Cable and Hughes quiz Harman at PMQs

6.48.52pm GMT Mon 21st Dec 2009

• [Dec 16] Vincent Cable: ' . . THIS week, Her Majesty's Revenue and Customs estimated that about £40 billion is not being collected and is being evaded. Where is that money?' [Interruption.]

May I add our condolences in respect of the two servicemen who died serving this country in Afghanistan?

One of the Government's achievements is that the share of tax revenue in the economy has now fallen to the lowest level since the days of Harold Macmillan. Yet, this week, Her Majesty's Revenue and Customs estimated that about £40 billion is not being collected and is being evaded. Where is that money? [Interruption.]

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Harriet Harman (Lord Privy Seal, House of Commons; Camberwell & Peckham, Labour)

rose-

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John Bercow (Speaker)

Order. I ask the Leader of the House to wait. Government Back Benchers are in an especially boisterous mood today, but I want to make progress down the Order Paper and get as many people in as possible.

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Harriet Harman (Lord Privy Seal, House of Commons; Camberwell & Peckham, Labour)

As the hon. Gentleman knows well, tax revenue has fallen because if fewer houses are being bought and sold, stamp duty falls, and if unemployment increases, there are fewer people paying taxes. Corporation tax has also fallen. Tax revenue has fallen because this country has been hit by a global economic recession.

We have been determined to take measures to stop tax avoidance, and we think it important that an example be set not only in this House, but in the House of Lords. According to an old saying, there should be no taxation without representation. What about no representation without taxation? We will introduce legislation to ensure that people are domiciled, resident and ordinarily resident in order to sit in this House or in the House of Lords.

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Vincent Cable: I take that point, but perhaps make it in a less partisan way- [ Interruption ]-and perhaps commend the leader of the Conservative party for the helpful suggestion of new legislation, based on Liberal Democrat proposals, so that Members of the Houses of Commons and Lords who are non-doms should not sit in Parliament. May I welcome the fact that there is such enthusiasm, from turkeys voting for Christmas, and suggest that the Leader of the House give immediate effect to their wishes, by bringing in an amendment to the Constitutional Reform Bill, so that non-doms such as Lord Ashcroft can leave Parliament immediately?

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Harriet Harman (Lord Privy Seal, House of Commons; Camberwell & Peckham, Labour)

We certainly need transparency on the issue, and as I said, we will bring forward legislation. The hon. Gentleman is busy commending the Conservative party; at the risk of being accused of being partisan, I would like to complain about the Conservative party. The deputy chairman of the Conservative party made a promise to the honours committee-this pertains to the need for legislation-that he would make his tax affairs on shore. The Foreign Secretary- [ Interruption ]-the shadow Foreign Secretary-can tell us what the shadow Chief Secretary to the Treasury says he knows. Has Lord Ashcroft-

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John Bercow (Speaker)

Order. I am grateful to the right hon. and learned Lady, but we need not pursue that point any further.

• . . Simon Hughes (North Southwark & Bermondsey, Liberal Democrat)

On equality, given that in the past parliamentary decade, which ends today, Labour Cabinet Ministers have paid themselves an increase of more than £30,000, how does the Leader of the House justify the fact that the increase in Cabinet salaries alone is greater than the annual take-home wage of the people she is elected to represent?

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Harriet Harman (Lord Privy Seal, House of Commons; Camberwell & Peckham, Labour)

The pay of all Cabinet Ministers-and, indeed, of all Ministers-has been frozen, and Cabinet Ministers and Ministers have also agreed to forgo their pay increase as Members of Parliament.

• . . Roger Williams (Brecon & Radnorshire, Liberal Democrat)

Today, the UK Payments Council meets to determine the future use of cheques and it is anticipated that it will recommend their phasing out by 2018. Many older people and small businesses, especially those without access to the internet, continue to use cheques and value their convenience. What steps will the Government take to save the cheque and to ensure that vulnerable people and small businesses can continue to use this form of payment?

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Harriet Harman (Lord Privy Seal, House of Commons; Camberwell & Peckham, Labour)

The hon. Gentleman has made a significant point, particularly in relation to older people. The Equality Bill ensures that public authorities making those changes must take account of the interests of older people, and must not take steps that discriminate against them. We need to look to the future, but also to ensure that older people do not suffer as a result.

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