(9 years, 8 months ago)
Commons ChamberI thank my hon. Friend for her intervention. Clearly, those are the kinds of concern that people have.
On the VAT proposals, the changes and exemptions that the Government may wish to make for some worthy cause are welcome. I am talking here about the help for organisations such as hospices. But there is scope to go further. I will say something now that, although not Front-Bench policy, is perfectly legitimate to raise in Committee. As someone who has been very involved in housing, I know that the housing world is keen to see VAT relief on improving and restoring properties.
VAT can make refurbishing properties more expensive than rebuilding. Demolition and rebuild has become a cheaper option than preserving some of our properties. Having worked with many housing associations, I know that there have been times when they have wanted to do that kind of refurbishment and preservation work, but they had to do a massive upgrade behind that to bring the homes up to the required standard. Such a VAT exemption is something for which the housing world has campaigned for a long time. As we all want to increase sustainability, I hope that that is an issue that my own Front-Bench team will reconsider when they are in government.
I understand that we are not talking to a benevolent Government here, but as my hon. Friend is listing what she would like to see VAT removed from, I would like to include sanitary products. I know that many of my constituents think that, as those are not luxury goods, they should be exempt from VAT. I just thought that I would add that to the list of things that should have VAT removed.
I think that campaign has taken off again, having been going for a considerable number of years.
Indeed. As the current campaigners have noted, there is no VAT on shaving cream, but there is on sanitary products, which suggests—
(12 years, 4 months ago)
Commons ChamberOn Second Reading, we were given to understand that the fuel duty rise was essential to the Government’s proposals and a key piece of the jigsaw in resolving the deficit. For many weeks, that has been the clear message from the Government. I understand that Government Back Benchers were exhorted to write to their constituents to tell them why—regrettably, no doubt—the rise would have to happen and there was no alternative. It therefore comes as rather a surprise to hear that it is not quite so essential to the Government’s plans after all, but is a dispensable piece of the jigsaw.
This is probably the most expensive of the U-turns that have been performed over the past few weeks. It dwarfs many of the others in terms of revenue forgone. It is all very well for the Minister to tell us that it has happened because we have a listening Government, but they must also listen to what they have been saying. On that basis, they must explain how they have come to this position.
Does my hon. Friend have any idea how much the U-turns have cost collectively so far?
Indeed, and a lot of people would be glad to see the Government make U-turns in other areas, and in fact in their entire economic policy. It has been misguided, and the Opposition were clear from the start that it was the wrong way to reduce the deficit.
That is a very important point. We had a semi-answer from the Government saying that savings had been found, but they seem to be somewhat mysterious savings. We had not heard about them before, and we still do not really know where they have been found.
(12 years, 10 months ago)
Commons ChamberI did not really intend to speak in the debate, but I have found it interesting to hear many of the views that have been expressed. I believe that we have been given a genuine opportunity to explore a number of different issues.
There is clearly a considerable amount of consensus about what needs to be done, but when I listened to some of the comments about cars and parking, it occurred to me that we ought to be careful what we wish for. I was slightly alarmed when a Member suggested that there should be no objection to people parking their cars in pedestrian zones in order to nip in and fetch their milk, bread and newspapers, because I think that that would be a hugely retrograde step. People do not buy things from shops when they are inside a car; on the whole, they buy things from shops when they walk past them and are interested in them. My constituency contains the historic Royal Mile, where shopkeepers have complained that if parking outside their shops is not allowed, they will lose business. In fact, that is the opposite of what actually happens. There are some fascinating shops in that stretch of road, but I never see them unless I am walking past them. It impossible to see what is on offer in their windows without having the opportunity to stroll past them.
Many Members have pointed out that people need to be able to park reasonably close to shopping centres. Of course we do not want to price people out of places, but we also do not want to prevent the kind of atmosphere that generates trade and business and makes a place pleasant to be in. I do not want to walk through a pedestrian zone knowing that the next minute someone is going to be up my backside with their car because they want to stop and buy something.
It is interesting that so many Members on both sides of the House have recognised the importance of public expenditure as a way of making town centres better places in which to be. However much people want the private sector to come up with all the money, it has not done so in the past. As was pointed out by the hon. Member for Banff and Buchan (Dr Whiteford)—the other Scottish Member who has spoken today—when Governments invest money in improving the quality of town centres, they make them places to which people want to come. I do not think that it is good enough to say that a town centre will be improved if there is no good public investment to prime, and make possible, the kind of private investment that we want to see.
There is another point, which I do not think anyone else has mentioned today. In one part of my constituency, which is a regeneration area, members of a community group are setting up a community development trust. They want to open a local café, to be run on commercial lines. They do not want it to be a cut-price place—they want to make it a destination of choice—but they need capital, because without it the project will not work. Yes, it will be a social enterprise, and we hope that they will make a profit that they will be able to invest in their community, but they are finding it difficult to get it off the ground. Lots of warm words are uttered about how good such ideas are, but community trusts and social enterprise also need money behind them in order to get going. The public sector has an important role to play in supporting the private sector in that regard.
My next point may not be particularly consensual. The primary reason why so many shops are currently closing down is that there is simply not enough consumer demand. No matter how good an idea someone might have for a charming shop with high-quality goods, it will not work if people cannot buy them. Portobello is a seaside area of my constituency. Many interesting shops open there, but then close very quickly. Demand is key.
My local traders tell me that their biggest problem is getting our banks to lend to them. Does my hon. Friend hear that, too?
Lending is clearly one part of the problem, especially in relation to starting and then expanding a business, but there must also be a market for the goods; there must be people who can come along and buy things.
The current economic climate is very difficult. No matter how many interesting ideas there are for improving the physical environment of shopping areas, if people do not have the income—and for the first time the financial position of people in work is deteriorating—we will continue to see a decline. As I have said, economic growth is key.