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Finance Bill

Yes, as I said earlier, the Government's code of conduct states that consultations should last 12 weeks. However, it simply was not possible to do that and to get everything done before the Budget, when the policy was announced. That raises the question whether we are rushing into this somewhat. My hon. Friend makes a helpful point. There is further evidence that the matter has been rushed. The Financial Secretary wrote a letter dated 24 April to my hon. Friend the Member for Runnymede and Weybridge (Mr. Hammond), the shadow Chief Secretary to the Treasury, about the powers under clause 117(4). Her letter makes the point that HMRC is still working through old legislation to work out what consequential amendments need to be made to that legislation in what is, admittedly, a complicated area. That prompts us to ask, again, why legislation is not ready at this point. The fact that it is not suggests that there is a rush. Having highlighted several issues of substance that we need to debate, let me point out that the consultation timetable has made it difficult for the Government to respond regarding the latter two substantial points—on penalties for failure to notify and suspended penalties. We would be in a much better position to assess the validity of those arguments if we knew how the regime for main taxes that was introduced in the Finance Act 2007 had bedded down. If we were able to see how that had worked over a given period, we would be able to see whether there is a strong argument on these points. But we do not have that opportunity, because the Government wish to proceed much more quickly with extending the penalty regime. Amendment No. 1A would give us the chance to pause and reflect, thus enabling us to see how schedule 24 works out in practice. It would also give the Government more time to consult properly—as my hon. Friend the Member for Wellingborough (Mr. Bone) has pointed out, they consulted for only eight weeks—and give a genuine response that does not look as though it has been ready to print, regardless of the submissions that have been made. Amendment No. 2A would require the use of the positive resolution procedure to implement schedule 40, which would give the House a proper opportunity to debate this matter again. We do not criticise the Government for seeking to introduce a single penalty regime. However, given last year's decision to do that in one go, the Government should pursue this matter carefully, by listening to the concerns of professional bodies, assessing the measures that they have introduced and examining the effectiveness of those measures before acting. Amendment No. 1A would enable them to do precisely that. Amendments Nos. 4A and 3A—particularly 3A —address another concern that several bodies have raised: that subsection (4) seems to be what is sometimes described as a Henry VIII clause. I learned the definition of such a clause only today, from the first report of Session 1992-93 of the House of Lords Select Committee on the Scrutiny of Delegated Powers, which I had not read before. It states that a Henry VIII clause is"““a provision in a Bill which enables primary legislation to be amended or repealed by subordinate legislation, with or without further Parliamentary scrutiny.””" I do not pretend that it is the first time that such a clause has been used, but its use is a matter of concern. Subsection (4) states:"““The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which may appear appropriate in consequence of, or otherwise in connection with, Schedule 24 to FA 2007 or Schedule 40.””" Subsection (4) is extraordinarily broad. We must put that in the context of the Prime Minister's statement last year that he was looking for a"““new British constitutional settlement that entrusts more power to Parliament””.—[Official Report, 3 July 2007; Vol. 462, c. 815.]" The measure seems to take power away from Parliament, because it gives the Executive enormous flexibility to amend the provisions that we will consider in schedule 40 to the Bill, and those that we considered in schedule 24 to the 2007 Act. Not only do Henry VIII clauses seem to be more prevalent, but they are more widely drafted. Section 97 of the 2007 Act, which implemented schedule 24, gave the Government the power to make an order that may include ““incidental, consequential or transitional”” provision. This year, in addition to those words, an order may contain a supplemental, transitory or saving provision. The word ““supplemental”” is particularly vague, and I hope that the Minister will indicate what she means by that. I note also that subsection (6) states:"““An order under subsection (4) may make different provision for different purposes.””" I confess that I am not sure what that means, and I should be grateful for some elaboration on that point. However, it appears to be extremely broad.