Oral Answers to Questions

Jesse Norman Excerpts

Monday 18th May 2020 Commons Chamber

[Anthony Mangnall (Totnes) (Con)]

If he will take steps through the Government’s Business Rates Review to tackle exploitation of business rates relief.

[The Financial Secretary to the Treasury (Jesse Norman)]

The Government have committed to undertake a fundamental review of business rates and published the terms of reference at the Budget. The review will be comprehensive and look at the effectiveness and operation of different reliefs and compliance with the tax. The call for evidence will be published in the coming months; stakeholders will be invited to contribute their views throughout the review, and I will welcome any thoughts or ideas my hon. Friend may wish to add.

[Anthony Mangnall]

I welcome the Government’s wholesome package of support for the business sector and the hospitality and tourism sector, showing that we are a Government for the many, not the few. Would the Minister meet me to discuss how we might close the loopholes that may be used by those who would opportunistically exploit current business rates?

[Jesse Norman]

If there are people who are illegitimately taking advantage of loopholes in the rates, I am of course happy to discuss that. I remind my hon. Friend that there may well be circumstances in which people are in fact complying with the rules. It is a fiddly area, and I want to be certain that we are going after the people we should be going after.

[Mr David Davis (Haltemprice and Howden) (Con)]

What assessment he has made of the potential merits of suspending the 2019 loan charge during the covid-19 outbreak.

[The Financial Secretary to the Treasury (Jesse Norman)]

My right hon. Friend will know that taxpayers with loan charge liabilities can already defer submission of their tax return until 30 September this year. Her Majesty’s Revenue and Customs has always worked very hard to support taxpayers who may need to help to managed their disguised remuneration liabilities, and this is no exception. HMRC will continue to offer people the time they need to settle, and of course that also applies to those who are affected by issues related to coronavirus.

[Mr Davis [V]]

In September this year, we will be in the middle of the recession that we are about to face. Given the hundreds of billions of pounds that the Treasury has already committed to supporting business to get us out of this recession, it would take a relatively trivial amount to write off the damaging loan charge policy. Originally, the Treasury forecast that it would raise £3.2 billion from the policy, and less than £2.5 billion from employees. What does the Minister estimate he will now raise?

[Jesse Norman]

The Treasury will have published its estimate at the time the original tax information was published. I understand the passion that my right hon. Friend brings to the issue, but I would remind him that 99.8% of taxpayers do not engage in disguised remuneration schemes, and the fact that we are supporting people across the country in their jobs and their livelihoods is not, in and of itself, a reason to let people who owe tax off the tax that is due.

[Daniel Zeichner (Cambridge) (Lab)]

What recent discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the effectiveness of the coronavirus business interruption loan scheme.