Hot Takeaway Food (VAT)

Debate between Sheryll Murray and Cathy Jamieson

Wednesday 23rd May 2012 Westminster Hall

[Cathy Jamieson]

Indeed. That highlights the powerful case that, initially, the Treasury may have viewed the proposal as something that could be taken off the shelf, dusted down and presented as a way to correct some anomalies. However, as my hon. Friend the Member for Rochdale has argued, it did not consider the detail and the issue has become a problem. It has become a problem in relation not only to pasties—I am aware that we cannot deviate too far from the issue under discussion—but to the proposals for VAT on work on church buildings, on which there has been some movement.

Moreover, last night, multiple petitions were presented in relation to the caravan tax, and yesterday, I, along with a number of other Members, met representatives from the newly formed—it was formed in response to Government proposals—UK Specialist Sports Nutrition Alliance, which has pointed out that some of its members’ products do not appear to fall under the categories for which VAT was originally intended to be charged.

This series of Government proposals do not seem to have been properly thought through. Their impact on our high street has not been considered. That is important. We want to see people shopping on their high streets and spending what cash they have on local businesses in particular, and to ensure that our high streets continue to thrive. When the British Retail Consortium, the Association of Convenience Stores and the whole range of organisations that represent the baking industry, as well as ordinary people, think that the Government have got it wrong, it is time for the Government to think again.

I will not speak for much longer, because I want to allow the Minister as much time as possible to respond to the debate, but I want to return to the widening scope of things affected by the proposals. The hon. Member for St Austell and Newquay suggested during his opening speech that the Government were prepared to listen, but I am disappointed to say that I have not found that to be the case. We have raised the issue on the Floor of the House and have continued to raise it and a number of other issues in the Finance Bill Committee, but on every occasion—no matter what the subject—when we have asked the Government to go away, make another assessment, come back with a report and consider the implications, they have not done so.

[Sheryll Murray]

Does the hon. Lady not accept that there is a consultation, so the Government are listening, and that we cannot expect them to respond until they have the results of that consultation?

[Cathy Jamieson]

I understand the importance of consultation, but consulting on something that will happen after the fact—when the Government say that they are going to do something and then ask people about it—is not necessarily the best way to do it. Those representatives of sports nutrition companies whom I met yesterday told me—the Minister will correct me if I am wrong or have misunderstood—that no one from that industry was consulted when the impact assessment was done.

There are issues to address. I am trying not to make this an attack on the Government, but I am disappointed at the lack of movement. I understand that consultations are important and hope that the Government will listen and consider making some of the changes that have been asked of them today. The torrid headlines that the Government had to endure when their proposals were first announced should make them realise that the country wants them to do something and change their plans. My favourite headline read: “Half-baked Tory tax a mistake-and-bake”. It was indeed a mistake—let us try to fix it.