Select Committee
Parliament

The committee is looking at Motability - but what is it?

Motability supply leases on cars which are specially adapted for those with specific needs.

Motability is open to anyone who receives the Higher Rate Mobility Component of Disability Living Allowance, the Enhanced Mobility Component of Personal Independence Payment or the War Pensioners' Mobility Supplement.

The NAO has published a report into the Motability Scheme which says that there is a difference between "turning an underperforming business around and carrying out a series of important but not necessarily exceptional tasks to keep it on a road to successful operation". The report states that Motability enjoys being an effective monopoly in the market.

The NAO report also warns that the charity "has had difficulty over a long period of time influencing Motability Operations to set executive pay at the levels the charity considers appropriate".

Welcome to our coverage of what promises to be a fascinating and dramatic day in Westminster, as PMQs and then another day of debate on Brexit loom.

First, though, we're turning to a session of the Work and Pensions Committee, investigating Motability.

Labour says a no-deal exit must be ruled out after 20 Tory rebels defy government in Commons vote.

The Commons Speaker calls the abuse of MPs "a type of fascism" and urges tougher police action.

House of Commons
Parliament

The Finance (No.3) Bill passes third reading without division, and proceeds to the House of Lords.

We'll be leaving our coverage of the Commons there for today, with Conservative MP Robert Courts now leading an adjournment debate on congestion on the A40 in West Oxfordshire.

The day began with Business questions, before two urgent questions were granted on Universal Credit and the decision to award Seaborne Freight a government ferry contract in the event of a no-deal Brexit.

Since then, MPs have been debating the final stages of the Finance Bill.

The government were defeated over Yvette Cooper's amendment to the bill, which sought to prevent a no-deal Brexit.

Join us tomorrow from 11.30am for International Development questions before PMQs at midday.

After that, Tory Leo Docherty will introduce his Armed Forces (Derogation from European Convention on Human Rights) Bill as a ten minute rule motion, before MPs begin to debate Brexit ahead of the meaningful vote next week.

House of Commons
Parliament

Image source, HoC

SNP's economy spokesperson Kirsty Blackman says there is much that she could criticise but there are three things that she is pleased about in the Finance Bill; transferable tax history, a review into the effects of preventing tax avoidance and evasion, and a review of the public health impact of gambling.

However, she says, the process of the Finance Bill this year has been "shambolic" as the government was not as transparent as it could have been "which is not good in relation to scrutiny".

Ms Blackman says the Finance Bill requires better scrutiny and should undergo evidence sessions in committee in future.

House of Commons
Parliament

Shadow minister Anneliese Dodds says the bill has been one of highs, with the government accepting opposition amendments and being defeated by MPs working to stop a No Deal Brexit, but also lows.

"This government is spendthrift when it comes to profitable companies, but miserly when it comes to the worst off."

She says Labour cannot realistically oppose the third reading of the bill, and therefore won't.

House of Commons
Parliament

Image source, HoC

Financial Secretary to the Treasury Mel Stride opens the third reading of the Finance Bill.

He says eight years ago the country's finances were "in peril", and that this government are "bringing expenditure under control, and ensuring we are living within our means".

The Conservative Party believes that it is up to people what they do with their money they have worked so hard to earn, he says - the Finance Bill delivers on this.

"Compared to 2015 we have cut taxes for 32 million people, with an additional 1.7 million people not paying tax at all," he adds.

Mr Stride says the Bill works for people and businesses, and holds the core principle of fairness. It supports jobs and growth, "to make sure this country is one where enterprise will thrive".

House of Commons
Parliament

SNP amendment new clause 18 has also been rejected by MPs.

288 voted in favour, with 311 voting against.

Sir Ed Davey's new clause 26 is added to the bill without division, followed by a number of government amendments.

Sitting is now suspended for five minutes, to allow for certification by the Speaker.

House of Commons
Parliament

MPs have voted against Labour's new clause 2 amendment, which would have required the government to review the effectiveness of changes made to entrepreneurs' relief.

289 voted in favour of the amendment, but 312 voted to reject it.

Government amendments 2, 3 and 6 pass without division.

The Commons now divides to vote again, this time on the SNP's new clause 18, which would require a review of effects on measures in the Bill of certain changes in migration levels.

House of Commons
Parliament

Image source, HoC

Financial Secretary to the Treasury Mel Stride says the government will not be opposing new clause 26 and focuses his remarks on it.

He says the schemes are "truly about...gross aggressive tax avoidance".

"This is grossly unfair", he says.

However, he says the charges are not retrospective as suggested, as the scheme was "defective at the time" and has been taken through the courts on occasion, with the scheme "found to be defective".

MPs then divide to vote on Labour's amendment new clause 2.

House of Commons
Parliament

Image source, HoC

Liberal Democrat MP Sir Ed Davey is speaking for his amendment new clause 26, which he says he will push to a vote if it is not accepted by the government.

The clause "aims to focus the minds of treasury ministers" on tackling the "gross unfairness" of how the Finance Act 2017 went about closing tax loopholes.

People were given professional tax advice and should not be punished for acting in the way that they were advised, he says. HMRC knew of these tax schemes "for years" - with some HMRC contractors even paid through the schemes - but took no action.

A number of MPs, from all parties, intervene to express their support for the amendment.

"This is an amendment that is bringing the House together", Sir Ed says, "we all condemn tax avoidance and support the Treasury, but this approach to retrospective taxation is wholly unacceptable".

House of Commons
Parliament

Image source, HoC

Chair of the Treasury Committee Nicky Morgan says she will not be supporting new clause 26, but wants to put concerns about loan charges on the record.

Clause 26 would require the Treasury to review the effect of the changes made by sections 79 and 80 of the Finance Bill, and compare them with other legislation relating to the recovery of lost tax including the loan charge provisions of the Finance (No. 2) Act 2017.

Ms Morgan says it is right that people should pay their fair share of tax on the earnings, but it it "can't be right that people are facing serious situations which will undermine their security and mental health".

She adds that it is troubling to hear that people are being asked to settle large bills of an unspecified amount in a matter of months, and asks the government to stress what will happen to these people if they do not receive a reply from HMRC before April.

House of Commons
Parliament

Image source, HoC

Debate on the Finance (No.3) Bill now moves onto the next group of amendments.

Shadow Treasury minister Anneliese Dodds is speaking for Labour's amendments, which require the government to review the impact of "its regressive approach".

The Finance Bill continues the government's "austerity for the many", she says, with a number of cases where "those with the broadest shoulders are exempted from their contribution to taxation".

"Clearly under this government there is one rule for the best off, and another rule for everyone else."

She says the government has "failed to clamp down" on tax avoidance.

House of Commons
Parliament

Following a division, MPs have voted against Labour's amendment 8.

A total of 292 voted for the amendment, with 303 voting against.

The Speaker is now taking points of order.