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To ask the Chancellor of the Exchequer, if he plans to request an updated OBR Assessment of the impact on the UK economy of ending Tax Free Shopping.
To ask the Chancellor of the Exchequer, if he plans to request an updated OBR Assessment of the impact on the UK economy of ending Tax Free Shopping.
In March 2024, the Office for Budget Responsibility (OBR) conducted a review of the previous government’s 2020 costing of removing tax-free shopping. The OBR’s updated estimate is that the withdrawal of the VAT Retail Export Scheme will save the Exchequer around £540 million per year by 2025-26.
The Government has noted recent external data, which shows that tourism numbers and spending for the UK has recovered at a similar rate following the pandemic to other European economies that offer tax-free shopping.
A briefing about transient visitor levies or 'tourist taxes', including information on plans for the introduction of tourist taxes in Scotland and Wales.
A briefing about transient visitor levies or 'tourist taxes', including information on plans for the introduction of tourist taxes in Scotland and Wales.
Andy Burnham has announced several policies to help people with the cost of living, with average prices having risen 30% since 2021.
Andy Burnham has announced several policies to help people with the cost of living, with average prices having risen 30% since 2021.
To ask the Chancellor of the Exchequer, what estimate she has made of the cost to the Exchequer and expected economic impact on families of the temporary reduction in VAT on children's meals and summer attractions; what categories of business and attraction will be eligible for the scheme; what assessment...
To ask the Chancellor of the Exchequer, what estimate she has made of the cost to the Exchequer and expected economic impact on families of the temporary reduction in VAT on children's meals and summer attractions; what categories of business and attraction will be eligible for the scheme; what assessment...
From 25 June to 1 September the Government is introducing a temporary reduced rate of VAT on children's menu meals and eligible family attractions.
This is a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks, helping families enjoy a day out for less. Individual businesses should consult HMRC’s guidance to determine how the rules apply in their circumstances.
The temporary reduced rate is estimated to cost about £300m. All costings will be subject to certification in the next OBR forecast in the usual way.
The Government expects participating businesses to pass savings on to families by lowering the prices people pay on eligible children's meals and tickets, so the VAT cut is reflected directly at the till.
The impact of the measure will be kept under review through communication with affected taxpayer groups.
My right hon. Friend raises an incredibly important point. It is not just those who have a car who will be paying for this policy—although they will be paying the most—and it is not just those who rely on a van for their business or work to get around who...
My right hon. Friend raises an incredibly important point. It is not just those who have a car who will be paying for this policy—although they will be paying the most—and it is not just those who rely on a van for their business or work to get around who...
All my right hon. Friend’s arguments stand, and that was true before the war in Iran. The Prime Minister stood there on Monday saying that the freeze is still in place, but the world has literally changed around us. Does my right hon. Friend share my concern that this Government...
All my right hon. Friend’s arguments stand, and that was true before the war in Iran. The Prime Minister stood there on Monday saying that the freeze is still in place, but the world has literally changed around us. Does my right hon. Friend share my concern that this Government...
My hon. Friend makes an important point. He will be aware that when the fuel price goes up, the Government’s VAT revenues from fuel go up at the same time. They are already seeing hundreds of millions of pounds a year extra in VAT, purely from the fact that the...
My hon. Friend makes an important point. He will be aware that when the fuel price goes up, the Government’s VAT revenues from fuel go up at the same time. They are already seeing hundreds of millions of pounds a year extra in VAT, purely from the fact that the...
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I have already given way to the hon. Member for Warwick and Leamington, but I will happily give way to the hon. Member for Upper Bann.
I have already given way to the hon. Member for Warwick and Leamington, but I will happily give way to the hon. Member for Upper Bann.
Does the right hon. Gentleman agree that the £53 million is welcome, but that calculates to about £35 a household, which is nothing in the grand scheme of things? Does he agree that fuel duty should be cut, VAT should be removed and the North sea opened up? That should...
Does the right hon. Gentleman agree that the £53 million is welcome, but that calculates to about £35 a household, which is nothing in the grand scheme of things? Does he agree that fuel duty should be cut, VAT should be removed and the North sea opened up? That should...
The hon. Lady raises an important point. As she suggests, the tax revenues from reopening the North sea for oil and gas could be spent in a number of ways, but we have to open the North sea—a cost-free and environmentally positive alternative—to obtain those revenues, and then we can...
The hon. Lady raises an important point. As she suggests, the tax revenues from reopening the North sea for oil and gas could be spent in a number of ways, but we have to open the North sea—a cost-free and environmentally positive alternative—to obtain those revenues, and then we can...
The tourist tax!
The tourist tax!
Absolutely. The tourist tax is hammering working Britain. And those are just the taxes that Labour is imposing on transport. There are plenty of others, and I am happy to take interventions if any hon. Members want to mention them.
Absolutely. The tourist tax is hammering working Britain. And those are just the taxes that Labour is imposing on transport. There are plenty of others, and I am happy to take interventions if any hon. Members want to mention them.
Is it worth emphasising that the Conservatives froze fuel duty for 14 years, which took £100 billion off the cost of driving? That is an example of taxes that we cut over those 14 years. In contrast, this Government have increased taxes by £66 billion in the past two years....
Is it worth emphasising that the Conservatives froze fuel duty for 14 years, which took £100 billion off the cost of driving? That is an example of taxes that we cut over those 14 years. In contrast, this Government have increased taxes by £66 billion in the past two years....
My hon. Friend is right, and some of those tax rises are hitting many of the companies that will also be hit by these fuel duty rises. I have spoken to hauliers, in my constituency and across the country, who already face increasing business rates and increasing national insurance costs...
My hon. Friend is right, and some of those tax rises are hitting many of the companies that will also be hit by these fuel duty rises. I have spoken to hauliers, in my constituency and across the country, who already face increasing business rates and increasing national insurance costs...
My right hon. Friend is making a great speech, as we always expect from him. Does he remember that, for the 2024 Budget, the Chancellor stood there and said that increasing fuel duty would be the wrong choice for working people? She said then that that was because of uncertain...
My right hon. Friend is making a great speech, as we always expect from him. Does he remember that, for the 2024 Budget, the Chancellor stood there and said that increasing fuel duty would be the wrong choice for working people? She said then that that was because of uncertain...
My hon. Friend is entirely right. She is also a real champion for the North sea oil and gas sector, which is largely based in her constituency.
What are we seeing on top of those taxes on railcards, ferries and airlines—through increased airline business rates—and, obviously, the 50% hike in bus...
My hon. Friend is entirely right. She is also a real champion for the North sea oil and gas sector, which is largely based in her constituency.
What are we seeing on top of those taxes on railcards, ferries and airlines—through increased airline business rates—and, obviously, the 50% hike in bus...
My right hon. Friend is making a passionate speech about the increase in rail fares for his constituents in Billericay, but he will be aware that drivers in Billericay, like those on the south side in Bexley, have also faced increases in the Dartford bridge charge, which this Labour Government...
My right hon. Friend is making a passionate speech about the increase in rail fares for his constituents in Billericay, but he will be aware that drivers in Billericay, like those on the south side in Bexley, have also faced increases in the Dartford bridge charge, which this Labour Government...
That is an extremely important point. This is not just about the Labour Government; it is also about Labour mayors and Labour councils and their war on motorists up and down the country, whether it is the Dart charge or the ULEZ charge. We have even seen Zipcar having to...
That is an extremely important point. This is not just about the Labour Government; it is also about Labour mayors and Labour councils and their war on motorists up and down the country, whether it is the Dart charge or the ULEZ charge. We have even seen Zipcar having to...