Ten days ago, I announced the four pillars of our plan to transform productivity and make the UK one of the most prosperous countries in Europe. They all begin with the letter “e”, to help Opposition Members remember them easily: an enterprise economy with low taxation; world-class education and skills; high levels of employment, to reduce our dependence on migration; and growth spread everywhere, from South West Surrey to Leeds to Chorley.
Kate Hollern
Does the Chancellor recognise that it is his responsibility to deliver what people want, which is a fair tax system where everybody plays by the same rules? Will he disclose how many Government Ministers have personally benefited from non-dom tax status over the years, and how many have used overseas offshore trusts to reduce the taxes that they owe Britain?
T2. I noted the Financial Secretary’s earlier comments about the implementation of the OECD’s global minimum corporation tax, but can she or the Chancellor provide some kind of clarity over the plans for the dispute resolution mechanism under pillar two and, importantly, say something about the assurances that will be given to businesses that will be affected by it in the next financial year?
I thank my right hon. Friend for her question. The pillar two rules mean that large companies—these are defined as businesses with revenues of €750 million or more—are subject to a top-up tax if the profits that they make are not subject to at least a 15% tax. The reason that the international community is coming together to draw up these rules is precisely to do with the new shape that all our economies are taking, with international businesses spreading out around the world. We are trying to find a way to ensure that those very profitable businesses pay their fair share of tax.
Last week, Shell announced profits of £32 billion, the highest in its 115-year history. Today, BP announced profits of £23 billion, the highest in its history. Meanwhile, in April, energy bills for households will go up by £500. The cost of living crisis is far from over, so will the Government follow our lead and impose a proper windfall tax to keep people’s energy bills down.
I am glad that the right hon. Lady asked about windfall taxes, because our plans raise more money than she was advocating in the autumn, and they are also balanced and fair. Anything higher will stop investment, increase dependence on Putin and increase energy prices. I am afraid that it is more clean energy with the Conservatives and more expensive bills with Labour.
There we go again: the Government shielding the energy companies and asking ordinary families and businesses to pay more. Shell has spent more on share buybacks than it has invested in renewables. Last year, BP’s dividends and share buybacks were 14 times higher than investment in low carbon energy. The Government are allowing energy companies to make profits that are the windfalls of war, while ordinary families and businesses pay the price. Is it not the case that the Tories cannot solve the cost of living crisis because they are the cost of living crisis?
No, Mr Speaker. The total tax take from that sector is £80 billion over five years, which is more than the entire cost of funding the police force. The shadow Chancellor can play politics, but we will be responsible because we want lower bills, more investment in transition and more money for public services, such as the police.
T3. The Financial Conduct Authority is currently advertising for a personal assistant to its chief executive, to work alongside another PA, a chief of staff, a head of office, three private secretaries and a PA to the chief of staff. Given the largesse in their own affairs, what is my hon. Friend the Economic Secretary doing to hold financial service regulators to account?
My hon. Friend makes an important point. That is why the Financial Services and Markets Bill rightly improves the accountability of regulators to Parliament. It is about not just the cost of regulation, but the speed and efficiency of it. I read with concern work from TheCityUK suggesting that 90% of industry respondents thought that the speed of authorisations was either “somewhat” or “extremely” detrimental.
T4. It has been two weeks since it was revealed that the Treasury provided special dispensation for a sanctioned Russian warlord to use British lawyers to threaten a British citizen, Eliot Higgins. What has the Chancellor done in that time to get to the bottom of this outrageous scandal of the Treasury undermining sanctions and aiding our enemies to use aggressive lawfare tactics designed to intimidate those exposing the truth?
I answered the urgent question on this matter and said that we would consider what more can be done in these types of cases. That work is ongoing, but we will report in due course, when we have more to say.
T7. I only have to look at the Bench behind my right hon. Friend to know that the needs of Torbay will be at the centre of the Treasury’s thinking. What fiscal steps will he take in response to the “Communities on the Edge” report produced by the Coastal Communities Alliance?
I take that report and my hon. Friend’s advocacy for the needs of coastal communities seriously, and I look forward to meeting him shortly. Alongside the rural England prosperity fund, the £2.6 billion UK shared prosperity fund gives local leaders in coastal areas the freedom to target local issues, but I look forward to further conversations with him.
T5. Last year’s register of overseas entities was meant to crack down on corrupt elites using the UK to launder illegal wealth, but today’s BBC and Transparency International report shows that it is clearly not working, with less than half the required firms making declarations and others fudging it. That brings into question the Government’s commitment to tackling illegal wealth and wealth inequalities. What will the Government do about this?