Oral Answers to Questions

Debate between Dan Rogerson and Nigel Mills

Thursday 27th March 2014 Commons Chamber

[Dan Rogerson]

As the Secretary of State said in answer to an earlier question, we are interested in what has already happened in Wales, and what is being considered in Scotland and in Northern Ireland.

[Nigel Mills (Amber Valley) (Con)]

Would the Minister or Secretary of State care to visit a factory in my constituency that deals with plastic recycling to see at first hand what damage to that industry could be done if biodegradable material accidentally gets into the waste stream?

[Dan Rogerson]

I am clear that we want to build on the good work in plastic recycling. If the hon. Gentleman gives me more details, I am sure we can discuss whether we can go on that visit to match his request.

Oral Answers to Questions

Debate between Dan Rogerson and Nigel Mills

Thursday 9th January 2014 Commons Chamber

[Dan Rogerson]

The hon. Lady is absolutely right to point out that, given the maturity of such ecosystems, ancient woodland has a whole range of things that new planting cannot hope to replicate. That is why the planning guidance is absolutely clear that the hierarchy should protect ancient woodland.

[Nigel Mills (Amber Valley) (Con)]

2. What assessment he has made of the scope for cutting red tape in the farming industry.

Hot Takeaway Food (VAT)

Debate between Dan Rogerson and Nigel Mills

Wednesday 23rd May 2012 Westminster Hall

[Nigel Mills]

I am grateful to my hon. Friend for that intervention. The point I was trying to make was about a craft baker on the high street who is not trying to be a takeaway in disguise for VAT planning, which is in contrast to what looks like something trying to be a takeaway, but is in fact something different. That is perhaps one of the things that has tipped the Treasury over the line. It would be interesting to know what mischief it is trying to fix. Which bad guys are we tackling? I honestly suspect that the bad guys are not the high street craft bakers who will be dragged into this. Their staff will be in a horrible situation.

I went to a couple of bakers in my constituency to see what the measure will mean. The sausage rolls are out of the oven and slowly cooling down in the very much non-heated—I was careful to check—displays in the shop. I guess that if they have been there for 20 minutes, they will still be hot, and therefore there might be VAT. If they have been there for 30 minutes, they might be on the border. If they have been there for 40 minutes, perhaps they are cold enough for no VAT. I have a horrible picture of the member of staff having to poke their finger into my sausage roll to check whether the one they are selling me is cool enough not to charge VAT on or still too hot.

There is a practical issue of how the shops will know day to day that the products sat cooling have cooled long enough for me to get a 20% discount, or have not cooled so the customer has to pay VAT. I suspect that such shops will put VAT on everything and put the prices up by 20%, and they will get a nice windfall for the bits that they can convince the Revenue are not VAT-able. In practice, they will not want to charge separate prices depending on whether someone buys a product marginally above or below the ambient temperature. That would be an unfeasible and rather strange situation for everyone to get into.

[Dan Rogerson]

With his expertise in the intricacies of tax law, the hon. Gentleman makes good points. I suspect that the windfall he mentions will be offset by any decline in trade due to the 20% increase in the cost of the product, set against cold products such as sandwiches.

[Nigel Mills]

I suspect that that is probably right. This will put people off buying some products entirely. I was trying to say that I suspect that the customer will end up with a 20% price rise on all products and it will be down to the baker to match that loss of sale with the income that they get to keep on non-VATable stuff.

The Government need to produce coherent, understandable and enforceable rules. The suggestion that a product would definitely be VATable if any effort was made to keep it warm, by putting it in a heat-retaining bag, under a hot lamp or on a heated rack, after it had been baked would lead to an understandable and clear situation. I am not sure that it would tackle all the mischief that the Government seek to tackle, which is why it would be helpful to understand exactly what problem they want to solve. It would not stop something that looks a lot like a takeaway pretending to be a bakery, which I suspect is something that they would like to deal with.