Mr Peter Bedford

I thank the Minister for his speech. I ask him to take back to the Treasury the various arguments that have been put forward today, particularly about the benefits for the broader economy and for our local communities that could be achieved by reviewing the VAT registration threshold. I thank the hon. Member for Mid Dunbartonshire (Susan Murray), who spoke about the benefits of doing so. She said that local businesses foster community pride, but that the tax system is very complicated for them. I thank my hon. Friend the Member for Broxbourne (Lewis Cocking), who said he is frustrated that the current system does not have a taper mechanism. I ask the Minister to look at that and consider my hon. Friend’s arguments about how that would benefit small businesses—particularly those that wish to grow. I thank my hon. Friend the Member for Keighley and Ilkley (Robbie Moore), particularly for his arguments about the fish and chip shop industry and similar small businesses that are holding back their growth because they are on the cusp of the registration threshold. If they surpass it, additional costs and burdens will be placed on them. The hon. Member for Strangford (Jim Shannon) spoke about his frustrations, which I share, about how the Windsor framework constricts businesses in Northern Ireland and prevents them from being more competitive and on a par with those in the rest of the United Kingdom. I appreciate the intervention of the hon. Member for East Londonderry (Mr Campbell) on the same point. I thank the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald), who has particular expertise with VAT. As someone who holds apprenticeships and skills training in high regard, I appreciate his point that reviewing the threshold could enable smaller businesses to take on additional employees and train them in the trades that we need. Plumbers, electricians and other trades would really benefit from apprenticeships and similar types of training. I thank the hon. Member for St Albans (Daisy Cooper), who spoke about the need for small businesses to be better supported, particularly by the Treasury, in dealing with the bureaucracy. She said that small businesses do not have the advantage of large HR functions or support networks to get them through the bureaucracy. I thank my hon. Friend the Member for Grantham and Bourne (Gareth Davies) for his points. He said that three fifths of employment in this country is in a small business, and that, particularly over the last year, businesses have had to contend with significant challenges posed by the new Government’s economic plan, including the national insurance hike, the business rates increase and the additional burdens placed on businesses by the Employment Rights Bill. Question put and agreed to. Resolved, That this House has considered the impact of the VAT registration threshold on SMEs.