Finance (No. 2) Bill — House of Commons, 2021-04-19
Topic: Macroeconomics
Ben Morgan Lake (Plaid Cymru, Centre-left to left): It is a pleasure to close the debate this evening. We have had a very beneficial debate on two main points about freeports and regional economic development. We had a very good discussion about the merits or otherwise of freeports for the areas in which they are located, and although I think we will continue to discuss whether any growth of investment generated by the sites will be new, partially new or a substitute for or displacement of economic activity elsewhere, it has been a good debate nevertheless My final point leads on from the question of whether any growth in investment would be new or a reflection of displacement of activity from elsewhere. That is particularly important when it comes to the question of levelling up and addressing regional inequalities and disparities. We still need to discuss that further. One potential solution in Wales’s case, for example, may be to look again at the cap of just one freeport in Wales. Perhaps we should have at least two. I am looking to other Members—perhaps that is one way to address the disagreements we have had tonight. Either way, we have had a very good and beneficial debate and although I do not want to press my amendment to a vote, I hope that the Minister will consider how the Government can better work with the devolved Governments to address some of these concerns and the need to co-ordinate policies for our economic development. I beg to ask leave to withdraw the amendment Amendment, by leave, withdrawn. Clauses 109 to 111 ordered to stand part of the Bill. Schedule 21 agreed to. Schedule 22 Relief from stamp duty land tax for freeport tax sites Amendments made: 43, page 231, line 8, at end insert— "(ca) Part 3A makes provision about cases involving alternative finance arrangements," This amendment is consequential on Amendment 52. Amendment 44, page 231, line 26, after "sites)," insert "other than in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies," This amendment is consequential on Amendment 45. Amendment 45, page 231, line 39, at end insert— "3A In section 81ZA (alternative finance arrangements: return where relief withdrawn)— (a) in subsection (1), after "arrangements)" insert "or under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies", (b) in subsection (3) (as substituted by Schedule 17 to this Act), at the end insert— "(c) where the relief was given under Part 2 of Schedule 6C, the last day in the control period on which the qualifying freeport land is used exclusively in a qualifying manner.", and (c) after subsection (6) insert— "(6A) Terms used in paragraph (c) of subsection (3) which are defined for the purposes of Schedule 6C have the same meaning in that paragraph as they have in that Schedule (as modified by paragraph 10A of that Schedule) (6B) Paragraph 10 of Schedule 6C (as modified by paragraph 10A of that Schedule) applies for the purposes of subsection (3)(c) as it applies for the purposes of paragraph 8 of that Schedule." "3B In section 85(3) (liability for tax), after "arrangements)" insert "or under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies"." This amendment makes provision about returns, and liability to SDLT, in cases in which relief under Schedule 6C to the Finance Act 2003 (freeport tax sites, inserted by Schedule 22 to the Bill) is withdrawn in cases involving certain alternative finance arrangements. Amendment 46, page 231, line 40, leave out "86(2)" and insert "86" This amendment is consequential on Amendment 49. Amendment 47, page 231, line 40, after "tax)" insert "— (a) in subsection (2)," This amendment is consequential on Amendment 49. Amendment 48, page 231, line 41, after "sites)," insert "other than in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies," This amendment is consequential on Amendment 49. Amendment 49, page 231, line 41, at end insert ", and (b) in subsection (2A), after "arrangements)" insert "or under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies"." This amendment makes provision about the payment of SDLT in cases in which relief under Schedule 6C to the Finance Act 2003 (freeport tax sites, inserted by Schedule 22 to the Bill) is withdrawn in cases involving certain alternative finance arrangements. Amendment 50, page 231, line 44, after "sites)," insert "other than in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies," This amendment is consequential on Amendment 51. Amendment 51, page 232, line 2, after "81(1A);" insert— "(azab) in the case of an amount payable because relief is withdrawn under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 10A of that Schedule (alternative finance arrangements) applies, the date which is the date of the disqualifying event for the purposes of section 81ZA (see subsection (3) of that section);" This amendment makes provision about interest on unpaid SDLT in cases in which relief under Schedule 6C to the Finance Act 2003 (freeport tax sites, inserted by Schedule 22 to the Bill) is withdrawn in cases involving certain alternative finance arrangements. Amendment 52, page 235, line 25, at end insert— "Part 3A Alternative finance arrangements Cases involving alternative finance arrangements 10A (1) This paragraph applies where either of the following applies— (a) section 71A (land sold to financial institution and leased to person), or (b) section 73 (land sold to financial institution and re-sold to person) (2) This paragraph applies for the purposes of determining— (a) whether relief is available under Part 2 of this Schedule for the first transaction, and (b) whether relief allowed for the first transaction is withdrawn under Part 3 of this Schedule (3) For those purposes this Schedule has effect as if— (a) references to the purchaser were references to the relevant person, and (b) the reference in paragraph 3(2)(d) to land held (as stock of the business) for resale without development or redevelopment were a reference to land held in that manner by the relevant person (4) The first transaction does not qualify for relief under Part 2 of this Schedule except where it does so by virtue of this paragraph (5) In this paragraph— "the first transaction" has the same meaning as in section 71A or 73 (as appropriate); "the relevant person" means the person, other than the financial institution, who entered into the arrangements mentioned in section 71A(1) or 73(1) (as appropriate)."—(Jesse Norman.) This amendment makes provision about the operation of Schedule 6C to the Finance Act 2003 (relief from SDLT for freeport tax sites, inserted by Schedule 22 to the Bill) in cases involving certain alternative finance arrangements. Schedule 22, as amended, agreed to. New Clause 25 Review of freeports "(1) The Chancellor of the Exchequer must review the impact of sections 109 to 111 and schedules 21 and 22 of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act and once a year thereafter (2) A review under this section must estimate the expected impact of sections 109 to 111 and schedules 21 and 22 on— (a) job creation within the sites designated as freeports and across the UK as a whole, (b) revenue from corporation tax and stamp duty land tax within the sites designated as freeports and across the UK as a whole, (c) levels of artificial tax avoidance and tax evasion across the UK as a whole, (d) levels of criminal activity, (e) the necessary level of staffing for HMRC and the UK Border Force, and (f) departmental spending by HMRC and other departments on enforcement."—(Abena Oppong-Asare.) This new clause would require the Government to review the impact of the provisions of the Act introducing freeports and publish regular reports setting out the findings. Brought up, and read the First time. Question put, That the clause be read a Second time.