Finance (No. 2) Bill

My Lords, this year we have faced quite exceptional circumstances. The general election and necessary emergency Budget have resulted in a plethora of finance Bills. The Bill introduced by the previous Government before the election was considered as part of the wash-up process. The second Bill of the year was understandably short as this Government looked to enact fiscal changes to reassure the markets and the British people. This has left a number of more minor, technical measures that need to be legislated this year but for which there was no space in the other finance Bills. They are the measures before us today. There is little controversy in this Bill. I am sure that noble Lords on the Benches opposite are well aware that all but one of the measures were announced or agreed by the previous Government. That exception is a minor measure to ensure consistency of treatment of capital allowances. This is not to say that the Bill before us is unimportant. The Bill improves the treatment for carers in Clauses 1, 2, 3 and 16. The vital and under-recognised role that they play in society is one that I know is championed by many on all Benches in this House. The changes introduced in these clauses simplify and align tax rules in small but important ways. Businesses are supported by 10 clauses. Clauses 5 and 6 assure the future of the venture capital schemes that have supported over £10 billion of investment since their introduction. Clause 9 clarifies the rules on company distributions and Clause 11 fixes glitches in the debt cap rules introduced in 2009. Clause 10 assists real estate investment trusts in complying with their distribution rules. The changes introduced to HMRC powers follow similar changes made last year. These align the penalty and interest rules across the taxes administered by HMRC to ensure consistency and predictability. The changes will also allow HMRC to be more efficient in its application of penalties and interest. Furthermore, the change in Clause 23 to the duty on long cigarettes will allow HMRC to tackle avoidance of tobacco duty—a cause widely supported. While many of the changes in this Bill are technical and rather sterile there is a softer side. The encouragement of low emission goods vehicles, through changes in Clause 18, will help support a move to a low-carbon economy. Clause 30 allows the national employment savings trust to be established, which will help approximately 3.6 million people save for their retirement. Clause 31 exempts from tax trusts established to help those exposed to asbestos. This change will help to ensure the viability of such trusts—a matter of real importance. This Bill has also allowed the Government to demonstrate how tax policy making will be improved. The clauses of the Bill were published in draft in line with commitments set out in the June Budget. This allowed eight weeks for consultation, during which over 60 comments were received. Changes were made to nine clauses as a result of these comments. This different approach will ensure greater predictability, fewer changes and better consultation. We have already made a good start on the first of these. My right honourable friend the Chancellor of the Exchequer has announced that the Budget will be on 23 March next year, giving four and a half months’ notice. My honourable friend the Exchequer Secretary has announced that draft clauses for the 2011 Finance Bill will be published on 9 December so that they may be consulted on. This is a simple, straightforward Bill that eases burdens on individuals, businesses and HMRC. It is one that the previous Government all but proposed themselves. It is brief but important, and I commend it for consideration by the House.