis about taxing property, wealth, shares and assets of any description that they can think of, but that is the road to ruin. She asked where we get our ideas from, and I will tell her. I set up my own business in the 1980s, from absolutely nothing. I grew it from scratch, and then I took it over to America and grew a business there. I have lived, breathed and eaten business most of my life. I also go up and down the country to speak to other such businesses. They are the people who understand what needs to be done on the tax front and who have to live with the red tape that her party is bringing in to tie them down. They are the people whom this party is listening to.
- Hansard source
Property Taxes
I think that council tax, different variants of it, revaluations and so on are things that Government should look at, because we do not want them to be entirely static; there can always be reform and change. I will observe, however, that the average council tax paid in Labour areas is demonstrably higher than the equivalent taxes in Conservative areas. That comes down to the approach that a Conservative council takes to spending and to ensuring that councils are efficiently run, rather than the profligate approach of the Labour party.
- Hansard source
Property Taxes
I am not going to get into specific things going on in the hon. Gentleman’s area. How can I be expected to opine with authority on something of that nature relating to his constituency? [Interruption.] Hold on. My general point stands: the simple fact is that Labour-controlled local authorities charge more in council tax than Conservative-run councils do.
- Hansard source
Property Taxes
It is a simple matter of logic that even if the hon. Lady’s assertion is true—I do not know whether it is or not—it does not contradict the point that I made.
- Hansard source
Property Taxes
In a word, badly.
- Hansard source
Property Taxes
My point is very clear—I need to make some progress as I have been fairly generous in taking interventions—that when it comes to council tax, it is a fact that Conservative-controlled councils charge less, because their whole approach to running the council is the same as our approach to running the economy: to ensure it is done efficiently and not to impose undue burdens on people by way of tax. We were told by the Chancellor that the tax hikes in the Government’s first Budget, last autumn, were a “once in a Parliament” event. It is now a question not of whether there will be further tax increases, but which taxes will be increased. The uncertainty that has flowed from the disastrous situation over the summer has meant that, because of Labour’s choices, a hold has been put on businesses investing, on property transactions and choices, and fundamentally on some of the freedoms that we, as citizens, often take for granted. Labour Members will desperately dismiss all of this as press speculation—I expect to hear that from the Minister in a moment—but is it not the truth that this sorry tale is entirely of their own making? It is the inevitable result of their choices and the failure that has followed, with much of this speculation seemingly fuelled by briefings from within the Government. This House and the public deserve answers. The Chancellor cannot borrow more and has shown no ability to control spending. That can only leave tax, but which taxes will it be? Are family homes safe or are they simply fair game? If Labour Members fail to vote for the simple motion before us today, then the answer will be clear: under this Labour Government, nothing is safe—not people’s homes, pensions, savings, businesses or farms, and not that which they simply wish to pass on to their own children. The message to hard-working people up and down our country could not be clearer: Labour will always duck the hard choices and tax the living daylights out of your family’s future, to pay for its failure.
- Hansard source
Violence against Women and Girls
The Parole Board is extremely concerned about the impact on domestic abuse victims of the Sentencing Bill that is now before the House. I urge her to keep in close discussion with members of the Parole Board and with the Justice Secretary as the Bill progresses.