Commons Sense

House of Commons · Ministers' Questions

Tax System: Fairness

Tuesday 17 May 2022 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 0 Not answered 0

Key points

  • The Government equalized national insurance and income tax starting thresholds.
  • The Government provided 7 billion in business rates support, including 1.7 billion for hospitality.
  • The Minister emphasized support for local businesses and tackling tax avoidance.

Topics (select to filter)

Questions & Answers

Q1 Dan Carden Lab Liverpool Walton
Taxation
Context

No specific context provided, but the question relates to ensuring fairness in tax application.

Question

What recent steps he has taken to ensure fairness in the application of the tax system.

Answer from Lucy Frazer

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 Dan Carden Lab Liverpool Walton
Economy Taxation Business & Trade
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.

Question

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?

Answer from Lucy Frazer

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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