Oral Answers to Questions

Sheila Gilmore Excerpts

Wednesday 19th January 2011 Commons Chamber

[Mr Speaker]

Order. There are far too many private conversations taking place in the Chamber, and far too much noise.

[Sheila Gilmore (Edinburgh East) (Lab)]

8. What assessment he has made of the likely effects on the social enterprise sector of reductions in Government expenditure.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

9. What assessment he has made of the likely effects on the social enterprise sector of reductions in Government expenditure.

[The Minister of State, Cabinet Office (Mr Oliver Letwin)]

There is no doubt that the cuts that we have had to make as a result of the huge deficits that were piled up in government by the colleagues of the hon. Member for Edinburgh East (Sheila Gilmore) have made and, in the immediate future, will make life difficult for some voluntary and community sector bodies, contrary to the way in which I was misrepresented by the hon. Member for Hemsworth (Jon Trickett). However, we have put in place measures that will vastly increase the opportunities for voluntary and community bodies to participate in public service delivery and earn money by doing so, and we have established a £100 million transition fund.

[Sheila Gilmore]

Will the Minister explain to the House what discussions he has had with his Treasury colleagues about extending and reforming community interest tax relief, which many social enterprises want to happen? That might be a way to enable social enterprises to flourish, despite the reductions that are contemplated.

[Mr Letwin]

Tax relief is, of course, an issue for the Chancellor of the Exchequer at Budget time, and I would not dream of trampling on his front lawn. The hon. Lady should recognise two important facts. First, charities already receive about £3 billion in tax relief, including a VAT exemption for trading activities for their main purposes and gift aid. Secondly, we are reluctant to create an unlevel playing field between social enterprises that are not charities and the private sector, because we want to ensure that there is a fair contest between the two and that social enterprises are fully involved in competing for public service delivery.