Tuesday Volume 498 3 November 2009 No. 135 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 3 November 2009 £5·00 © Parliamentary Copyright House of Commons 2009 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through the Office of Public Sector Information website at www.opsi.gov.uk/click-use/ Enquiries to the Office of Public Sector Information, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 695 3 NOVEMBER 2009 696 better—fewer errors, faster turnarounds and an extra House of Commons seven days before businesses have to pay the tax due. Tuesday 3 November 2009 Gordon Banks: I thank my right hon. Friend for his answer—and, indeed, my hon. Friend the Member for Vale of Clwyd (Chris Ruane) for lending me his pen The House met at half-past Two o’clock earlier. Has my right hon. Friend considered the impact that the changes could have on some small businesses that reach the £100,000 threshold, but for which a PRAYERS paperless VAT return might not bring a saving, but a cost, especially in these hard economic times? [MR.SPEAKER in the Chair] Mr. Timms: Yes, we have been thinking about that. BUSINESS BEFORE QUESTIONS We have consulted and will announce our conclusions shortly. However, we have provided quite substantial BEVERLEY FREEMEN BILL [LORDS] financial help to businesses signing up to online filing— Lords message (29 October) relating to the Bill considered. £900 million in total before the scheme closed earlier Resolved, this year. I can reassure my hon. Friend that we will That this House concurs with the Lords in their Resolution.— provide a detailed, step-by-step guide to registering for (The Chairman of Ways and Means.) online services in the February letter that will set out the requirement to file online. The change will bring benefits LONDON LOCAL AUTHORITIES BILL [LORDS] to HMRC and to businesses as well. Lords message (29 October) relating to the Bill considered. Resolved, Richard Ottaway (Croydon, South) (Con): Given that That this House concurs with the Lords in their Resolution.— a survey by the Revenue showed that most businesses (The Chairman of Ways and Means.) were totally unaware of the obligation, how did the Government get on with their target that at least half of LONDON LOCAL AUTHORITIES AND TRANSPORT FOR businesses would be filing their returns electronically by LONDON (NO.2)BILL [LORDS] March 2008? Lords message (29 October) relating to the Bill considered. Resolved, Mr. Timms: We are making very good progress, and That this House concurs with the Lords in their Resolution.— there will be—indeed, there already has been—a substantial (The Chairman of Ways and Means.) campaign to inform businesses of their obligations. Over the next few months more efforts will be made to TRANSPORT FOR LONDON (SUPPLEMENTAL TOLL ensure that everybody is aware of them. Telephone PROVISIONS)BILL [LORDS] support, for example, will be available to businesses that Motion made, have queries, and help will also be provided through a That so much of the Lords Message [29 October] as relates to programme of presentations and drop-in sessions. Most the Transport for London (Supplemental Toll Provisions) Bill people will have to make their first online return next [Lords] be now considered.—(The Chairman of Ways and Means.) July, so we still have a number of months in which to advise businesses, and we are determined to get this Hon. Members: Object. right. To be considered on Tuesday 10 November. Mr. Michael Moore (Berwickshire, Roxburgh and Selkirk) (LD): Will the Minister give us an assurance Oral Answers to Questions that he will devote enough management time and resources to this stage of reforms, so that we can avoid the utter chaos experienced by many of my constituents with more recent reforms? As a result of the latter, for many TREASURY people it is taking months to get thousands of pounds of tax that is their due repaid. The Chancellor of the Exchequer was asked— Mr. Timms: Of course, one of the great strengths of VAT Returns filing online is that it speeds up the whole process—for exactly the reason that the hon. Gentleman set out. We 1. Gordon Banks (Ochil and South Perthshire) (Lab): have had very good experiences, for example, with What estimate he has made of the average annual online filing of self-assessment returns, and I am confident savings to Her Majesty’s Revenue and Customs over that those benefits will be repeated when businesses go the next three years arising from the introduction of online for VAT filing and other taxes. paperless value added tax returns. [297048] The Financial Secretary to the Treasury (Mr. Stephen Unemployment Timms): Businesses turning over more than £100,000 per year, and all newly registering businesses, will be required 2. Derek Twigg (Halton) (Lab): What steps he is to file online from 1 April. Savings of about £4 million a taking to ensure that additional Government funding is year are expected within three years as a result, but the provided for areas most affected by rising unemployment. main reason for the change is to make the service work [297049] 697 Oral Answers3 NOVEMBER 2009 Oral Answers 698 The Chief Secretary to the Treasury (Mr. Liam Byrne): Stewart Hosie (Dundee, East) (SNP): With the Since the pre-Budget report, more than 3 million people Government’s fiscal stimulus ending, quantitative easing have been moved off unemployment benefits. Across ceased, the VAT cut being reversed and departmental the country, a targeted effort has been made to assist cuts already in the pipeline, there is deep concern that those communities most hit by unemployment, including this removal of assistance from the economy will force initiatives such as the working neighbourhoods fund, unemployment even higher. Is this therefore not the which is worth more than £1 billion, and the new time for the Government to make the earliest possible £1 billion future jobs fund designed to create 150,000 statement that they will permit a further year’s reprofiling jobs. of capital expenditure, as the most effective way to protect and preserve jobs? Derek Twigg: The campaign to end child poverty today released a report highlighting the impact of Mr. Byrne: None of the measures that the hon. unemployment on children and families. What measures Gentleman mentioned has been stopped. In the pre-Budget is my right hon. Friend taking to prevent unemployment report and in the Budget, my right hon. Friend the from meaning poverty for children? Chancellor was clear when he said that the measures that we have put in place have to be targeted and have to Mr. Byrne: As I am sure my hon. Friend would agree, last only as long as the problem exists. That is why it is the best route out of poverty remains the prospect of quite right that as recovery returns to our economy, work, which is why we have been so determined over the some measures should be retired. However, those that past year to take combined action on monetary policy are still needed, such as measures to support jobs or and fiscal policy, which together are now supporting businesses’ cash flow, are set to continue. Also, as the about 500,000 jobs. However, in addition, we realise hon. Gentleman knows, the Bank of England is still to that some communities need targeted help, which is why reach a decision on quantitative easing. the future jobs fund will seek to create more than 6,000 jobs in his region. On top of that, of course, is the Mr. Barry Sheerman (Huddersfield) (Lab/Co-op): Is important role of tax credits, which are now supporting my right hon. Friend aware that in west Yorkshire we 20 million people and helping the poorest families in are coming out of recession and doing very well, but this country to the tune of more than £4,500 a year. that we still need some help from better investment in public sector jobs, to move them from the south and London up to Yorkshire? Mr. Michael Fallon (Sevenoaks) (Con): Given rising unemployment, and the fact that this country has been in recession for longer than any of its major competitors, Mr. Byrne: The Government have actually moved how can Ministers still claim that we were better prepared? more jobs from London out into the regions than we set targets for, but that process needs to continue, and I am determined to see that it does. Mr. Byrne: The truth is that the recession is hitting different countries differently. If we look at the United States, the unemployment rate is 10 per cent; if we look Bingo Industry at France, the unemployment rate is 10 per cent; and if we look at Germany and Japan, the fall in their respective 3. Philip Davies (Shipley) (Con): If he will bring gross domestic product is greater than ours. The fact forward proposals to reduce the level of taxation applied that we have been able to put in place a fiscal stimulus to the bingo industry. [297050] worth 4 per cent. of GDP, as well as keeping interest rates low—together supporting up to 500,000 jobs—is The Exchequer Secretary to the Treasury (Sarah in part because we went into this recession with the McCarthy-Fry): We have had continued dialogue with second lowest debt in the G7. the bingo industry, including before and since the Budget, on the impact of the tax regime. I last met the industry Chris Ruane (Vale of Clwyd) (Lab): I concur with my just three weeks ago, and that dialogue will continue.