Tax System Fairness 2022-05-17
2022-05-17
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Q1
Direct Answer
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Context
No specific context provided, but the question relates to ensuring fairness in tax application.
What recent steps he has taken to ensure fairness in the application of the tax system.
The Government are committed to ensuring a tax system that is fair and simple. We have equalised the national insurance and income tax starting thresholds; our work towards OECD pillars 1 and 2 will help to ensure that multinational businesses pay their fair share; and we are tackling avoidance and evasion to ensure that everyone pays the right amount of tax at the right time.
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Q2
Direct Answer
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Context
Liverpool Walton is the most deprived community in England. Constituents and local businesses are struggling due to price rises following the increase in VAT on food and beverages.
What recent steps he has taken to ensure fairness in the application of the tax system? I am grateful to the Minister for that answer. Liverpool, Walton ranks as the most deprived community in the whole of England. I am used to constituents contacting my office unable to afford their bills and to survive on their own incomes. What is new is that local independent businesses are now telling me that they are going under. At the heart of the Liverpool economy is hospitality and the visitor economy. Locally run and owned restaurants and cafés are now facing apocalyptic price rises. The VAT on soft drinks and food consumed on premises, and hot beverages and food taken away, has risen back to 20%—it was 5% and then 12.5% during the pandemic. What will Ministers do to save local independent businesses through the tax system?
It is important that we support local businesses, and that is exactly what the Government have done. The hon. Member will know about the business rates support—amounting to £7 billion of support to businesses—that we provided at the last Budget, including £1.7 billion for the hospitality industry through a 50% rebate on business rates. For small businesses, we also increased the employment allowance by £1,000.
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