Oral Answers to Questions

Debate between Lucy Frazer and Dan Carden

Tuesday 28th June 2022 Commons Chamber

[Dan Carden (Liverpool, Walton) (Lab)]

T4. Recently, it was revealed that Her Majesty’s Revenue and Customs is failing to use the third-party data information that we get through international agreements to investigate how much tax is being evaded through offshore assets. Given that £850 billion is held offshore, with two thirds of it stashed in known tax havens, either Ministers are content for the super-rich to evade paying their fair share in the knowledge that their offshore wealth is not being systematically checked, or they will direct HMRC to use this reporting data, as is done in the US and Denmark, to uncover tax evaders. Which is it?

[The Financial Secretary to the Treasury (Lucy Frazer)]

I am proud that HMRC is a leader in tax transparency, has a number of double tax treaties and co-operates with a large number of countries and international organisations to share tax information to ensure that people pay their fair share.

Oral Answers to Questions

Debate between Lucy Frazer and Dan Carden

Tuesday 17th May 2022 Commons Chamber

[The Financial Secretary to the Treasury (Lucy Frazer)]

The Government are committed to ensuring a tax system that is fair and simple. I will give three examples: first, we have equalised the national insurance and income tax starting thresholds; secondly, our work towards OECD pillars 1 and 2 will help to ensure that multinational businesses pay their fair share; and thirdly, we are tackling avoidance and evasion to ensure that everyone pays the right amount of tax at the right time.

[Dan Carden]

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?

[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. That is a package of support for local businesses in his area and others across the country.