Oral Answers to Questions

Debate between Tim Loughton and David Gauke

Tuesday 10th March 2015 Commons Chamber

[Tim Loughton (East Worthing and Shoreham) (Con)]

6. If he will make a comparative assessment of the level of duty on wine paid in the UK and in other EU member states.

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

Industry estimates show that there are 135 wineries in England and Wales, producing 4.5 million bottles of wine. The UK’s growing and award-winning wine industry benefited from the Government ending the wine duty escalator at Budget 2014.

[Tim Loughton]

There will be much responsible dancing in the streets if the Chancellor completes a hat-trick of beer duty cuts in his Budget and there will be much responsible celebration if he cuts the duty on spirits. But there will be much wailing and irrepressible disappointment if he does not reduce the duty on wine, which has gone up by 54% since 2008 alone and accounts for 67% of all the duty on all wine in the whole of the EU. Will he complete a fantastic treble-whammy by dropping the duty on wine, too, which it has been estimated would generate some £3 billion in extra revenue—and 20,000 jobs!

[Mr Gauke]

If it is not already too late to make this suggestion, I think my hon. Friend deserves a good bottle at lunchtime after that effort. He has put his case on the record, but of course all announcements are for the Chancellor on Budget day.

Finance (No. 2) Bill

Debate between Tim Loughton and David Gauke

Monday 15th April 2013 Commons Chamber

[Mr Gauke]

The hon. Gentleman is right. We have adjusted the rate, and increased it to a level at which the OBR believes it will bring in £2.5 billion.

[Tim Loughton (East Worthing and Shoreham) (Con)]

Perhaps the Minister will remind Opposition spokespeople that corporation tax is payable only on profits. Many banks that were forced into disastrous mergers by the previous Government are still turning in losses, which might account for the shortfall in the figures given by the hon. Member for Nottingham East (Chris Leslie).

[Mr Gauke]

I am grateful to my hon. Friend for making that helpful point.

Turning to the wider issue of fairness, in addition to the steps that we have taken on avoidance and evasion, the Bill builds on previous coalition policy by ensuring that individuals and businesses will make a fair contribution, while the Government continue to support those on the lowest incomes. We continue to reward work and help hard-working families with the cost of living, and the Bill therefore increases the income tax personal allowance to £9,440 from this month. That represents the biggest ever cash increase, and the Chancellor has announced that the threshold will rise again, to £10,000, from next year.

Oral Answers to Questions

Debate between Tim Loughton and David Gauke

Tuesday 12th March 2013 Commons Chamber

[Mr Gauke]

It is worth pointing out that these places are not simply colonies in which we can direct orders; they have a degree of independence. We are working with other countries at the G20 and the G8 and through the OECD to ensure that we have a modernised tax system, which includes addressing jurisdictions where there is a lack of transparency.

[Tim Loughton]

Does the Minister agree with me on this very simple principle: companies should expect to be liable for appropriate tax in the UK on goods and services paid for and used by people and organisations based in the UK?

[Mr Gauke]

The point I would make is that we want to have an international tax system under which economic activity is taxed where that economic activity takes place. The fact is that the international rules have not moved with the times, but they need to do so, and I am delighted that the Chancellor of the Exchequer is leading the way in this debate.