Arcadia and Debenhams: Business Support and Job Retention

Lord Lucas Excerpts

Thursday 3rd December 2020 Lords Chamber

[Baroness Bloomfield of Hinton Waldrist (Con)]

The noble Lord is right to point out that the Pensions Regulator has a range of powers, but the Government do not involve ourselves in the running of businesses. Where there is evidence of bad practice, it is taken up through the relevant authorities. At this stage, it is difficult to estimate the shortfall between the assets and liabilities of the fund. The Pensions Regulator is working closely with the company and scheme to ensure that prior commitments are fulfilled.

[Lord Lucas (Con) [V]]

My Lords, will my noble friend ask her ministry to make clear to the Treasury the damage done to UK business if HMRC does not tax international businesses effectively? About 10 million packages from China arrive in the UK each week. The Treasury proposes not to charge VAT on packages with a declared value of less than £135. That is around £100 billion of business per annum that UK firms are shut out from, because they pay VAT and the Chinese do not, and £20 billion per annum lost to the Treasury. Will my noble friend agree to meet me to discuss ways in which this damage can be avoided—which appear effective and not difficult to implement?

[Baroness Bloomfield of Hinton Waldrist (Con)]

I agree to meet my noble friend to talk about these issues, but he is not quite right about VAT. The Government will collect VAT on parcels below the £135 threshold, but we will also implement a more robust system to do so from the end of the transition period. That will include removing a relief from VAT for the import of goods under £15, which has long been abused by overseas sellers, and improving VAT collection by placing the responsibility to collect VAT on an online marketplace where it facilitates a sale of up to £135.