Tag Archives: Finance Bill

Tory rebellion inflicts historic defeat on government over ‘guerilla’ bid to stop no-deal Brexit

At last! They took their time about it but 20 Conservative MPs have finally shown that they have spines and rebelled against Theresa May’s threat to inflict a no-deal Brexit on the UK.

They supported Yvette Cooper’s amendment to the Finance Bill (that’s the Budget, isn’t it?) that means the government will have to seek approval from Parliament for tax changes in the event of a no-deal Brexit.

You can find their names here – and they include some high-ranking grandees, although Oliver Letwin and Kenneth Clarke are likely to have supported the Labour amendment for sharply contrasting reasons.

It might not seem like much, but it effectively means Theresa May would be unable to use any money to mitigate effects of such a departure from the EU that would harm her own interests, because Parliament would not allow it.

It is also hugely historic as the first time a government has lost a Finance Bill vote in 41 years. These are treated as “motions of confidence”, meaning that Parliament does not have confidence in the government’s ability to run the UK’s affairs properly, based on the conditions described in the legislation.

The amendment means that if the government wanted to use specific powers in the finance bill to implement “no deal”, it would have to give Parliament a vote first or apply to extend article 50. The amendment doesn’t affect the normal operations of the Treasury and government, but it does make it harder for the government to drift into no deal without parliament being able to direct it.

That’s why Labour leader Jeremy Corbyn turned around and applauded Ms Cooper when the result of the vote was read out.

It also shows that Mrs May’s government has its back against the wall. With 20 Conservatives so committed to foiling a no-deal Brexit that they would back a Labour amendment, she must ensure that her deal is passed by the Commons when it comes to the “meaningful vote” on Tuesday (January 15).

As matters stand at the moment, it won’t.

We have seen from the vote on Ms Cooper’s amendment that the government’s Parliamentary majority is tiny, and depends on all Conservative MPs voting for its legislation, along with the 10 members of the Northern Irish Democratic Unionist Party (DUP).

The rebellion over the amendment shows there is not enough support for a “no deal” Brexit. But the DUP will not support her deal without legally binding assurances over the so-called Northern Irish border “backstop” – and the EU has already made it perfectly clear that those assurances aren’t coming.

Mrs May has no options left, it seems.

Of course she could let the clock run down without finding any solution to these issues. But that would be extremely irresponsible and would cement her place in history as the worst failure as prime minister the UK has ever had. She needs to find answers, or accept the fact that she will go down into posterity as a figure of ridicule.

And Opposition MPs are also said to be planning similar amendments to other crucial government legislation, such as the Trade Bill, and legislation on Fisheries and on Healthcare, to ensure that the only way for the government to take the UK out of the EU without a deal would be with the expressed consent of a majority of MPs. This is considered that start of a “guerrilla” campaign against “no deal” Brexit.

Theresa May is now at tipping-point. All her decisions, her cowardice and ineptitude, have led her to this.

She can’t do any more deals because nobody in Europe is interested and she has double-crossed all her possible allies in the UK, simply to get this far.

She can’t offer any more bribes because she has already given away peerages and other honours like sweets, to no avail.

So, what will she do?

Visit our JustGiving page to help Vox Political’s Mike Sivier fight anti-Semitism libels in court


Vox Political needs your help!
If you want to support this site
(
but don’t want to give your money to advertisers)
you can make a one-off donation here:

Donate Button with Credit Cards

Here are four ways to be sure you’re among the first to know what’s going on.

1) Register with us by clicking on ‘Subscribe’ (in the left margin). You can then receive notifications of every new article that is posted here.

2) Follow VP on Twitter @VoxPolitical

3) Like the Facebook page at https://www.facebook.com/VoxPolitical/

Join the Vox Political Facebook page.

4) You could even make Vox Political your homepage at http://voxpoliticalonline.com

And do share with your family and friends – so they don’t miss out!

If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!

Buy Vox Political books so we can continue
fighting for the facts.


The Livingstone Presumption is now available
in either print or eBook format here:

HWG PrintHWG eBook

Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook

Labour soars ahead with plan to tackle tax avoidance

Labour's proposals follow the revelations of tax avoidance on a massive scale at HSBC Bank while it was run by Stephen Green - who later became a Conservative lord and minister.

Labour’s proposals follow the revelations of tax avoidance on a massive scale at HSBC Bank while it was run by Stephen Green – who later became a Conservative lord and minister [Image: Daily Mirror].

In a clear response to the HSBC tax avoidance revelations, Labour is setting out its plans to tackle the issue if elected into office after May’s general election.

With campaigners and non-government organisations calling for a “Tax Dodging Bill”, Labour has announced that its first Finance Bill will act to tackle tax avoidance – and was due to set out the measures in an Opposition Day Debate today (Wednesday, February 11).

Labour’s motion notes that just one out of 1,100 people who have avoided or evaded tax have been prosecuted following the revelations of malpractice at HSBC bank, which were first given to the government in May 2010, after the Conservative and Liberal Democrat government had taken office.

It also calls upon Lord Green and David Cameron to make a full statement about his role at HSBC and his appointment as a minister in 2011.

The proposed Finance Bill includes plans to:

· Introduce penalties for those who are caught by the General Anti-Abuse Rule

· Close loopholes used by hedge funds to avoid stamp duty

· Close loopholes like the Eurobonds loophole which allow some large companies to move profits out of the UK and avoid Corporation Tax

· Stop umbrella companies exploiting tax reliefs

· Scrap the “Shares for Rights” scheme, which the OBR has warned could enable avoidance and cost £1bn and is administered by HMRC, and so ensure HMRC can better focus on tackling tax avoidance

· Tackle disguised self-employment by introducing strict deeming criteria

· Tackle the use of dormant companies to avoid tax by requiring them to report more frequently

Labour’s measures to tackle tax avoidance will also include:

· Ensuring stronger independent scrutiny of the tax system, including reliefs, and the government’s efforts to tackle tax avoidance

· Forcing the UK’s Overseas Territories and Crown Dependencies to produce publicly available registries of beneficial ownership

· Making country-by-country reporting information publicly available

· Ensuring developing countries are properly engaged in the drawing up of global tax rules

Shadow Chancellor Ed Balls said: “David Cameron and George Osborne have totally failed to tackle tax avoidance in the last five years. They have failed to close the loopholes we have highlighted, and the amount of uncollected tax has risen under this government.

“I am determined that the next Labour Government will act where the Tories have failed. We will close loopholes that cost the exchequer billions of pounds a year, increase transparency and toughen up penalties – and we will act in our first Finance Bill.”

Shabana Mahmood MP, Labour’s Shadow Exchequer Secretary, said: “The Tories and Lib Dems should back our motion to show that they are serious about tackling tax avoidance and evasion. We have a clear plan for our first Finance Bill after the election – they need to back that or explain why they don’t.”

This is a terrific move by the Labour Party. It seems clear that Labour was planning to tackle tax avoidance in any case – and should gain recognition for that alone, after the Coalition Government spent the last five years blowing hot air at us and doing nothing.

But it’s not perfect. Richard Murphy, of Tax Research UK, wrote yesterday evening: “There is no commitment to extra funding at HMRC. Nothing will happen without that.

“There is no direct reference to the tax gap and making explicit that these issues are meant to close it. Whilst HMRC works with the current deficient version of the tax gap this problem cannot, again, be resolved.

“I want a general anti-avoidance principle, not a revised General Anti-Abuse Rule, but penalties sure as heck help.

“There is no mention of the extra resources needed to make sure Companies House works properly, which is as important as the changes in dormant company reporting.

“There is no mention of BEPS implementation or action on things like permanent establishment and controlled foreign companies.

“And there’s no Office for Tax Responsibility as yet (although the hint of one has, I note appeared, so I am hopeful).”

All these criticisms are valid and it is to be hoped that Labour will adapt its bill to accommodate them. Even if this does not happen, Mr Murphy himself adds: “Let me stop complaining for a moment because I will probably never be completely satisfied.

“This is a package that indicates commitment to listen and commitment to change. It is a package that looks across the board at the issues of concern. And it addresses a fair range of items into debate. I welcome that, of course. The devil is always in the detail but there is room for manoeuvre in here and many statements are moves in the right direction when those are sorely needed.

“That is what is needed for now, and I’ll take it at that level.”

Do any of the other parties have anything at all to say?

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

If you have enjoyed this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!

Vox Political needs your help!
If you want to support this site
(
but don’t want to give your money to advertisers)
you can make a one-off donation here:

Donate Button with Credit Cards

Buy Vox Political books so we can continue
highlighting when a political party attempts something useful.

Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook