Small Businesses
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of raising the VAT threshold for (a) wine merchants and (b) other small businesses; and what steps she is taking to (a) support those businesses and (b) promote economic growth while maintaining compliance with fiscal policies.
Answered by James Murray
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This means the majority of UK businesses are kept out of the VAT system.
As set out in the Plan for Change, the Government’s priority mission is to deliver strong, secure and sustainable economic growth to boost living standards in every part of the UK. Supporting businesses to grow is at the heart of this mission. The Government will be announcing further support for small businesses as part of the Small Business Strategy being published later this year.
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