Oral Answers to Questions

Martyn Day Excerpts

Tuesday 11th February 2020 Commons Chamber

[Jesse Norman]

We have a question about the loan charge later on, so I look forward to my right hon. Friend’s further question then. He can answer on the number of pillars because I am sure he has scrutinised the Committee’s hearings very carefully. What I can tell him is that the fundamental principle of tax is that it should be properly collected from people who owe it and who may be avoiding it, and that is what this is designed to do.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

8. What recent assessment his Department has made of the potential merits of introducing a zero-rate of VAT for e-publications.

[The Financial Secretary to the Treasury (Jesse Norman)]

I thank the hon. Gentleman for his question about e-publications and see by the way, Mr Speaker, that your predecessor Speaker Bercow’s book, aptly named “Unspeakable: the Autobiography” has just been published. Apparently it is an online bestseller in the rather surprising, slightly niche category of blues musician biographies. Unlike many other e-books, it is considerably cheaper than the book itself; whether that will remain so is not clear. I do not know whether you have had a chance to peruse the work, Mr Speaker, but if you have, I am sure you will agree that no reader would have their appetite to read it affected by a reduction in tax. What this brings out is that the pricing of e-books is a commercial decision, and it is far from clear whether changing the tax would affect that decision.

[Martyn Day]

I thank the Minister for his entertaining answer. Scottish National party Members are very disappointed that the last Government refused to back our demands to remove VAT from electronic publications. So with the Budget only a month away, will he consider a change of policy so that at the very least, online children’s books and academic journals can become more affordable?

[Jesse Norman]

The hon. Gentleman is absolutely right that there are benefits associated with extending the zero rate of VAT in this area, as in others. The task for Government is to work out what is the right thing to do, all things considered. All I can say is that we have responded to the Cairncross review in part of this area, and we continue to keep all taxes under review, especially in the lee of a budget.