Finance (No. 2) Bill — House of Commons, 2022-02-02
Topic: Macroeconomics
Peter Grant (Scottish National Party, Centre-left): Thank you, Mr Deputy Speaker; I am pleased to be able to make a brief contribution to tonight’s debate. I commend the three previous speakers, the hon. Members for Streatham (Bell Ribeiro-Addy), for Easington (Grahame Morris) and for Oxford West and Abingdon (Layla Moran). It is unfortunate that the very inadequate time that the programme motion allowed did not give any of them the time they deserved, given the amount of work they put into their amendments I mentioned new clause 3 and new schedule 2 earlier, but "schedule" is a misnomer here. We are not talking about a schedule; we are in effect talking about the "Finance No. 3 Bill", 25 pages long and intensely complicated. This is our one and only chance to get it right and none of us can feel comfortable that it was tabled on Monday, it is being debated on Wednesday and it comes into force on Friday—not next Friday, but the previous Friday. What on earth are the Government playing at I do not have an issue with any of the other important business that took up today’s time—nobody could have any issue with any of that. My issue is that when the Government knew they were going to table such a substantial, technical and complicated amendment at this stage, it was up to them to amend the programme motion to give a decent amount of time, because 90 minutes for this debate is ludicrous. Only the Government had the ability to put forward a change to the programme motion; and only the Government had the opportunity to consult with Opposition parties in advance of that amendment being tabled, or indeed to discuss it with outside stakeholders. Not doing so was a failure, unless the Minister can give a very good reason as to why secrecy was so important. Springing it on the House in this way was, I believe, an abuse of the Government’s powers and shows contempt for Parliament. The aim of the new tax is laudable and nobody would argue against it, but we have been given no indication as to why the tax is the way to prevent the kind of behaviour that we are trying to deter. It appears that it is just because they can change the tax system immediately and make it retrospective, whereas other things would take a bit longer. I ask the Government this question outright: is the urgency because they have picked up intelligence that another major player in the energy market was about to cut and run—to cash in and bail out? If they cannot answer that in public today, I would appreciate it if they contacted me after, on a guarantee of confidentiality. To be honest, I can see no other reason why there was a need for such secrecy and last-minute panic The amendment is restricted to energy companies, but it can also be extended to apply to any other kind of company the Treasury chooses to designate. What is that for? Can the Minister explain what other companies might need to be brought in, and in what circumstances that might need to happen? The measure is only to be in place for a year, or for such other time as the Treasury decides it wants to extend it, and it can extend it as often as it wants, although only until 2025. However, given that the Minister has said that the amendment is essentially a stopgap until Ofgem is able to amend the regulatory environment to prevent these abuses in the market, just how lacking in confidence are they of Ofgem and its ability and willingness to fix this long-standing problem if they think it might need another three years before it is fully dealt with Paragraph 41 of new schedule 2 gives the Government the power to change the law retrospectively. No Parliament should ever lightly agree to such a power, but tonight we have been given no choice; we simply have not had sufficient time to look at the detail of that or to get the assurances we would usually want about what that power will and will not be used for My hon. Friend the Member for Glasgow Central (Alison Thewliss) referred to comments from the Chartered Institute of Taxation, and the Association of Tax Technicians told me yesterday: "We have a brand-new tax without any prior announcement, no consultation, little debate, which will be enacted before the next Budget, and will be effective from 28 January 2022. OK, these are arguably special circumstances, but is this a good way to run a tax system?" The short answer is no, it is not.