Finance (No. 4) Bill

David Morris Excerpts

Wednesday 18th April 2012 Commons Chamber

[Cathy Jamieson]

Thank you, Sir Roger. I will do my best to bring my remarks to a speedy conclusion so that others can contribute.

Let me briefly mention other issues. I have already mentioned caravans, but building work on churches is also important, and I know that some colleagues will speak about it later. One other area, if I can be pardoned a very bad pun, not yet highlighted in the headlines is the whole issue of hairdressers’ chairs. I mention it simply because the Government’s proposal shows once again a lack of understanding of the operation of many small businesses.

People and women—and it is often young women—starting out on their hairdressing careers, perhaps on their first business opportunity, often rent a chair in a larger salon. I see some nods of agreement from Government Members. It is welcome if some of them understand the issue, but it does nothing at all to help those people setting out on their first business venture if they suddenly find that they are going to have to pay more costs. The National Hairdressers Federation has highlighted further anomalies. Conservative Members might not be aware of it, but it is common practice in hairdressers’ businesses to rent out space not only to other hairdressers, but to others in the beauty and therapy professions. The anomalies highlighted by the NHF are made worse by the Government’s proposals.

[David Morris (Morecambe and Lunesdale) (Con)]

I can tell the hon. Lady of a loophole that has needed closing for many years. Although it is possible to rent a chair in the hairdressing industry, the problem has been that VAT is levied on the premises. I think it is right to place it on the individual because these people operate individually.

--- Later in debate ---

[Albert Owen]

I am grateful to my hon. Friend for making that point. I am referring specifically to static caravans, but he is right to say that this important industry includes mobile caravans.

A business that employs many hundreds of people across the United Kingdom, including in my constituency, wrote to me to say that 60% of its turnover comes from the sale of caravans. The proposal will be a huge knock to such companies.

Because of the time, I shall keep my remarks brief, but I want to raise one issue that has also been referred to by the hon. Member for St Ives (Andrew George). It will predominantly be the young people who work in this industry who will lose their jobs as a consequence of the proposal. Young people face many pressures in rural areas, especially in finding work and finding a home. Many people get a mobile home in such areas because they aspire to have a second home. They then rent it out to other people when they are not using it, which contributes to the local economy. However, in deprived areas where property prices are low, those people may transfer—because they want to come to beautiful places such as the Isle of Anglesey—

[David Morris]

Will the hon. Gentleman give way?

[Albert Owen]

I will not give way again; I have already given way twice and I want to finish my point.

People who visit places such as the Isle of Anglesey, which I represent, want to go to them regularly. They will therefore buy terraced houses or properties at the lower end of the market and force up the prices of those properties. That will put pressure on affordable housing. I do not think that that is an issue that the Treasury has taken on board.

This exemption is not an anomaly, but is meant to help the industry. If that industry suffers, many people in the tourism and manufacturing industries across the United Kingdom will suffer. We have seen headlines about the granny tax, the pasty tax and the charity tax, but this proposal is an Osborne tax. It was made in No. 11 and will have consequences across the United Kingdom. Tonight, Members on both sides of the House have the opportunity to vote it down. That is the strongest and clearest message that we can send the Chancellor of the Exchequer and his lieutenant. That is true not only of the caravan tax but of the pasty tax, which I will also vote against if there is an opportunity to do so tonight. Let us be consistent. The caravan tax will not raise extra revenue for the Treasury, but it will damage jobs, entrepreneurs, coastal areas of beauty that rely on tourism and areas that rely on the manufacturing of caravans.