Oral Answers to Questions

Debate between Lucy Frazer and Nigel Mills

Tuesday 15th March 2022 Commons Chamber

[Lucy Frazer]

CPI has been the default inflation measure for the Government’s statutory annual review of benefits since 2011, as the hon. Gentleman knows, but we are fully aware of the impact on households of the cost of living. That is why we are providing £20 billion of support, whether that is through £9 billion of support to help with rising energy bills or through universal credit. As he also knows, we have cut the taper rate so that families can keep an additional £1,000 annually in their pockets.

[Nigel Mills (Amber Valley) (Con)]

Does the Minister think that the uplift coming next month will be enough to get people all the way through next winter? If she recognises that there is a problem, will the Government consider bringing forward next April’s increase to this autumn, to give people a bit more money to help with their heating and food bills next winter?

Oral Answers to Questions

Debate between Lucy Frazer and Nigel Mills

Tuesday 18th December 2018 Commons Chamber

[Lucy Frazer]

My Department is making a lot of efforts to ensure we have the right deal. We have received £17 million for EU Brexit preparations. We have over 110 full-time employees, including newly recruited employees, working across deal and no deal. I would say, as the Lord Chancellor said in his FT article at the weekend, that the Conservative party is ensuring the future of our country, whereas the leader of the Labour party is just trying to make political points to ensure a general election.

[Nigel Mills (Amber Valley) (Con)]

5. What steps the Government are taking to make it easier for people to initiate legal proceedings.

[The Parliamentary Under-Secretary of State for Justice (Lucy Frazer)]

The Government are simplifying many application processes, making it much easier to initiate proceedings. Once a decision to get divorced has been made, one can now petition for a divorce online. Probate can be applied for online and a money claim can be issued, for up to £10,000, using our online courts process.

[Nigel Mills]

Will the Minister go a little further and say how she can make it easier for people to participate in proceedings once they have initiated them?

[Lucy Frazer]

My hon. Friend makes an incredibly important point. It is important not only to be able to initiate proceedings easily, but participate in them. Recently, we had early testing of full video hearings held in a tax tribunal, enabling the applicant and the respondent to not have to travel to court or take any time off work. In fact, Her Majesty’s Revenue and Customs was based in Belfast in those cases and the applicants were elsewhere in the country—and, in one case, in Greece. That small scale evaluation shows that participants found them convenient and easy to understand. They will not be appropriate for every case, but this is technology we need to consider.

Finance (No. 2) Bill

Debate between Lucy Frazer and Nigel Mills

2nd reading: House of Commons
Tuesday 18th April 2017 Commons Chamber

[Nigel Mills]

I agree with the hon. Lady about that. The products we should probably be targeting are those people think might be healthy but are not. I may buy a smoothie thinking that it contains lots of fruit so it must be good for me, but it, too, is high in calories. It is not a bad thing to consume that fruit; I need to have it as part of a balanced diet. Certain milk drinks are incredibly bad for people and may be worse than many soft drinks, but I am not entirely clear that the levy applies to those. If we had structured a tax that went on something high in sugar or high in calories, that may have been a way of getting to the outcome we were after.

[Lucy Frazer]

Does my hon. Friend accept that the provisions will give rise to a public debate, and therefore to public awareness of sugar in drinks? Some people may not have been aware of that before, but they will know about it now.

[Nigel Mills]

Having a broader debate to raise people’s understanding that a diet cola is much healthier that a full-sugar cola for most people is helpful. I am not sure how much of an impact debates in this place or taxes on producers will have on people’s consumer decisions when they are in the supermarket, as those are probably based on price, promotion and their personal preferences or historical buying habits. However, the Government are right to tackle this issue.

Clause 108 seeks to tighten up the rules on VAT collection from fulfilment businesses. Globalisation has changed how businesses are structured so that people buy from them online. People then avoid paying VAT due in the UK, which is a big weakness. We have a generous turnover threshold. Most countries in Europe do not let people have their first £80,000 of turnover VAT-free—I believe the figure is now £83,000. It is right that we have that exemption, but we need to find ways of stopping people selling things on internet marketplaces and exploiting it, because there is a big revenue leak. This also makes it very hard for UK businesses resident here that are trying to comply with the rules to compete with those internet-based sales where people are not charging VAT on products on which they ought to be charging it. All the measures we can take to ensure that anyone trading here who turns over more than £80,000 has to charge VAT on the things they sell have to be right, and I look forward to seeing how those measures work and what more the Government can do on them.

Clause 120 deals with making tax digital, on which the Minister and I had an exchange earlier. I accept that we have to make tax more digital than it is and we have to get everybody filing returns online. I can see why the Government would want the information much earlier than they are getting it and would seek to remove the errors. Individuals and businesses do not want to make errors and they want to get their tax right. I am not sure how much we help them when we add 762 pages of Finance Bill every year and they have to try to work out how to comply with them. Making tax digital is the right thing to try to do, but I worry that if we rush the smallest businesses into it we will end up with the wrong outcome. I accept that businesses turning over more than £80,000 are probably already filing their VAT quarterly, doing monthly PAYE activities, presumably on a computer, and reporting those, and doing the same thing for auto-enrolment. Those businesses are probably already gathering, just about in the right format, all the information they need, and making these returns should not be unduly onerous for them. In that area, the advantages outweigh the downsides. However, I do worry about ending up with a perverse outcome.