Business of the House

Guto Bebb Excerpts

Thursday 3rd November 2011 Commons Chamber

[Sir George Young]

It sounded as though the hon. Gentleman was blaming him. None the less, I shall raise the matter with my right hon. Friend and ask him to write to the hon. Gentleman.

[Guto Bebb (Aberconwy) (Con)]

May we have a debate on the impact of the VAT threshold on micro-businesses and their growth potential? In my constituency, many small businesses involved in the tourism sector are in the process of closing for the winter period. They are closing not because they are scared of work or because there is no opportunity for them to create a market and carry on working, but because the current VAT threshold creates a cliff edge that penalises them for being successful.

[Sir George Young]

I am grateful to my hon. Friend and of course we will take on board what he says. The current VAT threshold, at £73,000, is one of the highest in the EU. It is the case that some traders would like it to be raised so that they are outwith it, but others would like it to be reduced to avoid unfair competition from those who are exempt. I believe that we have got the balance about right, but in the light of his comments I am sure that Treasury Ministers will want to keep this under review.