Taxation (Post-transition Period) (Ways and Means)

Andrew Jones Excerpts

Ways and Means resolution & Ways and Means resolution: House of Commons
Tuesday 8th December 2020 Commons Chamber

[Andrew Jones (Harrogate and Knaresborough) (Con)]

It is always a pleasure to follow my right hon. Friend the Member for East Antrim (Sammy Wilson). He is one of the most effective and passionate communicators in this Chamber and, if nothing else today, he has reminded the Labour party that there are two sides in a negotiation.

We have had a very wide-ranging debate so far, some of it even on the ways and means resolutions. Should these actually come to a vote later this evening—we have had some apocalyptic language used, but apocalyptic language does not always follow through into actually voting—I will be supporting them, because we must make sure that preparations are in place for the end of the transition period. This Bill is a part of that, which is why these resolutions should pass. This Bill is also a part of ensuring that we are legally prepared for the different outcomes that could flow from the negotiations, this work in progress. We do not know what it will say, but I just want to put it on the record again that I hope we will have a deal along the free trade lines already agreed.

The Bill is also about ensuring that we have smooth continuity of business. Of the six measures, three deal with Northern Ireland and the protocol. There are colleagues in this House more focused on the detail of Northern Ireland policy than me. I just want to say that I view Northern Ireland as a really important part of the United Kingdom. I want to see the continuity of trade operate smoothly and effectively across all four parts of our United Kingdom, and I am pleased that the Government have made the obligation to the people of Northern Ireland about continued unfettered access to the UK under all circumstances.

I will not add anything further to the contributions on Northern Ireland. Those measures have been talked about in this debate already and very articulately. There are three other measures, which are reforms to the wider tax system. The most significant is the new model treatment for VAT on goods arriving into the UK from overseas. Basically, the collection of VAT will move from the existing arrangements on to the overseas seller or the online marketplace where the sale transaction occurred, making the collection of VAT easier and ensuring a more level playing field, especially for the UK high street. Businesses on every high street in the country have been having a rough time for many years, and one reason for that is the rise of internet shopping. Many businesses have a physical and digital offer—both bricks and clicks—making themselves available to customers through whichever purchase route they choose. These businesses pay VAT and will be unfairly undercut if overseas businesses are allowed to make VAT-free sales. This measure will tackle non-compliance. I understand that similar measures are in place in other parts of the world and, indeed, that the EU is introducing something similar.

The fifth measure is about tackling tax evasion in the insurance sector so that HMRC can prevent tax evasion whether an insurer is based in the UK or not—basically it is the power to issue a liability notice irrespective of location. That is part of the creation of a level playing field for UK businesses, just as the previous measure was. The last measure is very technical in nature, dealing with taxation implications from legacy state aid decisions. All I can say is that as I am glad that my right hon. Friend the Minister is on the case. This measure was perhaps designed for specialists.

Overall, the continuity of seamless trade across the UK is critical for us all. The United Kingdom Internal Market Bill has that at its core. That principle is maintained in this Bill, alongside the measures for a level playing field, which is why I shall support it.

Taxation (Post-transition Period) Bill

Andrew Jones Excerpts

2nd reading & 2nd reading: House of Commons
Wednesday 9th December 2020 Commons Chamber

[Andrew Jones (Harrogate and Knaresborough) (Con)]

Yesterday in the debate on the Ways and Means resolutions, I said that I would be supporting the Bill because our country needs it. It needs it for the core purposes of the Bill, which are the smooth continuity of business after the transition period, being ready, and creating a more level playing field for UK businesses.

I recognise that leaving the EU is a field full of tough issues, but the most problematic element is the nature of our land border with it. Seeking to deliver Brexit while protecting the Good Friday agreement was the major stumbling block in our endless debates and struggles last year, so I am pleased to see progress made on that issue. We had a statement on it earlier; I will not go over trodden ground.

There are businesses in Harrogate and Knaresborough that do significant trade selling to and buying from Northern Ireland. The Bill will be welcome news for them. More people in Harrogate and Knaresborough are affected by internet shopping, either buying from or selling via online platforms. Even if people do not buy online, they are affected by the struggles on the high street. It is a tough time for retailers and, of course, high streets provide countless thousands of jobs. They are economic hubs. Our high streets and town centres also have a social function beyond an economic one. They provide a community focal point.

Before coming here, I worked in retail and for brands that sell through retail. When I talk to retailers, they say that they just want a level playing field. They are talking widely when they use that phrase, but they are talking about taxation, particularly business rates and VAT. The Bill helps to create more of a level playing field with a new model for the treatment of VAT on goods arriving in the UK from overseas. The collection moves to the overseas seller or the online marketplace where that transaction occurs. As a result, it will be easier to collect VAT and harder to avoid it. The last thing that a business having a tough time needs is for competitors to have a 20% price advantage. High street businesses and online players based here pay VAT, so if overseas businesses are allowed to make VAT-free sales, they are unfairly undercut.

I do not think the measure is controversial; it is entirely reasonable. Indeed, as I mentioned yesterday, there are moves across the world in this policy direction. I commented on the other measures in the Bill yesterday, so I will not detain the House with repetition.

The past year has obviously been one of the toughest on record in peacetime. The economic impact will be felt for many years. We also have the consequences of Brexit. The need for the continuity of business operation is profound. Our whole United Kingdom must focus on growth as we seek to protect livelihoods as we have sought to protect lives. The Bill is part of the measures being taken to secure our business future, and that is why I will support it.