Stephen Crabb
Main Page: Stephen Crabb (Conservative - Preseli Pembrokeshire)Department Debates - View all Stephen Crabb's debates with the HM Treasury
(1 month, 3 weeks ago)
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Laura Trott
The hon. Gentleman raises an excellent point—one that I will be discussing with the Northern Ireland Finance Minister in a couple of weeks.
Stephen Crabb (Preseli Pembrokeshire) (Con)
The Exchequer Secretary to the Treasury (Gareth Davies)
Small businesses drive our economy, and we support them to thrive using levers across Government, whether through our small business rates relief, by increasing the VAT registration threshold, or providing reliefs such as the annual investment allowance.
Stephen Crabb
In England, many small businesses receive a 75% reduction in business rates thanks to action by this Conservative Government. In Wales, the Labour Administration have cut that level of support to 40%, meaning that excellent hospitality businesses such as Martha’s Vineyard in my constituency must find thousands of pounds more in tax. Does the Minister agree that that is not the way to support the tourism and hospitality sector at a challenging time, and that it is an example of the Labour party saying one thing here at Westminster and doing another where they are in government?
Gareth Davies
My right hon. Friend is right that in the autumn statement the Government extended retail, hospitality and leisure relief in England, essentially to cut tax for 230,000 businesses—a tax cut worth £2.5 billion. The Barnett formula allows the Welsh Labour Government to offer similar relief to Welsh businesses, and it is disappointing, if not surprising, that they have chosen not to.