Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the implications for her policies of the report entitled Avoiding the Cliff Edge: Considering possible options for a VAT threshold smoothing mechanism, published on 9 January 2024.

The Government will continue to bear in mind businesses’ views of this threshold. At £90,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether. The Government will continue to bear in mind businesses’ views of this threshold.