Nigel Huddleston
MP for Droitwich and Evesham · Conservative · United Kingdom
“As you know, Madam Deputy Speaker, I love to do everything I can to support our pubs and hospitality industry—and I do mean everything. I am pleased to represent an area of the country that has many fantastic pubs, many of which are participating in my current “Pub of the Year” competition, and voting is now open.”
“Commercial radio shares much of the same transmission infrastructure as DTT; if there were a switch-off, the costs that are currently shared between television and radio could instead be transferred to radio broadcasters, creating a significant new cost burden from 2035 onwards and potentially increasing transmission costs by more than 50…”
“That will take place in either 2034 or 2044, and it could have a profound impact on remote and rural communities in particular, such as parts of my Droitwich and Evesham constituency. Secondly, I am concerned about the thorny issue of prominence.”
“We have to strike the right balance between ensuring that people can access reliable information and protecting the fundamental freedoms that underpin our democracy. We must be very careful not to drift towards a society in which free speech is constrained, open and honest debate stifled, and the exchange of new ideas discouraged.”
“In a future wartime scenario, the UK might be thankful to have retained the infrastructure required to broadcast to the nation and beyond over distances of hundreds of miles. We then come to the issue of prominence.”
“It is a pleasure to serve under your chairmanship, Dr Allin-Khan. I refer Members to my entry in the Register of Members’ Financial Interests, and I congratulate my right hon. Friend the Member for Maldon (Sir John Whittingdale) on securing today’s debate.”
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“That was £350 billion-plus on the pandemic and a further £100 billion on cost of living challenges—about £3,700 per household—out of necessity, but we are now in a position where we can start to bring taxes down, which is what we did in the autumn statement. The OBR forecast that taxes as a percentage of GDP would fall by 0.7% as a result of the autumn statement changes, so taxes are clearly coming down now. Each fiscal event needs to be taken on its own, but the direction of travel is quite clear. On the hon. Gentleman’s points about class 2, 3 and 4 contributions as set out in the relevant legislation, the Treasury has provided a report detailing the decisions not to make changes to class 2 and 3 rates and thresholds, and class 4 thresholds, for national insurance contributions for 2024-25.”
“I thank my opposite number, the hon. Member for Ealing North, for his contribution, as well as my hon. Friend the Member for Dover. Perhaps we could at some point have regulations on reducing the length of the names of regulations, because we have all had a bit of a mouthful today. The hon. Gentleman raised many points not strictly relevant to the scope of the regulations, and many points that we have rehashed often, but I will repeat that the reason why taxes have been higher is because of the significant amounts of support that we gladly handed out during the pandemic out of necessity, and also to support with the cost of living crisis that he mentioned.”
“Regarding fairness, we have a progressive tax system where the top 5% of income tax payers pay nearly half of all income tax, while the top 1% pay more than 28%. In addition, the national insurance reforms announced at the autumn statement cut taxes for 29 million people. That package also strengthens the fiscal position by helping taxpayers to get their taxes right, while bearing down on the small minority who seek to avoid paying their fair share.”
“I am afraid that is a ridiculous characterisation. We on this side of the House care, including about our vibrant, important local councils. That is precisely why they just received an additional £600 million, and future spending will be a matter for future fiscal events.”
“My hon. Friend makes an important point. Of course, we never know from day to day exactly what Labour’s policy is, and I understand there are even differences among its Front Benchers at the moment, but we heard a firm commitment, without any promises at all about where the money would come from. We therefore know where it would come from: it would come out of taxpayers’ pockets or further borrowing, which is deferred taxation. Everybody will pay for it.”
“I am pleased to hear the hon. Gentleman’s enthusiasm for closing down tax loopholes and going after the abusers. It begs the question why Labour did not vote in favour of the Finance Bill last night, which included measures along those lines.”
“The reason we have had to raise taxes is £350 billion of support during the pandemic, which I did not hear the Opposition oppose, and an additional £100 billion to help people during the cost of living crisis, which I did not hear the Opposition oppose. We therefore had to increase taxes out of necessity, but we reduce them out of choice, which is exactly what we are doing. Labour increases taxes out of necessity and then continues to increase them out of choice.”
“The Government remain committed to increasing economic growth in Scotland and right across the UK. As part of 110 growth measures in the autumn statement 2023, the Government introduced tax policies that are projected to stimulate economic growth in Scotland and across the country. That includes making full expensing permanent and the largest ever cut to employee and self-employed national insurance contributions, which means more people working.”
“No, I do not agree. The hon. Member should be aware that the OECD suggests that in the coming years we will be growing faster than France, Italy and Germany. Of course, the Government have a strong track record against our OECD friends over the last 14 years, and Scotland benefits from this economic growth.”
“My hon. Friend puts it well. Of course, we have seen the considerable protections and support given in retail, hospitality and leisure business rates relief in England. That has not been extended to the same extent in Wales, and Scotland failed to extend it as well. She makes an important point.”
“I am afraid that the thing that would most impoverish the people of Scotland is separation from the UK. After 16 years of SNP rule—longer than the Conservatives’ in England—GDP per head in Scotland is lower, productivity is falling, employment is lower and inactivity is higher. That is not exactly a proud record.”
“The hon. Gentleman knows that the IMF has forecast us greater growth than France, Italy and Germany over the next few years. If he is so enthusiastic about supporting growth, including helping businesses across the United Kingdom, perhaps Scottish National party Members could have joined us in the voting Lobby last night instead of voting against, for example, full expensing and investment in research and development. They voted against that—how on earth is that in the interests of their constituents?”
“I have heard the concerns expressed by hon. Members on the impact of the loan charge, and I have pushed His Majesty’s Revenue and Customs for firm assurances on the safeguards that it has in place. No one will be forced by HMRC to sell their main home or access their pension funds early to pay their loan charge debts, nor has HMRC petitioned for bankruptcy, which would be only a last resort and is in nobody’s interest. There is substantial support in place to help people in debt, including agreeing time-to-pay arrangements with them.”
“Again, I thank my hon. Friend for championing this area and his great concern for the human stories behind the difficult circumstances resulting from some of these schemes. As I have said, I am constantly seeking reassurance from HMRC on this matter, and my understanding is that where bankruptcies have occurred, it has often been because of requirements outside of the loan charge, not from HMRC; indeed, some people have declared bankruptcy of their own volition. However, if my hon. Friend has evidence to the contrary, I would like to know about it.”
“I hear the House’s concern about this issue, on which we had a debate not so long ago. Of course, the suicides the hon. Gentleman mentions concern us, and independent reviews have taken place. However, I want to provide the House and anybody listening with reassurance that the best thing to do if people have concerns is to engage with HMRC, because very generous and long-term plans can be put in place to help people to repay. As I said, there are fears out there—there is a bit of scaremongering—that homes are being taken over or people are having to give up pensions. That is not the case. Engagement with HMRC to establish reasonable time to pay would therefore be reassuring for many of the people who fear much worse consequences. My appeal is to engage with HMRC.”
“We had an independent review in 2019 under Lord Morse. The Government accepted 19 of its 20 recommendations. The review has taken place, but as I have said repeatedly, I am challenging HMRC and listening to colleagues. If action needs to be taken, I will take it, but I do not believe that there is a case for another review, because we have already had one, and the Government have already taken action.”
“The Government want the UK to have a fair but internationally competitive tax system, designed to bring in talented individuals and investment that contributes to the growth of the economy. Non-doms play an important role in funding our public services through their tax contributions. They pay tax on their UK source income and gains in the same way as everyone else.”
“Non-doms contributed about £8.5 billion in taxes in 2022, and have contributed to investment to the tune of £7 billion since 2012. The hon. Gentleman will be well aware that scrapping their status would not be risk-free in a world in which people can be quite mobile, and could damage the UK’s competitiveness. As for the need for other support, that is exactly why we have been reducing national insurance rates, for example.”
“Small businesses are the engines that drive our economy and we support them to thrive using levers right across Government. Our small business rates relief means that one third of business properties in England already pay no business rates. We provide tax reliefs benefiting small and medium-sized enterprises, such as the annual investment allowance and employment allowance, and we support investment in SMEs through British Business Bank programmes and a variety of other support measures.”
“My hon. Friend and I have spoken about these policy areas on a number of occasions. In terms of supporting small businesses, the employment allowance enables businesses with employer national insurance contributions bills of £100,000 or less to claim up to £5,000 off those bills. That was increased in April 2022 from £4,000 to £5,000, so the smallest 40% of businesses have already been taken out of paying employer national insurance contributions, and many of those are in the hospitality and leisure sector. We always keep policies under review, and I know that my hon. Friend will always be lobbying on this issue.”
“That was very interestingly put by my right hon. Friend. I completely agree with his instincts, though, and those instincts are completely shared on the Conservative Benches. When we are able to reduce tax and release the entrepreneurial spirit, independence and innovation that exist right across the UK, the country thrives and all of us thrive.”
“Of course, Labour left us in pretty terrible financial circumstances back in 2010. Instead its figure is up £28 billion in real terms at the start of the next Parliament, an increase of 40% in real terms or 7% annually—the biggest ever published.”
“The hon. Lady makes an important point, and I know there is agreement on this issue across the Chamber. We made statements last year along those lines, putting particular pressure on the public sector. I am sure there will be continuing pressure on the private sector, too.”
“Eighty-five per cent of the funds recovered from the loan charge so far—about £3.9 billion in total—have come from the employers, therefore those who were running those schemes, so the hon. Lady is mischaracterising where we have gone so far. There has been one criminal conviction so far; others are in place. I repeat what I said to the Opposition spokesman, the hon. Member for Ealing North (James Murray), earlier: if they were that concerned about ensuring we go after the wrongdoers, they would have voted with us last night in the Finance Bill. [Official Report, 22 February 2024, Vol. 745, c. 12MC.] (Correction)”
“I know my right hon. Friend has been campaigning on the issue. I respect and appreciate the information he has provided, and his contributions to the debate. I assure him that I am in listening mode and looking forward to the meeting this evening, because I want to ensure that I hold HMRC to account to make sure everyone involved is treated fairly and respectfully.”
“Over the past few years, we have helped to support our high streets by freezing multipliers and, importantly, targeting further relief at the retail, hospitality and leisure sector. Frequent revaluations are now par for the course, because of the recent changes we have made.”
“To avoid a temporary gap where no company can claim, the legislation will be amended to ensure that subcontractors can claim where their customer is still in the old system.”
“The new rules for contracted-out R&D will ensure that the company making the decision to do the R&D and bearing the risk is the one that gets the relief. However, that means that, as currently drafted, there could be temporary situations when two companies are in a contractual relationship and one moves into the new R&D tax credit system ahead of the other. For a limited period of time, that could result in situations where both parties could claim on the same R&D or neither could claim, as was raised by stakeholders. Amendment 3 ensures that the legislation works as intended. For temporary double claims, the R&D credit will go to the claimant in the old system until both have started new accounting periods.”
“The Government do not want to exclude companies from relief because of legitimate commercial arrangements that do not affect the underlying true R&D intensity of the business. On top of providing more support for R&D-intensive companies, the Bill will simplify and improve our R&D reliefs by merging the R&D SMEs scheme with the R&D expenditure credit. To ensure that those clauses work as intended, the Government propose technical amendments to the R&D clauses. Companies and accountants wanted the merged scheme to be implemented on an accountancy period basis as that makes claims simpler and delays the merged scheme for the majority of current R&D expenditure credit claimants. It therefore gives them a bit more time to prepare.”
“From April 2024, the R&D intensity threshold will be reduced from 40% to 30%. Amendments 1 and 2 make changes to ensure that R&D-intensive companies get the relief as intended. Amendment 1 removes two situations where a company would appear less R&D-intensive than it actually is. These issues were raised with us by an industry stakeholder, for which I am grateful. To avoid abuse and to protect the scheme for genuinely R&D-intensive companies, the ratio is worked out at a group level. Currently in the legislation, companies within groups that charge each other for services could have costs double counted and therefore reduce their R&D intensity. The amendment will fix that.”
“It will ensure that all generators in scope of the levy will benefit from the exemption if they choose to proceed with investments in new generation capacity and make a substantive decision to go ahead with a project on or after 22 November 2023—the date of the autumn statement. That will help support continued investment in the UK’s renewable generation capacity by removing new investments from the tax and providing businesses with the confidence to make such new investments. I turn to Government amendments 1 to 3. To ensure that the research and development tax relief clauses in the Bill work as intended, the Government are proposing technical amendments to the R&D clauses. The Bill introduces a new enhanced support for R&D-intensive small and medium-sized enterprises, such as those in our vital life sciences sector.”
“We are now going further to encourage even more investment by introducing new clause 5, which will exempt receipts from new electricity generating projects from the electricity generator levy. I will address each amendment in turn, looking first at the details of new clause 5. The electricity generator levy was introduced following the energy crisis to ensure that energy companies with extraordinary returns contribute more towards vital public services and support for households. However, we must balance that against ensuring that the UK remains a brilliant place to invest in renewables. The new clause makes changes to the EGL that will exempt receipts from new electricity generating projects from the levy.”
“By announcing generous tax incentives combined with a rate of corporation tax that remains the lowest in the G7, the Government ensured that the UK is one of the best places in the world for businesses to grow and invest, but we should not be satisfied with simply being one of the best. This Bill therefore marks our next step in making the UK the best place in the world to do business. We are taking huge, ambitious steps to make that a reality in the autumn statement and in the Bill. For example, no other major economy has made full expensing permanent. That is a major step in encouraging more investment by giving a huge tax relief to those who invest. Alongside that, we have introduced a generous new regime for research and development carried out by companies.”
“The Government’s aim is to grow the economy for the good of everyone, and our tax system is a key part of that. For households, higher taxes mean less financial freedom and less choice in how they spend their money. For businesses, they can mean less growth and investment, and that means fewer jobs for workers. That is why we need to grow our economy to create jobs and give ourselves the financial headroom to reduce taxes and remove the barriers to private sector investment. We must have a tax system that is supportive of business. At spring Budget 2023, the Chancellor set out his approach for a highly competitive business tax regime.”
“His Majesty’s Revenue and Customs has published a tax information and impact note setting out the impact of the measure, including the economic impact, and the Office for Budget Responsibility has already conducted and published extensive analysis on the investment and growth impact of full expensing. That is available in its “Economic and fiscal outlook—November 2023”, which therefore negates the need to publish a separate assessment in six months’ time. The impact of permanent full expensing will be monitored through information collected from tax returns, and through regular communication with businesses and representative bodies.”
“Through the Office for Health Improvement and Disparities and the National Institute for Health and Care Research, they address health inequalities and provide robust evidence for policy development. Various Government units, such as the Cabinet Office equality hub, contribute to levelling-up opportunities and ensuring fairness. The Government Equalities Office, the Race Disparity Unit, the Disability Unit and the Social Mobility Commission all focus on different equality dimensions to guide and support inclusive policy development across the country. We therefore do not believe that new clause 4 is necessary. On new clause 6, I agree that it is important to regularly review and evaluate policy, and to be transparent, which my right hon. Friend the Member for Wokingham (John Redwood) also highlighted.”
“The Government also published revenue estimates for the next five years of the clauses in this Bill in the tax information and impact notes. Therefore, as the information requested by new clause 3 is publicly available in routine HMRC publications, the publication requested by new clause 3 is unnecessary. New clause 4 would require the Government to report on the likely impact of the measures in the Bill on public health, inequality and poverty—matters that concern us all and that we discussed in Committee. Existing mechanisms already effectively monitor and assess Government policies in those areas, rendering the amendment redundant. Departments such as the Department of Health and Social Care and its arm’s length bodies diligently evaluate policies to enhance health up and down the country.”
“New clause 3 would require the Government to publish details of sentences given and stop notices issued to tackle evasion and avoidance in the past five years, as well as revenue expected to be generated by measures in this Bill to tackle evasion and avoidance in each of the next five years. However, HMRC publishes information on the number of custodial sentences received for tax compliance offences and the average sentence length in its annual reports and accounts. The 2023-24 annual report and accounts will be published this summer, providing a full overview of HMRC’s performance. The Government also publish a list of tax avoidance schemes subject to a stop notice on gov.uk, with the most recent report published on 7 December. HMRC has issued more than 20 stop notices since issuing the first one in 2022.”
“The UK’s tax gap compares favourably with that of our international partners. HMRC has already published performance updates that provide information on its compliance performance every quarter, so we believe that this new clause is not necessary. New clause 2 is pretty much the same as the new clause 1 rejected in Committee of the whole House. As I have said previously, we believe that the provision is unnecessary, as the information has been published in the tax information and impact notes alongside each policy change. That gives a clear explanation of the policy objective together with details of the implementation costs for both HMRC and businesses.”
“Thank you, Mr Deputy Speaker. May I join you, Mr Speaker and the whole House in wishing His Majesty a speedy recovery following the announcement this evening? I wish to thank right hon. and hon. Members for contributing to this debate. I shall respond to as many of the points as I can, and also talk to the amendments that have been moved. On new clause 1, I agree that we must prevent fraud and ensure that all taxpayers pay their fair share. To help achieve that, the new maximum sentences for the most egregious examples of tax fraud, the new criminal offence on the promoters of tax avoidance, and enhanced director disqualification powers will come into force on Royal Assent of this Bill. That will all help. At 4.8% of total liabilities, the UK’s tax gap is at the joint lowest rate ever recorded and has remained low and stable.”
“(2) The review under subsection (1) must— (a) assess the impact of full expensing being made permanent, and (b) consider what other policies would support the effectiveness of the measures in clause 1 of this Act.”— (James Murray.) This new clause would require the Chancellor to publish an assessment of the impact on investment and growth of the measures in this Act to make full expensing permanent, and to consider what other policies could support the effectiveness of permanent full expensing. Brought up, and read the First time. Question put, That the clause be read a Second time.”
“I therefore urge that they be added to the Bill. The six new clauses tabled by the Opposition seek to get the Government to publish data and information that is already being published through other sources, as I have outlined. I therefore urge the House to reject them. Question put and agreed to. New clause 5 accordingly read a Second time, and added to the Bill. New Clause 6 Assessment of the impact of permanent full expensing “(1) The Chancellor of the Exchequer must, within six months of this Act being passed, publish an assessment of the impact of the measures in clause 1 of this Act on— (a) business investment, and (b) economic growth.”
“Member for Islington North (Jeremy Corbyn) being Prime Minister, or do they not want him in the party? Are they in favour of nationalisation, or against it? Are they in favour of private sector involvement in the NHS, or against it? In a whole host of policy areas, we have seen persistent, perennial flip-flopping from the Opposition. I literally have goldfish whose commitments I would trust more than those from the Labour Front Bench. On those points, we will have to respectfully agree to disagree. As I said, new clause 5 and the six amendments that the Government have tabled will help to ensure that the changes in the Bill apply as intended, and deliver a vital policy to protect renewable investment. They will make the tax environment more easily understood by business and protect vital tax revenue used to fund our public services.”
“Member for Ealing North, who was effectively asking me to commit to Conservative party policies as enthusiastically as he does, which is quite a turn up for the books. Of course, we welcome Labour’s support for the policies that we have announced, but there is clear blue water between the Labour party and the Conservative party in terms of principles about the size and scale of Government and the level of taxation. We have seen Labour’s flip-flopping over the £28 billion. I am not sure what the policy is today. It was rather rich of him to ask for commitments from me, given the flip-flopping that is so prevalent in every area of Labour policy. At one point, the Labour party was supportive of Brexit. Now I do not know. Are Labour Members against it? Were they supportive of the right hon.”
“We always try to act; I cannot do everything, though. I note the hon. Gentleman’s comments. In a similar vein, my hon. Friend the Member for Totnes (Anthony Mangnall) raised the importance more broadly of the tourism, hospitality and leisure sector, and of the creative sector. He is absolutely right. Measures in the Bill and elsewhere will support all those sectors. Of course, business rates relief is vital to the tourism, retail, hospitality and leisure sector. My right hon. Friend the Member for Wokingham made a range of comments, some outside of my direct remit. I assure him that I will raise his points, which ranged from bonds to public sector efficiency—a vital area—with colleagues in the Department. I was somewhat entertained by the comments of the Labour spokesman, the hon.”
“These are vital steps in ensuring that the system is fair for all, and that those who try to undermine it face the consequences. I thank right hon. and hon. Members from across the House for their helpful and insightful contributions to the debate on the Bill. I also thank the many stakeholders who have provided their views on the issues raised, the Treasury, HMRC officials and House Clerks who have helped the Bill to get to this point. This Bill backs British business, rewards hard work, nurtures innovation, and supports our leading industries while solidifying long-term economic growth. For those reasons, I commend it to the House.”
“In the Bill, we are expanding the cash basis—a simplified way for over 4 million smaller and growing traders to calculate their profits and pay their income tax. While we remain focused on reducing the tax burden, we cannot overstate the role of tax in supporting public services, so we must all do our part. Everyone must pay their fair share, which is why the Bill introduces a new criminal offence for those who promote tax avoidance schemes and continue to promote them after receiving a stop notice. Alongside this, His Majesty’s Revenue and Customs will for the first time be able to bring disqualification action against the directors of companies involved in promoting tax avoidance, including those who control or exercise influence over a company.”
“That is why the Bill makes changes to encourage people to stay in work and use their expertise for longer. The Bill will complete the abolition of the lifetime allowance, amending pension tax rules so that employees with valuable, hard-earned expertise are no longer encouraged to reduce their hours or retire early. The Office for Budget Responsibility estimates that this will retain 15,000 workers annually, keeping many high-skilled employees and experienced individuals in our labour market while ensuring that they receive their rightful benefits for working. Our third aim is to create a simpler, fairer and more modern tax system—an aim that the Bill also supports. Making full expensing permanent is a huge simplification for larger firms, but we are a nation of millions of small businesses.”
“The Bill also introduces greater support for loss-making R&D-intensive SMEs and lowers the intensity threshold required to access that support to 30%, helping around 5,000 extra SMEs. To further support investment in renewable energy, we have introduced a new assets exemption for the electricity generator levy, a measure that will continue to drive growth in both our renewables sector and the wider economy. We also continue to support our world-leading creative industries with tax measures that reform the film, TV and video game tax reliefs, turning them into refundable expenditure credits that are easier for business. Our second aim is to support employment. We must remove barriers to work and incentives to not work, and most of all, must ensure that hard work and expertise are rewarded.”
“Our first aim is to support British industry, so that we can solidify our position as world leaders in key sectors. Making full expensing permanent allows UK businesses to invest for less. We have moved to make the UK’s plant and machinery capital allowances the most generous of any major economy. Permanent full expensing has been called the single most transformational thing we could do for investment, and it was welcomed by more than 200 companies and trade associations. The Bill also merges two significant Government schemes: the SME scheme and the R&D expenditure scheme. In doing that, we are meeting our aim of simplifying the system while providing greater support to British businesses, so that they can spend less time on administration and more time on innovation.”