Finance (No. 3) Bill

Alister Jack Excerpts

2nd reading: House of Commons & Programme motion: House of Commons
Monday 12th November 2018 Commons Chamber

[Mel Stride]

As the hon. Gentleman will know, the scope of this tax is very clearly targeted on businesses that make substantial value in the United Kingdom as a consequence of the interaction of UK users and the digital platforms they trade across. He will know that there is a small number—relative to the size of the UK economy—of important businesses that are therefore within the scope of the measure. A figure of 2% is very much in line with the kind of figures that the EU was looking at or is continuing to look at—[Interruption.] From a sedentary position, the hon. Member for Oxford East (Anneliese Dodds) is talking about 3%, but she is not actually comparing like with like, because different revenues would be in scope under the two different approaches. The short answer is that this has to be proportionate: it is about levelling the playing field. Along with this particular measure, we have also announced that, for our high streets, we will be reducing business rates by a full one third for 90% of smaller retailers.

[Mr Alister Jack (Dumfries and Galloway) (Con)]

Does my right hon. Friend agree with me that the growing tax gap between Scotland and the rest of the UK is in fact a tax on aspiration and that it discourages higher earners from wanting to work north of the border?

[Mel Stride]

My hon. Friend is right. If we look at some of the relieving measures on tax that have been provided to Scottish taxpayers, we can see that they come by way of the increases in the personal allowance that this UK Government have made. He is absolutely right to highlight the fact that Scotland is becoming more of a high tax jurisdiction.

--- Later in debate ---

[Colin Clark]

I could recommend to the hon. Gentleman that he reads the famous The Press and Journal, which I was in just under a year ago, standing in front of a building that had just been knocked down and which used to house 500 people in an office—I shall send him a signed copy of it. Buildings are being demolished in the north-east of Scotland.

[Mr Jack]

Opposition Members ask for evidence; the evidence is the Michelin factory in Dundee, which has had its rates increased by some £300,000.

[Colin Clark]

That must be of enormous importance to the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry).

I shall support the Bill and the UK economy. Most importantly, I shall support a Finance Bill that supports jobs.