David Simpson
Main Page: David Simpson (Democratic Unionist Party - Upper Bann)Department Debates - View all David Simpson's debates with the Northern Ireland Office
(8 years, 3 months ago)
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Mrs Villiers
I am entirely confident that the changes relating to HMRC offices will not affect HMRC’s ability to tackle cross-border crime. Indeed, we will see an enhanced effort, not least because, as was pointed out by my hon. Friend the Member for North Dorset (Simon Hoare), the proceeds of that kind of crime can end up in the hands of terrorists.
David Simpson (Upper Bann) (DUP)
6. What discussions she has had with the Chancellor of the Exchequer on the potential effect of a reduction in rate of VAT on the tourism and hospitality sector in Northern Ireland.
The Parliamentary Under-Secretary of State for Northern Ireland (Mr Ben Wallace)
The Secretary of State and I have regular discussions with Treasury Ministers, including the Chancellor. The Government have concluded that a VAT cut for the tourism and hospitality sectors could not produce sufficient economic growth to outweigh the revenue shortfall. It would need to be funded either by additional borrowing or by the raising of other taxes, both of which are likely to have a negative effect on the economy.
David Simpson
The case was successfully made for corporation tax, and rightly so, to attract investment into Northern Ireland. Surely a case could be made, for tourism and hospitality in Northern Ireland, to reduce VAT, especially in respect of the golf clubs, where there is an anomaly across the board?
Mr Wallace
I do not think there are many Members who would not like to see a reduction of the tax burden. Because of our long-term economic plan and the lifting of burdens on businesses elsewhere—the small business rate relief that is also available in Northern Ireland, the corporation tax cut, the freezing of national insurance contributions and employer contributions—we hope that, at least for tourism businesses and the hospitality sector, the cost of employing people and the other burdens can be lifted. That would help businesses to make their prices more competitive to encourage more people to take up the great offering of tourism in Northern Ireland.