Questions & Answers
Q1
Direct Answer
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Context
The question arises from a discussion about tax cuts and their impact on workers.
What steps his Department is taking to reduce taxes. Someone on the average salary has the lowest effective personal tax rate since 1975, which is lower than any other G7 country.
The spring Budget delivered personal tax cuts, including cuts to national insurance, for 29 million workers. This means that someone on the average salary has the lowest effective personal tax rate since 1975, and that is the lowest effective tax rate of any G7 country.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
There is a concern about the VAT applied to high-factor sunscreen and its impact on public health, including potential savings for the NHS.
While responsible tax cuts are welcome, can my right hon. Friend update the House on when we can expect VAT to be abolished on high-factor sunscreen? That would help protect people from preventable cancer and save the NHS approximately £55 billion.
My hon. Friend and I have talked about this issue on many occasions. High-factor sunscreen is on NHS prescription for certain conditions and is VAT-free when dispensed by a chemist. Since Brexit, we have had £50 billion of requests for VAT relief. While we can make changes, we must be honest about trade-offs, especially ensuring that benefits are fed through to consumers.
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Assessment & feedback
Timeline for abolishing VAT on high-factor sunscreen
Response accuracy
Q3
Partial Answer
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Context
A constituent's business is struggling due to VAT, business rates, and increases in corporate taxes.
This weekend I spoke to a constituent who invested heavily in a restaurant over 15 years but now struggles with VAT, business rates, and increased corporate taxes. The tax burden is crushing small businesses like his. Does the Chancellor realise this impact?
We are doing everything we can to support small businesses, which have received a 75% discount on their business rates for two years. Increases in corporation tax apply only to larger businesses. The Conservative party is the only major party that wants to bring down the tax burden for businesses.
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Assessment & feedback
Recognition of negative impact on small and medium-sized businesses due to current tax policies
Response accuracy