Small Business, Enterprise and Employment Bill
Debate between Lord Forsyth of Drumlean and Lord Naseby
Lord Forsyth of Drumlean
I am not sure which bit the noble Lord was saying was not so. He may very well be right in his assertion—although I doubt it—that the Government will collect more money, but that does not help the small business man who is faced with these additional costs, for whom there is no benefit whatever. They already struggle to fill in their VAT forms and their surveys on this, that and the other while trying to run their businesses. This would add a very significant burden.
Lord Popat
My Lords, this is Report and we prefer not to take further interventions.
Lord Forsyth of Drumlean
I believe that interventions seeking information are allowed once on Report, so I will give way to my noble friend.
Lord Naseby
My noble friend might mention the cost of business rates, which are a huge burden to every business in this country. Business rates are going up by 2%—and what is the rate of inflation? Under 1%.
Lord Forsyth of Drumlean
Indeed, but my noble friend must not tempt me to get away from the amendment and from this Bill. When it comes to compliance costs, the Government are going to have to find £109,000 just for,
“the IT development of the registry and communication to industry”.
My experience of government IT programmes is that they usually cost considerably more than estimated. Then we have £220,000 for ongoing maintenance. In addition, it is stated:
“Costs to businesses are estimated to be £417.4m set up cost, and £77.7m pa”.
This is a country that is not able to meet its expenses and these are businesses which, certainly outside London, are under severe stress.
My noble friend and the noble Lord argue that we need to add further to the burden put on these businesses to deal with the problem of international tax evasion by large companies around the world. I intervened to ask him how—even assuming that everything that he claims for his system works once it is up and running in Britain and we have spent the £1 billion—it would help prevent the crooks and people who wish to behave in this way operating out of a different jurisdiction. Surely, the only way this Utopian view of how to tackle the issue will be achieved is if every country does this, but I do not see any evidence of other countries rushing to implement this legislation. As far as I am aware, there is no great programme to do this among the other countries that were at the G8, so all we would be doing is hobbling honest, hard-working small businesses in this country to deal with a problem that needs—