Steel Industry
Debate between Sajid Javid and Phil WilsonUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Sajid Javid
The hon. Gentleman makes a very important point, and steel is obviously hugely important to Wales in so many ways. Edwina Hart, the Minister from the Welsh Government, was at the steel summit and played a very constructive role, and she will be working with us going forward.
Phil Wilson (Sedgefield) (Lab)
Will the Secretary of State tell the House what he is doing to map out the problems facing the companies in the supply chain? Does he know who they are, where they are and how many people they employ? What more can he do to help them out?
Sajid Javid
On this issue, a number of very good suggestions were made by the industry, trade unions and others at the taskforce. One related to certain industries that are now, thankfully, going through a huge growth phase, such as the automotive industry, which is a big user of British metals, including steel. We will be working closely with each of those industries to see how we can hard-wire the requirement for British products and British steel into their products.
Finance (No. 2) Bill
Debate between Sajid Javid and Phil Wilson(11 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Economic Secretary to the Treasury (Sajid Javid)
I thank all hon. Members who have taken part in this energetic debate, which has aroused strong passions in some parties.
Clause 183 sets the air passenger duty rates for 2013-14. These rates were first announced at Budget 2012 and took effect from 1 April 2013. The rates have increased by inflation only. Because of rounding, band A has remained the same, so about 80% of passengers have seen no cash-terms increase in the rates they pay.
Clause 184 gives Her Majesty’s Revenue and Customs the power to require payments on account in relation to the APD annual accounting scheme, which was introduced to minimise administrative burdens for the extension of APD to business jets and will improve the fairness of the tax overall. The clause also updates the list of territories in band B of APD to include the new nation of South Sudan.
It is important to recognise the need for the aviation sector to make a fair contribution to the public finances. I remind hon. Members that no tax is levied on the fuel used in international and almost all domestic flights. Moreover, no VAT is levied on international flights and, unlike many other countries, the UK does not charge VAT on domestic flights.
It was in recognition of the fact that aviation was under-taxed compared with other sectors of the economy that APD was first introduced in 1994. It was introduced purely as a revenue-raising tax and it remains a vital revenue-raiser today. However, despite the challenge of the budget deficit that we inherited, this Government have limited increases in APD to inflation only in the period since 2010-11. During this period, rates have increased by only £1 for the vast majority of passengers. Furthermore, recognising the sector’s need to plan ahead, we have provided greater clarity on future rates. Budget 2013 set out that the rates for 2014 and 2015 will rise in line with inflation only. The real burden of APD will remain unchanged for a further year.
Phil Wilson
On the effect of APD on regional airports such as Durham Tees Valley airport in my constituency and Newcastle airport a few miles from the Scottish border, will the Government consider regional APD variations that might incentivise airliners to fly from airports other than Heathrow and Gatwick?
Sajid Javid
As the hon. Gentleman will know, the Government have looked at that in the past and have ruled it out thus far, because the evidence shows that it would lead to significant distortions in the UK market. He will also know, however, that we keep all taxes and duties under review to see whether improvements can be made.
Before I move on to the proposed devolution of taxes, I want to touch on the extension of APD to business jets. A new higher rate has been introduced for passengers travelling on planes offering an enhanced level of comfort. APD on these flights is double the prevailing standard rates for business and first class. These changes improve the fairness of the tax overall.
New clause 3 proposes devolving to the Scottish Parliament and the Welsh Assembly the power to set APD rates on direct long-haul flights from Scotland and Wales. New clause 4 and new schedule 1 also propose cutting the rates for direct long-haul flights from Wales to the short-haul rate in advance of devolution from 1 April 2013. The issue of APD devolution is a complex one. As we have heard, it was considered in the 2011 consultation and has been debated several times since then, including here today.