Ben Lake
MP for Ceredigion Preseli · Plaid Cymru · United Kingdom
“First, I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for securing this important urgent question. I have spoken to coastguard rescue officers from Ceredigion Preseli in recent weeks, and they all share common concerns.”
“One of my constituents submitted a request for their pension just over a year before their proposed retirement date, but is still waiting—sadly, it is little wonder that the June date has been missed.”
“I thank the Minister for her statement on the actions the Government will take to try to restore the public’s faith in our democracy. She mentioned that the “know your donor” rules will be strengthened, in particular with regard to the location of potential donors.”
“I thank the hon. Member for securing this debate and for the way that he has outlined the issue at hand. I also commend him on the Bill that he brought forward.”
“For the inquiry to secure justice for victims and survivors in Wales, it is essential that it fully understands the devolved context in Wales and the various lines of accountability that arise from it. One way to achieve that would be for Wales to receive a specific investigation as one of the inquiry’s designated local areas.”
“I am grateful that my hon. Friend has reiterated that point, and I will do likewise. Many of my constituents who have been affected and infected by this scandal have asked me to emphasise the point that even the updated scheme does not properly recognise the long-term consequences of interferon treatment.”
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“In that regard, I am very grateful that the Government and the Minister are considering additional support for energy-intensive businesses not connected to the mains gas grid. That should be a priority. Looking beyond next winter, I think Members will agree that the Bill offers a golden opportunity to step up investment in the energy efficiency of our housing stock. In the long term, reducing our energy demand represents one of the most important contributions to forging a more resilient and sustainable energy system, helping to permanently slash energy bills for both households and businesses alike. I have previously called for the £6 billion for energy efficiency measures, committed in the autumn statement, to be brought forward. The spending profile should be brought forward as much as possible.”
“I thank my hon. Friend for making that important point. I think we all agree that customers on prepayment meters are among the most vulnerable consumers of energy and electricity in the country, and they should be prioritised as we look to help households with the cost of energy. It was mentioned earlier that one way of financing greater support for households could be a new tax on share buybacks. We have read in the news about Shell and its £3.2 billion plans announced in that regard, and we must question whether such funding could be used to increase support provided under the energy price guarantee in advance of next winter. Another round of the alternative fuel payment could be guaranteed, set at a level which better reflects the increase in the cost of alternative fuels experienced by off-grid households.”
“I thank the Foreign Secretary for his statement this afternoon. Like many other Members, I have been contacted by constituents who are concerned about friends and close family members who find themselves stuck in this terrible situation out in Sudan. Further to the questions raised by the Chair of the Foreign Affairs Committee, the hon. Member for Rutland and Melton (Alicia Kearns), can I ask whether the Foreign Office is considering reviewing the eligibility criteria and, in particular, whether any consideration has been given to Sudanese passport holders who have entry clearance to the UK, be they students or other individuals, and whether there is any capacity to evacuate those individuals as well?”
“I am grateful to the Minister for being so generous with her time. May I ask whether the Government intend to maintain data adequacy with the EU? I only ask because I have been contacted by some business owners who are concerned about the possible loss of EU data adequacy and the cost that might be levied on them as a result.”
“I am pleased the statement mentioned the importance of energy efficiency schemes, both for their contribution to our net zero ambitions and the help they can offer households. The New Economics Foundation estimates that had all homes across England and Wales been upgraded to EPC rating C over the past decade, energy bills would on average have been £530 cheaper per household. I take it that the £1 billion allocated for the great British insulation scheme is in addition to the £6 billion committed at the autumn statement for expenditure post-2025. Is the Minister considering ways of bringing forward some of this spending so that even greater progress can be made?”
“Another key area that should be prioritised if we are to boost the Welsh economy is, of course, renewable energy. Others are far more informed than I am on this topic and could make contributions, so I will just say that we have considerable generation potential along the Welsh coastline in both marine renewables and offshore wind, and an opportunity to seize a first-mover advantage in technologies such as offshore floating wind and become a world leader in the manufacture of components, and in the export of skills and expertise into a growing global market.”
“If fibre-to-the-home technology is too challenging in the short term, let us instead see greater effort made to expand projects designed to target very hard-to-reach areas, such as the rural small cell projects or work on gigabit-capable, fixed wireless access technology. There must also be a way to reform the self-defeating systems that currently see fibre taken to the curtilage of some rural properties only for residents to be forced to pay exorbitant excess construction charges if they want that connection extended to their actual home—in other words, if they actually want it to work. In rural areas, where the curtilage of a property may lie some distance from the house, this is proving a real barrier to improved connectivity.”
“In addition, the Government should consider accelerating the timescales for the roll-out of gigabit broadband in very hard-to-reach areas, which often lack both fast broadband and a 4G signal. Sadly, many are located in my constituency of Ceredigion, and I know that the Minister is deeply aware of the impact of such notspots on the people living there. The National Infrastructure Commission for Wales estimated that it would cost about £1.3 billion to connect every property in Wales with fibre-to-the-home technology, yet the Government have only released £1.2 billion of Project Gigabit funding so far for the entire UK. There is a real opportunity to boost productivity in all parts of the United Kingdom, if only the Government were willing to bring forward some of the funding that they have already allocated for this purpose.”
“I am concerned that businesses in Wales, particularly in rural areas, risk being left behind due to poor digital connectivity. For example, gigabit connectivity in Wales stands at some 50% compared to the UK average of 68%, and—as always—the problem is far more acute in rural areas, with only 27% of Ceredigion connected to gigabit internet. We cannot allow rural areas to miss out on productivity-boosting technologies, whether that means simple broadband connectivity or the integration of new AI technologies. I therefore urge the UK Government to release the funding allocated to Project Gigabit without delay and in accordance with recommendations set out in the report of the Select Committee on Digital, Culture, Media and Sport.”
“But it is also important to note that the scoring limitations of the scheme have set the bar far too high for the minimum improvements required for a property to be eligible for support under the scheme. The result is that many eligible households fail to secure an installer willing to undertake work on their properties. This is something the Government need to review with some urgency. I now want to take a step back from the immediate issues facing households and society more broadly, and look at the longer-term problems. I echo many of the points that the hon. Member for Carmarthen East and Dinefwr made in his very eloquent speech. I agree that this Budget wasted an opportunity to tackle some of these longer-term productivity issues that have hampered prosperity in Wales for decades.”
“I have previously called for the £6 billion committed to energy efficiency in the autumn statement last year to be brought forward in the term of this Parliament, but it is critical that the current energy company obligation schemes—the ECO schemes—are delivered properly. E.ON Energy estimates that as of December 2022, only 11% of the ECO4 scheme obligation had been delivered, compared with an expected delivery rate of some 19%. By comparison, at the same point during the ECO3 scheme, it estimated that 29% of the obligation had been delivered. The company has suggested that inflation is partly to blame for this underperformance, having escalated costs beyond the funding assumptions originally set for the installations.”
“We do not need to be experts in business to know that that falls woefully short of reflecting the increase in energy prices that these off-grid businesses have experienced over the past 18 months to two years. Let us remember that these off-grid businesses are local post offices, village shops, swimming pools, and rural factories in Ceredigion—key pillars of rural society and economy, and the lack of meaningful support has placed them at a competitive disadvantage to those companies connected to the mains gas grid. When we consider that most off-grid businesses are located in rural areas, that failure surely flies in the face of the UK Government’s professed levelling-up agenda. Of course, part of the long-term solution to bringing down energy bills for both households and businesses is to improve the energy efficiency of our buildings.”
“We know of the increased percentage of business insolvencies last year in England and Wales. I fear that we will see a further escalation in insolvencies this year, unless the UK Government expand the energy bills discount scheme or at least require energy companies to allow small businesses to renegotiate their contracts early in order to reflect falling prices. I mentioned that 74% of properties in my constituency of Ceredigion are not connected to the mains gas grid. Much has been made of the plight of households and rightly so, but for off-grid businesses, the situation is quite acute. They have been offered only a one-off payment of £150.”
“To help families see out the spring, the Government could and should have considered extending the energy bills support scheme. I do not dismiss the extension of the energy price guarantee, which will be a great service to a lot of people across Wales, but the measure does not offer the 74% of my constituents living in off-grid homes support with their fuel costs. There should be further support for off-grid households; I would welcome a further round of the alternative fuel payment, for example. It is difficult to deny the inconsistency in the level of support offered to off-grid households compared with those connected to the mains gas grid, and I am sure the Government would want to address that. Meanwhile, small businesses have been left without any additional support with energy costs.”
“Friend the Member for Dwyfor Meirionnydd (Liz Saville Roberts), that it cannot be right—it is certainly inconsistent and illogical—that any underspend in a UK Government Department returns to the UK Government, but the same does not apply to any underspend in Welsh Government Departments. I turn to the issues facing the spring Budget. High on the agenda was the rising cost of living. Much has been made of the measures included in the Budget that aimed to support households and businesses with energy costs. We have heard comments to that effect this afternoon. The Chancellor was right to identify that as a key concern, but given that energy bills are still expected to increase by some 17% next year, the Budget did not go far enough.”
“Diolch, Mr Hollobone; it is an honour to serve under your chairmanship. I congratulate the hon. Member for Newport West (Ruth Jones) on securing this important debate. It is a pleasure to follow my hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards). I fear that I need not reiterate many of his points in my own speech because he made them so eloquently and effectively. Before I address the substance of the spring Budget, it would be remiss of me not to comment on the report published earlier this week by the Senedd’s Public Accounts and Public Administration Committee, which found that due to a budget underspend in 2021-22, the Welsh Government breached the limits of the Welsh reserve. Other Members have commented on that this afternoon. I would just add, echoing the point made by my right hon.”
“Wales desperately needs an economic strategy capable of providing adequate funding for its public services, reducing poverty, improving incomes and ensuring that we realise our potential contribution to the global effort of tackling climate change—a strategy that, I am afraid to say, the spring Budget did not deliver.”
“I am grateful to my right hon. Friend for posing that question. It is indeed a question that keeps me up at night. Why is it good enough for Scotland but not good enough for Wales? Perhaps the Minister will address that point when he winds up. The Welsh Affairs Committee recently published a report setting out that offshore floating wind technology could represent the single biggest investment opportunity in Wales for decades, and recommended that the UK Government take the necessary steps to ensure that its potential is realised. I very much hope that they do.”
“On HS2, the Chancellor could also have used the Budget to release the £1 billion or so owed to Wales in consequential funding from the £20 billion expenditure already allocated to HS2. Over the project’s lifetime, Wales could receive up to £5 billion in consequential funding to spend on improving our creaking public transport infrastructure. That sum could be transformational for areas in rural mid-Wales such as Ceredigion. Sadly, it does not seem to be coming our way. The success of any Budget is measured in the way it addresses the immediate challenges facing the economy and whether it paves the way for future prosperity. For rural areas, this Budget sadly falls short on both counts.”
“Far too many places in my constituency, and in rural areas in general, suffer from poor connectivity and that hampers their economic development. As the Digital, Culture, Media and Sport Committee noted, the decision to allocate only 25% of the funding for Project Gigabit so far risks undermining the ambition to improve the connectivity of hard-to-reach premises in a timely manner and prevent them from falling even further behind other parts of the UK. I would therefore like the Minister, in summing up, to explain when the UK Government will release the rest of the funding. Will they commit to accelerating the timescales for the roll-out of gigabit broadband in very hard-to-reach areas, many of which often lack both fast broadband and 4G signal?”
“Their omission from meaningful support schemes has placed them at a competitive disadvantage to those companies located in more urban areas, which surely goes against the levelling-up agenda, about which we have heard so much from the Government. If we are concerned about addressing the productivity problems of this country, we need to look at some of the structural issues in the way the UK economy has operated for some decades. There is no better way, in the short term at least, to address some of those structural problems and the productivity issue in rural areas than by investing in digital connectivity improvements. Gigabit connectivity in Ceredigion stands at 27% of premises, compared with the UK average of 68%.”
“Additional support could be delivered immediately by extending the energy bills support scheme and guaranteeing off-grid homes an additional round of the alternative fuels payment. It is staggering that small businesses have been left without additional support for their energy costs. I am worried that many will be forced to close when support is reduced in April if the parameters of the energy bills discount scheme are not expanded. Off-grid businesses have had to endure the rise in alternative fuel costs with paltry Government support. I should like to know how the Government justify the comparative lack of support for off-grid businesses, many of which are located in rural parts of the country such as Ceredigion.”
“It is a pleasure to follow the hon. Member for Lewisham East (Janet Daby). With living standards falling at a record rate and incomes in real terms set to remain below pre-pandemic levels until 2028, it is impossible to deny that the Budget is set against severe economic headwinds. But given the impact that rising living costs are having on households across the UK, it is disappointing that the Budget failed to take advantage of the opportunity to ease the burden of higher fuel costs. Four in 10 homes in Wales are thought to be switching off their heating because of the cost, and typical energy bills are expected to remain at historically high levels for some time to come.”
“I am grateful to my hon. Friend for giving way and for making such an important point. The reduction in banking facilities, especially in rural areas such as his and mine, has accelerated the move to a cashless society, as he rightly mentioned. With banking costs, the depositing of cash for businesses is becoming even harder and more expensive. Does he agree that in this conversation, the Government need to ensure that banking services, including deposit services, are retained in rural areas to make it easier for particularly small businesses to continue to accept cash?”
“The potential problem is that because they have a direct relationship with an electricity supplier, they will have taken it for granted that they would receive the payments automatically. I am concerned that some people may not know that they need to make an application through the online portal. Could the Government initiate any steps, such as publicity campaigns, to make sure that everyone who needs to make an application knows that before the scheme concludes? I echo the hon. Member for Kilmarnock and Loudoun (Alan Brown) when he said that we need to look ahead to next winter. The Government would do well to do the work now to support off-grid homes in winter 2023-24.”
“If we need more arguments against the arbitrary cut-off date, it is obvious that those who have received the payment automatically may not have bought fuel after September 2022, but they will benefit from the £200 because they have a direct relationship with an electricity supplier. That is an unintended unfair consequence of the scheme. I support the scheme, but that is a hitch that needs to be addressed. My other concern is that the postcode details of a number of off-grid homes in Ceredigion were not supplied to energy suppliers—for various reasons, mainly because they are new builds or new estates—so they did not receive the payments automatically. I am grateful to the Minister and the Department for clarifying that those households are eligible for the payments but that they will need to apply through the online portal.”
“I cannot comprehend of a fair line of argument that the Government could produce to satisfy me that some of my constituents, who have been buying in the month of August for decades in some cases, should be punished when their neighbours, who perhaps were not able to buy in August—there were many difficulties at the time— will receive a £200 payment. I would be grateful if the Minister could satisfy the House that there will be some discretion for people who bought in August. Although the prices in August were cheaper than in the winter, they were still significantly higher than prices in 2021 or 2020. The prices in August 2022 were more than double those of August 2020. It is important that individuals are not punished by an arbitrary cut-off date for the online scheme.”
“I have already been contacted, since yesterday, by many constituents who have explained that although they are eligible and satisfy most of the criteria, their applications have been refused and they cannot proceed any further because they have not got evidence that they bought fuel after September 2022. Many of these people will have bought oil in August or July. I know and I am anticipating arguments that fuel was slightly cheaper in those months than it would have been during the winter months, and I do not deny that, but they were not to know at the time that they would be punished for buying in advance. They were not to know that if they bought in August, as they often do, they would be at a disadvantage under this scheme.”
“It is a pleasure to follow the right hon. Member for Orkney and Shetland (Mr Carmichael), because he raised a number of important points and concerns echoed by many of my constituents. Ceredigion is a mainland constituency that has one of the highest proportions of domestic households not connected to the mains gas grid—74% of properties are off grid there. Clearly, the scheme is very welcome and will offer a great deal of support for many of my constituents. However, the right hon. Gentleman drew upon a few concerns that I share and would like to bring to the Minister’s attention this evening, as I believe they warrant urgent attention. As the right hon. Gentleman said, those who have not received the payments automatically are required to make an online application.”
“I was about to start speaking to you in Welsh there, Mr Deputy Speaker. I want to conclude by again thanking the hon. Member for Swansea East for securing this debate and wishing everyone a happy, belated, St David’s Day.”
“So the fact that a policy designed to help ends up making things worse is a problem that demands urgent Government attention. Let me give one example, that of an elderly household who undertook a project under ECO4. It was supposed to take three weeks for them to be connected and for their home to be fully insulated, with a new system, but they ended up being without any heat during the worst of the winter cold weather for several months. That is just one of many other instances that have been brought to my attention. We need to look again at how ECO4 is monitored and we need clearer lines of accountability. There is no doubt that a lot of good can be done if we can ensure that the energy-efficiency of our housing is much improved, but at the moment the policies that aim to realise that simply are not working.”
“I am conscious that at present the flagship energy efficiency policy is ECO4—the fourth phase of the energy company obligation. Although I agree that retrofitting projects will have to play an important role in the broader energy efficiency mission, I am concerned about the implementation of ECO4 locally in my constituency. I have been contacted by too many constituents with complaints and concerns about the way in which this scheme is being administered and run locally. Some have told me that they were supposed to receive support under the ECO4 scheme but it has ended up making things worse for them. We know that in rural areas the housing stock tends to be more inefficient and that fuel poverty in rural areas is a very pressing issue.”
“I am not proposing for a moment that I have the answers today, but individual policies such as a rural visa pilot or enhanced investment in broadband can nevertheless make an important contribution to mitigating some of the worst consequences of these demographic trends that Ceredigion and other rural areas are facing. Before concluding, let me take the opportunity to raise an issue in the hope that the Secretary of State can use his good offices to look into it. We speak a lot in this place about energy efficiency and the need to decarbonise housing. In this cost of living crisis, with the current price of energy, there is a great deal of interest among the public in improving the energy efficiency of their homes. We should all be pursuing and supporting that.”
“Although the levers to deliver the project are held by the UK Government, it is something we should consider. The Scottish Government have proposed a community-driven approach to migration that would respond to the distinct needs of rural communities to act as a counterbalance to an ageing demographic and rural depopulation. Such a policy should be explored further, as it could help to boost economic prosperity be ensuring that industries secure the skills and labour they require to grow, and that public services can ensure they have the people needed to maintain key services. We need a long-term strategy to address the consequences and drivers of rural depopulation.”
“I was grateful for the Minister’s response yesterday that he is willing to meet me to discuss this, because we still have areas of the county that have not only no access to broadband but no mobile coverage. Those areas should be prioritised in any new programme. In pursuing a levelling-up agenda, the Government could do much worse than to prioritise improvements to the digital infrastructure of rural areas. If we are to counter such tectonic demographic trends, we also need to see structural funding from the shared prosperity fund and some creative thinking. I was interested to attend the recent session organised by the Welsh Affairs Committee with representatives of the Scottish Government, with whom I discussed some of their proposals for a rural visa pilot scheme.”
“The covid pandemic demonstrated that it is possible to live in areas such as Ceredigion and pursue careers that, in the past, might have required people to relocate to Cardiff, Bristol, London or elsewhere. Digital connectively offers possibilities of which previous generations of Cardis could only dream. Ceredigion’s economy would benefit significantly if its digital infra- structure could be brought into the 21st century. Sadly, we still trail the UK averages for both superfast and gigabit broadband, so it is vital that the next iteration of the Government’s Project Gigabit programme brings forward much-needed investment in Ceredigion’s digital infrastructure without delay.”
“A declining or reducing population impacts on the funding and provision of key public services. The hon. Member for Delyn mentioned the difficulties of funding local services, and a declining population does not help in that regard. It also makes it harder to recruit doctors for our surgeries, teachers for our schools and nurses for our hospitals. It saps the energy from civic initiatives, hinders economic growth and, at the worst, weathers the social fabric of local communities. We need only pass a closed school or a shuttered pub to understand the consequences of rural depopulation. Yet, in the age of digital working and levelling up, we need not despair.”
“I worry that such is its severity that it risks exacerbating longer-term demographic trends, endangering the county’s future vibrancy and prosperity. The wealth of any county, or country for that matter, is its people. As such, it is impossible to consider the results of the 2021 census without a degree of trepidation. Ceredigion recorded a 5.8% reduction in its total population, exceeding the decline of other areas, such as the 3.7% decrease in Gwynedd and the 1.2% drop in Ynys Môn. It is a demographic trend that is decades old, and Ceredigion’s experience is influenced by an even older tendency for populations to aggregate in more urban centres. We need to consider how Government action can address some of the underlying drivers of rural depopulation and, at the very least, try to mitigate its consequences.”
“Members will of course be familiar with Ceredigion’s natural beauty—our coast and countryside are rightly the envy of the people of these islands—but it is the resilience of her people that casts Ceredigion as a truly remarkable place. Other Members will agree that Friday is one of the highlights of our week, when we are able to go out and meet different organisations and people in our constituency who do remarkable things. It is a chance to meet the everyday heroes, such as those volunteering in local initiatives such as Home-Start and food banks. It gives us a sense of perspective, which is important in politics. I place on record my thanks to all the people in Ceredigion who give so generously of their time to support others in the community. Like so many other areas, the cost of living crisis has hit Ceredigion hard.”
“Member for Preseli Pembrokeshire, I have to disagree with him on one important point, which is our patron saint’s origin and place of birth. He is correct to say that there is a legend suggesting that St David was born in Pembrokeshire, but I have it on good authority that there is another account suggesting that St David was actually born in Henfynyw, which is near Aberaeron in my constituency, and that he was a grandson of a king of Ceredigion, no less. Combined with his miraculous exploits at Llanddewi Brefi in the year 550, this surely marks him as potentially the most famous Cardi in history. I am privileged to represent Ceredigion, and it would be remiss of me not to extol the wonderful attributes of the county’s communities and people.”
“Member for Preseli Pembrokeshire (Stephen Crabb) and the hon. Member for Aberavon (Stephen Kinnock) on the exciting potential of floating offshore wind. We sometimes dwell on the negatives, especially given the state of the Six Nations performances this year, so let us dwell on some of the positives. The potential of floating offshore wind is exciting and, as the hon. Member for Aberavon said, it presents an opportunity for another green industrial revolution. The synergy between that source of energy and industry is unique and exciting, and I know it is something that other countries are looking at closely. I hope we can lead on that development. Although I outline a point of consensus with the right hon.”
“It is a pleasure to follow the hon. Member for Delyn (Rob Roberts), who made an interesting speech. He tempts me to agree with him, but I fear I will have to disappoint him on this occasion. I also congratulate the hon. Member for Swansea East (Carolyn Harris) on securing the debate and on introducing it in such a wonderful and inspiring way. It really is a pleasure to participate this afternoon after such a fantastic opening. St David’s Day week is a wonderful opportunity. It appears as if St David’s Day has become even more of a fixture in everyone’s calendar, and it is wonderful to see so many events being organised to remember the patron saint. It is good that Members from Wales have this opportunity to discuss the issues facing Wales today and perhaps in the future. I was particularly struck by the comments of the right hon.”
“Ofcom reports that some 30,000 premises across the UK have no access to decent broadband or to a decent 4G signal, including rural areas of Ceredigion, such as Lledrod, Pennant, Talgarreg, Cribyn, Sarnau, Abermeurig and Coed-y-bryn to name but a few. Will the Minister make representations to colleagues in the Department for Digital, Culture, Media and Sport to ensure that those areas are prioritised in the next iteration of Project Gigabit?”
“Declining self-sufficiency over the past 30 years has left the UK increasingly exposed to shocks to global supply chains. Brexit trade barriers hinder attempts at sourcing alternative supplies and the Government’s own food security report identified that climate change is likely to have a significant impact on production in the countries from which we import a lot of our fruit and veg at present. What are the Government going to do to support and incentivise greater domestic production to avoid a repeat of these shortages?”
“Although that figure is contested, I am sure we can all agree that it is still a significant amount of lost revenue to the Exchequer. Given how large the gap is, one would hope that the teams responsible for pursuing this lost revenue within HMRC were appropriately resourced. However, recent analysis by TaxWatch UK considering the approaches taken to tackling tax fraud in comparison with those taken for benefit fraud, suggests that that is not the case. Despite tax fraud costing the Treasury nine times the amount lost to benefit fraud, the Department for Work and Pensions employs 3.5 times more staff in compliance than HMRC, when adjusted to the size of the tax and benefit gaps. I think that should be considered when it comes to the Budget.”
“Likewise, I think we need to consider whether it is acceptable for there to be such a discrepancy between the primary and upper rates of national insurance contributions. It is not appropriate for earnings of £50,000 to £170,000 to be levied with a 12% rate when earnings above that threshold incur a 2% rate. All those discrepancies, issues and inconsistencies feed into a widespread concern—one felt by many in Ceredigion—that the system is rigged and is not working fairly. That is something that we should be concerned about if we value a harmonious society and hope to build a prosperous one. Before I bring my remarks to a close, I will touch upon an issue that needs further Government attention: the tax gap. In 2020-21, it was estimated that the tax gap was £32 billion, or 5.1% of all tax liabilities.”
“The key, in my opinion, will be how the taxation system can be reformed to ensure that the burden of taxation is distributed more fairly—we have heard a few ideas this evening—and with that endeavour in mind, I think a few obvious examples warrant further attention, such as the decision last year to lower the additional rate threshold for income tax. As a result of that change, someone earning £150,000 a year will pay almost 1% more of their income in tax, while someone earning £1.5 million will pay only about 0.1% more. We could go through the different income levels to make similar points. That raises the question of whether additional thresholds need to be introduced to the income tax system to make it far fairer and more progressive, which I believe the Scottish Government have done for taxpayers in Scotland.”
“Wealth inequality should concern all those of us who seek to bring about a fairer and more prosperous society. At present, the wealth held by the richest 1% of households is greater than that held by 80% of the population. Such inequality poses a severe and long-term threat not only to the health of the economy, but, as my friend the hon. Member for West Dunbartonshire (Martin Docherty-Hughes) said, to the future vibrancy of the social contract—of civil society itself. I would very much like the Chancellor to set out measures to address this issue in the forthcoming Budget.”
“It is a pleasure to follow the hon. Member for Lewisham, Deptford (Vicky Foxcroft), and I commend her for her speech. It has been asked a few times this evening why there is all this focus on the non-domicile tax status and whether it should be abolished. This has become quite an emotive subject, partly because it has become a lightning rod for a whole range of other questions and concerns about the UK tax system and the need for reform. Those questions include, “Is it fit for purpose?”, “Does it raise sufficient revenue to resource our public services adequately?”, and “Does it distribute the burden fairly across society?” We need only look at how the tax system interacts with wealth inequality to see that there is a strong case for broader tax reform.”
“The Government have announced that support for homes and businesses connected to the mains gas grid will be extended for another year, but it seems that the single round of alternative funding announced for off-grid homes will be expected to last for the full 18 months. Notwithstanding the fact that the first payment to off-grid homes is still to be made, will the Secretary of State push colleagues in the Department for Business, Energy and Industrial Strategy and the Treasury for a second round of alternative funding to provide support for off-grid premises ahead of next winter?”