John McDonnell
MP for Hayes and Harlington · Labour · United Kingdom
“It is not a laughing matter—I am sorry for interrupting the flow of the discussion. It would be useful if the review looked at NATS’s long-term investment plans, particularly since its partial privatisation in 2001, which I opposed. I thank the Minister for meeting Unite this morning and thanking the workers, who have worked so hard.”
“On a number of occasions, I have raised the case of Lee Cheuk-yan, who many Labour Members will remember was the general secretary of the Hong Kong Confederation of Trade Unions and founder of the Labour party in Hong Kong. He was detained during the democracy movement five years ago.”
“I thank the Minister for his statement. NATS used to be in my constituency and then moved down to Swanwick. Of course, with Heathrow in my constituency, I receive—as I mentioned yesterday—a large amount of correspondence from a whole range of other MPs’ constituents, who think I am responsible for Heathrow airport.”
“I fully agree, and let me also say that wheelchair compensation is significant in this legislation. Most of us have dealt with cases like that. Going back to accountability in the process, a number of different organisations have provided us with notes on the legislation.”
“I apologise to my right hon. Friend; I should have checked this before the debate. The proposed new section 61G refers to priorities and objectives of the Secretary of State, which include a requirement for the Secretary of State to issue a document setting out those priorities and objectives for the CAA.”
“At the moment, when people in my constituency are faced with these problems, they do not know where to go; it is as simple as that. Finally, the debate that we will have on Heathrow expansion and the new policy statement will be interesting, given that we do not know what the flight paths will be. If I was a constituent of my hon.”
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“It should be based on a clear, just transition programme so that communities such as mine are given resources to develop a local economic strategy that will ensure we benefit from the environmentally sustainable aviation sector and have access to skilled and well-paid jobs in other developing sectors of the economy. We need that urgently, if not tomorrow. Finally, as a west London MP, I want to say this: let us end the ludicrous nonsense that building a third runway will in any way comply with our climate change duties.”
“That is why we need urgent legislation to ban the practice, not the mealy-mouthed, broken-promise approach that we have seen from the Government so far. My fourth point is that, as we come through the current crisis brought on by the pandemic, we need to recognise that we must face up to the next crisis, which is the existential threat of climate change. The Climate Change Committee today criticised the Government for setting wonderful targets with no means to deliver them, and that is exactly the situation in aviation. As my hon. Friend the Member for Cynon Valley (Beth Winter) said, we need a sustainable aviation strategy, and we need it fast.”
“Friend the Member for Jarrow (Kate Osborne) said, precipitously ending the furlough scheme and the financial support being provided now will force many of my constituents into either losing their job or having their wages cut even further. The Government need to provide some certainty and reassurance to the companies and the workers in those sectors that there will be continuing support to get them through the remainder of the pandemic. My third point, regrettably, is that the appalling practice of fire and rehire, which has taken hold in our economy, started initially on any scale at Heathrow. Thanks to Unite, we fought off the worst aspects of the first wave of that attack on my constituents, but that does not mean that the threat has gone away. Other companies are persisting in what is effectively workplace bullying.”
“Friend the Member for Slough (Mr Dhesi) raised the issue of the quarantine system resulting at times in the abysmal treatment of families who have been forced to quarantine at great expense. On arrival at Heathrow, they have been crowded on to buses, often unsafely, and they often find that the booking for their original accommodation has been cancelled. When placed in accommodation, they are provided, exactly as my hon. Friend said, with inedible, inadequate or unsuitable food. Secondly, my constituents—the workers in those sectors—want to get back to work and to get back to earning a decent living, but they know that doing so safely will take time. They are not unrealistic about that, so it is critical that the Government recognise the fact that some sectors will need continuing support. As my hon.”
“With Heathrow in my constituency, naturally I am worried about what is happening in both aviation and tourism. The number of people claiming unemployment benefit in my constituency has risen by more than 220% in the first year of the pandemic, so there is an urgent need for action. I will make four brief points. First, I agree with the criticisms of the Government’s list system made by my right hon. Friend the Member for Exeter (Mr Bradshaw) and the hon. Member for Bexhill and Battle (Huw Merriman). The system is confusing and ineffective, and it needs reform based on the data we now have, but whatever system we use, it needs to be properly resourced. Also, there has been a lack of sufficient staffing support for border control at Heathrow. That has put existing staff under intense pressure, and even put their health at risk. My hon.”
“Hope Virgo is the founder of the Hearts, Minds and Genes eating disorder coalition, which is the first coalition to declare a state of emergency around eating disorder treatment, and I am pleased that it is now meeting the Department of Health and Social Care. This serious issue needs ministerial support to drive through the new programme, and I hope that pathways and support will be developed within a timescale that recognises its urgency and seriousness.”
“I hope that more consideration will be given to consulting organisations that represent people with eating disorders in the development of that strategy. I want to pay tribute to Hope Virgo. Many will have heard of her campaign “Dump the Scales”, which has been calling so effectively through the media for proper investment in eating disorder treatments. Just this week, Hope told me she has received numerous letters from parents whose children have been naso-gastric-fed on general wards, with no psychological support in some health settings. F.E.A.S.T., a global website campaign, is reporting thousands of people contacting it through Eating Disorders Support UK, and 5,000 have signed up for its 30-day support scheme.”
“Member for Bath said, evidence is emerging that there has been a significant rise in people with eating disorders during the covid pandemic. Those in recovery have been set back, and new eating disorders have developed among a wider range of the population. From what I hear from my constituents, there is a vicious cycle of a lack of awareness, a lack of training and a lack of research funding at the scale needed. Let me just quote the parents from one family, who said: “Tell them right now the support, the treatment and the understanding is just not out there for us.” Concerns have also been expressed about what some people consider unhealthy messages being pushed by the Government’s obesity strategy, which is being developed at the moment.”
“It is reported that eating disorders have the highest death rates among all mental health disorders, and the rate of suicide is 23 times higher in people with eating disorders, compared with the general population—one in five deaths in eating disorder patients is reported to take place because of suicide, and I pay tribute to the work my hon. Friend the Member for Blaydon (Liz Twist) and her all-party parliamentary group on suicide and self-harm prevention are doing. According to the reports that we receive as constituency MPs, these serious consequences result from eating disorders partly because of the lack of access to psychiatrists who are fully trained in eating disorders and who specialise in eating disorder treatments. As the hon.”
“In recent years, we have seen a fourfold increase in eating disorder hospital admissions, and waiting lists are at an all-time high. Hon. Member after hon. Member is finding this in their constituency, particularly when they are approached by distressed parents. It is estimated that one in three young people experiences an eating disorder. Because these disorders occur among so many young people, they are still sometimes viewed as almost a teenage girls’ illness—a diet, a lifestyle choice or something a person grows out of. Yet, the statistics on their severity are shocking.”
“As the paper sets out, they are associated with extremely poor outcomes, so it is appropriate to try and stop these disorders persisting from an early age. It makes sense for the individuals and their families, but also for the NHS, in terms of reducing costs, and for the economy overall, because people can contribute so much more fully to society. What came out of that paper is the decision that we need to implement what we know already, but also support more research to improve recovery. As the hon. Member for Bath said, we already know that eating disorders are a growing problem. Some of the statistics are startling. The NHS 2019 health survey for England found that 16% of adults aged 16 and over screened positive for a possible eating disorder.”
“I thank the hon. Member for Twickenham (Munira Wilson) for not just securing the debate but superbly setting the scene. I want to reinforce the message that has just come so eloquently from the hon. Member for Bath (Wera Hobhouse) with regard to eating disorders. I saw the recent paper by Dame Til Wykes and other scientists and campaigners, supported by the Government’s national adviser, Chris Whitty. They discussed the end goals for mental health research. The first end goal was halving the number of children and young people experiencing persistent mental health problems. Eating disorders are just one of the serious persistent problems that start early and often persist into adulthood.”
“Most of those policy proposals were developed by us and were in Labour’s 2019 manifesto, but it would be gloating to refer to that.”
“While we are talking about football, let me throw in one other issue. I make a plea to include in legislation control of the sporting “crown jewels”, so that at least 20 Premier League games a season, equally split among the clubs, are shown on free-to-view channels, allowing fans to enjoy at least two of their club’s matches every season. That would give a fairer distribution of access to football on television. I support the overall campaign for a new regulator. The regulator could be responsible for the approval of takeovers, the application of a strengthened fit-and-proper person test process, the oversight of a club licensing scheme to ensure high standards of governance, and the management of a system of redistribution of club revenues to ensure the health of football at every level of the pyramid.”
“That is why I support the idea of legislation that requires every English club to secure the support of a 51% majority of its registered season ticket holders for any major decision that fundamentally affects its identity or future—for instance, the competitions in which it plays or any change of home ground, name, club colours or badge. Fans also need longer-term control, and we need to adopt the German 50+1 rule on supporter ownership of clubs. How do we get there? It is simple: where club shares are being sold, either by shareholders or through new share issues, legislation should require vendors to make shares available on a first-refusal basis to recognised, democratically controlled supporters clubs. This rule would apply until the trust owned 51% of the club shares.”
“Ms Elliott, you have a succession of Liverpool supporters, I am afraid. I am a member of the Spirit of Shankly supporters club. We are currently in discussions with the club about the role that supporters will play. I can say to my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) that I was at Wembley when the Crazy Gang beat us—I am still trying to work out how, to be honest. I am also a season ticket holder at my local club, Hayes & Yeading United. We are the club that discovered Les Ferdinand, Cyrille Regis and Jason Roberts. It is the sort of club that contributes so much, even though it is not in the league itself. Fans have now made it absolutely clear that they want immediate safeguards for supporters to be able to protect the best interests of their clubs.”
“Instead, the Government are imposing a huge stealth tax on millions of low-income workers by freezing tax thresholds. They have imposed a pay cap or pay freeze on millions of public sector workers. In just a few months, shamefully, the Government are proposing to cut the incomes of some of the poorest families in the country by £20 a week. I have heard a lot of the Government’s claims to be levelling up. Instead, they seem to be keeping people down.”
“Despite their refusal to countenance in the Finance Bill the proposals that I put forward, just to get the information, I hope that the Government have reflected and will commit to publishing data annually on the impact of freeports on local and regional job creation; on tax revenues, locally and nationally; and on neighbouring economies. They failed to countenance that in the Finance Bill, but they could in this Bill. This Bill is also a missed opportunity. The Government could have made provision for increasing the national insurance contributions paid by the highest earners. Currently, higher earners pay only 2% above the upper earnings limit. Raising that by just a small percentage would raise billions from those with the broadest shoulders.”
“I do believe in evidence-based policy making, and in recent months I have seen not just evidence-light policy making; we are now in a bizarre situation of non-existent-evidence-based policy making. I just hope that the Government have learnt something from the failure of this policy under George Osborne. I remind the Minister that in May 2014 the Public Accounts Committee described the impact of George Osborne’s enterprise zones as “particularly underwhelming” and criticised the Government for “over optimistic” claims about job creation. The job numbers failed to materialise. The Centre for Cities, the think-tank, found that the jobs created were “overwhelmingly low skilled” and therefore low paid.”
“It states: “The National Insurance contribution relief will be key in supporting the Government’s objectives for the Freeports programme, which includes regeneration through job creation. The Freeports tax sites have not yet been confirmed and so the Government is currently unable to give an accurate estimate of the number of employees that benefit in 2022-23 as this will depend on how many employers use the relief and will vary depending on a number of circumstances, including the location of the Freeport tax site. The Government will publish an updated Tax Information and Impact Note (TIIN), when further information is available following confirmation of the tax sites.” Can the Minister estimate when that will be published? Can he commit to publishing it during the passage of this Bill?”
“Member for Hereford and South Herefordshire (Jesse Norman), what estimate the Government had made of the cost to the Exchequer. The Minister could not answer, but insisted: “The National Insurance contribution relief will be important in supporting the Government’s objectives for the Freeports programme, which includes regeneration through job creation.” Given that the Government’s objective, as stated by the Financial Secretary, is job creation, I then asked him how many jobs would be created as a result of the national insurance contributions relief contained in this Bill. I received the answer to my written parliamentary question today, and it is a classic—worth framing.”
“I want to focus my remarks on the parts of the Bill that relate to freeports, as others have done. During the debate on the Finance Bill, I highlighted the corporate tax reliefs available and the lack of any projections of the impact on the Exchequer, or of any impact assessments on the areas where freeports will be located and on their neighbouring areas. I might be a bit old-fashioned, but I still believe in evidence-based policy making. Ministers seem to have come to Parliament asking MPs to sign a blank cheque and—apologies for the mixed metaphor—to take a leap in the dark on a policy that, in my experience, failed to deliver in the 1980s, when I was in local government, and in the 2010s, when I was an MP in Parliament. I asked the Financial Secretary to the Treasury, the right hon.”
“As a final point, if levelling up is to be meaningful, Heathrow expansion competing against regional airports has to be cast into the dustbin of aviation history.”
“However, it also means providing support and training to enable workers to shift into other emerging industries and sectors. Arrangements are also needed that put protections in place for lower-skilled and lower-paid workers, who will be the most vulnerable, as we have seen. I also say to the Government that we need to think through the support that is needed to develop local economic strategies for hearty airport communities such as mine and those other Members have raised in the Chamber today. Any review of aviation policy must strike an equitable balance between the benefits that aviation brings and its adverse environmental, economic and health costs. That is why the “growth at all costs” mantra in Government must end. The review of aviation taxation is also necessary to fund the new strategy.”
“The reality is that we need a concrete and very effective aviation recovery strategy. That means a recognition by the Government that they simply cannot precipitately turn off the support that they have provided so far. We need a continuing job support and retention scheme specifically designed for this sector, just to give us the breathing space for the strategy for recovery to take place. Of course, any recovery or future strategy for aviation must be a green recovery, but this transition to an environmentally sustainable aviation sector will be successful only if it is a just transition. For my constituents, this means providing workers with the training and expertise needed to work in a lower emission and increasingly automated sector.”
“I just say gently to the Minister that the Government need to get real in this debate. Even the industry’s figures suggest that it will take at least until 2023 to 2025 for aviation demand to recover from pre-crisis levels. A report by the New Economics Foundation and the TUC suggests that as many as 17,000 jobs could be lost from the sector even if demand returns, thanks to automation and changes to working practices. That could have a devastating impact on my community. In fact, it already is and that has not been helped, as my hon. Friend the Member for Easington (Grahame Morris) said, by the behaviour of companies such as BA and Heathrow forcing through fire and rehire strategies to cut wages and terms of employment. I thank Unite the union for the work that it has done and the campaign that it has waged against that.”
“It also does not build confidence in the Government when a Treasury and Equalities Minister publicly attacks a young black journalist and makes false statements about her on social media, seemingly for simply daring to ask the Minister a question. That the Government have been found to be attempting to bully journalists should not come as a surprise when they are led by a Prime Minister who once offered his help to have a journalist beaten up. In honour of World Press Freedom Day, I offer my thanks to journalists here and around the world who face obstruction, threats and intimidation simply for doing their jobs. We all pay our tribute to them.”
“There are no justifiable grounds for keeping in prison a journalist who had the courage to expose the war crimes and abuse of human rights committed by the world’s leading military powers. We also have a Government who just yesterday were forced by the courts to release documents detailing how the clearing house unit in the Cabinet Office has blocked freedom of information requests from journalists. I pay tribute to openDemocracy, which pursued this case. I quote the findings of the judge, who said that there was a “profound lack of transparency about the operation” of this unit that “might appear” even “to extend to Ministers”.”
“I agree with others that the whole House should be condemning the bombing of media companies and the harassment and arrests of journalists operating in the Occupied Palestinian Territories, including the ongoing harassment of the al-Jazeera correspondent in Jerusalem, Givara Budeiri. We must also condemn the jailing of the 12 journalists in recent months in Belarus. We even hear that journalists have been threatened and arrested while covering the Black Lives Matter protests in the US. We should not be complacent about press freedom on our own shores, either. I agree with my hon. Friend the Member for Leeds East (Richard Burgon) that it is a continuing stain on the reputation of this country that Julian Assange remains in Belmarsh prison.”
“I speak as the secretary of the National Union of Journalists parliamentary group. I pay tribute to the work of the NUJ here in the UK, led by its general secretary Michelle Stanistreet and president Sian Jones, and to the work of the International Federation of Journalists to protect journalists across the world. According to the figures we have received, there are at least 235 journalists in prisons across the world today, and 42 journalists have been killed for doing their job in the last year. It is strong and fearless journalism that makes press freedom worth defending, and we must protect it here and abroad against violence and suppression.”
“Swire, the company that owns Cathay Pacific, led the way in sacking staff who supported the democracy movement. We know about HSBC and Standard Chartered bank, of course, but what about Jardine Matheson? They supported the national security law, and—I say this to colleagues in other parties—they were also Tory donors. We have a duty to call out UK corporations who are the sponsors of the Chinese regime’s repression in Hong Kong.”
“As with all trade unionists engaged in international dialogue, the regime might at some stage deem his work there a coalition with foreign powers and in breach of the national security law. That is my fear. Another prominent target of the regime is Leung Kwok-hung, widely known as “Long Hair”. He is an avowed left-wing socialist in the League of Social Democrats and so far has accumulated at least 24 months—and it just goes on. I have listened to the other speeches, and of course I support the calls for Magnitsky sanctions and the accommodation of younger BNO passport holders born after 1997. I also agree with those who have pointed out the role that British companies are playing, and we have to address this matter. They lobbied the Prime Minister to try to get him to tone down the Government’s criticisms.”
“At Monday’s hearing, my friends’ defence attorney asked for clarification that the trial would be conducted in an open court with a jury, and the prosecutors refused to give that assurance, so there is a real possibility that the judges will be able to convict without press or public scrutiny. The next hearing is on 8 July, at which it will be decided whether the trial will be public and whether there will be a jury. It is critical that we maximise pressure through our own Government, and through civil society here and internationally, and seek at least the openness of that trial. Lee Cheuk Yan is still bravely agitating from jail. His sentences for illegal unauthorised assembly are piling up. So far he has accumulated 20 months, but there are more trials to follow.”
“Winnie Yu is chair of the health workers’ union—one of the new unions formed in late 2019—which had a five-day strike in January 2019 against the Hong Kong Administration’s early covid complacency. They are all up before the courts and in prison. What worries me is that at the hearing on Monday 31 May, the Department of Justice declared its wish to move the trial from the district court to the high court. That implies that the sentences for the Hong Kong 47, which includes my friends, will exceed the limit of seven years that the district court is limited to. The maximum sentence could be up to life imprisonment.”
“It is always difficult and frustrating to identify what effective role we MPs can play when there is abuse of human rights across the world. My view is that we can at least bear witness to what is happening and then mobilise for action, whether it is in Gaza, Yemen or Hong Kong. At least we can call it out. In the few minutes I have, I want to bear witness to what is happening to my trade union colleagues—they have become friends during campaigns over the years—who are part of the Hong Kong 47 trial. I have worked with Lee Cheuk Yan, the general secretary of the Hong Kong Confederation of Trade Unions. Carol Ng was the chair of the trade union confederation until her imprisonment in February. I worked with Carol in the British Airways dispute, when she was a Unite rep.”
“We believe that simply renaming these institutions will fly in the face of all that is needed at the moment, so many of us are urging the Government to think again and work with civil society organisations, professionals and unions to design an effective system that is based on rehabilitation, rather than incarceration.”
“Unfortunately, the Government’s new reform plan, to merge youth offender institutions, secure training centres and secure children’s homes into secure schools, flies in the face of all that evidence. We now know that the Government’s proposal is that autonomous trusts will run those schools, under the Ministry of Justice. The Police, Crime, Sentencing and Courts Bill seeks to promote new charitable providers to expand youth detention, by the looks of it. The University and College Union and others have a real fear that that is simply renaming child prisons as schools under multi-academy trusts. The fall in numbers gave us the opportunity to ensure that we could tackle youth offending effectively, rather than simply investing again in ineffective incarceration.”
“In addition, although the number may be declining, the latest statistics on behaviour management measures, published in the Youth Justice Board report in February, demonstrate just how poor the behaviour management problems are in these institutions. The numbers on restrictive physical interventions and self-harm are at a five-year high. The system is failing young people. We know that the right interventions work. If we can intervene at an early enough age, we can grow people out of crime. All the evidence points to the benefits of smaller institutions nearer to young people’s homes and communities to maintain family contact, and, in educational settings, to investing intensively to overcome past educational failures and maintaining educational opportunities for these young people.”
“The title of this debate is “Protecting the public and justice for victims”. Young people are part of the public, so I want to raise the issue of young people, particularly those imprisoned in youth offender institutions, secure training centres and secure children’s homes. I worked with children in care for over a decade, so this has been a personal interest of mine, and I am a member of the justice trade union groups. The good news is that the number of young people imprisoned has fallen over the past two decades, to about 850 on average. The bad news is that it is not reducing reoffending by those individuals; 71% of them reoffend within 12 months of leaving a secure placement.”
“That is possibly one of the most mealy-mouthed, weak-kneed, ineffectual statements that I have ever heard in this House. It is a betrayal of working people. Fire and rehire commenced in my constituency with companies such as British Airways and Heathrow Airport Holdings Ltd, and it spread like a pandemic, harming my constituents. It is galling that these companies have been receiving taxpayer support through furlough, grants, loans and tax reliefs. We need legislation, not guidance that can be ignored. If the Government are to go down the guidance route, will the Minister confirm that they will insist that no grant, loan or tax relief—no taxpayer support—will go to companies that do not abide by this guidance?”
“I welcome the Bill—of course I do—but it is now time for the Government to bring forward serious legislation to stop crimes like this happening in the first place and to protect our constituents from these spivs.”
“She said that staff were “not…trained sufficiently to analyse a firm’s financial information to detect indicators of fraud or other serious irregularity.” LCF’s founder was Simon Hume-Kendall, a former chairman of the Tunbridge Wells Conservatives and a party donor. It has been reported that the investors’ cash in LCF has been used to buy horses, a helicopter and lifetime memberships to private Mayfair clubs. Perhaps the Minister could update us on the ongoing inquiries into the activities of this gentleman and LCF. As has been said, this is not a one-off. There are so many other examples, including Blackmore, Basset & Gold and Chilango. Perhaps the Minister can tell us when further Bills will be introduced to compensate the investors in those schemes who lost so much money.”
“In addition, the FCA was advising that investments would be protected by the financial services compensation scheme; the High Court judged that they were not. The FCA was asleep at the wheel. The then chief executive of the FCA, who is now the Governor of the Bank of England, sat on his haunches and did nothing. Some 18 months ago, I called on the previous Chancellor, the right hon. Member for Bromsgrove (Sajid Javid), to delay Mr Bailey’s appointment as Governor, given the concerns. I am pleased that the Dame Elizabeth Gloster’s report actually identifies some of the problems. She described the FCA’s supervision of LCF as “wholly deficient” and said that there were “significant gaps and weaknesses” in the FCA’s practices.”
“The Bill will bring relief to thousands of investors who were let down not just by a failed company but by a failed system. That is why we need a Bill that will address the failures of regulation, governance and auditing, but this Bill does none of that. The Government are yet again bailing out victims of an under-regulated finance system that is regularly ripping off smaller investors. I have to say that Government Ministers are guilty of gross negligence for standing by while this happens time and again. LCF was offering customers mini-bonds. The FCA said: “There is no legal definition of a ‘mini-bond’”, but it did nothing to stop the mis-selling. The FCA saw no issue with LCF’s operations, yet in March 2019 HMRC found that products advertised as ISAs by LCF did not meet the rules.”
“They are living in poverty, unfortunately, as a result of the failure to have a fair taxation system that redistributes wealth in our country.”
“Subsection (2) gives the Secretary of State powers to list additional jurisdictions that do not co-operate in disclosing information to Her Majesty’s Revenue and Customs. In this way at least we can ensure that we are not, in effect, acting as subsidisers for tax avoiders or laundering tax reliefs into their coffers. It is a simple amendment. I support the Labour Front Bench amendments and the other amendments that would have a similar effect, but I have had enough. I am sick to death of sitting here listening to excuses from Ministers about failing to act when so much needs to be paid through a fair taxation system. So many of our constituents are having to endure continuing austerity because of the lack of tax revenues.”
“I pay tribute to groups in the UK such as: Tax Justice Network; UK Uncut, which took direct action; Tax Justice UK; and those journalists and researchers who helped to expose the Panama papers and the Paradise papers. One of those journalists was the Maltese investigative journalist Daphne Caruana Galizia. She was assassinated in 2017 for the work she did to expose tax avoidance and money laundering. My new clause 22 is very straightforward: no company should be eligible for the tax reliefs in the Bill if they are located, or have subsidiary companies located, in tax haven jurisdictions. The most authoritative list of tax havens or secrecy jurisdictions is the European Union’s blacklist of non-co-operative jurisdictions for tax purposes. That should be the basis of our approach. We are outside the EU now, so we must go further.”
“I have tabled a simple amendment saying that super deductions should not go to companies that are failing to fulfil their duty as taxpayers in our country and that are using tax havens. The reason is simple: these corporations benefit from the workers they employ, and the taxes are needed to pay for their education and training. It is ironic that we are also often using our tax system to subsidise the low pay that these corporations pay their employees. They also benefit from the infrastructure. That is why they should be paying their way within our country itself. In this struggle over the last 20 years or so, it is worth paying tribute to those who have campaigned so hard: my right hon. Friend the Member for Barking and all those activists, academics and journalists.”
“However, instead of cutting corporations’ taxes by cutting corporation tax, they are now simply doing it through the super deductions. These are super tax deductions to super tax avoiders. We can name them: Amazon, Vodafone, Virgin, Starbucks and many others. I sat in the Chamber when the global crash happened over a decade ago, and we discovered the intricate corporate structures that the banks used to avoid their taxes—the shell companies based in tax havens from the Channel Islands to the Caribbean. Barclays bank had more than 100 subsidiary companies located in the Cayman Islands alone. As these corporations became increasingly financialised, they became increasingly unprincipled about paying their dues to society.”
“I have to say that my right hon. Friend the Member for Barking (Dame Margaret Hodge) has eloquently put forward the case for these proposals, both those from the Opposition Front Bench, which I fully support, and her own, but I think she has been too kind to the Government. Like her, I have sat for over two decades listening to the sophistry from Conservative Ministers explaining the various complications of doing anything to tackle tax avoidance, and they have been dragged kicking and screaming to take what little action there has been. I have also sat here year on year while they argued that cuts in corporation tax were the way to increase investment. Now, at least, they have admitted that they were wrong on that.”