Tax Avoidance

Debate between Karl Turner and David Gauke

Wednesday 11th February 2015 Commons Chamber

[Mr Gauke]

I have nothing further to say on that point. The position is that Lord Green was appointed as a trade Minister. His appointment was supported across this House; many people from both sides of the House welcomed it.

[Karl Turner (Kingston upon Hull East) (Lab)]

We did not have the information.

[Mr Gauke]

The hon. Gentleman says from the Front Bench that the Opposition did not have the information, but just a few minutes ago he was saying that it was all in the public domain. He cannot have it both ways. The position is that Lord Green was appointed and his appointment was widely welcomed. We can hear the rhetoric from the Opposition, but the reality is that this Government have backed up rhetoric with hard, decisive action. Since we came to power in 2010—

Changes to the Budget

Debate between Karl Turner and David Gauke

Monday 11th June 2012 Commons Chamber

[Karl Turner (Kingston upon Hull East) (Lab)]

I welcome the Government’s U-turn on the caravan tax, which would have adversely affected many thousands of people throughout the country. However, will the Minister take this opportunity to apologise to the 350 employees of Willerby Holiday Homes in my constituency who were told that they would potentially be made redundant as a result of the Government’s barmy idea, and will he describe the effect on the industry of the introduction of the 5% tax on caravans?

[Mr Gauke]

First, let me say that I am grateful to have an opportunity to return to the Dispatch Box. On the point the hon. Gentleman raises, I really do not think that the changes, which in our original proposals would not have come into effect until October and which now will not come in until April, can be the source of some of the current difficulties within the caravan industry. We think we have the right policy now and that a 5% rate is fair.

Static Caravans (VAT)

Debate between Karl Turner and David Gauke

Thursday 26th April 2012 Commons Chamber

[Mr Gauke]

That estimate was made on the basis of the evidence that the Treasury and Her Majesty’s Revenue and Customs had before them. The point I wish to make is that a genuine consultation is taking place and we look forward to receiving evidence that my hon. Friend has and others have, so that we can make a further assessment of those costings.

Let me now discuss the impact on caravan manufacturers. We recognise that the impact on static holiday caravan manufacturers will not be trivial. The level of the impact will, of course, depend on the variety of products produced by those manufacturers. Many hon. Members are concerned about caravan sites, but it is worth bearing in mind that caravan holiday parks have a variety of sources of revenue, most of which will not be affected by the VAT change. Such sources include: charging a siting fee; running a shop; group insurance scheme commission; commission on the resale of used holiday caravans; and commission on letting on behalf of the owners—sub-letting—and so on.

I recognise that applying VAT to the sale of new holiday caravans will not be welcome, as this has been a significant income stream for many parks. However, there is a good deal of flexibility within the range of products and services that caravan holiday parks offer to allow them to adapt their mix of business to the new VAT treatment of holiday caravans. I recognise that there are challenges involved in adapting to these changes in the tax regime, but there is scope for adaptation.

The main point I wish to make today is that we would welcome any evidence provided through the consultation, which, as my hon. Friend has pointed out, has been extended, be it evidence on the costing or on other matters.

[Karl Turner (Kingston upon Hull East) (Lab)]

rose—

[Mr Gauke]

I have only one minute left, and I just wish to complete this point. We have listened to earlier representations, and we have extended the consultation period until 18 May to allow HMRC to engage further with representative bodies in order to better understand the implementation issues and how best to define a “holiday caravan” for VAT purposes. We are particularly keen to use the consultation to ensure that the new rules are workable and simple for businesses to administer. We understand the strength of feeling on this matter and genuinely want to listen to the concerns—

Oral Answers to Questions

Debate between Karl Turner and David Gauke

Tuesday 12th October 2010 Commons Chamber

[Karl Turner (Kingston upon Hull East) (Lab)]

15. What representations he has received on the new arrangements for child benefit which will apply to one and two-parent families.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

The Chancellor has received a number of representations on the planned changes to child benefit. It is not the Government’s practice to provide details of all such representations.

[Karl Turner]

Does the Minister agree with my constituent Christopher Sumpton, who points out that it is grossly unfair for a single mother earning £44,000 a year and supporting three children to lose her child benefit, given that the next-door neighbours earning £80,000 will not? Will Treasury Benchers explain why the Government are attacking women in this savage way?

[Mr Gauke]

As I said earlier, we do not currently have the capability to examine the situation on a household basis, but we do need to make difficult decisions. If the Opposition want to oppose each and every cut, including in the child benefit that is given to some of the wealthiest in society, they can take that position, but we are prepared to take those tough decisions.