My Lords, the new VAT relief on business donations of goods to charity came into effect on 1 April this year and it is too soon yet to assess the impacts. We anticipate the relief will incentivise increased food donations to charities eligible for the relief, meaning increased donations reaching those in need. The CBI estimates that the relief will lead to an additional £72.5 million in total donations annually. We are monitoring any possible impacts on social supermarkets.

My Lords, the new VAT relief on business donations of goods to charity came into effect on 1 April this year and it is too soon yet to assess the impacts. We anticipate the relief will incentivise increased food donations to charities eligible for the relief, meaning increased donations reaching those in need. The CBI estimates that the relief will lead to an additional £72.5 million in total donations annually. We are monitoring any possible impacts on social supermarkets.

I am grateful to the noble Baroness for her question. The short answer is yes, of course. We are hopeful that this new relief will help boost the supply of essential items to charities, enabling them to reach the people and communities who need them most. The relief will also make it easier for businesses to give surplus stock a second life, supporting families and communities across the UK and strengthening the circular economy by reducing waste and landfill. I hope very much that what the noble Baroness says is not the case. I understand the disappointment of some at not being eligible for this relief. It was important to maintain the structure of existing charity tax reliefs. However, as she asks, we will continue to monitor any potential impacts and accept the evidence. She might like to know that HMT officials will shortly be meeting with the sector to discuss this further.

I am grateful to the noble Baroness for her question. The short answer is yes, of course. We are hopeful that this new relief will help boost the supply of essential items to charities, enabling them to reach the people and communities who need them most. The relief will also make it easier for businesses to give surplus stock a second life, supporting families and communities across the UK and strengthening the circular economy by reducing waste and landfill. I hope very much that what the noble Baroness says is not the case. I understand the disappointment of some at not being eligible for this relief. It was important to maintain the structure of existing charity tax reliefs. However, as she asks, we will continue to monitor any potential impacts and accept the evidence. She might like to know that HMT officials will shortly be meeting with the sector to discuss this further.

I very much agree with the noble Lord. I think we may have discussed this once before, and I agreed with him then as well. As I understand it, HMRC is absolutely cracking down on this type of behaviour.

I very much agree with the noble Lord. I think we may have discussed this once before, and I agreed with him then as well. As I understand it, HMRC is absolutely cracking down on this type of behaviour.

I am aware of the concerns set out by some, including the noble Baroness, about the inclusion of foods high in fat, salt and sugar within the scope of this relief. The work that many of these companies, such as the Company Shop Group, do to support local communities is crucial, and it is important that the new VAT relief does not undermine their ability to do this work. We have not yet been presented with sufficient evidence to justify carving out from the relief foods high in fat, salt or sugar, but Treasury officials will monitor the situation carefully and maintain an open dialogue with the sector.

I am aware of the concerns set out by some, including the noble Baroness, about the inclusion of foods high in fat, salt and sugar within the scope of this relief. The work that many of these companies, such as the Company Shop Group, do to support local communities is crucial, and it is important that the new VAT relief does not undermine their ability to do this work. We have not yet been presented with sufficient evidence to justify carving out from the relief foods high in fat, salt or sugar, but Treasury officials will monitor the situation carefully and maintain an open dialogue with the sector.

I have to apologise to the noble Lord, I am afraid, because I do not know the answer to his question about the applicability of this relief to Northern Ireland under the Windsor Framework. I will investigate that and write to him.

I have to apologise to the noble Lord, I am afraid, because I do not know the answer to his question about the applicability of this relief to Northern Ireland under the Windsor Framework. I will investigate that and write to him.

The location of supermarkets is largely a commercial decision for the supermarkets themselves and not one for me, but I believe that that is exactly what the social supermarkets that the Question relates to are trying to do.

The location of supermarkets is largely a commercial decision for the supermarkets themselves and not one for me, but I believe that that is exactly what the social supermarkets that the Question relates to are trying to do.

I think we are satisfied.

I think we are satisfied.

I am not sure that it is for the Government to cap prices. We are working closely with supermarkets to ensure that they are keeping costs down, and competition is thriving in the sector to help keep costs down for consumers. The noble Baroness knows that we are absolutely committed to tackling poverty and ending mass dependence on things such as emergency food parcels and other charitable support. It is why, most importantly, we are tackling the root causes of child poverty and scrapping the two-child limit, which will lift 450,000 children out of poverty by the end of this Parliament.

I am not sure that it is for the Government to cap prices. We are working closely with supermarkets to ensure that they are keeping costs down, and competition is thriving in the sector to help keep costs down for consumers. The noble Baroness knows that we are absolutely committed to tackling poverty and ending mass dependence on things such as emergency food parcels and other charitable support. It is why, most importantly, we are tackling the root causes of child poverty and scrapping the two-child limit, which will lift 450,000 children out of poverty by the end of this Parliament.

I very much agree with my noble friend. It is one of the reasons why Sure Start was so important and so successful under the previous Labour Government. It was an absolute tragedy that the previous Tory Government scrapped the Sure Start scheme, and we saw a massive increase in child poverty as a result. My noble friend is absolutely right about signposting. To go back to the original Question, it is part of the good work that social supermarkets do in communities up and down the country.

I very much agree with my noble friend. It is one of the reasons why Sure Start was so important and so successful under the previous Labour Government. It was an absolute tragedy that the previous Tory Government scrapped the Sure Start scheme, and we saw a massive increase in child poverty as a result. My noble friend is absolutely right about signposting. To go back to the original Question, it is part of the good work that social supermarkets do in communities up and down the country.

The noble Baroness is far more expert in these matters than I am, but I fully understand what she is saying. I am sure that there is a lot in what she says and I am sure that the Government will look closely at it.

The noble Baroness is far more expert in these matters than I am, but I fully understand what she is saying. I am sure that there is a lot in what she says and I am sure that the Government will look closely at it.

I totally understand what the noble Baroness is saying. I do not think I said that it was not possible to do that; I said that we had not yet been presented with sufficient evidence to justify doing that. As I say, we will keep monitoring the situation carefully and we will maintain an open dialogue with the sector.

I totally understand what the noble Baroness is saying. I do not think I said that it was not possible to do that; I said that we had not yet been presented with sufficient evidence to justify doing that. As I say, we will keep monitoring the situation carefully and we will maintain an open dialogue with the sector.

For the avoidance of doubt, I was not tempted to go down that path. Having heard from my noble friend, I am even less tempted to do so than I was before.

For the avoidance of doubt, I was not tempted to go down that path. Having heard from my noble friend, I am even less tempted to do so than I was before.

This tax relief is designed to help businesses donate surplus food to social supermarkets. This Government are dedicated to reducing reliance on food banks, which is exactly why we are taking the measures on child poverty that I previously described.

This tax relief is designed to help businesses donate surplus food to social supermarkets. This Government are dedicated to reducing reliance on food banks, which is exactly why we are taking the measures on child poverty that I previously described.

To ask His Majesty’s Government what assessment they have made of the impact of the VAT relief on business donations on goods to charities on food redistribution networks, including social supermarkets.

To ask His Majesty’s Government what assessment they have made of the impact of the VAT relief on business donations on goods to charities on food redistribution networks, including social supermarkets.

Lords consideration of Commons reasons. Lords amendment 1 not insisted on and amendments 1B and 1C in lieu disagreed to on division (95 to 137). Lords amendments 2 to 12 not insisted on.

Lords consideration of Commons reasons. Lords amendment 1 not insisted on and amendments 1B and 1C in lieu disagreed to on division (95 to 137). Lords amendments 2 to 12 not insisted on.

Moved by

Lord Livermore

Moved by

Lord Livermore

My Lords, in moving this Motion, I will also speak to Motions B, B1, C, D, E, F, F1, G, G1, H, H1, J, K, L, M and M1. The other place has disagreed with Amendments 1 to 12, as they would alter the financial arrangements made by the Commons....

My Lords, in moving this Motion, I will also speak to Motions B, B1, C, D, E, F, F1, G, G1, H, H1, J, K, L, M and M1. The other place has disagreed with Amendments 1 to 12, as they would alter the financial arrangements made by the Commons....

My Lords, I am grateful to all noble Lords who have spoken in this debate.

On the topic of impact assessments, I remind noble Lords of the information that we have already published. The tax information impact note sets out the expected impacts of the policy on individuals, employers and the...

My Lords, I am grateful to all noble Lords who have spoken in this debate.

On the topic of impact assessments, I remind noble Lords of the information that we have already published. The tax information impact note sets out the expected impacts of the policy on individuals, employers and the...

Moved by

Lord Livermore

Moved by

Lord Livermore

Moved by

Lord Livermore

Moved by

Lord Livermore