Plastic Food and Drink Packaging

Debate between Jim Shannon and Derek Thomas

Thursday 24th October 2019 Westminster Hall

[Jim Shannon]

I am most intrigued by the hon. Gentleman’s comment, and what he said was true. Those of us who come from the countryside probably expect our potatoes to have a bit of soil with them, and maybe a wee distortion or a growth on either side. That does not really bother us. However, the housewife does not see things as we who live in the countryside see them. The housewife sees things as products and, with respect, she probably has no idea where they come from or what they are like; they just have to look good. As far as the supermarkets are concerned, products must look good; as we all know, that may not make them good.

[Derek Thomas]

I will not criticise my own Government, but I learned home economics in school, which taught me what cauliflowers and so on look like when picked from the ground. There is a joke around in Cornwall about children thinking that bottles of milk are literally collected from nests, rather than that milk comes from cows. However, the point has been properly made that we need to get to a place where people understand—or have the opportunity to learn, if they choose to—how food is produced, and how they can use it in a much more natural way. I will not say much more on that.

I come back to the intervention about shrink-wrapped cucumber. I accept the points that have been made, and that we can use alternatives to keep cucumbers fresh, but we cannot use the same argument for tinned vegetables. Baked beans, which are already wrapped in tins, are wrapped again in plastic. I cannot see the need for that. Some producers find that cardboard is a useful alternative. I think that the supermarkets and food packagers need to be leaned on by the Government to get rid of unnecessary single-use plastic. I do not think that there is any excuse for using it. I do not want to pick on Mr Kipling, who was a favourite of mine when I was younger, but he likes to wrap his cakes and biscuits in far too many wrappers. It would be great for people to take action about the lack of movement, not only from the Government but from some of the companies that continue to use unnecessary plastic.

The hon. Member for Dunfermline and West Fife—I am sorry; I am really not familiar with his constituency—made a good point about the enthusiasm of local people. There is enormous enthusiasm and determination among the people I meet to cut plastic where possible, so I have three, or possibly four, simple asks.

First, what I hear from people is that when they buy biodegradable or compostable products, they want to know what that actually means. If we buy biodegradable nappies, as I did, how long does a nappy sit in our compost heap before it disappears? I put the nappies in my compost heap—and then I had to put them in the bin about four years later. We need to be really clear with people and have a proper legal definition of what biodegradable actually means. How long should we expect something to take to rot down? What is compostable?

--- Later in debate ---

[Derek Thomas]

I agree, and I welcome that intervention. It is true that there will be some single-use plastic that we cannot avoid. If we go into a hospital, we will find items that are wrapped for what are obviously good reasons. I will name-check now if I am permitted to, Mr Stringer. There is a large outlet—retailer—in my constituency called Thornes. It sells a lot of fruit and veg and all sorts of other items. It decided, very early after the Government launched their 25-year environment strategy in January 2018, that it would not use single-use plastic, and it has moved away from it, including for its fruit and veg. That outlet certainly compares in size to a small supermarket, so if it can do it, it must be possible for supermarkets to take greater measures than they already do. But I accept that we need real leadership from Government, and urgently.

I have two or three more asks. We need legislation—I hope that we will do this through the Environment Bill—to ban unnecessary single-use plastic. That is the only way we will get businesses to really respond and urgently develop the alternatives. We also need legislation to ensure that all remaining plastic that is necessary—my hon. Friend the Member for Tiverton and Honiton was right to say that there is necessary plastic—can be recycled. We still purchase plastics and products that cannot be recycled, and that just needs to come to an end.

[Jim Shannon]

It would be remiss of me not to commend some of the supermarkets for what they are doing. In my constituency, in the constituency of my hon. Friend the Member for Upper Bann (David Simpson) and, I suspect, in everyone’s constituency, the large supermarket chains, come Friday and Saturday night, have a system whereby if a product, such as fresh fruit or veg, is coming near its end of life, they disperse the produce among community groups. As I said, that is done in my constituency, and it works exceptionally well. It does away with the loss of the product and someone gets the benefit of it. Supermarkets are chastised, but sometimes they do a lot of good things.

Bank Holidays in 2020

Debate between Jim Shannon and Derek Thomas

Tuesday 18th June 2019 Commons Chamber

[Derek Thomas]

That is the argument I will be making as I remind the House about the incredible event that took place on VE Day and explain why it is absolutely right that we set aside time to celebrate that next year, so that the whole of Great Britain can take part.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for giving way, and if he needs any advice on bonfires in Northern Ireland, we would certainly have lots of information. We do them every 11 July, by the way. I attend one in Newtownards and it is always very well attended. There have been almost 1,000 people there in years gone past. Does he not agree, however, that it is difficult for businesses and even community groups to accept this roll-out of a new bank holiday date? I support the principle of what he is saying, but the proposal is not even for a year’s roll-in. Does he share my dismay at the news of calendar makers losing hundreds of thousands of pounds due to the short roll-in? Does he share my concern at the environmental aspects of the wastage of perfectly good material because the Government, in this case, did not pre-empt the change in the same way as was done with the last change to a bank holiday, which was announced in 1993 for a roll-out in 1995?

[Derek Thomas]

I welcome that intervention, and I would be happy to apply for a Westminster Hall debate with the hon. Gentleman if he chose to speak on that further.

I want to make the point that I am not a fan of the way in which the Government have come to this decision, but it is really important for me, knowing what a great thing it is to remember the sacrifice made by the millions of men, their families and all the people involved in working and fighting for peace in Europe, that we spend a little bit of time remembering the great event that took place when that finally came to an end. For me, seeing the footage of crowds in the streets celebrating this momentous occasion—for them, a bittersweet moment after years of hardship, loss and fear—it is right that we should put aside all else and commemorate and celebrate that day on 8 May next year. I hope that we will be able to re-enact many, if not all, of the activities in our towns and villages. I would not need to go far, as I have a couple of sons in my own home who would be quite happy to tell me how to light fires, which the hon. Member for Strangford (Jim Shannon) mentioned.

As I have said, I have no problem with the decision to move the bank holiday to 8 May. My problem is the cack-handed way in which the Department for Business, Energy and Industrial Strategy went about reaching this decision. I would be interested to hear from the Minister what impact assessment the Department did on the lateness of making such a substantive change to the bank holidays in 2020 before announcing this decision. What was the Department thinking when it decided to give just 11 months’ notice of the cancellation of the early May bank holiday?

World Health: 25-Year Environment Plan

Debate between Jim Shannon and Derek Thomas

Tuesday 9th April 2019 Westminster Hall

[Derek Thomas]

Yes, and I will address both that and the earlier point about social prescribing later. We have an amazing national park on the Lizard, which we are hoping to extend, and there are things there that predate modern crops. We have the potential to gain access to very early cropping, which we could use again if something happened and we ever needed to return to it. National parks are hugely important for science, research and our wellbeing.

The role of nature goes much further than just somewhere to go for a walking holiday when we are considering the future of the country. Evidence suggests that living in greener environments is associated with reduced mortality. There is strong and consistent evidence of mental health and wellbeing benefits, as has already been said, arising from exposure to national environments. Those benefits include reductions in stress, fatigue, anxiety and depression. Exposure to natural environments has been linked with improvements in heart rate, blood pressure, vitamin D levels, recuperation rates and cortisol levels. Green space may also help to reduce the prevalence of type 2 diabetes.

Respected and influential bodies have made bold claims in support of the benefits of the national environment for our health. For example, the Department for Environment, Food and Rural Affairs, in its own environment plan, claims:

“Spending time in the natural environment…improves our mental health and feelings of wellbeing. It can reduce stress, fatigue, anxiety and depression.”

I think we could all do with going out in the countryside more. It continues:

“It can help boost immune systems, encourage physical activity and may reduce the risk of chronic diseases such as asthma. It can combat loneliness and bind communities together.”

That is something we really must prescribe at the moment.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing the debate. He has outlined the benefits of the countryside, but does he also recognise that the foundation for any 25-year environment plan must be sustainability in the countryside? Does he agree that countryside management through country sports, for example, as promoted by notable projects such as Green Shoots, links members to local biodiversity plans and wildlife management that the countryside cannot survive without? Landowners and those who have a love of the countryside make it available for everyone else.

[Derek Thomas]

Two things come to mind. First, the environmental plan talks about protecting and enhancing the natural environment. Secondly, in our part of the world, we are seeing the roll-out of the coast path as we speak, which gives far greater access to people to get around the coast and enjoy all that is around us.

To continue with the theme of people supporting this agenda, the Office for National Statistics produced a 2017 report: “The UK environment—fighting pollution, improving our health and saving us money.” It set out the role that the environment plays in tackling air pollution and improving health. The ONS website states:

“Overall, an estimated 1.3 billion kg of air pollutants were removed by woodlands, plants, grasslands and other UK vegetation in 2015”,

saving about

“£1 billion in avoided health damage costs.”

The study by UK Natural Capital states:

“Trees in particular provide a wide range of services and account for most of the volume of air pollutants absorbed by natural vegetation in the UK”.

Council Tax and Second Homes

Debate between Jim Shannon and Derek Thomas

Tuesday 26th June 2018 Commons Chamber

[Derek Thomas]

As the rules stand, if a property is advertised for let for a certain number of weeks a year, it can be registered as a business and exempted from council tax and business rates. It is not necessarily required for people to be in the building during that time, as long as it is advertised as available for let. My hon. Friend is right, but I do not want to complicate the issue further. Simply saying that council tax is applicable to every house built for residential purposes would reduce many of the headaches that people might have at the moment.

The other additional benefit of applying council tax to every property is that communities like Steve and Mousehole. [Laughter.] I say “Steve” because of your point earlier. Sorry, not your point, Mr Speaker—although it was a good point you made—but the point made by my hon. Friend the Member for St Austell and Newquay (Steve Double).

The other additional benefit of applying council tax to every property is that communities like St Ives and Mousehole, which have a large number of holiday lets, could benefit from simplified and inclusive waste collection. Currently, because of the concern that the users of second homes in places like St Ives are abusing the system and using the bins provided for genuine local residents who pay council tax, Cornwall Council has removed some of the bins and is refusing to collect some of the rubbish.

Recycling, refuse and how we look after waste is a big issue in St Ives, and I have a big meeting on Friday to identify the issues. The local community will put forward a plan and I will work with Cornwall Council to deliver it. I have been working on the situation for three years, and bins that were available for residents who pay council tax have been taken away because it was deemed that they were being abused by people who own holiday lets and local restaurateurs, which has caused real hardship for elderly people. In parts of St Ives, and in other parts of my constituency where holiday lets are numerous, the people who are left are often older people who are less mobile, and they are having real difficulties in getting rid of their rubbish.

[Jim Shannon (Strangford) (DUP)]

I can well understand the hon. Gentleman’s concern, but doubling the tax on people’s second homes will impact on the attraction of second homes in such areas. Does he agree that much more thought is needed before implementing the draconian step of doubling council tax? That could be the death knell for the holiday industry in one area while opening up interest in other areas that do not introduce such a tax, like my constituency of Strangford.

[Derek Thomas]

I clarify that I am talking about second homes that are not available for let. There are properties where I live that are owned by people who might live not far from here in Westminster and who go to Cornwall for a few weeks a year as a holiday. That is absolutely fine, and they choose to contribute a great deal to the local community, but what I am proposing is that the Government look at giving the council powers to increase tax if it so chooses, if doing so would be beneficial to the area and if it would deliver homes for local families. If local authorities believe such a power would have no benefit to their area, they would hopefully choose not to apply it.

[Jim Shannon]

What I am saying is that there will be differences of opinion on those who buy second homes for their own use and who do not rent them out. Does the hon. Gentleman feel that one council could implement the tax while other councils do not? How will that work?

[Derek Thomas]

That is a fair point, because we would be dispersing the problem. I completely accept that point, and it is not something I have considered a great deal. In my constituency and across Cornwall, we are fairly sea-locked, so there would not be great competition from neighbouring counties. There is a particular issue for us in Cornwall, because once the houses are gone, they are gone and it is not easy to get a property nearby. The hon. Gentleman makes a fair point that needs thinking through properly.

At the moment, I am primarily asking the Government to consider applying council tax to every residential property. If every property paid council tax, every property would be entitled to the local authority’s refuse collection service. That would reduce the need to have several different companies providing the same service in a community such as St Ives, where the roads are tricky to navigate in the middle of winter, let alone in summer, when lot of tourists are around. As I said, I am holding a meeting in St Ives later this week to try to get to the bottom of this problem and to make sensible proposals for reducing the waste we have and dealing with the waste we produce. If we can apply council tax across the board and if properties—

Dark Sky Status (Cornwall)

Debate between Jim Shannon and Derek Thomas

Wednesday 29th November 2017 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I congratulate my hon. Friend the Member for South East Cornwall (Mrs Murray) on securing this debate and on giving us the opportunity to talk about Cornwall. I extend the invitation much further than east Cornwall, right down to west Cornwall and the Isles of Scilly, which are darker still in lots of ways.

Cornwall is already one of the darkest areas in England. It is well documented that becoming a dark skies reserve has positive effects, including energy reduction and a boost to tourism. It also improves wellbeing—first, for mankind, as it is proven that people sleep better under dark skies, and secondly, for migrating birds, nocturnal animals and mammals. My constituency, like much of Cornwall, has a track record of caring for the environment and wildlife. An example we are proud of is the seabird recovery project on Scilly, where we have supported and increased the population of the Manx shearwater, of which I am a species champion, and other seabirds by getting rid of rats and litter. That is one example of our commitment to create the best possible environment for wildlife and nature.

What interests me most about the dark skies status proposal is the west Cornwall and Isles of Scilly initiative, which will create a protected area from Bishop’s rock, 45 km of the south-western tip of Cornwall, right through to the Hayle river, covering the Isles of Scilly and most of what we know as west Penwith. The Lizard peninsular is also in my constituency but is not included in the current proposal for dark skies reserve status, for understandable reasons—there are a couple of rather large towns between Lizard and west Penwith. However, I intend to do what I can to explore that ambition for the good people of the Lizard peninsular.

I am grateful for this debate, because this is a once-in-a-lifetime opportunity. We already live in an unspoiled dark skies area down in the far south-west; we just do not have official recognition.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for South East Cornwall (Mrs Murray) on securing this debate. I want to give an example of something that has happened elsewhere that is similar to what she is trying to achieve. When I saw that this issue was in Westminster Hall for debate, right away I thought of the Wild Atlantic Way, which is something we have done in Northern Ireland with Tourism Ireland. We have promoted the tourism qualities while preserving the rocks, the coastline, the birds and everything else. We have sold it across the world and in the USA. A large number of visitors come not just to the Wild Atlantic Way but to the whole of Ireland and Northern Ireland. It is a marvellous thing. If she gets the status, she will get the visitors.

[Derek Thomas]

I thank the hon. Gentleman for that intervention. If he is offering an opportunity to take some of those American tourists from Ireland to west Cornwall, I would be absolutely delighted.

We live in an unspoiled dark area, so achieving the status would not necessarily require significant changes to light pollution levels today. The many people who are working hard to achieve the dark skies reserve, including my hon. Friend the Member for South East Cornwall and others in west Cornwall, are seeking to preserve and protect the current situation for future generations, but there are plans to build 19,000 new homes in Cornwall and carry out a number of road and other infrastructure projects. That is why it is so important that we secure dark skies status—it is a once-in-a-lifetime opportunity.

In February, I supported the efforts to achieve dark skies status with a constituency-wide survey. Over 95% of those who responded supported the ambition of the dark skies initiative and the work that the working group is doing, as does the Campaign to Protect Rural England, Exeter University, which delivers education in parts of Cornwall, the National Trust, Penwith Landscape Partnership, the Isles of Scilly Wildlife Trust, the Council of the Isles of Scilly, the Duchy of Cornwall, Cornwall Council and the diocese of Truro. A couple of names have been mentioned. I would like to mention Kevin Hughes, a constituent of mine, who been a long-time avid campaigner to deliver dark skies designation in west Cornwall and Scilly. Together, we are united to keep Cornwall and the Isles of Scilly special.

When we secure dark skies reserve status, we will further improve our offer to tourists and our care for the environment and wildlife habitats, and we will lead the way in striking the balance and finding the harmony needed not by resisting house building but by ensuring that the built environment complements the largely unspoiled beauty of the county of Cornwall and the Isles of Scilly. That is what exercises the minds and energies of large numbers of Cornish residents.

When preparing for this debate, I was sent some fantastic images of the skies above Cornwall at night. It is regrettable that I cannot share them in the Chamber, but hon. Members can view them, along with the 9,805 people who have already done so, on the Dark Skies for West Cornwall and the Isles of Scilly Facebook page.

Taxes on Small Businesses

Debate between Jim Shannon and Derek Thomas

Wednesday 18th October 2017 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I beg to move,

That this House has considered the effect of taxes on small businesses.

It is a pleasure to serve under your chairmanship, Ms Dorries. I am grateful for the opportunity to raise this issue, which affects small businesses in west Cornwall and the Isles of Scilly, in the constituency of St Ives.

Some 87% of business enterprises in my west Cornwall constituency are classed as microbusinesses, meaning that they employ fewer than 10 people. In fact, 99% of all businesses in my constituency are small and medium-sized enterprises, employing fewer than 250 workers. Those small, locally run businesses provide the lion’s share of jobs and are the drivers of our local economy. If that is true in St Ives, it will be true elsewhere in the country, which is why understanding how the tax system helps or hinders small business is so important and why I am pleased to raise the issue today. It is also why I have dedicated a considerable amount of time since being elected in 2015 to meeting small businesses and understanding the issues facing them. In fact, I had a small business of my own until my election in 2015.

I know that this Conservative Government recognise the considerable contribution of small businesses, and I acknowledge and appreciate the work that has been done to address the tax burden and support small employers. Many of the 3 million jobs created since 2010 are within small businesses, which is, in part, a credit to Government policy. I recognise that there is no shortage of priorities for the Government and that navigating our way out of the EU will be time-consuming, to say the least. Despite that and—dare I say it—because of it, if there was ever a time to radically address the way businesses are taxed, it is now. While reform will be a challenge, it will undoubtedly yield benefits for our economy by improving productivity, driving wage growth, boosting full-time employment and spreading wealth across all corners of Great Britain, which is a particular concern and interest of people in the far west of Cornwall.

Time does not permit us to consider every aspect of business taxation, and I am not gifted with the brain that is needed fully to understand the complexities of the issue. However, I wish to cover three tax-related issues that stand out to me as clear opportunities for the Government to remove barriers for small business and demonstrate an understanding and recognition of the life of a small business owner.

The first issue is the VAT threshold. Small business owners in coastal communities such as Cornwall and the Isles of Scilly choose to curtail their business to duck under the VAT threshold of £85,000. That is not necessarily about tax avoidance, but more a desire to avoid another level of administration. One business owner on Scilly contacted me because the gallery she runs is set to cross the VAT threshold. She will then have to raise prices by 20% to break even. Since only one of the gallery’s 30 artists is VAT-registered, being able to claim back VAT would not compensate for that change. The gallery must either take the leap and accept that burden or close for the rest of the season.

The effect of the stifling VAT threshold in my constituency is reduced activity during shoulder and winter months, reduced employment opportunities, reduced Government tax income, depressed town centre activity and greater pressure on the hospitality sector during peak season. A guest house owner wanting to avoid registering for VAT may also choose to close early, reducing the availability of beds for visitors and removing altogether the potential spend of the visitor within the wider community.

I raise that issue now because leaving the EU presents an opportunity for the Treasury to consider raising the threshold to, for the sake of argument, £120,000. The Isles of Scilly would be a great place to look at if the Treasury wanted to assess the possible impacts and implications of such a change. The Government may find that it is a cost-neutral proposal.

Another benefit of that proposal is the potential to create greater job opportunities and encourage fresh blood into the tourism sector. That is particularly relevant in Cornwall, Scilly and other rural areas across the UK that struggle to retain young people. I am not suggesting that the proposal would address the skills gap entirely in remote and rural areas, but it would be a step in the right direction.

I assure the Minister and everyone here today that the need to address the VAT threshold in coastal communities is regularly brought to my attention by business owners. I am interested to hear if the Minister is minded to consider such a proposal and possibly a pilot in the constituency of St Ives.

[Jim Shannon (Strangford) (DUP)]

This is a very complex matter. I was doing some research on it and found that 59% of homes now own a tablet, 71% of UK adults have a smartphone and 97% of small and medium-sized businesses have access to online services. I make a plea to the Minister on behalf of craftspeople—people who know nothing about computers but everything about their hands. The person who has a computer in their house is probably a 13-year-old—

[Jim Shannon]

Does the hon. Gentleman agree that that point is not fully taken into consideration when it comes to the digitalisation of everything?

[Derek Thomas]

If the hon. Gentleman is happy to wait, I will be pleased to address that issue later.

I will move on to business rates, which have been quite a contentious and well-documented issue in recent months. There is no doubt in my mind that if the Treasury were inventing a taxation system from scratch today, the current business rate system would not feature in its proposals. The Government should scrap the current system of business rates and develop a fresh solution, injecting fairness into the tax system for small businesses and taking into account the growth of online shopping and supermarket home delivery services.

Structurally, there are many things wrong with business rates. The tax bears little or no relation to the success or activity of a business. The method used to calculate it is arbitrary. Colleagues will be aware that rates are calculated by multiplying the rateable value, based on the assumed rental value of the property, by a multiplier set by Government. Almost in recognition of that, and in an attempt to spare small businesses the business rate burden, the 2010 Conservative-led coalition and the two successive Conservative Governments have sought to address the problems associated with business rates. As a result, some businesses are eligible for rate relief, with many paying no rates at all. Others, for reasons that are beyond the understanding of most lay people, find they are charged 100% business rates, with many in my constituency experiencing considerable increases following the revaluations earlier this year.

The owner of a small independent delicatessen in Helston, where rents are relatively lower, approached me for help in March. Her current rateable value stands at an extortionate £17,750 per year. To rub salt into the wound, her rates are calculated as £149 per square metre, which is the second highest on the street. A chain bakery operating next door pays just £101 per square metre—32% less—and a national clothing chain on the other side of the street pays just £66 per square metre, which is over 56% less. If she enjoyed the same rate per square metre, she would be liable for no rates whatsoever. Because of her business rate charge, she is not sure that she can afford to stay in business.

The current business rate calculations unfairly discriminate even between businesses in the same part of the high street and do not enable businesses to operate on a level playing field. The great tragedy is that that example is not unique. There are similar cases of an independent photography shop in Penzance and a car paint-spraying business that is run by two youngsters who find that their business rate charge bears no comparison to similar units on the same industrial estate. In both instances, there is little hope for the businesses unless the Government act quickly.

Furthermore, in this age of online shopping and supermarket home delivery services, there are businesses essential to the health of the high street that find competing in today’s world nigh on impossible, despite their so-called privileged position on the high street. Historically, a place on the high street gave an advantage to the shop owner, and consequently the business rate levy reflected that. The ability of supermarkets to provide a delivery service direct to the door has undermined that advantage, and in many cases, despite the modern reach of supermarkets as a result of home delivery services, the supermarket pays relatively less in business rates than the high street shopkeeper. In fact, in St Ives, business rates for some supermarkets reduced this April.

To add insult to injury, rents in St Ives town are being pushed up by the perceived popularity of this iconic place. This year, because rate charges relate to rental values, independent business owners have seen their business rate charge rocket. Traditional retailers, such as bakers, butchers and grocers, face the risk of closing after decades of trading. High street chains move in, and ironically the very thing that drives visitors to St Ives is being lost, partly because of what I believe is a flawed business rate system.

Could it be that the cost of running a high street business, including a business rate charge, means that a greengrocer can no longer compete with a supermarket 20 miles away, now that it can deliver groceries to the family living in the flat above? Surely a modern-day business tax should recognise such changes in consumer behaviour. Furthermore, business rate charges take no account of external factors such as high parking charges, poor upkeep of the local area, closure of local public toilets, or a downturn in the economy, most of which have been experienced in Cornwall in recent years.

I have worked hard with a number of business owners who have found the business rate system profoundly challenging. That group includes a local pub owner, who came to the trade recently, full of enthusiasm. The pub employs 14 locals and is a focal point for the community. A rate review means that the pub now faces a 280% increase in business rates, which equates to an extra £13,000 a year. I recognise that the Government have done some work, and Cornwall Council is also doing some work, to help with that, but the fact remains that that rural pub owner’s rates have increased by 280%. As rural pubs close around us and communities are losing their rural services, issues such as this are hardly encouraging to new entrants.

Another major drawback is that business rates hinder aspiration. Should a small business benefiting from full rate relief wish to take on a second property, expanding both the business and the workforce, it will lose its rate relief and pay rates on both the new and the existing outlet. That step change discourages growth and innovation, and stifles all the benefits that growth brings, including job opportunities, staff training and career progression. That is hardly the intention of what I believe is a small business-friendly Conservative Government.

Before moving on, I want to stress the potentially unique role that traditional independent retailers such as bakers, butchers and grocers have in looking out for vulnerable people in the community—for example, the elderly. That is reason indeed to consider the potentially devastating impact of an outdated business rate system.

Finally, I would like to address the Government’s Making Tax Digital plan. I am in favour of moving across to digital tax reporting and I recognise the Government’s ambition to move to a fully digital tax system during the next few years. Will the Minister ensure that SMEs, including sole traders, have easy access to reliable software and training? Have the Government considered that for some businesses, a transition to digital-only tax will present a further serious administrative and financial burden? Strange as it may seem, there are still significant numbers of traders who are not naturally acquainted with online activity. I am reluctant to single out individuals, but I have met a number of sole traders who are not tech savvy, and the idea of making tax digital fills them with dread.

At present, I can see that there may be a benefit to Her Majesty’s Revenue and Customs in making tax digital, and I know that the Government are making allowances for areas of poor digital connectivity and plan to exempt some on very low self-employed incomes. Can the Minister please ensure that those exceptions are properly supported by accurate data, so that those who are not yet in a position to take part in the brave new world of digital tax reporting will not be unfairly penalised or discriminated against?

In conclusion, I believe that the Government could send a clear message that Brexit does not mean that important domestic priorities are being left on the back burner. The Government can do that by ensuring that small business growth is not stifled by out-of-date and grossly unfair tax systems. Taxation must promote growth so that, as a nation and within our communities, we can maximise all the benefits that a vibrant economy brings. As changes in consumer behaviour and better digital services lead consumers to gravitate towards online shopping and supermarket home delivery, we must ensure that the Government have a fair system of taxation and make changes to unlock the potential of our country’s entrepreneurial small businesses.

The Government must recognise that the negative impact of business rates and the profit hit from VAT registration often go hand in hand. Both taxes kick in at the crucial point when an enterprise is on the cusp of growing to a size at which it can be of useful benefit to the local economy and community. Will the Government please consider scrapping business rates once and for all, in favour of a tax that reflects the economic activity of all businesses concerned? Will the Government explore opportunities to raise the VAT threshold in coastal and rural tourist areas, and will the Government continue to listen carefully to those who recognise the move towards digital tax reporting but ask that we approach it with caution and understanding?

[Ms Nadine Dorries (in the Chair)]

I call Jim Shannon.