Clause 1 — Charge for 2013-14

Part of Finance (No. 2) Bill – in the House of Commons at 12:30 pm on 18 April 2013.

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Photo of Andy McDonald Andy McDonald Labour, Middlesbrough 12:30, 18 April 2013

That is exactly right. I was going to make that point another way and say that company directors of the FTSE 100 received on average a 50% pay rise in 2011—Income Data Service provided that information. The well-off enjoy the benefits of many interesting incentive schemes that are not available to ordinary working people such as Mrs O’Reilly or Mr Hussain in my constituency, where the average income for a full-time employee is less than £500.

With your indulgence, Mr Hood, I would like to mention another area where I perceive there to be immense financial irresponsibility. A measure has gone through the House this week that has deprived the Treasury of significant funds that could be much more wisely invested and directed. The Enterprise and Regulatory Reform Bill was discussed in the Chamber some days ago, and I asked myself whether any conversation had taken place between the Treasury and other ministerial colleagues. As a result of that Bill, many people who have sustained catastrophic injuries will not be able to secure the compensation that they deserve or need. We are talking about hundreds of millions of pounds, and that is further evidence of the Government’s direction of travel that punishes and penalises those in greatest need. This is not about lottery wins but much-needed capital and income streams that pay for vital and lifelong care and support for physiotherapy, speech therapy, transport and accommodation.

Without the ability to secure those services from such funds, those with traumatic brain injuries and spinal cord injuries will have to look to the statutory services as there is nowhere else for them to go. As everyone in this Committee is aware, those services are under incredible pressure, and the Bill means that those innocent people will not be able to go out and purchase the services that they need. Somebody suffering from a spinal cord injury must rely on when the district nurse can get to their home to attend to their intimate and personal needs, rather than use funds that would otherwise be available to get on with their lives.

Not only does the Bill remove significant sums of money from the economy, it delivers a windfall to insurance companies. They will be rubbing their hands while innocent victims are left without redress. To add insult to injury, the compensation recovery unit will be deprived of millions of pounds through this system. We are kissing goodbye to the recovery of benefits, the disability living allowance, jobseeker’s allowance and so on. That money will stop flowing into the nation’s coffers. I wonder whether the Treasury realises that it is cutting off its nose to spite its face.