Emma Foody
Main Page: Emma Foody (Labour (Co-op) - Cramlington and Killingworth)Department Debates - View all Emma Foody's debates with the HM Treasury
(2 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Rachel Reeves
I have happy memories of having fish and chips with my hon. Friend in her constituency several years ago. I can confirm that the VAT for children’s meals, be they in a pub, hotel, restaurant or café, will be cut from 20% to 5% between 25 June and 1 September. We will monitor the impact of that on tax revenues, and the number of people going out for dinner. We envisage that this measure will have a cost to the taxpayer, which is why we are funding it by ending the tax loophole whereby some companies were using losses overseas to offset their corporation tax here in Britain.
Emma Foody (Cramlington and Killingworth) (Lab/Co-op)
Families across my constituency will be relieved to hear the measures set out by my right hon. Friend, whether that is the freezing of fuel duty, free bus travel for young people this summer or the suspension of tariffs on essential food items. All those actions will be greatly welcomed by families worried about the impact of the Iran war on household finances. Can the Chancellor set out how much she envisages these measures combined will save families in the north-east? Will she keep measures, including on energy bills, under review, ahead of the winter?
Rachel Reeves
People in more rural areas, such as some of my hon. Friend’s constituents, will particularly benefit from the freeze in fuel duty and the free bus fares for kids. We think that the changes in fuel duty have already saved people around £100 a year, and we expect the same sort of benefit thereafter. Drivers of heavy goods vehicles will benefit by up to £912 through those changes. The bus fare changes are unlimited free bus travel for five to 15-year-olds, and we can add in the savings on days out and meals out. All these things are unlimited; people can go on a bus as many times as they like, and they can take their kids out for a meal and benefit from that reduction in VAT as much as they like. We want people to have an enjoyable summer, worrying less about the costs and thinking more about making happy memories.