Andrew Rosindell
Main Page: Andrew Rosindell (Conservative - Romford)Department Debates - View all Andrew Rosindell's debates with the HM Treasury
(1 month, 3 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Bim Afolami
I thank my right hon. Friend for his question. Indeed, working with not just the Ministry of Justice, but the Department for Work and Pensions is key to deliver this, as is working with the Financial Conduct Authority to ensure that any financial institution that does the right thing does not lose out or face any regulatory issues. That is indeed something that has my support and that of the Treasury, and we will work across Government to get this right.
Andrew Rosindell (Romford) (Con)
The Financial Secretary to the Treasury (Nigel Huddleston)
As stated in the spring Budget, the Government are considering the findings of the review by the Office for Budget Responsibility of VAT-free shopping, alongside industry representations and broader data. We continue to welcome further submissions and representations in response to those findings.
Andrew Rosindell
Data from Heathrow, the United Kingdom’s largest and busiest airport, shows that despite a near-full recovery in passenger volumes post lockdown, retail spend on affected goods is 32% below pre-pandemic levels. That figure is shocking. Heathrow airport joins hundreds of businesses in calling on the Government to reintroduce VAT-free shopping for tourists, or similar incentives. Will the Minister acknowledge the figures, listen to the industry and reinstate that popular policy, as British businesses are demanding?
Nigel Huddleston
My hon. Friend will be pleased to know that I will not only listen to the industry, but I met Heathrow just last week to hear its representations. The challenge is the way that modelling, and forecast and behavioural changes can be confidently assessed. Government estimates suggest that a worldwide scheme could cost as much as £2.5 billion. The challenge is the so-called deadweight cost that could happen by subsidising spending that otherwise would exist anyway, versus the incremental benefit that we could get from new visitors coming to the UK. Of course that is a behavioural change based on a tax change. It is based on a variety of assumptions, and therefore the modelling and assumptions underlying it vary, but I am listening to all representations.
Jeremy Hunt
That is why we need to build more houses. The hon. Lady will be reassured to know that we are building record numbers of houses—in fact, more in the last year than in any single year under the previous Labour Government.
Andrew Rosindell (Romford) (Con)
I would like the Chancellor of the Exchequer to know that high business rates are having a devastating effect on small and medium-sized businesses in historic market towns, such as Romford, that are large retail centres. As the Government are business friendly, will he please look at ways to reduce the burden of business rates on local businesses in constituencies like mine?
Jeremy Hunt
May I say what a pleasure it is to be asked a question by my hon. Friend? I think this is the first time it has happened since he has been back. There is no more formidable a champion for Romford. He speaks about business rates, and we have indeed been doing what we can to bring them down at every fiscal event.