Oral Answers to Questions
Debate between Gareth Davies and Stephen Crabb(6 months, 2 weeks ago)
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Stephen Crabb (Preseli Pembrokeshire) (Con)
The Exchequer Secretary to the Treasury (Gareth Davies)
Small businesses drive our economy, and we support them to thrive using levers across Government, whether through our small business rates relief, by increasing the VAT registration threshold, or providing reliefs such as the annual investment allowance.
Stephen Crabb
In England, many small businesses receive a 75% reduction in business rates thanks to action by this Conservative Government. In Wales, the Labour Administration have cut that level of support to 40%, meaning that excellent hospitality businesses such as Martha’s Vineyard in my constituency must find thousands of pounds more in tax. Does the Minister agree that that is not the way to support the tourism and hospitality sector at a challenging time, and that it is an example of the Labour party saying one thing here at Westminster and doing another where they are in government?
Gareth Davies
My right hon. Friend is right that in the autumn statement the Government extended retail, hospitality and leisure relief in England, essentially to cut tax for 230,000 businesses—a tax cut worth £2.5 billion. The Barnett formula allows the Welsh Labour Government to offer similar relief to Welsh businesses, and it is disappointing, if not surprising, that they have chosen not to.
Oral Answers to Questions
Debate between Gareth Davies and Stephen Crabb(8 months ago)
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Gareth Davies
My hon. Friend is right: we increased the VAT threshold for small businesses, which will benefit 28,000 businesses across the country. We feel that the £90,000 threshold strikes the right balance between managing public finances sustainably and supporting businesses, but as my hon. Friend knows, we keep these things under review.
Stephen Crabb (Preseli Pembrokeshire) (Con)
The port of Milford Haven in my constituency has been right out in front, taking a lead in investing in decarbonisation and showing how it can boost the economy of Wales and reduce inequality. Yesterday, it was told that its bid to the Government’s floating offshore wind manufacturing investment scheme—its port funding scheme—had been rejected out of hand. Will my hon. Friend ask his good friend the Chancellor of the Exchequer to meet me to talk about the important work being done at the UK’s leading oil and gas port, and about how the UK Government can support those efforts financially?
Gareth Davies
FLOWMIS is an incredibly important scheme in improving and enhancing our ability to expand floating offshore wind. We are a huge supporter of my right hon. Friend’s constituents and of the whole of Wales. If the Chancellor cannot meet him, I would be very happy to do so.