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Summary

  1. It was the first day back for MPs, following the vote to leave the EU
  2. MPs met at 2.30pm, and the first item on the agenda was Defence questions.
  3. The prime minister answered questions on the outcome of the EU referendum, following a statement.
  4. MPs held the first of two days of committee stage scrutiny of the Finance Bill - which enacts the measures in the Budget - at committee stage.
  5. Peers' main business today was the Investigatory Powers Bill at second reading.

Live Reporting

By Esther Webber and Sam Francis

All times stated are UK

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End of Lords business

House of Lords

Parliament

That's it from the Lords for today - they're back at 2.30pm tomorrow for questions on: 

  • Ensuring open access to transcripts of proceedings in open court 
  • Decision to deny funding to the proposed memorial for enslaved Africans in Hyde Park
  • Effects of the charitable status of public schools on equality of opportunity in Britain
  • British people who are living and working in, or have retired to, other EU member states.

Brexit negotiations 'need to take account of security'

Investigatory Powers Bill

House of Lords

Parliament

Lord Keen
BBC

Home Office spokesman Lord Keen of Elie wound up by saying the bill would "ensure intelligence agencies have powers they need and strengthen the safeguards that govern their use".

Answering an earlier point from Labour's Lord Rosser on the implications of Brexit for the bill, he says negotiations on EU withdrawal "need to take account of our security and the need for cross-border cooperation". 

End of Commons business

House of Commons

Parliament

And with that the House of Commons is adjourned.

MPs will return tomorrow at 11.30am tomorrow for a second day of committee stage for the Finance Bill.

Student loan repayments are 'fair and sustainable'

Adjournment debate

House of Commons

Parliament

Higher Education Minister Jo Johnson replies that current student loan system is "fair and sustainable".

The student finance policy is a "progressive system" which means that "higher education is available to all who have the potential to benefit from it irrespective of ability to pay".

Students who use the loan system only pay back 9% of their earnings above £21,000, he says.

"The system is working" he adds, telling MPs that students from disadvantaged backgrounds going to university is "at a record rate - up from 13.6% in 2009 to 18.5% in 2015".

Higher Eduction Minister Jo Johnson
BBC
David Cameron

The government has a "fundamental responsibility to bring our country together" after the EU vote, David Cameron tells MPs as allies of Jeremy Corbyn insist he will not resign in the face of growing calls for him to go.

Read more

Students in 'total shock' over loan repayments

Adjournment debate

House of Commons

Parliament

Labour's Valerie Vaz says that many students have been left in "total shock" after finding out they will be repaying £45,000 on a loan of £27,000 based on the recent rise in student fees.

She accuses the government of maintaining an unfair system, against the evidence of experts, and failing to raise the minimum earnings threshold before student loans repayments are taken out of a salary as had been promised.

"How can it be right that at a time when Bank of England base rate is 0.5% and students pay RPI [the retail price index measure of inflation] plus 3% on their student loans"" she asks.

"Students should not be burdened by debt but enjoy the results of their hard work and achievements" she says.

Labour MP Valerie Vaz
BBC

Student loan repayments debate

Adjournment debate

House of Commons

Parliament

And with that the committee stage ends for the day.

MPs now move today's final business, the adjournment debate - today led by Labour's Valerie Vaz - on student loan repayments.

Crackdown on student loan repayment avoiders

House of Commons

Parliament

The government has announced that graduates in England and Wales who fail to repay their student loan in time could be prosecuted.

The government says it will take stronger measures to pursue people - including those living overseas - who are believed to be avoiding repayment.

Universities Minister Jo Johnson said: "As more loans are issued to new students each year, it is vital that the repayment process is robust."

The majority of borrowers met their repayment obligations, he acknowledged.

The crackdown comes after the National Audit Office, the Public Accounts Committee and the Business, Innovation and Skills Committee called for more action to improve the repayment process.

Read more here.

Student reads in a library
IBRAKOVIC
The government said the vast majority of borrowers repaid their loans
David Cameron statue 'deal' from MP Chris Bryant
A Labour MP has offered to contribute to the building of a statue of David Cameron in Wales.

Insurance tax rise

Finance Bill

House of Commons

Parliament

MPs are debating the government's plan to increase the standard rate of the Insurance Premium Tax (IPT) from 9.5% to 10% in an attempt to raise funds for flood defences and flood resistance.

First introduced in 1994, IPT is a tax on general insurance premiums, including home insurance, car insurance and travel insurance.

There are two rate bands, the standard rate of 9.5%, and a higher rate of 20% which applies to travel insurance, appliance insurance and some car insurance.

The tax was raised from 6% to 9.5% in November 2015.  

The increase is expected to generate billions annually for the Treasury but was highly controversial, labelled a “stealth tax” by some. Insurance premium costs had been on the way down, but new research by Consumer Intelligence this week revealed that car insurance premiums have increased 13% over the past year. 

The House of Commons library has written a briefing here. 

Fire fighters survey flood damage including an upside down car
Getty Images
The tax rise is aimed to improve flood defences

Baroness Kennedy spells out risks of collecting privileged material

Investigatory Powers Bill

House of Lords

Parliament

Baroness Kennedy
BBC

Human rights lawyer and Labour peer Baroness Kennedy of the Shaws welcomes attempts to provide intelligence agencies with "a robust, stable framework" in which to carry out their work.

She cautions we must be "always vigilant" in protecting individuals' rights, saying the "risk is that this law will enable routine collection of privileged communications". 

The bill sets out the safeguards which apply when security and intelligence bodies want to intercept legally privileged material, specifying the person authorising the warrant must be satisfied that there are "exceptional and compelling circumstances".

MPs reject review on Climate Change Levy

Finance Bill

House of Commons

Parliament

MPs reject the Labour amendment to hold a review into the effectiveness of the Climate Change Levy by 303 votes 237.

Issues still in play on Investigatory Powers Bill

Investigatory Powers Bill

Mark D'Arcy

Parliamentary Correspondent

The Investigatory Powers Bill was passed by the Commons with a considerable majority - but a number of issues are in play. The biggest is that David Anderson QC's review of the operational case for the proposed bulk data-gathering powers is due to emerge before detailed committee stage scrutiny begins, and his recommendations could force the government to concede some major changes.

Ministers have also promised to bring forward amendments on a variety of issues - and there is likely to be further debate on the issue of keeping internet connection records and the level of access to them.

The Liberal Democrats, with a phalanx of 108 peers, are pledged to try to strike down what they regard as the most intrusive parts of the bill - but it is worth noting that Labour backed it at third reading in the Commons, and that the ranks of Labour peers include some pretty hard line former home secretaries, which suggests they will need some pretty serious provocation to attempt to defeat the government - and as ever the mathematics of the House of Lords makes a government defeat next to impossible, if the official opposition does not come out to play.

MPs vote on review of Climate Change Levy

Finance Bill

House of Commons

Parliament

MPs approve the government's plans to scrap the Carbon Reduction Commitment and raise the Climate Change Levy without a vote.

However they divide to vote on a Labour amendment calling for a review of the impact of the Climate Change Levy in reducing carbon emissions to be conducted within 12 months of the passing of this Act.

Results are expected at 8.45pm.

Former Met commissioner hails bill as 'essential'

Investigatory Powers Bill

House of Lords

Parliament

Satellites
Reuters

Crossbencher and former Met commissioner Lord Condon tells the House "advances in technology have totally transformed how terrorists prepare for, conspire together and carry out their crimes" and the measures contained in the bill are "essential".

The Investigatory Powers Bill aims to put on a firmer legal footing the collection by the security services of vast quantities of internet data in the UK and personal details held on databases.  

Carbon Reduction Commitment examined

Finance Bill

House of Commons

Parliament

MPs are now debating the government's decision to scrap the Carbon Reduction Commitment energy efficiency scheme and increase the Climate Change Levy (CCL) from 2019.

The CCL is a tax on business energy use applied according to the type of fuel supplied, though not directly with the carbon content of different fuels. 

In last year’s summer budget, the exemption for electricity for energy from renewable sources was cancelled. 

This means that the Levy increase will lead to a rise in the carbon tax for carbon-free renewable energy.  

However this increase is intended to make up for the loss in revenue that comes from abolishing the Carbon Reduction Commitment, and should continue to incentivise energy efficiency among businesses.

Energy intensive industries will be protected from the higher rates.

Man installs solar panels on a roof
PA

Amendment rejected

Finance Bill

House of Commons

Parliament

MPs vote to reject Roger Mullin's proposals by 316 votes to 247.

MPs divide on review of investment fund managers pay

Finance Bill

House of Commons

Parliament

MPs have now divided to vote on an amendment from SNP MP Roger Mullin, calling for a review of the remuneration of investment fund managers, aimed at ensuring no element of their pay can be taxed as a capital gain and avoid tax.

MPs file out of the chamber to register their votes in the lobbies on either side.

MPs file out of the chamber to register
BBC
MPs leave the House of Commons chamber after a vote is called.

Misgivings outlined from terror expert

Investigatory Powers Bill

Lord Carlile
BBC

Lord Carlile - who, from 2001 to 2011, was the Independent Reviewer of Terrorism Legislation - says he supports the bill but he has some reservations. He says the first is legal professional privilege.

He says his next misgiving is the use made of certain types of records. He says medical records, for instance, must only be used for a legitimate purpose. 

And he says the third misgiving is about judges. "I have general reservations about the role of judges in what is essentially a ministerial act," he says. 

It is ministers who are briefed on national security, he points out. "If judges are to be involved, it's for the verification of what's been done...judges are not trained to authorise warrants," he says.

And he pays tribute to David Anderson who is the current Independent Reviewer of Terrorism Legislation

Labour amendment rejected

Finance Bill

House of Commons

Parliament

MPs have voted to reject a Labour amendment to exempt low emission diesel vehicles from charges on CO2 emissions, by 314 votes to 251.

Tellers read out the result of the vote
BBC
Tellers read out the result of the vote

What are personal service companies?

Finance Bill

House of Commons

Parliament

MPs are debating the use of personal service companies (or PSCs) - a perceived tax loophole.

Under plans announced in the budget, public sector organisations would be prevented from paying staff through PSCs, which allowed them to reduce their tax bill from around 45% to 20% by avoiding paying income tax and national insurance at source.  

Individuals working in a number of fields often provide their services to clients through a personal service company (PSC), rather than taking up employment with that client. The client pays the service company for the work they have done, without deducting income tax under PAYE or National Insurance contributions.

The Guardian have reported that an extra £400m could be raised in tax if the practice - used by as many as 100,000 people across industries such as media, IT and nursing - were ended.

The proposals were prompted by revelations in 2012 that the BBC was effectively employing around 1,500 staff including stars such as Jeremy Paxman and Fiona Bruce “off-payroll” to avoid paying towards their national insurance contributions. Following the furore, the BBC changed the way it operated.  

'Locked box' and technical races

Investigatory Powers Bill

House of Lords

Parliament

Lord Hennessy rises to speak - he's a historian and academic specialising in the history of government. 

He says the bill attempts to reconcile two duties to protect - to protect people against harm, but also protect people against intrusion into their lives.

He says there is a technical race between the protector, and the would-be harmers. 

He shows assembled peers a copy of a minute from Winston Churchill, from 8 November 1914, to say that decoded German communications should be kept in a "locked box" in order, in Churchill's words, "to penetrate the German mind".

And he says GCHQ regards this minute as the founding document of their organisation.

He refers to a report from RUSI - the Royal United Services Institute - and its outlining of 10 tests - which he believes the bill meets, to protect rights.

What is the Finance Bill?

Finance Bill

House of Commons

Parliament

The Finance Bill brings into law measures announced by the Chancellor in the March 2016 Budget.

The Finance Bill includes measures to increase the tax-free earnings allowance to £11,500, and the Higher Rate Tax threshold is to be increased to £45,000.

Fuel Duty is to be frozen for the sixth year running, tobacco duty is to be raised by 2% above inflation and a minimum price for cigarettes will be set. And the bill also introduces a levy on sugar used by soft drinks manufacturers, with money raised used in sports projects.

You can find out more about the Finance Bill here

How does leaving the EU affect expats?

Brexit and EU signs
Thinkstock

How does the UK's vote to leave the European Union affect British expats in Europe, and EU nationals working in the UK?

Brexit and EU signs

How does leaving the EU affect expats?

How does the UK's vote to leave the European Union affect British expats in Europe, and EU nationals working in the UK?

Read more

Clause-by-clause analysis

Finance Bill

House of Commons

Parliament

Rob Marris is the Labour shadow minister tasked with responding to David Gauke, for this committee stage consideration of the Finance Bill.

He is the shadow Treasury minister and is going through the clauses being debated in this Finance Bill consideration.

Monitoring lawyers 'could create chilling effect'

Investigatory Powers Bill

House of Lords

Parliament

Lord Lester
BBC

Lord Lester of Herne Hill, a Lib Dem and barrister, gives a broad welcome but says "some protections will need to be strengthened".  

He emphasises it's "essential to ensure powers of the state are not misused". 

He tells peers the mere suggestion of monitoring conversations between lawyers and clients could create "a chilling effect".  

What's happening tonight?

Jeremy Corbyn
PA

While MPs work their way through committee stage of the Finance Bill, there's plenty going on elsewhere in the Palace of Westminster.

The PLP - the Parliamentary Labour Party - is holding a meeting right now. A motion of no confidence in Jeremy Corbyn's leadership is set to be considered at the meeting, with the possibility of a secret vote on Tuesday.

Earlier, during the EU statement in the Commons, Mr Corbyn said: "Our country is divided and the country will thank neither the benches in front of me nor those behind me (where Labour MPs sit) for indulging in internal factional manoeuvring at this time."

Peers resume Investigatory Powers Bill

Investigatory Powers Bill

House of Lords

Parliament

Baroness Neville-Jones
BBC

Following the conclusion of the statement on the EU referendum, peers resume second reading of the Investigatory Powers Bill.

Conservative former security minister Baroness Neville-Jones begins by arguing, "I really don't think one can argue powers that have been put in place for judicial review are inadequate".

Fuel efficient cars tax advantage to be expanded

Finance Bill

House of Commons

Parliament

Up first are a series of government amendments designed to expand the tax advantage of driving fuel efficient cars.

Financial Secretary to the Treasury David Gauke tells the House that under the amendments "a basic rate taxpayer driving an ultra low emission company car will be £133 a year better off" by 2019-20.

Exposure to nitrogen dioxide, expelled by motor vehicles, is "linked to 23,500 deaths annually in the UK, costing £13.3bn".

In the Budget, the Chancellor also announced tax on both petrol and diesel fuel will be frozen in 2016, as will levies on heavy goods vehicles.

Financial Secretary to the Treasury David Gauke
BBC

UKIP peer stresses need to 'calm the markets'

EU referendum statement

House of Lords

Parliament

Lord Pearson of Rannoch, a former UKIP leader, says it would "help to calm the markets if we show we understand the difference between the single market and free trade" particularly with respect to the car industry. 

Baroness Stowell replies "he's taking us into a stage we're not currently at" in negotiations. 

Praise for Nicola Sturgeon from Labour former FM

EU referendum

House of Lords

Parliament

Labour former first minister Lord McConnell welcomes that Nicola Sturgeon has "shown leadership over the weekend", and that she’s said her aim will not be independence but securing relations between Scotland and the EU. 

He asks government to “contribute positively to that discussion”.

Lords Leader Baroness Stowell says she can’t give that assurance as it’s too early but the government is committed to “involving all parts of the UK in the process".

MPs debate budget measures

Finance Bill

House of Commons

Parliament

MPs now move to the Finance Bill - the measure which enacts the Budget.

The Ways and Means resolutions - which give consent to parts of a bill that will involve taxes or other charges being made on the public -  are approved without debate.

They are usually approved after a bill has passed its second reading, but the annual Finance Bill is an exception, and the ways and means resolutions are agreed before the bill is introduced.

Speaker thanks PM

EU referendum statement

House of Commons

Parliament

Speaker John Bercow thanks the prime minister for his statement - "something we don't do often enough", he says.

After just over two hours of debate, Mr Bercow praises the "enormous dignity, grace and good humour" of David Cameron in his response to the "lengthy session" this afternoon. 

Speaker John Bercow
BBC

Parliament needed to trigger Article 50, say constitional lawyers

House of Commons

Parliament

Several leading constitutional lawyers have published a report saying any prime minister will need parliamentary approval to trigger Article 50 and initiate the UK’s exit from the European Union.

Nick Barber, a fellow at Trinity College, Oxford; Tom Hickman, a barrister at Blackstone Chambers and reader at University College, London, and Jeff King, a senior law lecturer at UCL, wrote “in our constitution, parliament gets to make this decision, not the prime minister.”

The argue that Article 50 states that any withdrawal from the EU must be made "in accordance with the state’s constitutional requirements" and traditional constitutional arrangements involve parliamentary sovereignty.

The prime minister is unable to issue a declaration under Article 50 of the Lisbon Treaty – triggering our withdrawal from the European Union – without having been first authorised to do so by an Act of the United Kingdom Parliament. Were he to attempt to do so before such a statute was passed, the declaration would be legally ineffective as a matter of domestic law and it would also fail to comply with the requirements of Article 50 itself."

UK Constitutional Law Association

Sturgeon 'pulls on the power heels'

Nicola Sturgeon heels
PA

In the aftermath of the EU referendum result, the Nicola Sturgeon is seizing the opportunity to make herself look like the only grown-up in the room, says Scotland editor Sarah Smith

Nicola Sturgeon

Sturgeon keeps her head while others lose theirs

In the aftermath of the EU referendum result, the Nicola Sturgeon is seizing the opportunity to make herself look like the only grown-up in the room, says Scotland editor Sarah Smith

Read more

Labour MP calls on Cameron to 'say sorry'

EU referendum statement

House of Commons

Parliament

Labour MP John Woodock calls on the prime minister to "say sorry for what he's done".

"Devastated citizens are unimpressed by party leaders who simply say they did their best," he argues.

David Cameron replies: "I threw absolutely everything into that campaign" and believed "head, heart and soul in what I was saying".

"In the end, if you hold a vote like that and you lose you have to accept the verdict of the British people," he adds.

Labour MP John Woodock
BBC

Storm hits FTSE 250

BBC economics editor tweets

Situation in the Lords

Labour peers tweeted earlier

Civil service 'Brexit unit' announced

House of Commons

Parliament

Earlier in his statement David Cameron announced he would establish a unit of civil servants to examine the issues involved in negotiating Britain's exit from the bloc. 

The team will contain representatives from several Whitehall departments and will present options to the Cabinet about how the government can respond to last week's historic vote.

Policy Minister Oliver Letwin will play a "facilitative role" for the project, which will see civil servants liaising with devolved authorities in Scotland, Northern Ireland and Wales. However, it will not take any decisions on the UK's negotiating stance.

Aside from Mr Letwin names have yet been announced about who will be involved in the project, or the numbers of staff involved.

Policy Minister, Oliver Letwin,
Getty Images

Lord Hague stresses need to include Remain voters

EU referendum statement

House of Lords

Parliament

Lord Hague
BBC

Former foreign secretary Lord Hague asks the government for assurances that the economic and foreign policies formed in leaving the EU will command the support of 16 million people who voted against Brexit, adding this will also be an "essential attribute" of the next prime minister and Cabinet.  

Baroness Stowell confirms this will be something we "must give priority to".