Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John McNally

Tuesday 24th October 2017 Commons Chamber

[John Mc Nally (Falkirk) (SNP)]

T7. Inflation now stands at a staggering five-year high and businesses in Scotland, Falkirk and across the UK face the prospect of increased trade tariffs post-Brexit. On the high street, it is increasingly a case of bricks versus clicks, and businesses are closing down, as people buy online, leaving town centres struggling. Has the Chancellor spoken to retailers about the possibility of reducing the amount of VAT paid by businesses in our town centres to help them cope with online trade and the impending extra burdens?

[Mr Philip Hammond]

We are acutely aware that inflation has spiked, but the overwhelming majority of forecasters expect it to start to fall again in the new year. The spike in inflation has been driven primarily by the depreciation in the value of sterling last year, but I will take the hon. Gentleman’s comments on VAT as a representation for the Budget and will consider them carefully.