Dan Tomlinson
Main Page: Dan Tomlinson (Labour - Chipping Barnet)Department Debates - View all Dan Tomlinson's debates with the HM Treasury
(1 day, 13 hours ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Wendy Morton (Aldridge-Brownhills) (Con)
The Exchequer Secretary to the Treasury (Dan Tomlinson)
The Government have already taken action on fuel affordability at the pump. In last year’s Budget they extended the 5p per litre cap for a further five months, and they have also cancelled the increase that would have otherwise taken place in line with inflation at the start of this financial year.
Dave Doogan
If you were a gardener with a Renault Trafic or a builder with a Ford Ranger in Scotland, Mr Speaker, you would be paying over £150 just to fill up at the pump in order to get to work. When Spain and Poland and Germany and France and Italy and Ireland and Australia are all intervening to help their industry and economy, our Chancellor here stands idly by and congratulates herself on the quality of her inaction. We do not want to hear from Anas Sarwar in Scotland, because he promised £300 off our energy bills and they are now £700 higher than the level that he promised in 2024. We want to hear from the Chancellor. What is she going to do about diesel specifically, and when is she going to do it, to keep the grafters of Scotland turning up for work?
Dan Tomlinson
The Scottish National party has had ample opportunity in Scotland to invest in energy, to invest in energy infrastructure and to invest in the changes that we need in our economy to bring down energy bills, and when it comes to fuel duty—[Interruption.]
Dan Tomlinson
When it comes to fuel duty, it is of course worth noting that it is lower today, in cash terms, than it has been in any year since 2009.
Mr Mohindra
If the increase in fuel prices rather than the Chancellor’s two disastrous Budgets is to blame for the stagnating economy, why does the Chancellor believe that raising fuel duty further in September will help to reduce the cost of living when in fact it will harm the economy more, and will deliver another direct hit to the pockets of my constituents?
Dan Tomlinson
Before the conflict in Iran started we saw inflation falling, we saw unemployment falling and we saw growth increasing by 0.5% in one month at the start of the year. That showed that our economic plan was the right plan for this country, and it is important that we stick to it rather than returning to the bad old days of the high borrowing and high interest rates that the Conservatives brought us when they had a chance to run the economy.
Wendy Morton
Labour is at war with motorists, and Reform’s idea of protesting about fuel prices was revealed at their non-event yesterday—and, indeed, its members are not even here today. Only we on the Conservative Benches are standing up for our motorists and our constituents. Will the Chancellor take this opportunity to help our constituents, our businesses and our motorists, and adopt our plan to extend fuel duty relief—yes or no?
Dan Tomlinson
I agree with the right hon. Member that Reform’s rabble yesterday was deeply underwhelming. As for fuel duty, the rate is currently lower than it was at any point under the last Government, or, at least, it was never lower under the last Government than it is now. In real terms, it is lower than it has been at any point since 1993.
Bill Esterson (Sefton Central) (Lab)
The fuel duty freeze is of course very welcome for drivers of petrol and diesel vehicles, but this is the second time in just over four years that petrol and diesel prices have gone through the roof as a result of international oil and gas uncertainty. Is it not time that we gave as much support as possible to those who want to make the transition to electric vehicles? According to Autotrader, the average price of electric vehicles is already lower than that of petrol and diesel vehicles. Will the Government confirm that they are bringing forward plans for greater ability to charge at home and bringing down the cost of electricity as far and as fast as possible, so that more drivers can benefit from long-term lower driving costs?
Dan Tomlinson
My hon. Friend is right to say that we are seeing a continued uptake of electric vehicles—we saw that in March this year. More electric vehicles were purchased in March than in any month in British history, and we can see that take-up is continuing to increase. This Government are increasing and expanding the grants for those who want to buy an electric vehicle, and we are making progress on permitted development rights, so that those who do not have easy access to charging in their driveways can have easy and cheap access to on-street charging.
Gerald Jones (Merthyr Tydfil and Aberdare) (Lab)
Even before the current conflict in the middle east, fuel suppliers in the Merthyr Tydfil part of my constituency were charging an average of 10p per litre more than those in other parts of my constituency and neighbouring towns. Even London fuel prices were cheaper than they were in Merthyr Tydfil, and the situation has not improved since. I have written to suppliers and met some, with limited success, and I have asked the Competition and Markets Authority to look at the matter, which it has so far not done. May I ask the Chancellor to offer whatever assistance she can and to urge fuel providers in Merthyr Tydfil to act fairly? Will she urge the CMA to consider what it can do to ensure fair play for my constituents?
Dan Tomlinson
I thank my hon. Friend for his representations, and for the work that he is undertaking on behalf of his constituents in a rural part of our country. We are making sure that all garages are on the new fuel finder website that the Chancellor has introduced. That should drive up competition and make it easier for the people he represents to compare the cost at the pumps in different garages nearby. It is good to hear that he has been in touch with the CMA; the Chancellor, too, has been in discussion with it about making sure that we have competition in this industry. If I can help him to get a meeting with the CMA, I will happily assist.
James Wild (North West Norfolk) (Con)
Whereas the Conservatives froze fuel duty for 14 years, Labour is planning to increase it by 5p, costing families £150 a year and hauliers £2,000. When the Chancellor was asked to reverse her hike, she said she was
“loath to spend Government money”
to do so. There is no such thing as Government money; there is only taxpayers’ money. Rather than increase taxes again, will she actually help households and businesses facing higher prices and scrap this fuel hike?
Dan Tomlinson
We on the Labour Benches are fiscally responsible. We will make sure that we continue to get borrowing down in a sustainable way, as we did over the last financial year, when borrowing fell by £20 billion. Whenever the Conservatives have had the chance, they have borrowed more, which pushes up interest rates for families and means that we have to have higher taxes in the long run. That is not the approach that we will take. The plans that the Conservatives set out in their final Budget before they left office would have seen fuel duty increase every single year. Instead, we have frozen it since we took over.
Leigh Ingham (Stafford) (Lab)
Peter Fortune (Bromley and Biggin Hill) (Con)
The Exchequer Secretary to the Treasury (Dan Tomlinson)
The reforms to business property relief maintain significant relief for owners of business assets. That is beyond what is available to others and is more generous than at any time under Margaret Thatcher, for example, when the rate of relief was a maximum of 50% on all business assets, including the first £2.5 million. I do not think that Conservative Members would argue that we did not see growth in the private sector while Thatcher was in power.
Peter Fortune
I agree with the Minister, of course, that Margaret Thatcher really was the sunny uplands of this country.
Small and medium-sized enterprises provide the backbone for our economy in Bromley and Biggin Hill. Many of those businesses are still family owned, suffering from the slew of taxation from this Labour Government. Family Business UK’s analysis, published just last month, said that 57% of businesses are still suffering from the business property relief that, despite the slight U-turn that the Minister alluded to, is still impacting their business. Does the Minister agree that the best way to growth is to support small businesses and not to tax them out of existence?
Dan Tomlinson
I am glad that the hon. Gentleman acknowledges that while Margaret Thatcher was in power she was taxing such businesses through business property relief more than this Labour Government. We have a fair and balanced approach when it comes to making sure that we can raise revenues from the very largest businesses, including agricultural businesses, so that we can sustainably support the reduction in borrowing that this Government are bringing about.
Perran Moon (Camborne and Redruth) (Lab)
Hundreds of small family businesses across Cornwall will soon be subject to a significant increase in their property costs as a result of the Valuation Office Agency’s decision to reclassify serviced offices, business centres and co-working spaces. Will the Chancellor arrange for me to meet Treasury officials and the VOA to discuss how the impacts of that reclassification may be mitigated?
Dan Tomlinson
I thank my hon. Friend for his question. I am aware of the issue that he raises; I have met representatives of the sector in recent weeks to discuss it. It follows changes to case law over recent years, but it is of course an important issue that affects many businesses. I would be happy to meet my hon. Friend to discuss it.
Iqbal Mohamed (Dewsbury and Batley) (Ind)
Bradley Thomas (Bromsgrove) (Con)
The Exchequer Secretary to the Treasury (Dan Tomlinson)
The Government have introduced a support package worth £4.3 billion to protect rate payers across the country against the impact of the independently set new property values, whereby properties have been valued for the first time since the pandemic. We have also introduced permanently lower multipliers for eligible retail, hospitality and leisure properties worth nearly £1 billion a year, and this will benefit more than 750,000 high street businesses.
Bradley Thomas
I recently met Chris, the owner of Chapters Hair in Bromsgrove, who told me that current conditions are the most difficult he has faced in 25 years of trading, which he attributes directly to the decisions taken by the Chancellor. Why is it that the Chancellor of the Exchequer and the Government across the board are riding roughshod over what business owners think—the people who know best how to run their businesses—and when will the Government get off their backs and get on their side?
Dan Tomlinson
Under the previous Government, the business rates multiplier—the tax rate—paid by medium-sized businesses and the very largest businesses was exactly the same. We have implemented significant reforms to the way businesses rates work so that the system supports the high street, and the tax rate paid by small high street businesses will now be 33% lower than the rate paid by the largest properties, such as online giants. Of course, the revaluation since the pandemic has had an effect, and that is why we have stepped in to provide support.
Richard Fuller (North Bedfordshire) (Con)
This month, a comprehensive survey by UKHospitality showed that one in seven of our hotels, pubs and restaurants will close as a direct result of the Chancellor’s policies. Many of those businesses represent the hopes and dreams, hard work and savings of the people who set them up. Therefore, as I am permitted, rather than having the Minister come to the Dispatch Box, may I ask the Chancellor to come to the Dispatch Box to answer this? If it was not me standing here but one of those people who had founded a business and is now going through the gut-wrenching process of closing it because of her policies, what would she say to them?
Dan Tomlinson
Of course, the Government want to do all we can to support businesses up and down the country—small, medium and large. That is why we are working hard to put the economic stagnation we had over the last 14 years behind us. We are seeing economic growth rising—growing by 0.5% in February; we saw unemployment falling; and we were seeing Government borrowing falling as well. Those are the long-term changes we need to lay the foundations so that businesses can grow, invest and hire more people. It is disappointing that the Conservatives seem to have forgotten what we need to provide stability in our economy.
Cat Smith (Lancaster and Wyre) (Lab)
Daisy Cooper (St Albans) (LD)
Business rates bills have been landing on doormats over the last few weeks, and some small businesses in St Albans and beyond tell me that the future looks bleak, with some taking the crushing decision to close their doors. Will the Chancellor please look again at the eye-watering revaluations and release the full 20p discount for small businesses, which the Government legislated to do, to save our high streets?
The Exchequer Secretary to the Treasury (Dan Tomlinson)
On business rates, the hon. Member will know that this Government inherited the plans that were set in train for an independent revaluation of properties to take place for the first time since the pandemic. It would not have been the right thing to do to delay that independent revaluation for those businesses who have seen their rates fall since the pandemic, so we went ahead with it, and we then put in £4.3 billion of support to limit the increases in bills that businesses would pay. Of course we keep all taxes under review, but we have for the first time put in a differential within the business rates system so that high street businesses face a lower tax rate—a lower multiplier—than the largest online giants.
Antonia Bance (Tipton and Wednesbury) (Lab)
Mr Speaker
Order. This is topical questions, and I want to get other colleagues in, please.
Dan Tomlinson
I am always happy to take questions on business rates, even months after the decision set out at the Budget, and I thank the hon. Member for reading out the Labour manifesto. We have made significant changes to business rates by introducing the new lower multiplier for high street businesses so that they can pay a lower tax rate than the largest online giants.
Chris Bloore (Redditch) (Lab)