Financial Statement

Alan Brown Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

Because of the increases to local housing allowance that this Government put in place for the pandemic, and that they have maintained, about 1.5 million people—the poorest in our society—will have £600 a year more in local housing allowance, which will help. The hon. Lady talked about a family on low income. Just so that she is aware, as a result of all the tax and welfare changes we have made, including to the taper and the national living wage, a family with two children that is renting, with one parent working full time and the other working part time on the national living wage, will be about £3,000 better off. I know that that will help them through the challenging months ahead.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Brownings the Bakers makes and sells products and distributes them right across the UK through some of the major UK supermarkets. I wrote to the Chancellor highlighting the fact that its electricity costs have increased from £4,000 a week to £11,000 a week. If it wants fixed costs, it has been offered an eye-watering £17,000 a week for a two-year contract. Obviously, the Treasury makes more money in VAT returns out of these eye-watering increases, so rather than the Chancellor having to write back to me, can he confirm to me here and now that I can tell John Gall, the managing director, that he is doing nothing to help businesses such as Brownings the Bakers?

[Rishi Sunak]

The hon. Gentleman is simply wrong on VAT. If he looks at the figures published today, he will see that the OBR’s estimate of VAT receipts in the forthcoming year is actually lower than the amount it had expected in the autumn. We are providing a tax cut for small businesses today—£1,000 due to the increase in the employment allowance, and that will kick in in just a couple of weeks.