Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the impact of the VAT threshold on small businesses with turnover between £90,000 and £150,000; and if she will make it her policy to introduce a staggered VAT model to reduce disincentives to growth.

With a VAT registration threshold of £90,000, the UK’s threshold is higher than any EU country and the joint highest in the OECD.

The Government’s approach to the VAT threshold aims to balance potential impacts on small businesses, including their growth and financial sustainability, the economy as a whole, and tax revenues.