Finance (No. 2) Bill

Debate between Christopher Chope and David Gauke

Monday 11th April 2016 Commons Chamber

[Mr Gauke]

I am grateful to my right hon. Friend for the courteous way in which he dealt with me, too. He achieved a great deal in his role as Secretary of State for Communities and Local Government by addressing the issue in the context of council tax. He will find in this case—and he will want to look at the details, as we are going a bit further than council tax rules to provide support and reassurance to families—a small number of transactions are affected by the measure, but it is important that we provide clarity. We certainly do not want to discourage people who wish to create an annexe for an elderly or disabled relative, providing them with support close at hand.

The measures that I have outlined are important, and help working people to keep and save more of what they earn while ensuring that we have a modern and targeted tax system. I should like to address briefly an important issue that we discussed in the Budget debate: VAT on sanitary products. We heard people’s anger loud and clear, and we said that we would fight for agreement to reduce the VAT rate to zero, and all European leaders agreed our plan to do just that. Last week, the European Commission action plan on VAT was published, and it is an important step towards a common-sense VAT system that works for British businesses and people. The Government are committed to making that change, and let me make that point to those who have raised it, including the hon. Member for Dewsbury (Paula Sherriff), who is in the Chamber, and other hon. Members. I am proud that in the Finance Bill we are legislating to enable zero VAT rates for women’s sanitary products.

[Mr Christopher Chope (Christchurch) (Con)]

I congratulate my hon. Friend on the progress he has made. Why does clause 115 say that the measure will not come into effect when the Bill receives Royal Assent, but is subject to the Treasury introducing a provision at some later stage? Why can we not legislate on this in the Bill without any qualification?

[Mr Gauke]

It is customary, with changes in VAT rates, to give retailers notice. It is not usual for VAT changes to be put in place on the date of Royal Assent, as notice is usually provided. I reassure my hon. Friend that the intention is to provide a short period of time, following Royal Assent, in which retailers will have an opportunity to adjust prices. This is no desire by the Treasury to kick this into the long grass—we want to make progress on the matter.

Oral Answers to Questions

Debate between Christopher Chope and David Gauke

Thursday 14th January 2016 Commons Chamber

[Mr Gauke]

The Chancellor of the Exchequer addressed this issue in his autumn statement, when he announced the additional funding for women’s charities, reflecting the sums that are raised from VAT on sanitary products. The Government are taking this issue seriously; previous Governments have done so too, but we are doing everything we can, and we are, I think, the first Government who have gone to the European Commission and to other member states and made the case for flexibility.

[Mr Christopher Chope (Christchurch) (Con)]

Will my hon. Friend explain why this is not part of the Government’s renegotiation strategy? Surely this country and this Parliament should be able to decide levels of VAT not just on sanitary products, but on fuel, defibrillators and so on—on all of which I think it would be better if there were no VAT?

[Mr Gauke]

We are engaged in a wide-ranging renegotiation addressing issues about economic competitiveness and the roles of Parliament and so on. This is not explicitly part of that renegotiation, but we are, as a Government, going out making the case to other member states, and we will have the report from the Commission in March and we have made our position very clear.

Oral Answers to Questions

Debate between Christopher Chope and David Gauke

Wednesday 6th January 2016 Commons Chamber

[Mr Gauke]

This Government are making reforms to the welfare system—we are making sure that work always pays. We do have to ensure that the system is affordable, but may I remind the hon. Lady that the Scotland Bill gives the Scottish Government the powers to top up benefits and introduce new benefits?

[Mr Christopher Chope (Christchurch) (Con)]

8. What discussions he has had with the Scottish Government on increasing the number of undergraduates attending Scottish universities.