(12 years, 5 months ago)
Commons ChamberI took my car for a service last week at my local garage, which is a one-man band. He said, “For heaven’s sake, will you get rid of that lot? They are ruining my business.” When I asked him what he meant and what the Government were doing that was ruining his business, his reply was, “VAT—the 20% rate is destroying my business, and all the other small business owners I know think exactly the same.” Sadly, a reduction in VAT from 20% is not an option in this debate, but putting VAT on to so many other things just increases the problem for hard-pressed businesses and struggling people.
The hon. Lady tells us that she went to her garage and the man said, “Get rid of that lot”, but what would her lot do instead to give him much more business? That is what I would be delighted to hear, and I hope that she can give me an answer.
What Labour would have had is jobs and growth. We would not have been in a double-dip recession and we would not be in this stupid position of cutting too fast and too deep, which is ruining the British economy. Unfortunately, we are not in government.
It has been incredibly difficult to prepare this speech, because it is hard to work out, in this omnishambles of a Budget, what this disorganised Government have done a U-turn on. Perhaps I should not call them U-turns, because in many cases the Government have done them only partially; I am not sure whether these are L-turns or C-turns. I thought that they had done a full U-turn on the caravan tax, but I discovered this afternoon that they have not done a full U-turn at all, and the pasty tax is as clear as mud. I was having a discussion with colleagues before this debate as to what food is now VAT-able and what is not. It seems that a rotisserie chicken that will be cold when someone eats it is VAT-able, whereas a pasty that comes out of the oven will not be, unless it is put on a hot plate. But what happens if the oven is put on low so that the pasty is just kept warm? Will that pasty be VAT-able or not? The Minister needs to explain to me and the nation how this proposal is different from his first proposal, and how it is to be policed. Will taxmen regularly visit all the sandwich shops in the country to check on their ovens? That needs further explanation.
What about the mess of heritage tax? Again, we saw panic among Government Members and a little U-turn, perhaps to silence the bishops and return some money to places of worship for their alterations. However, £30 million will not go far, and the tax has been a huge blow to many communities.
(12 years, 7 months ago)
Commons ChamberI start by expressing concern about the “user pays” principle. We do not apply that to the police or other safety and security issues and services. I will expand on that in a moment, but first I want to express my concern about the outcome-focused, risk-based approach to security. The terrorist has only got to get through once; we have to be 100% successful at stopping the terrorist. I am still not convinced that a focus on outcomes will achieve the necessary ends. I therefore believe that the Government must be extremely clear about what they are saying about the risk-based focus. I am still not convinced that just specifying the end result will be adequate.
To return to the costs, the Government say that the freedom of airports to devise their own systems could lead to cost savings, and that worries me hugely. Will that mean that, potentially, airports will be looking at how they might cut costs, and therefore will cut corners? I am concerned that some airports might be less rigorous than others. Our biggest concern in the past few years has been around transatlantic services, which of course have high prestige for the terrorist. However, any attack on any airport or airliner—or, in fact, train, ship or anything else—would be significant and would produce that wonderful splash of publicity that terrorists want to see. If we do not prescribe what airports should include in their security services, is there not a risk that we shall not be able to monitor them properly? I am concerned that some of those smaller airports may then become soft targets for terrorists.
When we are looking at security, we can take no shortcuts whatever. We say, “If it ain’t broke, don’t fix it,” but terrorists spend their time trying to work the system that they are viewing, so that approach does not work in security. We have to try and change the system to throw the terrorist. I think the hon. Lady probably agrees with me on that.
I thank the hon. Gentleman for that intervention because I absolutely agree with him. That is why I am very concerned that if cost is a driving force within security, airports may look to see how they can reduce costs rather than, as the hon. Gentleman says, continuing to be innovative. As he so rightly says, it is not enough to shut the stable door after the horse has bolted and say, “They got through there but we can stop them next time.” We have to stop them the first time—an incredibly difficult task.