HMRC Impact Analysis: Customs

Debate between Jesse Norman and Luciana Berger

Tuesday 8th October 2019 Commons Chamber

[Jesse Norman]

As my hon. Friend will know, there are over 150,000 VAT-registered businesses that trade with the EU, and another 100,000, we believe, that are not VAT-registered. If they wish to continue to trade with the EU—that trade may be just part of their business—they will experience some effect. It would be impossible for me to improve on the Speaker’s last comment, but if I might direct my hon. Friend to my book on Adam Smith, he will see that economies are dynamic, as has been recognised since the 18th century. We would expect the dynamic effects of the change in our status to offset many of the concerns raised in the impact assessment.

[Luciana Berger (Liverpool, Wavertree) (LD)]

Anyone outside this place watching the response to this urgent question will be appalled by what they have heard so far, because the party that is supposed to be against red tape is piling it on for so many businesses. I can give the Minister the figures needed to respond to the question from the hon. Member for Mid Dorset and North Poole (Michael Tomlinson): 245,000 businesses will be affected, according to the impact assessment laid out yesterday. It will cost each company £28 at a minimum, and take an employee on average 1 hour and 45 minutes, to fill out each form for each load. How on earth will that ensure growth and jobs in our country?

[Jesse Norman]

The hon. Lady has managed to pull off the trick of saying almost exactly what I said, but in slightly fewer words. As I pointed out, 150,000 businesses registered for VAT, and a further 100,000 that are not registered for VAT, may be affected. That makes 250,000, which is not a million miles away from the 245,000 that she described. If she looks at the impact assessment, she will see that the declaration cost will vary from between £15 for an export declaration for fast parcel operators, to £56 for traders operating below the VAT threshold and outsourcing their declarations, so there is a range of impacts. This was scouted, as she will know, in previous discussions with HMRC officials and in past impact assessments.