Oral Answers to Questions

Stephen McPartland Excerpts

Tuesday 9th December 2014 Commons Chamber

[Danny Alexander]

I am not sure that last fact is absolutely correct. The level of VAT we have at the moment I think is the right one for the country and I certainly would not advocate any further increases. The right measures for small businesses are the reductions in business rates that we have put in place, which I would hope the hon. Gentleman would welcome. The fundamental review of business rates that we are now undertaking is an opportunity for every Member of this House, and small business across the country, to make the argument on how they want this outdated and outmoded system to be reformed.

[Stephen McPartland (Stevenage) (Con)]

9. What recent steps he has taken to reduce tax avoidance.

[The Financial Secretary to the Treasury (Mr David Gauke)]

We set out the next set of steps in our plan to tackle tax avoidance in the autumn statement last week. We are introducing a new diverted profits tax from 1 April 2015 using a 25% rate to counter the use of aggressive tax planning techniques used by multinational enterprises to divert profits from the UK. We are also strengthening the disclosure of tax avoidance schemes—DOTAS—regime, coupled with a further suite of measures that build on the work we have already done to tackle marketed tax avoidance such as accelerated payments of disputed tax in avoidance cases.

[Stephen McPartland]

My constituents work hard and pay their taxes and rightly expect other people and businesses to do the same. Does the Minister agree that the autumn statement last week showed that it is Government Members who are serious about delivering fairer taxes for all?

[Mr Gauke]

My hon. Friend is entirely right. As a Government, we believe in competitive taxes but we also believe in a system in which people and businesses pay those taxes.