It is good to be back in the House after a bit of a recess and to be here again talking about the Finance Bill. It is our second such Bill this year—our second of three—so we are here for the long haul. I want to discuss termination payments and the relevant amendments tabled by the Scottish National party and Labour. The Government have been clear that they are just closing a loophole, but the Budget suggested that the measure will generate an extra £430 million a year. That is £430 million a year that these workers will not be getting when they receive their termination payments. However the Government want to dress it up, this is additional tax on these people who are losing their jobs and receiving termination payments. These people are in a vulnerable situation, as they are receiving a termination payment and are no longer in employment and they will be taxed more as a result.
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Like the Labour party, the Scottish National party has concerns about the impact of that measure on low-income workers, and we have made that clear in our amendments. I understand that the Government are saying that 85% of those who get these termination payments and will be affected by this change are not low-income workers, but the other 15% are, and my concern is for them. If someone finds themselves out of a job, an amount of money is needed to allow them to get back on their feet and to ensure that they do not have a significant knock to their confidence, so that they can get back to the workplace after a relatively short time.
The right hon. Member for Forest of Dean (Mr Harper) used the phrase “we have closed the gap”. I am not sure that it is quite closed yet. There is still a gap as regards non-payment of tax. Fair enough, measures have been taken to move towards ensuring that tax is paid by the rich in the way it should be, but the gap has not yet closed.