Finance Bill — House of Commons, 2015-10-26
Topic: Macroeconomics
Barbara Mary Keeley (Labour, Centre-left): I was not going to speak in this debate, but I have decided to join in because it is a vital matter. I worked with other Opposition Members in this debate during the first day of Committee, when I was the sole representative of the shadow Treasury team. It was an important debate then, but I think we have really moved it on today. The hon. Member for Glasgow Central (Alison Thewliss) and my hon. Friend the Member for Halifax (Holly Lynch) spoke well on this subject in Committee, and I want now to touch on some of what they said New clause 7, introduced by my hon. Friend the Member for Dewsbury (Paula Sherriff), is an important new clause that has enabled a hard-hitting and sensible debate on the VAT rate for tampons and sanitary products. As others have said, they are not luxury products, but, as we noted in Committee, some bizarre products are VAT exempt. As my hon. Friend the Member for Halifax found out, alcoholic jellies, edible sugar flowers, exotic meats, such as crocodile and kangaroo, and the amazingly named millionaires’ shortbread are apparently all VAT exempt. I am sure everyone agrees that alcoholic jellies are a luxury product, while tampons and sanitary products, which are vital products for women, are not As I said, we had a good debate in Committee. My hon. Friend the Member for Dewsbury, the hon. Member for Glasgow Central and my hon. Friend the Member for Halifax all spoke well, and I support what they said, but what did the Minister say? I hope we can change how he feels about this matter. At the end of the debate, he said: "We are supportive and we would like the rate to be as low as possible", which was very good and supportive, but he also said that "without wider EU reform and greater flexibility…it will be a challenge." Importantly, however, he also said that "were we able to progress further, I would be sympathetic".––[Official Report, Finance Bill Public Bill Committee, 17 September 2015; c. 26.] I think the Minister should be supportive, given that a number of his hon. Friends want him to be I wish to add my name to the list of those who have praised Dame Dawn Primarolo’s early campaign to reduce the VAT rate by 5% in 2000. Fifteen years ago, that was a brave thing to do in the House. Plenty of Members tonight have been willing to talk straightforwardly about this, but 15 years ago there were not as many women in the House and it would have been difficult to talk about. I am in her fan club and glad to thank her for the campaign she ran This VAT rate, which we have had since 2000, is unfair to women and families. It might be a challenge for the Minister to negotiate with the EU on this matter, but I hope that he and the Prime Minister are equal to it and can take it on. There have been many things they have been happy to challenge in their EU negotiations, and many of his hon. Friends have indicated that they also want him to take on this challenge. I am sure he is up to it, as he is well steeped in these matters, and it is clear from this debate that he has support from both sides. I urge hon. Members to support the new clause and give him a reason to take on this challenge.