I contrast that with the zero rating on new build. So much for this Government’s pretence at being the greenest Government yet. It would be much greener to encourage alterations to listed buildings, to make them practical to use in the 21st century. Furthermore, far from stimulating the economy, the change is likely to discourage people from undertaking such work. Having to pay VAT at 20% will mean less money for the alterations and therefore
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less work for local builders who undertake the work, and we all know about the difficulties faced by the construction industry at the moment. Labour is calling for a cut to 5% in VAT on all household repairs precisely to stimulate the construction sector and provide more work for builders, plumbers, carpenters, electricians and so on.
I am glad to see the Chief Secretary to the Treasury in his place, as I am still very concerned that his Government are not succeeding in making banks do anything like enough to help business. In my constituency, I know businesses that have been subject to sudden changes in the terms and conditions of their loans, which they simply cannot cope with and which could easily send them under. My constituent Mr Alun Richards has encountered considerable difficulties with Lloyds bank. In particular, he has raised with me the issue of banks foreclosing on businesses and selling off the assets at way below market value. This is not acceptable to business customers, nor should it be acceptable to Lloyds bank’s shareholders. Last July, the firm acting as administrators for Lloyds sold one of Mr Richards’s assets—Mansel house in Swansea—for £125,000. The same property is now on the market for more than £300,000, whereas the local economic circumstances have not changed at all. That raises serious questions about such practices, especially as Mr Richards can cite many similar cases that merit investigation and changes to the law.
This Government need to get their act together on bank lending, getting the economy going, providing jobs for our young who are unemployed and thinking about fairness sensibly and properly. They should rewrite the Budget completely.
9.24 pm
Seema Malhotra (Feltham and Heston) (Lab/Co-op): This Budget comes at a crucial time for the British economy—at a crossroads, when business and families are looking to the Government to know that they are on their side as the economy stagnates and they face tough times. Some measures in the Budget are welcome. The creative industries tax credit—an extension of the Labour Government’s film tax credit—is a step in the right direction. Video animation, high-end TV and other creative industries—Arqiva in my constituency is an example—are strong in west London. Hounslow’s chamber of commerce is in the process of creating with partners a creative industry cluster. This is, however, only one step in the right direction, and we need to do more to invest in our work force and ensure that we have the designers, technicians, artists and animators of the future.
Local businesses have cautiously welcomed changes to corporation tax, although not without apprehensions. More than 95% of the nearly 3,000 businesses in Feltham and Heston are small businesses, and it is the worry of many that the Budget will disproportionately benefit larger firms and not our innovators. As the director general of the British Chambers of Commerce said last week:
“Smaller firms will be disappointed George Osborne did not do more to support confidence and growth in the real economy.”
There are wider concerns about the Budget, as it missed the opportunity to maximise the creation of jobs and growth, which this country so badly needs. There is
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no necessary connection between cuts in corporation tax and growth. Businesses will just sit on assets if they do not believe that demand exists, as my right hon. Friend the Member for South Shields (David Miliband) so effectively argued. There is no overall coherent plan.
The losers of the Budget are the young, the old, people on lower and middle incomes and charities. An estimated 855 families in my constituency are set to lose their working tax credits, and nearly 18,000 families are to be affected by changes in child benefit—and this is the 13th worst-affected constituency in the country.
At a time when people on middle and low incomes are being squeezed by rising fuel prices, and with families seeing cuts to their working tax credits and child benefit and long-term youth unemployment in Feltham and Heston up by 208% in the last year, it is the wrong priority to cut taxes for people earning over £150,000. We could instead have seen a cut in VAT to stimulate spending and make life a little easier for so many people. Local businesses have told me that they would have liked to see more to support them in employing young people—for example, a reduction in national insurance contributions for employers. The Chancellor’s announcement that charities will not be able to claim tax relief on higher rate gifts is also sending shockwaves through the third sector. The Government need to work with philanthropists and those involved in encouraging giving to explore ways of reducing this impact.
The Government promised change, but things have got worse, not better. Their policies have failed on jobs, growth and the deficit, and the Chancellor’s new Budget does little to address these grave problems. There are still 1 million young people unemployed, 800 of whom live in my constituency, and the Budget does not do anything to help them. It is not too late for the Chancellor to change his mind and turn it into the Budget for fairness and growth that my constituency so desperately needs.
9.27 pm
Rachel Reeves (Leeds West) (Lab): This has been an important debate—one that will prove, I believe, to be a turning-point in the history of this Conservative-led government, in the reputation and standing of this Chancellor and most of all in the ongoing national debate about how we as a country meet the economic challenges we face and how we ensure that the burdens of doing so are fairly shared.
It is a privilege for me to follow my hon. Friend the Member for Feltham and Heston (Seema Malhotra). We have also heard powerful contributions from my right hon. Friend the Member for South Shields (David Miliband), who spoke of the challenges facing young people out of work, from my right hon. Friends the Members for Wolverhampton South East (Mr McFadden) and for Stirling (Mrs McGuire) and from many more of my hon. Friends. It is a privilege, too, to follow my right hon. Friend the Member for Edinburgh South West (Mr Darling), who argued forcefully that the tax cut for those on more than £150,000 a year is not and could not be the priority right now.
I could not help noticing one phrase that we did not hear from the Government side this evening—that “we’re all in it together”. It has been forgotten—at least by Government Members. I rather agreed with a man who told us in April 2010:
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“When the Tories say we’re all in this together, what they really mean is you’re on your own. Their agenda is to take away help from those who need it, and offer it to those already at the top”.
He was right then, which is why it is so disappointing to see the Chief Secretary to the Treasury defending this disgrace of a Budget today, when he would have opposed it two years ago.
But let us try to be fair to the Liberal Democrats tonight. It is true that they played a big role in the Budget, and they deserve congratulations on winning the inclusion of one of their long-standing policy priorities, to which they have been committed for many years and which will be recognised as one of the Budget’s most important changes. I do not mean the mansion tax or the tycoon tax: the Chancellor cannot stomach those. No, I am speaking of a different policy, a stroke of genius for which the Chancellor should not be allowed to claim all the credit. According to The Daily Telegraph, since as long ago as 1998 it has been Liberal Democrat policy to abolish age-related allowances for pensioners. So there we have it: the granny tax, a Liberal Democrat policy since 1998, has finally been delivered by this coalition Government. I look forward to seeing that in the Liberal Democrats’ leaflets.
It is hard to know where to start with a Budget which contains so much that is wrong, but the big story about this Budget is not what is in it, but what is missing. I am talking about its utter failure to do anything in connection with the major task that faces our country: the need to get unemployment falling and the economy moving, which is essential to dealing with the deficit and securing our long-term economic future. In that regard, the judgment of the Government’s own independent Office for Budget Responsibility is clear. It has stated:
“We have made no other material adjustments to the economy forecast as a result of Budget 2012 policy announcements.”
There is nothing in the Budget to make the Office for Budget Responsibility reconsider its view that the economy will bounce along the bottom, and that unemployment will continue to rise month after month after month.
This is a Budget that fails on growth, but it is also a Budget that fails on fairness. It pilfers £500 million from the health budget at a time when the NHS is under pressure and needs every penny that it can get, and it introduces badly designed changes in child benefit which mean that a one-earner family on £55,000 will lose most of their benefit while a couple on as much as £99,000 can keep all theirs.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op): While my hon. Friend is dealing with some of the measures that are not specified in the Budget, would she care to comment on the £10 billion additional cuts in the Department for Work and Pensions’ budget for benefits, which may well cause severe harm to her constituents and mine, and those of many Labour Members in particular?
Rachel Reeves:
I said earlier that the big story about the Budget was what was missing from it rather than what was in it. My hon. Friend has identified another thing that is missing, namely an explanation of how the Government will balance the books after the last two years of the current Parliament. We all know that the Government are now borrowing £150 billion more because of the failure of their policies and their decision to cut
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too far and too fast, which choked off the economic recovery. As a result, deficit reduction will have to continue well into the next Parliament, but we have not heard how.
The Chancellor said that the Budget was about rewarding work. A Budget that takes tax credits from low-paid working couples with children, plunges them into poverty and leaves them better off if they leave their jobs is not a Budget for work, is it? As for the notorious hit on pensioners with modest incomes, springing it on people with no notice and then dressing it up as a simplification was not only ill-judged, but profoundly disrespectful to the millions of pensioners who made sacrifices to save during their working lives.
Alun Cairns: Did the hon. Lady make the same protests when her right hon. Friend the Member for Edinburgh South West (Mr Darling) introduced a granny tax in preparation for the financial year 2010-11?
Rachel Reeves: This is not just about freezing an allowance; it is about freezing an allowance this year, next year and the year after, and for many years to come. It is also about getting rid of the allowance, because it is disappearing for people who will retire next year. Next year people will receive not a reduced allowance but no additional allowance at all, and as a result they will be £323 worse off because of the choices that this Government have made.
I am sure that in a moment we will hear protestations from the Chief Secretary about his great triumph in raising the personal tax allowance for working-age people, but families with children have already lost £450 on average from the VAT increase, and another £530, starting on 6 April, through cuts to tax credits and the freezing of child benefit. Does the Chief Secretary really expect families to be thankful to be getting less than half this back in 2013? Is it not more likely that they will see this for what it is?
Ian Lucas: My hon. Friend rightly stresses the importance of VAT. Charities are among the types of business that are affected by a VAT hike. Chariotts in my constituency provides services to disabled people, and it will have to hike its charges by 20%. That will have to be paid by those disabled people, because of the VAT increase that this Government are pursuing. Does my hon. Friend agree that that is a disgrace?
Rachel Reeves: I agree. These are hard times for the charitable sector, and the VAT increase has hit it hard. That is one of the many reasons why charities, as well as ordinary families and businesses, would benefit from a reduction in VAT to 17.5% until the economy recovers. Charities are also affected by changes in tax allowances, and many have expressed fears that that will also create a big black hole.
Ian Swales: VAT cuts most benefit those who spend the most. Does the hon. Lady think that now is the right time to propose a policy under which the biggest winners would be pop stars, bankers and premiership footballers?
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Rachel Reeves: I suggest that after this debate the hon. Gentleman should sit down and read an economics textbook. It is well known that VAT is a regressive tax. The VAT increase has hit those on lower incomes particularly hard, as they have lost the most as a share of income. The evidence for that stands up to scrutiny. If the hon. Gentleman does not understand economics, that is his look-out, not mine.
Returning to my point, is it not more likely that families will see this measure for what it is: giving a little with one hand, while taking much, much more with the other? Warm words from the Government parties will not help families pay the bills, and fine words about fairness demean the very concept of that word.
This month, the Chief Secretary told his party conference:
“It’s only the Liberal Democrats who are brave enough to tell some of the wealthiest people in the land that—at a time when millions of families are struggling to get by—they will have to pay more.”
He seems not to have been so brave when it comes to standing up to the Chancellor. Perhaps I am wrong, however. Perhaps the Chief Secretary is making an even braver choice, in telling families that they will have to pay more while he spends £3 billion on a tax cut for the richest 1%, with a tax cut next year of more than £40,000 each for 14,000 individuals earning £1 million a year.
The people are not fooled, however. They know that they are worse off under this Government. So tonight we will vote against this Budget. It is a Budget that fails the biggest tests: on jobs and growth, a gaping hole where there should have been a plan for action; and on fairness, where millions were asked to pay more so millionaires could pay less.
Is not the truth that this Government have been listening to the wrong people? They have been listening to those who are struggling to get by on more than £150,000 a year, but they should have been listening to those who are suffering from the consequences of their failed economic policies: working families on modest incomes, about to be hit by a tax credit bombshell; small businesses looking to invest, but struggling to balance their books; young people applying for every job going, desperate to start working. These are the people whose lives the Prime Minister needs to understand. Perhaps he should have had some of them round for dinner.
9.39 pm
The Chief Secretary to the Treasury (Danny Alexander):
This has been a fascinating debate and some excellent contributions have been made by Members from both sides. I refer, in particular, to the right hon. Member for Edinburgh South West (Mr Darling), the former Chancellor of the Exchequer, who made a typically thoughtful contribution, and to my right hon. Friend the Member for Bath (Mr Foster), who, along with a number of other Members, including the hon. Member for Birmingham, Northfield (Richard Burden), warmly welcomed the package of measures for the creative industries in this Budget. Indeed, a number of other Labour Members welcomed that point, too. The hon. Member for Blyth Valley (Mr Campbell) referred to, among other things, broadband funding in his constituency, which he welcomes. My hon. Friend the Member for Brentford and Isleworth (Mary Macleod) rightly made
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the point that we should be highlighting the positive news for business in this country, and she highlighted some of the positive news in her constituency.
Dr Thérèse Coffey (Suffolk Coastal) (Con): Will my right hon. Friend confirm what corporation tax rate companies will be paying in this country? Will it be the lowest in the G20?
Danny Alexander: I can certainly confirm that, as a result of the measures in this Budget and the measures that we announced in earlier Budgets, we will have not only the lowest corporation tax rate in the G7, but one of the lowest rates of tax in the G20. That will make a fundamental difference to this country’s attractiveness to investment from overseas.
Danny Alexander: I will give way to the hon. Gentleman in a moment, but first I wish to mention some of the other contributions. My hon. Friend the Member for Montgomeryshire (Glyn Davies) talked about the benefits of the Budget for rural areas. A number of Labour Members representing Scottish constituencies rightly referred to the absence of a contribution from the Scottish National party and to the damaging policies of the SNP Government in Scotland for the economy. [Interruption.] The hon. Member for Dundee East (Stewart Hosie) has just come in now, for the very closing speeches. The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), who represents Plaid Cymru, did make a speech, and I will refer to some of the points he raised.
Sir Stuart Bell: Does the right hon. Gentleman believe the corporation tax reduction will lead to growth or to shareholder dividends? Will he confirm that we actually get to that rate in 2014?
Danny Alexander: We have confirmed that we will get to that rate by 2014. The hon. Gentleman should know, as I am sure he has closely studied the Office for Budget Responsibility’s report published alongside the Budget, that the OBR assesses that the cut in corporation tax announced in this Budget will, in fact, lead to an increase in business investment in this country—that is something the OBR has confirmed.
This debate has mainly been significant for the astonishing omissions in speeches from Labour Members. There were no references, except in a few cases, to this country’s fiscal position, to the huge deficit that Labour left us or to the huge debts that this country has accumulated thanks to Labour’s profligacy in office. There was no reference at all to the scale of the mess that the Labour party left this country, far less an apology from any Labour Member to the people of this country for the mess they left this country in. The right hon. Member for South Shields (David Miliband), in an otherwise interesting speech, used the phrase “dangerously complacent”. I think that refers to the opinions of the Labour party in relation to this party’s fiscal position.
Andrew Miller (Ellesmere Port and Neston) (Lab):
Talking about omissions, will the right hon. Gentleman explain to the House why it is to the advantage of the Liberal Democrats to vote for regional public sector
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pay? The north of Scotland, Northumberland, mid-Wales and the west country will all be losers—is he going to vote for that?
Danny Alexander: If the hon. Gentleman had studied the Budget resolutions, he would know that there is no vote on that subject on the Order Paper tonight, so the opportunity to do so simply does not arise.
To return to the fiscal position, let me be absolutely clear: we on the Government Benches will not return to the model of growth based on unsustainable debt, irresponsible spending and over-reliance on one sector, the City of London, and one region, the south-east of England. Neither will we jeopardise the progress we have made in tackling our debts. That is why this Budget will have a neutral impact on the public finances, and implements the deficit reduction as planned. The Opposition should know that this is their mess but we are clearing it up.
Elizabeth Truss (South West Norfolk) (Con): Does my right hon. Friend agree that investing in physical infrastructure is vital and is being done by this Government? Does he share my joy that people in Norfolk will soon see the new A11 being built from January to March next year?
Danny Alexander: I certainly share the hon. Lady’s joy that the new A11 is being built by this Government. It has been campaigned for by Members from Norfolk for many decades and never agreed to before. I just wish that I could say the same for my constituents regarding the long-awaited investment in the A9 that the Scottish Government still are not delivering.
On omissions, we heard a lot of carping from the Labour party about individual measures but there were almost no references to the single biggest measure in the Budget. Opposition Members should follow the money in this Budget. More than three quarters of the money raised in this Budget is being spent on one policy measure alone—the biggest tax cut for people on low and middle incomes in this country for a generation. We have set the goal of raising the personal tax-free allowance to £10,000—from the Liberal Democrat election manifesto to the coalition agreement to the pockets of the British people in this Budget. Next month, the income tax personal allowance will rise to £8,105. That gives real help to the working people of this country this year. Taken with the previous increase that has come through this year already, it will lift more than 1 million low-income people out of tax altogether, but we are going further and faster.
Helen Goodman (Bishop Auckland) (Lab): It is clear that the Government are going further on personal income tax cuts, but it is equally clear that they have not got a strategy for growth. How many jobs will be produced by the cut in the 50p rate?
Danny Alexander: First, I am very grateful to the hon. Lady for at least agreeing that we are going considerably further on the personal income tax allowance. That was sadly lacking from most of the contributions from the Opposition. They will also know that the OBR’s forecast that was published alongside the Budget revised downwards the forecast for the claimant count this year, next year and in every year over this Parliament.
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As I was about to say, in this Budget we have announced the largest ever increase in the amount that people can earn tax-free—an increase next April of £1,100 to £9,205. That is a tax cut of £3.5 billion for working families and is the biggest ever increase in the personal allowance. It is the biggest income tax cut for people on low and middle incomes for a generation—a tax cut for more than 23 million people. It means £220 for every basic rate taxpayer, or £170 in real terms. The tax bill of someone who works full time on the minimum wage will already have been halved by this Government.
Sheila Gilmore (Edinburgh East) (Lab): While he was arguing for the rise in the tax threshold, did the right hon. Gentleman at any time argue for the people who are losing their working tax credit from April this year, or did he just not bother to argue for those very low-paid people?
Danny Alexander: We have argued for measures to ensure that people on low and middle incomes are taken out of income tax altogether. We have made significant changes to the tax credit system, which, frankly, under the previous Government, reached way up the income distribution. The changes we have made are appropriate and fair, and it is right that we have drawn back on a system that was costing many billions of pounds under the previous Government.
Taken with the previous increase in the income tax personal allowance, this measure means that this coalition Government have reduced tax paid already by basic rate taxpayers by £350 in real terms. It is this coalition Government who, as a result of the measures in this Budget, will have lifted 2 million people out of income tax altogether—59% of them women, to respond to a point made during the debate. That is the right measure on taxation and the Labour party should support it. Labour thought it was right to double the tax on people on low incomes, but we do not; we think it right to halve the tax on people on the minimum wage.
Brandon Lewis (Great Yarmouth) (Con): I thank my right hon. Friend for giving way and being so generous with his time. Does he agree that one of the important measures in the Budget that will help people trying to get into work is the change in the oil and gas taxation regime, especially on decommissioning, which could create huge investment and huge numbers of jobs in areas such as Great Yarmouth?
Danny Alexander: My hon. Friend is absolutely right that the decommissioning relief and the additional field allowances that we announced in the Budget will make a significant difference to investment in the oil and gas sector.
Danny Alexander: No, I will not give way. I will make some progress.
Ed Balls (Morley and Outwood) (Lab/Co-op): Will the Chief Secretary give way?
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Danny Alexander: I will give way to the shadow Chancellor.
Ed Balls: Will the Chief Secretary explain why it is fair to take away the personal allowance from low and middle-income pensioners and soon-to-be pensioners—people aged 59, 60 and 61—when he is giving a £10,000 tax cut to existing taxpayers on incomes above £150,000?
Danny Alexander: I will take no lessons on the treatment of elderly people from the man who was responsible for the 75p increase in the basic state pension.
Ed Balls: Will the right hon. Gentleman give way?
Danny Alexander: Go on then—one more time.
Ed Balls: Will the Chief Secretary explain to the House how it is consistent with Liberal Democrat values to give a tax cut to existing top rate taxpayers worth, on average, £10,000 each? How is that fair?
Danny Alexander: So not one word of apology for the 75p increase in the basic state pension, not one word of apology for the mess that he and his colleagues left this country’s economy in—[ Interruption ]—and not one word of recognition that the costs of reducing the 50p rate are paid for more than five times over by other measures that impact on the wealthy.
Danny Alexander: I am going to make some progress—[ Interruption. ]
Mr Speaker: Order. The House needs to calm down a bit. I was listening intently, because I wanted to hear the Chief Secretary’s answer, and I was struggling somewhat to do so. I want to hear what he has to say.
Danny Alexander: It is no surprise that Labour Members want to drown out any reference to their record in government.
I think I know why the record increase in the income tax personal allowance has not been welcomed by Labour Members today and was hardly mentioned by the two Opposition Front-Bench speakers, despite the fact that Labour used to call itself the party of working people. This debate has also revealed something of lasting significance about the Labour party—
Simon Hughes (Bermondsey and Old Southwark) (LD) rose—
Danny Alexander: But I will give way to my right hon. Friend first.
Simon Hughes: Given that the shadow Chancellor is so keen to talk about pensioners, will the Chief Secretary remind us of the increase pensioners will have next month compared with what they got under Labour, and what they will have by the end of this Parliament in the citizen’s pension compared with what Labour never did in 13 years?
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Danny Alexander: My right hon. Friend is, as usual, absolutely spot on. From next month, pensioners will see the largest ever increase in the basic state pension, because we have put in place the triple lock promised in our manifesto to ensure that never again will pensioners be awarded derisory increases of the sort that Labour brought us. Thanks to my hon. Friend the Pensions Minister, who is in his place, we will also be introducing, as the Chancellor announced, the single-tier pension at £140 or thereabouts a week, so that new pensioners will no longer be trapped in the means-testing system that Labour left them in for so long.
Mr David Davis (Haltemprice and Howden) (Con): Will my right hon. Friend give way?
Danny Alexander: The full depths of the economic incompetence of the Labour party have been revealed in the course of the debate. [Interruption.] They are opposed to most of our spending reductions. They are opposed to many of the revenue-raising measures in the Budget. They have opposed tax cuts for business. I heard from the deputy Leader of the Opposition that they are opposed to our cap on unlimited tax reliefs for the wealthy. We know what Labour’s economic plan for this country would be—income taxes up, business taxes up, borrowing up, debt up, and interest rates and mortgage rates up. The only thing that would go down under the Labour party would be the British economy. It may seem astonishing that the party that got Britain into the worst economic crisis for a generation now wants to put us right back into the mess that this coalition Government are trying to get the country out of. The Labour party of the 1970s and 1980s is back and I hope the British public have been watching.
Mr Tom Harris (Glasgow South) (Lab): When the Chief Secretary meets the Chancellor every morning at the Treasury to receive his instructions for the day, has the Chancellor ever once explained to him how his party can possibly blame the spending of the Labour Government for the deficit while having supported every single penny of spending right up to November 2008— 18 months before the general election?
Danny Alexander: There we see it again—a party in denial about the mess it got this country into. [Interruption.] I know the hon. Gentleman is a rational man and has played a great role in Scottish politics, but he ought to have a bit more sense than to pretend that his party has no responsibility whatsoever.
Mr Davis: Will my right hon. Friend give way?
Danny Alexander: The Budget is fair. It raises additional taxes from the wealthiest and asks the wealthiest in this country to pay more. That is why, for example, we are capping—[Interruption.]
Mr Speaker: Order. There is so much noise that I am not sure the Chief Secretary can even hear that his right hon. Friend the Member for Haltemprice and Howden (Mr Davis) is seeking to intervene. Perhaps he can hear and does not want to give way, but if he cannot hear, he is not able to give way.
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Danny Alexander: You are quite right, Mr Speaker. I could not hear my right hon. Friend, but I am happy to give way to him.
Mr Davis: I will start by saying that I entirely support the growth orientation of the Budget, which is much better than everything we have heard for the past 10 years, but I hope my right hon. Friend will forgive me for raising a narrow issue, because 90% of the effect of one of his tax changes falls in and around my constituency—the VAT change on the production of static caravans. That will have an impact which, he says in his own Red Book, is £40 million positive, but the cost in unemployment will be £45 million negative. Will he review this issue?
Danny Alexander: My right hon. Friend will know that all these measures are consulted on, but I think the measure is appropriate. As he knows, mobile caravans are subject to VAT, but static caravans are not. Static caravans that are used for residential purposes, which people make their main home, will continue not to be subject to VAT. That may be some comfort to him.
I shall draw my remarks to a close by referring to the measures in the Budget that deal with the wealthiest in society. We have capped reliefs on income tax which the wealthy exploit. We have capped benefits; now we are capping reliefs. It is, if you like, a tycoon tax. We have introduced a new stamp duty land tax at the rate of 7% on properties worth more than £2 million. We are increasing the stamp duty charge to 15% for residential properties over £2 million and we are consulting on a new annual charge for people who continue to envelope their properties—a mansion tax on tax dodgers, if you like.
This is a fair Budget. It is for the millions, not for millionaires, a Budget for the many, not the few, and I commend it to the House.
The House divided:
Ayes 326, Noes 243.
[9.59 pm
AYES
Adams, Nigel
Afriyie, Adam
Aldous, Peter
Alexander, rh Danny
Amess, Mr David
Andrew, Stuart
Arbuthnot, rh Mr James
Bacon, Mr Richard
Baker, Norman
Baker, Steve
Baldry, Tony
Baldwin, Harriett
Barclay, Stephen
Barker, Gregory
Baron, Mr John
Barwell, Gavin
Bebb, Guto
Beith, rh Sir Alan
Benyon, Richard
Beresford, Sir Paul
Berry, Jake
Bingham, Andrew
Binley, Mr Brian
Birtwistle, Gordon
Blackman, Bob
Blackwood, Nicola
Blunt, Mr Crispin
Bottomley, Sir Peter
Bradley, Karen
Brady, Mr Graham
Brake, rh Tom
Brazier, Mr Julian
Bridgen, Andrew
Brine, Steve
Brokenshire, James
Browne, Mr Jeremy
Bruce, Fiona
Bruce, rh Malcolm
Buckland, Mr Robert
Burley, Mr Aidan
Burns, Conor
Burns, rh Mr Simon
Burrowes, Mr David
Burstow, Paul
Burt, Lorely
Byles, Dan
Cable, rh Vince
Cairns, Alun
Cameron, rh Mr David
Campbell, rh Sir Menzies
Carmichael, rh Mr Alistair
Carmichael, Neil
Carswell, Mr Douglas
Cash, Mr William
Chishti, Rehman
Chope, Mr Christopher
Clappison, Mr James
Clark, rh Greg
Clarke, rh Mr Kenneth
Clifton-Brown, Geoffrey
Coffey, Dr Thérèse
Collins, Damian
Colvile, Oliver
Crabb, Stephen
Crockart, Mike
Crouch, Tracey
Davey, rh Mr Edward
Davies, David T. C.
(Monmouth)
Davies, Glyn
Davies, Philip
Davis, rh Mr David
de Bois, Nick
Dinenage, Caroline
Djanogly, Mr Jonathan
Dorrell, rh Mr Stephen
Doyle-Price, Jackie
Drax, Richard
Duddridge, James
Duncan, rh Mr Alan
Duncan Smith, rh Mr Iain
Ellis, Michael
Ellison, Jane
Ellwood, Mr Tobias
Elphicke, Charlie
Eustice, George
Evans, Graham
Evans, Jonathan
Evennett, Mr David
Fabricant, Michael
Farron, Tim
Field, Mark
Foster, rh Mr Don
Fox, rh Dr Liam
Francois, rh Mr Mark
Freeman, George
Freer, Mike
Fuller, Richard
Garnier, Mr Edward
Garnier, Mark
Gauke, Mr David
George, Andrew
Gibb, Mr Nick
Gilbert, Stephen
Gillan, rh Mrs Cheryl
Glen, John
Goodwill, Mr Robert
Gove, rh Michael
Graham, Richard
Grant, Mrs Helen
Gray, Mr James
Grayling, rh Chris
Green, Damian
Greening, rh Justine
Grieve, rh Mr Dominic
Griffiths, Andrew
Gummer, Ben
Gyimah, Mr Sam
Hague, rh Mr William
Halfon, Robert
Hames, Duncan
Hammond, rh Mr Philip
Hammond, Stephen
Hancock, Mr Mike
Hands, Greg
Harper, Mr Mark
Harrington, Richard
Harris, Rebecca
Hart, Simon
Harvey, Nick
Haselhurst, rh Sir Alan
Hayes, Mr John
Heald, Oliver
Heath, Mr David
Heaton-Harris, Chris
Hemming, John
Henderson, Gordon
Hendry, Charles
Herbert, rh Nick
Hinds, Damian
Hoban, Mr Mark
Hollingbery, George
Hollobone, Mr Philip
Holloway, Mr Adam
Hopkins, Kris
Horwood, Martin
Howarth, Mr Gerald
Howell, John
Hughes, rh Simon
Huhne, rh Chris
Hurd, Mr Nick
Jackson, Mr Stewart
James, Margot
Javid, Sajid
Jenkin, Mr Bernard
Johnson, Gareth
Johnson, Joseph
Jones, Andrew
Jones, Mr David
Jones, Mr Marcus
Kawczynski, Daniel
Kelly, Chris
Kirby, Simon
Knight, rh Mr Greg
Kwarteng, Kwasi
Laing, Mrs Eleanor
Lamb, Norman
Lancaster, Mark
Lansley, rh Mr Andrew
Latham, Pauline
Laws, rh Mr David
Leadsom, Andrea
Lee, Jessica
Lee, Dr Phillip
Leech, Mr John
Lefroy, Jeremy
Leigh, Mr Edward
Leslie, Charlotte
Letwin, rh Mr Oliver
Lewis, Brandon
Lidington, rh Mr David
Lilley, rh Mr Peter
Lloyd, Stephen
Lopresti, Jack
Lord, Jonathan
Loughton, Tim
Luff, Peter
Lumley, Karen
Macleod, Mary
Main, Mrs Anne
Maude, rh Mr Francis
May, rh Mrs Theresa
Maynard, Paul
McCartney, Jason
McCartney, Karl
McIntosh, Miss Anne
McLoughlin, rh Mr Patrick
McPartland, Stephen
McVey, Esther
Mensch, Louise
Menzies, Mark
Mercer, Patrick
Metcalfe, Stephen
Miller, Maria
Mills, Nigel
Mitchell, rh Mr Andrew
Moore, rh Michael
Mordaunt, Penny
Morgan, Nicky
Morris, Anne Marie
Morris, David
Morris, James
Mosley, Stephen
Mowat, David
Mulholland, Greg
Mundell, rh David
Munt, Tessa
Murray, Sheryll
Murrison, Dr Andrew
Neill, Robert
Newmark, Mr Brooks
Newton, Sarah
Nokes, Caroline
Nuttall, Mr David
Offord, Mr Matthew
Ollerenshaw, Eric
Opperman, Guy
Osborne, rh Mr George
Ottaway, Richard
Paice, rh Mr James
Parish, Neil
Patel, Priti
Paterson, rh Mr Owen
Pawsey, Mark
Penrose, John
Perry, Claire
Phillips, Stephen
Pickles, rh Mr Eric
Poulter, Dr Daniel
Pritchard, Mark
Pugh, John
Raab, Mr Dominic
Randall, rh Mr John
Redwood, rh Mr John
Rees-Mogg, Jacob
Reevell, Simon
Reid, Mr Alan
Rifkind, rh Sir Malcolm
Robathan, rh Mr Andrew
Robertson, Hugh
Robertson, Mr Laurence
Rogerson, Dan
Rosindell, Andrew
Rudd, Amber
Ruffley, Mr David
Russell, Sir Bob
Rutley, David
Sanders, Mr Adrian
Sandys, Laura
Scott, Mr Lee
Selous, Andrew
Shapps, rh Grant
Sharma, Alok
Shelbrooke, Alec
Shepherd, Mr Richard
Simmonds, Mark
Simpson, Mr Keith
Skidmore, Chris
Smith, Miss Chloe
Smith, Henry
Smith, Julian
Smith, Sir Robert
Soames, rh Nicholas
Soubry, Anna
Spelman, rh Mrs Caroline
Spencer, Mr Mark
Stanley, rh Sir John
Stephenson, Andrew
Stevenson, John
Stewart, Bob
Stewart, Rory
Streeter, Mr Gary
Stride, Mel
Stunell, Andrew
Sturdy, Julian
Swales, Ian
Swayne, rh Mr Desmond
Swinson, Jo
Syms, Mr Robert
Teather, Sarah
Thurso, John
Timpson, Mr Edward
Tomlinson, Justin
Tredinnick, David
Truss, Elizabeth
Turner, Mr Andrew
Tyrie, Mr Andrew
Uppal, Paul
Vaizey, Mr Edward
Vara, Mr Shailesh
Vickers, Martin
Villiers, rh Mrs Theresa
Walker, Mr Charles
Walker, Mr Robin
Wallace, Mr Ben
Walter, Mr Robert
Watkinson, Angela
Weatherley, Mike
Webb, Steve
Wharton, James
Wheeler, Heather
White, Chris
Whittaker, Craig
Whittingdale, Mr John
Wiggin, Bill
Willetts, rh Mr David
Williams, Mr Mark
Williams, Roger
Williams, Stephen
Williamson, Gavin
Willott, Jenny
Wilson, Mr Rob
Wollaston, Dr Sarah
Wright, Jeremy
Wright, Simon
Yeo, Mr Tim
Young, rh Sir George
Tellers for the Ayes:
Mr Philip Dunne and
Mark Hunter
NOES
Abbott, Ms Diane
Abrahams, Debbie
Ainsworth, rh Mr Bob
Alexander, rh Mr Douglas
Alexander, Heidi
Anderson, Mr David
Ashworth, Jonathan
Austin, Ian
Bailey, Mr Adrian
Bain, Mr William
Balls, rh Ed
Banks, Gordon
Barron, rh Mr Kevin
Bayley, Hugh
Bell, Sir Stuart
Benn, rh Hilary
Berger, Luciana
Betts, Mr Clive
Blackman-Woods, Roberta
Blears, rh Hazel
Blomfield, Paul
Blunkett, rh Mr David
Bradshaw, rh Mr Ben
Brennan, Kevin
Brown, rh Mr Gordon
Brown, Lyn
Brown, rh Mr Nicholas
Brown, Mr Russell
Bryant, Chris
Buck, Ms Karen
Burden, Richard
Burnham, rh Andy
Campbell, Mr Alan
Campbell, Mr Gregory
Campbell, Mr Ronnie
Caton, Martin
Chapman, Mrs Jenny
Clark, Katy
Clarke, rh Mr Tom
Clwyd, rh Ann
Coaker, Vernon
Coffey, Ann
Cooper, Rosie
Cooper, rh Yvette
Corbyn, Jeremy
Crausby, Mr David
Creagh, Mary
Creasy, Stella
Cruddas, Jon
Cryer, John
Cunningham, Alex
Cunningham, Mr Jim
Cunningham, Tony
Curran, Margaret
Dakin, Nic
Danczuk, Simon
Darling, rh Mr Alistair
David, Mr Wayne
Davidson, Mr Ian
Davies, Geraint
De Piero, Gloria
Denham, rh Mr John
Dobbin, Jim
Dobson, rh Frank
Dodds, rh Mr Nigel
Donaldson, rh Mr Jeffrey M.
Donohoe, Mr Brian H.
Doran, Mr Frank
Dowd, Jim
Doyle, Gemma
Dromey, Jack
Durkan, Mark
Eagle, Ms Angela
Eagle, Maria
Edwards, Jonathan
Efford, Clive
Elliott, Julie
Ellman, Mrs Louise
Engel, Natascha
Esterson, Bill
Evans, Chris
Farrelly, Paul
Field, rh Mr Frank
Fitzpatrick, Jim
Flello, Robert
Flint, rh Caroline
Francis, Dr Hywel
Gapes, Mike
Gardiner, Barry
Gilmore, Sheila
Glindon, Mrs Mary
Godsiff, Mr Roger
Goggins, rh Paul
Goodman, Helen
Greatrex, Tom
Green, Kate
Greenwood, Lilian
Griffith, Nia
Gwynne, Andrew
Hamilton, Mr David
Hanson, rh Mr David
Harman, rh Ms Harriet
Harris, Mr Tom
Havard, Mr Dai
Healey, rh John
Hendrick, Mark
Hepburn, Mr Stephen
Hermon, Lady
Heyes, David
Hillier, Meg
Hilling, Julie
Hodge, rh Margaret
Hodgson, Mrs Sharon
Hoey, Kate
Hopkins, Kelvin
Hosie, Stewart
Howarth, rh Mr George
Hunt, Tristram
Irranca-Davies, Huw
Jackson, Glenda
Jamieson, Cathy
Johnson, rh Alan
Johnson, Diana
Jones, Graham
Jones, Helen
Jones, Susan Elan
Jowell, rh Tessa
Kaufman, rh Sir Gerald
Keeley, Barbara
Kendall, Liz
Lammy, rh Mr David
Lavery, Ian
Lazarowicz, Mark
Leslie, Chris
Lewis, Mr Ivan
Lloyd, Tony
Long, Naomi
Love, Mr Andrew
Lucas, Caroline
Lucas, Ian
MacNeil, Mr Angus Brendan
MacShane, rh Mr Denis
Mactaggart, Fiona
Mahmood, Shabana
Malhotra, Seema
Mann, John
Marsden, Mr Gordon
McCabe, Steve
McCann, Mr Michael
McCarthy, Kerry
McClymont, Gregg
McCrea, Dr William
McDonagh, Siobhain
McDonnell, Dr Alasdair
McDonnell, John
McFadden, rh Mr Pat
McGovern, Jim
McGuire, rh Mrs Anne
McKechin, Ann
McKenzie, Mr Iain
McKinnell, Catherine
Meacher, rh Mr Michael
Meale, Sir Alan
Mearns, Ian
Michael, rh Alun
Miliband, rh David
Miliband, rh Edward
Miller, Andrew
Moon, Mrs Madeleine
Morden, Jessica
Morrice, Graeme
(Livingston)
Morris, Grahame M.
(Easington)
Mudie, Mr George
Munn, Meg
Murphy, rh Mr Jim
Murphy, rh Paul
Murray, Ian
Nandy, Lisa
Nash, Pamela
O'Donnell, Fiona
Onwurah, Chi
Osborne, Sandra
Owen, Albert
Paisley, Ian
Pearce, Teresa
Pound, Stephen
Raynsford, rh Mr Nick
Reed, Mr Jamie
Reeves, Rachel
Reynolds, Emma
Reynolds, Jonathan
Riordan, Mrs Linda
Ritchie, Ms Margaret
Robertson, Angus
Robinson, Mr Geoffrey
Rotheram, Steve
Roy, Mr Frank
Roy, Lindsay
Ruane, Chris
Ruddock, rh Dame Joan
Sarwar, Anas
Seabeck, Alison
Shannon, Jim
Sharma, Mr Virendra
Sheerman, Mr Barry
Sheridan, Jim
Shuker, Gavin
Simpson, David
Skinner, Mr Dennis
Slaughter, Mr Andy
Smith, rh Mr Andrew
Smith, Nick
Smith, Owen
Straw, rh Mr Jack
Stringer, Graham
Stuart, Ms Gisela
Tami, Mark
Thornberry, Emily
Timms, rh Stephen
Trickett, Jon
Turner, Karl
Twigg, Stephen
Umunna, Mr Chuka
Vaz, rh Keith
Vaz, Valerie
Walley, Joan
Watson, Mr Tom
Watts, Mr Dave
Weir, Mr Mike
Whiteford, Dr Eilidh
Whitehead, Dr Alan
Wicks, rh Malcolm
Williams, Hywel
Williamson, Chris
Wilson, Phil
Wilson, Sammy
Winnick, Mr David
Winterton, rh Ms Rosie
Wishart, Pete
Wood, Mike
Woodcock, John
Wright, David
Wright, Mr Iain
Tellers for the Noes:
Yvonne Fovargue and
Tom Blenkinsop
Question accordingly agreed to.
26 Mar 2012 : Column 1267
26 Mar 2012 : Column 1268
26 Mar 2012 : Column 1269
26 Mar 2012 : Column 1270
That
(1) It is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision in connection with finance.
(2) This Resolution does not extend to the making of any amendment with respect to value added tax so as to provide—
(a) for zero-rating or exempting a supply, acquisition or importation,
(b) for refunding an amount of tax,
(c) for any relief, other than a relief that—
(i) so far as it is applicable to goods, applies to goods of every description, and
(ii) so far as it is applicable to services, applies to services of every description.
26 Mar 2012 : Column 1271
Mr Speaker: Before I put the questions on the remaining Budget resolutions, I must inform the House that motion 67 on Stamp Duty Land Tax (Higher Rate for Certain Acquisitions by Companies etc.) has been corrected since the original printing. The version in today’s booklet of Budget resolutions is the correct version.
The Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)).
2. Income tax (charge and main rates)
That income tax is charged for the tax year 2012-13, and for that tax year—
(b) the higher rate is 40%, and
(c) the additional rate is 50%.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
3. Income tax (basic rate limit)
That—
(1) For the tax year 2012-13 the amount specified in section 10(5) of the Income Tax Act 2007 (basic rate limit) is replaced with “£34,370”.
(2) Accordingly section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply for that tax year.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
4. Income tax (personal allowance for those aged under 65)
That—
(1) For the tax year 2012-13 the amount specified in section 35(1) of the Income Tax Act 2007 (personal allowance for those aged under 65) is replaced with “£8,105”.
(2) Accordingly section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1) of that Act, does not apply for that tax year.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
5. Corporation tax (main rate for financial year 2012)
That—
(1) In section 5(2)(a) of the Finance Act 2011 (main corporation tax rate for financial year 2012 on profits other than ring fence profits), for “25%” substitute “24%”.
(2) The amendment made by this Resolution comes into force on 1 April 2012.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
26 Mar 2012 : Column 1272
6. Corporation tax (charge and main rate for financial year 2013)
That—
(1) Corporation tax is charged for the financial year 2013.
(2) For that year the rate of corporation tax is—
(a) 23% on profits of companies other than ring fence profits, and
(b) 30% on ring fence profits of companies.
(3) In paragraph (2) “ring fence profits” has the same meaning as in Part 8 of the Corporation Tax Act 2010 (see section 276 of that Act).
7. Corporation tax (small profits rate and fractions for financial year 2012)
That—
(1) For the financial year 2012 the small profits rate is—
(a) 20% on profits of companies other than ring fence profits, and
(b) 19% on ring fence profits of companies.
(2) For the purposes of Part 3 of the Corporation Tax Act 2010, for that year—
(a) the standard fraction is 1/100ths, and
(b) the ring fence fraction is 11/400ths.
(3) In paragraph (1) “ring fence profits” has the same meaning as in Part 8 of that Act (see section 276 of that Act).
8. High income child benefit charge
That provision may be made for and in connection with a high income child benefit charge.
The House divided:
Ayes 318, Noes 244.
[10.15 pm
AYES
Adams, Nigel
Afriyie, Adam
Aldous, Peter
Alexander, rh Danny
Amess, Mr David
Andrew, Stuart
Arbuthnot, rh Mr James
Bacon, Mr Richard
Baker, Norman
Baker, Steve
Baldry, Tony
Baldwin, Harriett
Barclay, Stephen
Barker, Gregory
Baron, Mr John
Barwell, Gavin
Bebb, Guto
Beith, rh Sir Alan
Benyon, Richard
Beresford, Sir Paul
Berry, Jake
Bingham, Andrew
Binley, Mr Brian
Birtwistle, Gordon
Blackman, Bob
Blackwood, Nicola
Blunt, Mr Crispin
Bottomley, Sir Peter
Bradley, Karen
Brake, rh Tom
Brazier, Mr Julian
Bridgen, Andrew
Brine, Steve
Brokenshire, James
Browne, Mr Jeremy
Bruce, Fiona
Bruce, rh Malcolm
Buckland, Mr Robert
Burley, Mr Aidan
Burns, Conor
Burns, rh Mr Simon
Burrowes, Mr David
Burstow, Paul
Burt, Lorely
Byles, Dan
Cable, rh Vince
Cairns, Alun
Cameron, rh Mr David
Campbell, rh Sir Menzies
Carmichael, rh Mr Alistair
Carmichael, Neil
Cash, Mr William
Chishti, Rehman
Clappison, Mr James
Clark, rh Greg
Clarke, rh Mr Kenneth
Clifton-Brown, Geoffrey
Coffey, Dr Thérèse
Collins, Damian
Colvile, Oliver
Crabb, Stephen
Crockart, Mike
Crouch, Tracey
Davey, rh Mr Edward
Davies, David T. C.
(Monmouth)
Davies, Glyn
de Bois, Nick
Dinenage, Caroline
Djanogly, Mr Jonathan
Dorrell, rh Mr Stephen
Doyle-Price, Jackie
Drax, Richard
Duddridge, James
Duncan, rh Mr Alan
Duncan Smith, rh Mr Iain
Dunne, Mr Philip
Ellis, Michael
Ellison, Jane
Ellwood, Mr Tobias
Elphicke, Charlie
Eustice, George
Evans, Graham
Evans, Jonathan
Evennett, Mr David
Fabricant, Michael
Farron, Tim
Field, Mark
Foster, rh Mr Don
Fox, rh Dr Liam
Francois, rh Mr Mark
Freeman, George
Freer, Mike
Fuller, Richard
Garnier, Mr Edward
Garnier, Mark
Gauke, Mr David
George, Andrew
Gibb, Mr Nick
Gilbert, Stephen
Gillan, rh Mrs Cheryl
Glen, John
Goodwill, Mr Robert
Gove, rh Michael
Graham, Richard
Grant, Mrs Helen
Gray, Mr James
Grayling, rh Chris
Green, Damian
Greening, rh Justine
Grieve, rh Mr Dominic
Griffiths, Andrew
Gummer, Ben
Gyimah, Mr Sam
Hague, rh Mr William
Halfon, Robert
Hames, Duncan
Hammond, rh Mr Philip
Hammond, Stephen
Hancock, Mr Mike
Harper, Mr Mark
Harrington, Richard
Harris, Rebecca
Hart, Simon
Harvey, Nick
Haselhurst, rh Sir Alan
Hayes, Mr John
Heald, Oliver
Heath, Mr David
Heaton-Harris, Chris
Hemming, John
Henderson, Gordon
Hendry, Charles
Herbert, rh Nick
Hinds, Damian
Hoban, Mr Mark
Hollingbery, George
Hollobone, Mr Philip
Holloway, Mr Adam
Hopkins, Kris
Horwood, Martin
Howarth, Mr Gerald
Howell, John
Hughes, rh Simon
Huhne, rh Chris
Hurd, Mr Nick
Jackson, Mr Stewart
James, Margot
Javid, Sajid
Jenkin, Mr Bernard
Johnson, Gareth
Johnson, Joseph
Jones, Andrew
Jones, Mr David
Jones, Mr Marcus
Kawczynski, Daniel
Kelly, Chris
Kirby, Simon
Knight, rh Mr Greg
Kwarteng, Kwasi
Laing, Mrs Eleanor
Lamb, Norman
Lancaster, Mark
Lansley, rh Mr Andrew
Latham, Pauline
Laws, rh Mr David
Leadsom, Andrea
Lee, Jessica
Lee, Dr Phillip
Leech, Mr John
Lefroy, Jeremy
Leslie, Charlotte
Letwin, rh Mr Oliver
Lewis, Brandon
Lidington, rh Mr David
Lilley, rh Mr Peter
Lloyd, Stephen
Lopresti, Jack
Lord, Jonathan
Loughton, Tim
Luff, Peter
Lumley, Karen
Macleod, Mary
Main, Mrs Anne
Maude, rh Mr Francis
May, rh Mrs Theresa
Maynard, Paul
McCartney, Jason
McCartney, Karl
McIntosh, Miss Anne
McLoughlin, rh Mr Patrick
McPartland, Stephen
McVey, Esther
Mensch, Louise
Menzies, Mark
Mercer, Patrick
Metcalfe, Stephen
Miller, Maria
Mills, Nigel
Mitchell, rh Mr Andrew
Moore, rh Michael
Mordaunt, Penny
Morgan, Nicky
Morris, Anne Marie
Morris, David
Morris, James
Mosley, Stephen
Mowat, David
Mulholland, Greg
Mundell, rh David
Munt, Tessa
Murray, Sheryll
Murrison, Dr Andrew
Neill, Robert
Newmark, Mr Brooks
Newton, Sarah
Nokes, Caroline
Offord, Mr Matthew
Ollerenshaw, Eric
Opperman, Guy
Osborne, rh Mr George
Ottaway, Richard
Paice, rh Mr James
Parish, Neil
Patel, Priti
Paterson, rh Mr Owen
Pawsey, Mark
Penrose, John
Perry, Claire
Phillips, Stephen
Pickles, rh Mr Eric
Poulter, Dr Daniel
Pritchard, Mark
Pugh, John
Raab, Mr Dominic
Randall, rh Mr John
Redwood, rh Mr John
Rees-Mogg, Jacob
Reevell, Simon
Reid, Mr Alan
Rifkind, rh Sir Malcolm
Robathan, rh Mr Andrew
Robertson, Hugh
Robertson, Mr Laurence
Rogerson, Dan
Rosindell, Andrew
Rudd, Amber
Ruffley, Mr David
Russell, Sir Bob
Rutley, David
Sanders, Mr Adrian
Sandys, Laura
Scott, Mr Lee
Selous, Andrew
Shapps, rh Grant
Sharma, Alok
Shelbrooke, Alec
Shepherd, Mr Richard
Simmonds, Mark
Simpson, Mr Keith
Skidmore, Chris
Smith, Miss Chloe
Smith, Henry
Smith, Julian
Smith, Sir Robert
Soames, rh Nicholas
Soubry, Anna
Spelman, rh Mrs Caroline
Spencer, Mr Mark
Stephenson, Andrew
Stevenson, John
Stewart, Bob
Stewart, Rory
Streeter, Mr Gary
Stride, Mel
Stunell, Andrew
Sturdy, Julian
Swales, Ian
Swayne, rh Mr Desmond
Swinson, Jo
Syms, Mr Robert
Teather, Sarah
Thurso, John
Timpson, Mr Edward
Tomlinson, Justin
Tredinnick, David
Truss, Elizabeth
Turner, Mr Andrew
Tyrie, Mr Andrew
Uppal, Paul
Vaizey, Mr Edward
Vara, Mr Shailesh
Vickers, Martin
Villiers, rh Mrs Theresa
Walker, Mr Charles
Walker, Mr Robin
Wallace, Mr Ben
Walter, Mr Robert
Watkinson, Angela
Weatherley, Mike
Webb, Steve
Wharton, James
Wheeler, Heather
White, Chris
Whittaker, Craig
Whittingdale, Mr John
Wiggin, Bill
Willetts, rh Mr David
Williams, Mr Mark
Williams, Roger
Williams, Stephen
Williamson, Gavin
Willott, Jenny
Wilson, Mr Rob
Wollaston, Dr Sarah
Wright, Jeremy
Wright, Simon
Yeo, Mr Tim
Young, rh Sir George
Tellers for the Ayes:
Greg Hands and
Mark Hunter
NOES
Abbott, Ms Diane
Abrahams, Debbie
Ainsworth, rh Mr Bob
Alexander, rh Mr Douglas
Alexander, Heidi
Anderson, Mr David
Ashworth, Jonathan
Austin, Ian
Bailey, Mr Adrian
Bain, Mr William
Balls, rh Ed
Banks, Gordon
Barron, rh Mr Kevin
Bayley, Hugh
Bell, Sir Stuart
Benn, rh Hilary
Berger, Luciana
Betts, Mr Clive
Blackman-Woods, Roberta
Blears, rh Hazel
Blomfield, Paul
Blunkett, rh Mr David
Bradshaw, rh Mr Ben
Brennan, Kevin
Brown, rh Mr Gordon
Brown, Lyn
Brown, rh Mr Nicholas
Brown, Mr Russell
Bryant, Chris
Buck, Ms Karen
Burden, Richard
Burnham, rh Andy
Campbell, Mr Alan
Campbell, Mr Gregory
Campbell, Mr Ronnie
Caton, Martin
Chapman, Mrs Jenny
Clark, Katy
Clarke, rh Mr Tom
Clwyd, rh Ann
Coaker, Vernon
Coffey, Ann
Cooper, Rosie
Cooper, rh Yvette
Corbyn, Jeremy
Crausby, Mr David
Creagh, Mary
Creasy, Stella
Cruddas, Jon
Cryer, John
Cunningham, Alex
Cunningham, Mr Jim
Cunningham, Tony
Curran, Margaret
Dakin, Nic
Danczuk, Simon
Darling, rh Mr Alistair
David, Mr Wayne
Davidson, Mr Ian
Davies, Geraint
De Piero, Gloria
Denham, rh Mr John
Dobbin, Jim
Dobson, rh Frank
Dodds, rh Mr Nigel
Donaldson, rh Mr Jeffrey M.
Donohoe, Mr Brian H.
Doran, Mr Frank
Dowd, Jim
Doyle, Gemma
Dromey, Jack
Durkan, Mark
Eagle, Ms Angela
Eagle, Maria
Edwards, Jonathan
Efford, Clive
Elliott, Julie
Ellman, Mrs Louise
Engel, Natascha
Esterson, Bill
Evans, Chris
Farrelly, Paul
Field, rh Mr Frank
Fitzpatrick, Jim
Flello, Robert
Flint, rh Caroline
Flynn, Paul
Francis, Dr Hywel
Gapes, Mike
Gardiner, Barry
Gilmore, Sheila
Glindon, Mrs Mary
Godsiff, Mr Roger
Goggins, rh Paul
Goodman, Helen
Greatrex, Tom
Green, Kate
Greenwood, Lilian
Griffith, Nia
Gwynne, Andrew
Hamilton, Fabian
Hanson, rh Mr David
Harman, rh Ms Harriet
Harris, Mr Tom
Havard, Mr Dai
Healey, rh John
Hendrick, Mark
Hepburn, Mr Stephen
Hermon, Lady
Heyes, David
Hillier, Meg
Hilling, Julie
Hodge, rh Margaret
Hodgson, Mrs Sharon
Hoey, Kate
Hopkins, Kelvin
Hosie, Stewart
Howarth, rh Mr George
Hunt, Tristram
Irranca-Davies, Huw
Jackson, Glenda
Jamieson, Cathy
Johnson, rh Alan
Johnson, Diana
Jones, Graham
Jones, Helen
Jones, Susan Elan
Jowell, rh Tessa
Kaufman, rh Sir Gerald
Keeley, Barbara
Kendall, Liz
Lammy, rh Mr David
Lavery, Ian
Lazarowicz, Mark
Leslie, Chris
Lewis, Mr Ivan
Lloyd, Tony
Long, Naomi
Love, Mr Andrew
Lucas, Caroline
Lucas, Ian
MacNeil, Mr Angus Brendan
MacShane, rh Mr Denis
Mactaggart, Fiona
Mahmood, Shabana
Malhotra, Seema
Mann, John
Marsden, Mr Gordon
McCabe, Steve
McCann, Mr Michael
McCarthy, Kerry
McClymont, Gregg
McCrea, Dr William
McDonagh, Siobhain
McDonnell, Dr Alasdair
McDonnell, John
McFadden, rh Mr Pat
McGovern, Jim
McGuire, rh Mrs Anne
McKechin, Ann
McKenzie, Mr Iain
McKinnell, Catherine
Meacher, rh Mr Michael
Meale, Sir Alan
Mearns, Ian
Michael, rh Alun
Miliband, rh David
Miliband, rh Edward
Miller, Andrew
Moon, Mrs Madeleine
Morden, Jessica
Morrice, Graeme
(Livingston)
Morris, Grahame M.
(Easington)
Mudie, Mr George
Munn, Meg
Murphy, rh Mr Jim
Murphy, rh Paul
Murray, Ian
Nandy, Lisa
Nash, Pamela
O'Donnell, Fiona
Onwurah, Chi
Osborne, Sandra
Owen, Albert
Paisley, Ian
Pearce, Teresa
Pound, Stephen
Raynsford, rh Mr Nick
Reed, Mr Jamie
Reeves, Rachel
Reynolds, Emma
Reynolds, Jonathan
Riordan, Mrs Linda
Ritchie, Ms Margaret
Robertson, Angus
Robinson, Mr Geoffrey
Rotheram, Steve
Roy, Mr Frank
Roy, Lindsay
Ruane, Chris
Ruddock, rh Dame Joan
Sarwar, Anas
Seabeck, Alison
Shannon, Jim
Sharma, Mr Virendra
Sheerman, Mr Barry
Sheridan, Jim
Shuker, Gavin
Simpson, David
Skinner, Mr Dennis
Slaughter, Mr Andy
Smith, rh Mr Andrew
Smith, Nick
Smith, Owen
Straw, rh Mr Jack
Stringer, Graham
Stuart, Ms Gisela
Tami, Mark
Thornberry, Emily
Timms, rh Stephen
Trickett, Jon
Turner, Karl
Twigg, Stephen
Umunna, Mr Chuka
Vaz, rh Keith
Vaz, Valerie
Walley, Joan
Watson, Mr Tom
Watts, Mr Dave
Weir, Mr Mike
Whiteford, Dr Eilidh
Whitehead, Dr Alan
Wicks, rh Malcolm
Williams, Hywel
Williamson, Chris
Wilson, Phil
Wilson, Sammy
Winnick, Mr David
Winterton, rh Ms Rosie
Wishart, Pete
Wood, Mike
Woodcock, John
Wright, David
Wright, Mr Iain
Tellers for the Noes:
Yvonne Fovargue and
Tom Blenkinsop
Question accordingly agreed to.
26 Mar 2012 : Column 1273
26 Mar 2012 : Column 1274
26 Mar 2012 : Column 1275
26 Mar 2012 : Column 1276
9. Loss relief
That provision (including provision having retrospective effect) may be made amending Chapters 2 and 4 of Part of the Income Tax Act 2007.
10. Gains from contracts for life insurance etc.
That provision may be made amending Chapter 9 of Part 4 of the Income Tax (Trading and Other Income) Act 2005.
11. Income arising under a settlement
That provision may be made about income which arises under a settlement.
26 Mar 2012 : Column 1277
12. Qualifying time deposits
That—
(1) In section 866 of the Income Tax Act 2007 (qualifying time deposits), in subsection (1), after “deposit” there is inserted “made before 6 April 2012”.
(2) The amendment made by this Resolution comes into force on 6 April 2012.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
13. Expenditure on research and development
That provision may be made about tax relief for expenditure on research and development.
14. Real estate investment trusts
That provision may be made amending Part 12 of the Corporation Tax Act 2010.
15. Manufactured overseas dividends
That provision (including provision having retrospective effect) may be made in relation to the receipt of manufactured overseas dividends.
16. Loan relationships
That provision (including provision having retrospective effect) may be made in relation to loan relationships.
17. Companies carrying on leasing businesses
That provision may be made about companies carrying on businesses of leasing plant or machinery.
18. Corporate members of Lloyd’s (stop-loss insurance and quota share contracts)
That provision (including provision having retrospective effect) may be made in relation to stop-loss insurance or quota share contracts taken out or entered into by corporate members of Lloyd’s.
19. Insurance companies and friendly societies
That provision may be made about insurance companies and friendly societies.
20. Equalisation reserves for Lloyd’s corporate and partnership members
That provision may be made in relation to section 47 of the Finance Act 2009.
26 Mar 2012 : Column 1278
21. Financing costs and income
That provision (including provision having retrospective effect) may be made amending Part 7 of the Taxation (International and Other Provisions) Act 2010.
22. Company distributions
That provision may be made amending Part 23 of the Corporation Tax Act 2010.
23. Capital gains tax (annual exempt amount)
That provision may be made about the annual exempt amount.
24. Capital gains (foreign currency bank accounts)
That provision may be made about gains and losses accruing on the disposal of debts represented by credit balances in foreign currency bank accounts.
25. Collective investment schemes
That provision may be made about collective investment schemes.
26. Enterprise investment scheme
That provision (including provision having retrospective effect) may be made amending Part 5 of the Income Tax Act 2007 and Schedule 5B to the Taxation of Chargeable Gains Act 1992.
27. Venture capital trusts
That provision (including provision having retrospective effect) may be made amending Part 6 of the Income Tax Act 2007.
28. Capital allowances
That provision (including provision having retrospective effect) may be made about capital allowances.
29. Remittance basis of taxation
That provision may be made increasing the remittance basis charge and amending other rules relating to the remittance basis of taxation.
30. Employer pension contributions
That provision (including provision having retrospective effect) may be made in relation to employers who pay contributions under registered pension schemes and arrangements for which their contributions are used (directly or indirectly).
26 Mar 2012 : Column 1279
31. Finance arrangements
That provision may be made amending Chapter 5B of Part 13 of the Income Tax Act 2007 and Chapter 2 of Part 16 of the Corporation Tax Act 2010.
32. Giving through self-assessment return
That—
(1) Section 429 of the Income Tax Act 2007 (gift aid: giving through self-assessment return) is repealed.
(2) The following repeals are made in consequence of paragraph (1)—
(a) in section 426 of the Income Tax Act 2007 (election by donor: gift treated as made in previous tax year), omit subsection (8),
(b) in section 538 of that Act (requirement to make claim), omit subsection (3),
(c) in section 133 of the Finance Act 2008 (set-off etc. where right to be paid a sum has been transferred), in subsection (8)(a), omit the words from “except” to the end,
(d) in section 472 of the Corporation Tax Act 2010 (gifts qualifying for gift aid relief: corporation tax liability and exemption), omit subsection (5), and
(e) in section 475 of that Act (gifts qualifying for gift aid relief: income tax treated as paid and exemption), omit subsection (7).
(3) Accordingly, the following provisions are also repealed—
(a) section 130(9) of the Finance Act 2008, and
(b) paragraph 3(4) of Schedule 8 to the Finance Act 2010.
(4) The repeals made by this Resolution come into force on 6 April 2012.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
33. Gift aid and other income
That provision (including provision having retrospective effect) may be made about gifts qualifying for gift aid relief and other exempt income of charities and other bodies.
34. Site restoration payments
That provision may be made about site restoration payments.
35. Changes of accounting policy
That provision (including provision having retrospective effect) may be made about changes of accounting policy.
36. Controlled foreign companies
That provision may be made for and in connection with a charge on UK resident companies which have interests in non-UK resident companies controlled by UK resident persons.
37. Foreign permanent establishments
That provision may be made about foreign permanent establishments of UK resident companies.
26 Mar 2012 : Column 1280
38. Ring fence trades (chargeable gains)
That provision (including provision having retrospective effect) may be made amending section 171A of the Taxation of Chargeable Gains Act 1992.
39. Oil activities
That provision (including provision having retrospective effect) may be made amending Part 8 of the Corporation Tax Act 2010.
40. Tobacco products duty (rates)
That—
(1) For the table in Schedule 1 to the Tobacco Products Duty Act 1979 substitute—
| “Table | |
|
An amount equal to 16.5 per cent of the retail price plus £167.41 per thousand cigarettes |
|
(2) The amendment made by this Resolution comes into force at 6 pm on 21 March 2012.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
41. Alcoholic liquor duties (rates)
That—
(1) The Alcoholic Liquor Duties Act 1979 is amended as follows.
(2) In section 5 (rate of duty on spirits), for “£25.52” substitute “£26.81”.
(3) In section 36(1AA) (rate of general beer duty)—
(a) in paragraph (za) (rate of duty on lower strength beer), for “£9.29” substitute “£9.76”, and
(b) in paragraph (a) (standard rate of duty on beer), for “£18.57” substitute “£19.51”.
(4) In section 37(4) (rate of high strength beer duty), for “£4.64” substitute “£4.88”.
(5) In section 62(1A) (rates of duty on cider)—
(a) in paragraph (a) (rate of duty per hectolitre on sparkling cider of a strength exceeding 5.5 per cent), for “£233.55” substitute “£245.32”,
(b) in paragraph (b) (rate of duty per hectolitre on cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£53.84” substitute “£56.55”, and
(c) in paragraph (c) (rate of duty per hectolitre in any other case), for “£35.87” substitute “£37.68”.
(6) For the table in Schedule 1 substitute—
26 Mar 2012 : Column 1281
| Part 2 Wine or Made-Wine of a Strength Exceeding 22 per cent | |
| Description of wine or made-wine | Rates of duty per litre of alcohol in wine or made-wine £ |
(7) The amendments made by this Resolution come into force on 26 March 2012.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
42. Alcoholic liquor duties (drawback)
That provision may be made repealing section 22 of the Alcoholic Liquor Duties Act 1979.
43. Fuel duty (private pleasure craft)
That—
(1) In section 14E of the Hydrocarbon Oil Duties Act 1979 (rebated heavy oil and bioblend: private pleasure craft), after subsection (7) insert—
“(7A) A relevant declaration must include an acknowledgement that nothing in this section or done under it (including the making of the declaration) affects any restriction or prohibition under the law of a member State other than the United Kingdom on the use of the heavy oil or bioblend as fuel for propelling craft outside United Kingdom waters (as defined in section 1(1) of the Management Act).”
(2) The amendment made by this Resolution has effect in relation to supplies made on or after 1 April 2012.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
44. Air passenger duty (rates of duty from 1 April 2012)
That—
(1) Section 30 of the Finance Act 1994 (air passenger duty: rates of duty) is amended as follows.
26 Mar 2012 : Column 1282
(2) In subsection (2)—
(a) in paragraph (a) for “£12” substitute “£13”, and
(b) in paragraph (b) for “£24” substitute “£26”.
(3)In subsection (3)—
(a) in paragraph (a) for “£60” substitute “£65”, and
(b) in paragraph (b) for “£120” substitute “£130”.
(4) In subsection (4)—
(a) in paragraph (a) for “£75” substitute “£81”, and
(b) in paragraph (b) for “£150” substitute “£162”.
(5) In subsection (4A)—
(a) in paragraph (a) for “£85” substitute “£92”, and
(b) in paragraph (b) for “£170” substitute “£184”.
(6) After subsection (4A) insert—
“(4B)Subsection (4C) applies if—
(a) the passenger’s journey is a relevant Northern Ireland journey, and
(b) apart from subsection (4C), subsection (2) would not apply to the journey.
(4C) The applicable rate in subsection (2) applies to the journey instead of the applicable rate in subsection (3), (4) or (4A) (as the case may be).
(4D)A passenger’s journey is a “relevant Northern Ireland journey”—
(a)in the case of a journey which has only one flight, if the flight begins in Northern Ireland, and
(b)in any other case, if the first flight of the journey—
(i)begins in Northern Ireland, and
(ii)is not followed by a connected flight beginning at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A.”
(7) In article 3 of the Air Passenger Duty (Connected Flights) Order 1994 (S.I. 1994/1821) for “section 30(6), or section 31(3),” substitute “Chapter 4 of Part 1”.
(8) The amendments made by this Resolution have effect in relation to the carriage of passengers beginning on or after 1 April 2012.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
The House divided:
Ayes 323, Noes 13.
[10.28 pm
AYES
Adams, Nigel
Afriyie, Adam
Aldous, Peter
Alexander, rh Danny
Amess, Mr David
Andrew, Stuart
Arbuthnot, rh Mr James
Bacon, Mr Richard
Baker, Norman
Baker, Steve
Baldry, Tony
Baldwin, Harriett
Barclay, Stephen
Barker, Gregory
Baron, Mr John
Barwell, Gavin
Bebb, Guto
Beith, rh Sir Alan
Benyon, Richard
Beresford, Sir Paul
Berry, Jake
Bingham, Andrew
Binley, Mr Brian
Birtwistle, Gordon
Blackman, Bob
Blackwood, Nicola
Blunt, Mr Crispin
Bottomley, Sir Peter
Bradley, Karen
Brady, Mr Graham
Brake, rh Tom
Brazier, Mr Julian
Bridgen, Andrew
Brine, Steve
Brokenshire, James
Browne, Mr Jeremy
Bruce, Fiona
Bruce, rh Malcolm
Buckland, Mr Robert
Burley, Mr Aidan
Burns, Conor
Burns, rh Mr Simon
Burrowes, Mr David
Burstow, Paul
Burt, Lorely
Byles, Dan
Cable, rh Vince
Cairns, Alun
Campbell, rh Sir Menzies
Carmichael, rh Mr Alistair
Carmichael, Neil
Carswell, Mr Douglas
Cash, Mr William
Chishti, Rehman
Clappison, Mr James
Clarke, rh Mr Kenneth
Clifton-Brown, Geoffrey
Coffey, Dr Thérèse
Collins, Damian
Colvile, Oliver
Crabb, Stephen
Crockart, Mike
Crouch, Tracey
Davey, rh Mr Edward
Davies, David T. C.
(Monmouth)
Davies, Glyn
Davis, rh Mr David
de Bois, Nick
Dinenage, Caroline
Djanogly, Mr Jonathan
Dorrell, rh Mr Stephen
Doyle-Price, Jackie
Drax, Richard
Duddridge, James
Duncan, rh Mr Alan
Duncan Smith, rh Mr Iain
Ellis, Michael
Ellison, Jane
Ellwood, Mr Tobias
Elphicke, Charlie
Eustice, George
Evans, Graham
Evans, Jonathan
Evennett, Mr David
Fabricant, Michael
Farron, Tim
Field, Mark
Foster, rh Mr Don
Fox, rh Dr Liam
Francois, rh Mr Mark
Freeman, George
Freer, Mike
Fuller, Richard
Garnier, Mr Edward
Garnier, Mark
Gauke, Mr David
George, Andrew
Gibb, Mr Nick
Gilbert, Stephen
Gillan, rh Mrs Cheryl
Glen, John
Goodwill, Mr Robert
Gove, rh Michael
Graham, Richard
Grant, Mrs Helen
Gray, Mr James
Grayling, rh Chris
Green, Damian
Greening, rh Justine
Grieve, rh Mr Dominic
Griffiths, Andrew
Gummer, Ben
Gyimah, Mr Sam
Hague, rh Mr William
Halfon, Robert
Hames, Duncan
Hammond, rh Mr Philip
Hammond, Stephen
Hancock, Mr Mike
Harper, Mr Mark
Harrington, Richard
Harris, Rebecca
Hart, Simon
Harvey, Nick
Haselhurst, rh Sir Alan
Hayes, Mr John
Heald, Oliver
Heath, Mr David
Heaton-Harris, Chris
Hemming, John
Henderson, Gordon
Hendry, Charles
Herbert, rh Nick
Hinds, Damian
Hoban, Mr Mark
Hollingbery, George
Hollobone, Mr Philip
Holloway, Mr Adam
Hopkins, Kris
Horwood, Martin
Howarth, Mr Gerald
Howell, John
Hughes, rh Simon
Huhne, rh Chris
Hunter, Mark
Hurd, Mr Nick
Jackson, Mr Stewart
James, Margot
Javid, Sajid
Jenkin, Mr Bernard
Johnson, Gareth
Johnson, Joseph
Jones, Andrew
Jones, Mr David
Jones, Mr Marcus
Kawczynski, Daniel
Kelly, Chris
Kirby, Simon
Knight, rh Mr Greg
Kwarteng, Kwasi
Laing, Mrs Eleanor
Lamb, Norman
Lancaster, Mark
Lansley, rh Mr Andrew
Latham, Pauline
Laws, rh Mr David
Leadsom, Andrea
Lee, Jessica
Lee, Dr Phillip
Leech, Mr John
Lefroy, Jeremy
Leigh, Mr Edward
Leslie, Charlotte
Letwin, rh Mr Oliver
Lewis, Brandon
Lidington, rh Mr David
Lilley, rh Mr Peter
Lloyd, Stephen
Lopresti, Jack
Lord, Jonathan
Loughton, Tim
Lucas, Caroline
Luff, Peter
Lumley, Karen
Macleod, Mary
Main, Mrs Anne
Maude, rh Mr Francis
May, rh Mrs Theresa
Maynard, Paul
McCartney, Jason
McCartney, Karl
McIntosh, Miss Anne
McLoughlin, rh Mr Patrick
McPartland, Stephen
McVey, Esther
Mensch, Louise
Menzies, Mark
Mercer, Patrick
Metcalfe, Stephen
Miller, Maria
Mills, Nigel
Mitchell, rh Mr Andrew
Moore, rh Michael
Mordaunt, Penny
Morgan, Nicky
Morris, Anne Marie
Morris, David
Morris, James
Mosley, Stephen
Mowat, David
Mulholland, Greg
Mundell, rh David
Murray, Sheryll
Murrison, Dr Andrew
Neill, Robert
Newmark, Mr Brooks
Newton, Sarah
Nokes, Caroline
Nuttall, Mr David
Offord, Mr Matthew
Ollerenshaw, Eric
Opperman, Guy
Osborne, rh Mr George
Ottaway, Richard
Paice, rh Mr James
Parish, Neil
Patel, Priti
Paterson, rh Mr Owen
Pawsey, Mark
Penrose, John
Perry, Claire
Phillips, Stephen
Pickles, rh Mr Eric
Poulter, Dr Daniel
Pritchard, Mark
Pugh, John
Raab, Mr Dominic
Randall, rh Mr John
Redwood, rh Mr John
Rees-Mogg, Jacob
Reevell, Simon
Reid, Mr Alan
Rifkind, rh Sir Malcolm
Robathan, rh Mr Andrew
Robertson, Hugh
Robertson, Mr Laurence
Rogerson, Dan
Rosindell, Andrew
Rudd, Amber
Ruffley, Mr David
Russell, Sir Bob
Rutley, David
Sanders, Mr Adrian
Sandys, Laura
Scott, Mr Lee
Selous, Andrew
Shannon, Jim
Shapps, rh Grant
Sharma, Alok
Shelbrooke, Alec
Shepherd, Mr Richard
Simmonds, Mark
Simpson, Mr Keith
Skidmore, Chris
Smith, Miss Chloe
Smith, Henry
Smith, Julian
Smith, Sir Robert
Soames, rh Nicholas
Soubry, Anna
Spelman, rh Mrs Caroline
Spencer, Mr Mark
Stephenson, Andrew
Stevenson, John
Stewart, Bob
Stewart, Rory
Streeter, Mr Gary
Stride, Mel
Stunell, Andrew
Sturdy, Julian
Swales, Ian
Swayne, rh Mr Desmond
Swinson, Jo
Syms, Mr Robert
Teather, Sarah
Thurso, John
Timpson, Mr Edward
Tomlinson, Justin
Tredinnick, David
Truss, Elizabeth
Turner, Mr Andrew
Tyrie, Mr Andrew
Uppal, Paul
Vaizey, Mr Edward
Vara, Mr Shailesh
Vickers, Martin
Villiers, rh Mrs Theresa
Walker, Mr Charles
Walker, Mr Robin
Wallace, Mr Ben
Walter, Mr Robert
Watkinson, Angela
Weatherley, Mike
Webb, Steve
Wharton, James
Wheeler, Heather
White, Chris
Whittaker, Craig
Whittingdale, Mr John
Wiggin, Bill
Willetts, rh Mr David
Williams, Mr Mark
Williams, Roger
Williams, Stephen
Williamson, Gavin
Willott, Jenny
Wilson, Mr Rob
Wilson, Sammy
Wollaston, Dr Sarah
Wright, Jeremy
Wright, Simon
Yeo, Mr Tim
Young, rh Sir George
Tellers for the Ayes:
Greg Hands and
Mr Philip Dunne
NOES
Durkan, Mark
Flynn, Paul
Glindon, Mrs Mary
Hermon, Lady
Hosie, Stewart
MacNeil, Mr Angus Brendan
McDonnell, Dr Alasdair
Ritchie, Ms Margaret
Robertson, Angus
Skinner, Mr Dennis
Weir, Mr Mike
Whiteford, Dr Eilidh
Wishart, Pete
Tellers for the Noes:
Hywel Williams and
Jonathan Edwards
Question accordingly agreed to.
26 Mar 2012 : Column 1283
26 Mar 2012 : Column 1284
26 Mar 2012 : Column 1285
45. Air passenger duty (general)
That provision (including provision having retrospective effect) may be made amending, or making amendments connected with, Chapter 4 of Part 1 of the Finance Act 1994.
46. Machine games duty
That provision may be made replacing amusement machine licence duty with a new excise duty and amending the Value Added Tax Act 1994 with respect to supplies in the area of gambling.
47. Amusement machine licence duty (rates)
That—
In section 23(2) of the Betting and Gaming Duties Act 1981 (amount of duty payable on amusement machine licence), for the table substitute—
| “Table | ||||||
| Months for which licence granted | Category A | Category B1 | Category B2 | Category B3 | Category B4 | Category C |
| £ | £ | £ | £ | £ | £ | |
(2) The amendment made by this Resolution has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty’s Revenue and Customs after 4 pm on 23 March 2012.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
48. Vehicle excise duty (rates for light passenger vehicles etc)
That—
26 Mar 2012 : Column 1286
(1) Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) is amended as follows.
(2) In paragraph 1 (general)—
(a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder not exceeding 1,549cc), for “£215” substitute “£220”, and
(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£130” substitute “£135”.
(3) In paragraph 1B (graduated rates of duty for light passenger vehicles)—
(a) for the tables substitute—
| “Table 1 Rates Payable on First Vehicle Licence for Vehicle | |||
| CO 2 Emissions figure | Rate | ||
| (1) | (2) | (3) | (4) |
| Exceeding | Not exceeding | Reduced rate | Standard rate |
| g/km | g/km | £ | £ |
| Table 2 Rates Payable on any other Vehicle Licence for Vehicle | |||
| CO 2 E missions F igure | Rate | ||
| (1) | (2) | (3) | (4) |
| Exceeding | Not exceeding | Reduced rate | Standard rate |
| g/km | g/km | £ | £ |
(b) in the sentence immediately following the tables, for paragraphs (a) and (b) substitute—
“(a) in column (3), in the last two rows, “260” were substituted for “450” and “465”, and
(b) in column (4), in the last two rows, “270” were substituted for “460” and “475”.”
(4) In paragraph 1J (VED rates for light goods vehicles)—
(a) in paragraph (a), for “£210” substitute “£215”, and
(b) in paragraph (b), for “£130” substitute “£135”.
(5) In paragraph 2(1) (VED rates for motorcycles)—
(a) in paragraph (b), for “£35” substitute “£36”,
(b) in paragraph (c), for “£53” substitute “£55”, and
(c) in paragraph (d), for “£74” substitute “£76”.
(6) The amendments made by this Resolution have effect in relation to licences taken out on or after 1 April 2012.
26 Mar 2012 : Column 1287
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
49. Value added tax (anti-forestalling charge)
That provision may be made for an anti-forestalling charge to value added tax related to changes in the descriptions of exempt or zero-rated supplies.
50. Value added tax (exempt supplies)
That provision may be made about exempt supplies.
51. Value added tax (public bodies)
That provision may be made about supplies of goods and services that are to be treated as made in the course or furtherance of a business.
52. Value added tax (imported goods of low value)
That—
(1) In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 (S.I. 1984/746) (reliefs for goods of certain descriptions), Group 8 (articles sent for miscellaneous purposes) is amended as follows.
(2) The existing Note becomes Note (1) (and accordingly “Note” in Group 8 becomes “Notes”).
(3) After that Note insert—
“(2)Item 8 does not apply in relation to any goods sent from the Channel Islands under a distance selling arrangement.
(3)For the purposes of Note (2)—
“distance selling arrangement”, in relation to any goods, means any transaction, or series of transactions, under which the person to whom the goods are sent receives them from a supplier without the simultaneous physical presence of the person and the supplier at any time during the transaction or series of transactions, and
“supplier” means any person who is acting in a commercial or professional capacity.”
(4) The amendment of that Schedule by this Resolution is without prejudice to any power to amend that Schedule by subordinate legislation.
(5) The amendments made by this Resolution have effect in relation to goods imported on or after 1 April 2012.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
53. Value added tax (groups of companies)
That provision may be made about the value of supplies made between members of a group.
54. Value added tax (means of transport)
26 Mar 2012 : Column 1288
That provision may be made about the timing of payments of value added tax on the acquisition or importation of goods consisting of a means of transport.
55. Value added tax (non-established taxable persons)
That provision may be made confining the exemption available under Part 1 of the Value Added Tax Act 1994 for businesses with a low turnover to persons with a business presence in the United Kingdom.
56. Landfill tax (standard rate)
That provision may be made about the standard rate of landfill tax.
57. Landfill sites in Scotland (retrospective provision)
That retrospective provision may be made about landfill sites in Scotland.
58. Landfill sites in Scotland
That the following provisions come into force, in so far as they extend to Scotland, on 21 March 2012—
(a) paragraph 19 of Schedule 2 to the Pollution Prevention and Control Act 1999 (which inserts paragraph (ba) into section 66 of the Finance Act 1996 (landfill sites)), and
(b) section 6(1) of the Pollution Prevention and Control Act 1999, so far as relating to paragraph 19 of that Schedule.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
59. Climate change levy (taxable supplies for use in recycling processes)
That—
(1) Schedule 6 to the Finance Act 2000 (climate change levy) is amended as follows.
(2) In paragraph 4(2)(b) (definition of taxable supply) for “45A” substitute “43B”.
(3) In paragraph 5(3) (taxable supplies: deemed supplies of electricity) for “45A” substitute “43B”.
(4) In paragraph 6(2A) (taxable supplies: deemed supplies of gas) for “45A” substitute “43B”.
(5) In paragraph 14(3A)(a) (use of electricity in an “exemption-retaining” way) for “, 18 and 18A” substitute “and 18”.
(6) Omit paragraph 18A (exemption: supply for use in recycling process).
(7) In paragraph 34 (time of supply of commodities other than gas and electricity: deemed supplies)—
(a) in sub-paragraph (1)(b), for “45A” substitute “43B”, and
(b) in sub-paragraph (4), for “45A” substitute “43B”.
(8) In paragraph 39(1)(c) (regulations as to time of supply) for “45A” substitute “43B”.
(9) In paragraph 42 (amount payable by way of levy)—
(i) in paragraph (a) after “supply” (in the second place it
26 Mar 2012 : Column 1289
occurs) insert “or a supply for use in scrap metal recycling”,
(ii) in paragraph (c) for “were not a reduced-rate supply.” substitute “were a supply to which paragraph (a) applies;”, and
(iii) after paragraph (c) insert—
“(d)if the supply is a supply for use in scrap metal recycling, 20 per cent of the amount that would be payable if the supply were a supply to which paragraph (a) applies.”, and
(b) after that sub-paragraph insert—
“(1ZA) If a taxable supply is both a reduced-rate supply and a supply for use in scrap metal recycling, the amount payable by way of levy on the supply under sub-paragraph (1) is the lower of the two amounts provided for that supply under that sub-paragraph.”
(10) Before the cross-heading before paragraph 44 insert—“Supplies for use in scrap metal recycling43A (1) For the purposes of this Schedule, a taxable supply is a supply for use in scrap metal recycling if—
(a) the person to whom the taxable commodity is supplied intends to cause the commodity to be used as fuel in a process (“the recycling process”) to be carried out by that person which is the shredding (or fragmentation), pre-treatment and melting of scrap metal for recycling, and
(b) the condition in sub-paragraph (2) is satisfied.
(2) The condition is that there is another process (“the competing process”) that—
(a) uses taxable commodities otherwise than as fuel,
(b) produces a product of the same kind as one produced by the recycling process,
(c) uses a greater amount of energy than the recycling process to produce a given quantity of that product, and
(d) involves a lesser charge to levy for a given quantity of that product than would, but for paragraph 42(1)(d), be the case for the recycling process.
(3) For the purposes of sub-paragraph (2)(a), taxable commodities are used “otherwise than as fuel” only if the supplies of those commodities to the person using them are exempted from the levy by virtue of paragraph 18.
(4) Sub-paragraphs (5) and (6) apply where the recycling process or the competing process, as well as producing a product of the same kind as one produced by the other process (“the corresponding product”), also produces one or more products that are not (“different products”).
(5) If the production of the different products is merely incidental to the production of the corresponding product, the different products are to be treated for the purposes of sub-paragraph (2)(c) and (d) as being of the same kind as the corresponding product.
(6) If the production of the different products is not merely incidental to the production of the corresponding product—
(a) the amounts of energy referred to in sub-paragraph (2)(c), and the amounts of the charge to levy referred to in sub-paragraph (2)(d), are to be determined on a just and reasonable apportionment, and
(b) in calculating the amount payable by way of levy on the taxable supply, only the proportion of the supply that is the same as the proportion of the energy used by the recycling process to produce the corresponding product (as determined for the purposes of paragraph (a)) is to be treated as being a supply for use in scrap metal recycling.
“melting” means—
(a) the pre-heating and first melting of scrap metal before casting into items (“intermediates”) for further processing or re-melting, or
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(b) the heating of scrap metal as part of the recycling process before any solidification and re-melting,
but excluding the melting of any metal which is not scrap but which is added at any stage to improve the quality or adjust the composition of the recycled metal or intermediates, and
“metal” means aluminium or steel.
(8) The Commissioners may by regulations make provision for giving effect to this paragraph.
(9) Regulations under this paragraph may, in particular, include provision for determining whether or not a taxable supply is a supply for use in scrap metal recycling (to any extent).
“Supplies for use in scrap metal recycling and reduced-rate supplies: deemed supply
43B (1) This paragraph applies where—
(a) a taxable supply (“the original supply”) has been made to any person (“the recipient”),
(b) the original supply was made on the basis that it was, to any extent, a supply for use in scrap metal recycling or a reduced-rate supply,
(c) it is later determined that the original supply was (or was to some extent) a different kind of supply, and
(d) the amount payable on the supply on the basis mentioned in paragraph (b) is less than the amount payable on the supply on the basis of the later determination.
(2) For the purposes of this Schedule—
(a) the recipient is deemed to make a taxable supply to itself of the taxable commodity, and
(b) the amount payable by way of levy on that deemed supply is—
(i) the amount payable on the original supply on the basis of the later determination mentioned in sub-paragraph (1)(c), less
(ii) the amount payable on the original supply on the basis mentioned in sub-paragraph (1)(b).
(3) This paragraph does not apply where a supply is treated as not being a reduced-rate supply by virtue of paragraph 45B.”
(11) Omit paragraph 45A (reduced-rate supplies: deemed supply).(12) After paragraph 62(1)(c) (tax credits) insert—
“(ca) after a taxable supply has been made on the basis that it was not a supply for use in scrap metal recycling, it is determined that the supply was (to any extent) a supply for use in scrap metal recycling;
(cb) after a taxable supply has been made on the basis that it was (to any extent) a supply for use in scrap metal recycling, it is determined that the supply was such a supply to a greater extent than previously determined;”.
(13) In paragraph 101(2)(a) (penalty for incorrect notification)—
(a) in sub-paragraph (ii) omit “, 18A”,
(b) omit the “or” after sub-paragraph (ii), and
(c) before sub-paragraph (iv) insert—
“(iiia) a supply (or supplies) for use in scrap metal recycling, or”.
(14) In paragraph 146(3) (regulations subject to affirmative resolution procedure) omit “18A,”.(15) In paragraph 147 (interpretation)—
(a) in the definition of “prescribed”, omit “, 18A”, and
(b) insert at the appropriate place—
““supply for use in scrap metal recycling” has the meaning given by paragraph 43A(1);”.
(16) Omit section 188 of the Finance Act 2003 (climate change levy: exemption for fuel used in recycling process).(17) The Finance Act 2011 is amended as follows.
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(18) In section 79 (which provides for a lower rate of climate change levy for Northern Ireland gas supplies treated as taking place before 1 November 2013), in subsection (2)—
(a) omit the “and” after paragraph (b), and
(b) after that paragraph insert—
“(ba) the supply is not a supply for use in scrap metal recycling (within the meaning of that Schedule (see paragraph 147)), and”.
(19) Omit section 80 (power to suspend exemption for supplies used in recycling process).(20) The amendments made by this Resolution have effect in relation to supplies of taxable commodities so far as the commodities are actually supplied on or after 1 April 2012.And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.