(5 years, 7 months ago)
Commons ChamberThe spring statement builds on the autumn budget, which resulted in an extra £950 million for the Scottish budget, and also at the spring statement my right hon. Friend the Chancellor announced a further £260 million commitment to the borderlands growth deal.
Scotland clearly receives a very fair share of funding, but the Scottish Government have decided to increase taxes. Does the Minister agree that becoming the highest taxed part of the United Kingdom risks undermining Scotland, particularly through investment and in its wider economy?
Substantial tax powers have been devolved to the Scottish Government, including those relating to the rates of income tax, but the UK Government are committed to bringing taxation down, first and foremost by increasing the personal allowance to £12,500 one year earlier than our manifesto commitment and reducing tax in total for over 32 million people throughout the UK.
(5 years, 9 months ago)
Commons ChamberI declare an interest as I am a member of a business that has submitted such tax returns. The digital system that we use has many advantages, is beneficial and creates efficiency within the business. I also completely agree with the Government’s desire to streamline the process, which is undoubtedly advantageous, and I agree with the Minister’s comments about there being no penalties.
However, I am aware of some businesses that are oblivious to the requirement and some that will struggle. May I gently suggest to the Minister that HMRC concentrates on larger businesses and gradually moves on to smaller businesses over time, giving smaller companies the maximum length of time to get themselves organised? Does he agree that the implementation period should be extended slightly if need be, but only for smaller businesses?
My hon. Friend is absolutely right to observe that the smallest companies are, almost by definition, likely to find this change more onerous, and I will take his points on board. I certainly reassure him that HMRC will take a light-touch approach to penalties in all cases, particularly those involving small companies. Provided that individuals and businesses are not wilfully trying to avoid or change the amount of VAT that is due, we will take a proportionate and light-touch approach.
(5 years, 11 months ago)
Commons ChamberThe best deal for the country, and indeed for Scotland, is the one that the Prime Minister has brought forward, and which she is now looking at with our European partners in Brussels: one that sees a free trade area right at the heart of our arrangements; that has no tariffs between ourselves and the EU27; that gives us control of our borders; that makes sure we put an end to sending vast sums of money to the European Union; that gives us control of our laws; and that enables us to conduct our own international trade affairs.
Does the Minister agree that what is of equal importance are the economic relationships within the UK, and that initiatives such as the borderlands growth initiative are a priority for the people of the borderlands region?
My hon. Friend is entirely right. That is why in the last Budget, Scotland benefited from £950 million in additional Barnett funding, and why we are investing £1 billion in up to six new city deals, including in the borderlands area—some of those deals have been concluded and some are under discussion.