Spring Statement

Kevin Hollinrake Excerpts

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

It is absolutely always a pleasure to visit Nairn, but I have no immediate plans to do so. As the Prime Minister has told the hon. Gentleman and his hon. Friends on several occasions, we do not interfere in the day-to-day management decisions of the Royal Bank of Scotland—[Interruption.] Let us treat this seriously. The consultation that we published today is about cashless and digital payment systems, but it specifically acknowledges, as I said in my statement, that we also have to ensure that cash is available to people who need it. If the hon. Gentleman looks at the consultation when it is published, he will see that we are determined to address that issue. I hope that he will engage in that consultation.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The Chancellor is right to look at the impacts of the VAT threshold on business. It is a disincentive to growth and an incentive to avoid tax through cash deals. Does he agree, however, that registering for VAT does not just have financial implications—it also has an administrative impact? Would this be an appropriate time to look at the entire VAT regime?

[Mr Hammond]

I think that that would involve widening the scope of the intended consultation rather dramatically. I remind the House that, when I referred to this issue in the autumn Budget, I said that I was not minded to lower the VAT threshold because I recognise that, at its current level, it keeps a lot of small businesses out of the administrative burden of VAT. However, we are keen to ensure that the cliff-edge effect, which has a damaging impact on businesses that are trying to grow, should be addressed if it is possible to do so. The consultation will pursue those ideas.