Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to raise the VAT registration threshold in line with inflation to support small businesses.

At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This keeps the majority of businesses out of the VAT regime altogether.

Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. Tax breaks reduce the revenue available for public services and must represent value for money for the taxpayer.