Oral Answers to Questions

Dan Carden Excerpts

Tuesday 17th May 2022 Commons Chamber

[Helen Whately]

My hon. Friend is absolutely right about the importance of getting the money into people’s pockets fast, which is why the first support payment is through the council tax system. I know that councils are working hard to get payments to people, whether they do or do not have direct debits. The Treasury is working closely with the Department for Levelling Up, Housing and Communities to support local authorities with delivery.

[Dan Carden (Liverpool, Walton) (Lab)]

7. What recent steps he has taken to ensure fairness in the application of the tax system.

[The Financial Secretary to the Treasury (Lucy Frazer)]

The Government are committed to ensuring a tax system that is fair and simple. I will give three examples: first, we have equalised the national insurance and income tax starting thresholds; secondly, our work towards OECD pillars 1 and 2 will help to ensure that multinational businesses pay their fair share; and thirdly, we are tackling avoidance and evasion to ensure that everyone pays the right amount of tax at the right time.

[Dan Carden]

I am grateful to the Minister for that answer. Liverpool, Walton ranks as the most deprived community in the whole of England. I am used to constituents contacting my office unable to afford their bills and to survive on their own incomes. What is new is that local independent businesses are now telling me that they are going under. At the heart of the Liverpool economy is hospitality and the visitor economy. Locally run and owned restaurants and cafés are now facing apocalyptic price rises. The VAT on soft drinks and food consumed on premises, and hot beverages and food taken away, has risen back to 20%—it was 5% and then 12.5% during the pandemic. What will Ministers do to save local independent businesses through the tax system?

[Lucy Frazer]

It is important that we support local businesses, and that is exactly what the Government have done. The hon. Member will know about the business rates support—amounting to £7 billion of support to businesses—that we provided at the last Budget, including £1.7 billion for the hospitality industry through a 50% rebate on business rates. For small businesses, we also increased the employment allowance by £1,000. That is a package of support for local businesses in his area and others across the country.