Oral Answers to Questions

Gagan Mohindra Excerpts

Tuesday 28th June 2022 Commons Chamber

[Saqib Bhatti (Meriden) (Con)]

4. What fiscal steps his Department is taking to support small and medium-sized enterprises.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

12. What fiscal steps his Department is taking to support small and medium-sized enterprises.

[The Exchequer Secretary to the Treasury (Helen Whately)]

Small and medium-sized businesses are at the heart of our economy, creating jobs and prosperity across the UK. We continue to give substantial support to SMEs by raising the employment allowance; extending the £1 million annual investment allowance; providing business rates relief for retail, hospitality and leisure businesses; and with the Help to Grow programme.

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[Helen Whately]

It is good to hear that my hon. Friend has been speaking to the hospitality sector in his constituency, no doubt drawing on his expertise in those conversations. As he said, we provided substantial support to that sector during the pandemic. We recognise the ongoing challenges for businesses as we recover, which is why we are giving thousands of hospitality, leisure and retail businesses a 50% cut in business rates this financial year—worth up to £110,000 per business.

[Mr Mohindra]

There are more than 7,000 businesses in my constituency, producing excellent products and services in a range of industries. I have held several informative high street walkarounds in towns across my constituency, hearing at first hand from local entrepreneurs, many of whom are worried about competition from online businesses. Will my hon. Friend explain what steps the Department is taking to support our high street businesses in the face of online competition?

[Helen Whately]

I commend my hon. Friend for his campaign in his local high streets and for the work he is doing with local businesses. I agree with him on the importance of high streets and the businesses on them, which is why we are supporting high street businesses with our 50% business rate cut for thousands of retail, hospitality and leisure businesses; our freeze to the business rates multiplier; and funding through the community renewal fund, towns fund and levelling-up fund.

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[The Exchequer Secretary to the Treasury (Helen Whately)]

The hon. Member makes an important point about people living in park homes—I also have constituents who live in park homes—and we are determined to ensure that people receive the help that they need with the increase in energy costs. The Department for Business, Energy and Industrial Strategy has been consulting on how we deliver support to people living in places such as park homes that do not have the same electricity or energy supply as others.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

T8.   Yesterday morning, I had the pleasure of hosting a roundtable discussion with farmers from my constituency in collaboration with the National Farmers Union. My constituent Andy Cornthwaite informed me that he was struggling to employ extra staff to grow his business due to the current £85,000 VAT threshold. I am aware that my right hon. and learned Friend recently responded to a written question from my hon. Friend the Member for North West Durham (Mr Holden) on the subject, but will she consider an early review of the VAT threshold due to the increase in labour and/or materials costs for small and medium-sized enterprises?

[Lucy Frazer]

The Government recognise that accounting for VAT can be a burden on small businesses. That is why we maintain the highest VAT registration threshold in the OECD and as compared with EU member states. At spring Budget 2021, to give businesses certainty, it was announced that the VAT threshold would be maintained at its current level until March 2024. Although there are no plans to change the VAT threshold at this time, we keep all taxes under constant review.