On Monday during a statement by the new Secretary of State for Exiting the European Union David Davis MP, Morecambe and Lunesdale MP David Morris, raised the opportunity Brexit brings to taper the VAT system to make it easier for small businesses to grow. This idea had been previously presented by David Morris in his role as Self Employment ambassador to the Prime Minister, but it could not be enacted because of European constrictions.
Speaking during the statement David Morris MP said:
Will my right hon. Friend look into VAT? As he knows, it was a purchase tax before 1973; it is now VAT. It has fluctuated up and down over the years, but irrespective of that, many small businesses out there need the taper relief because when they hit the VAT threshold, it can actually kill them off. I know that—I was a small businessman; I succeeded, but it was a problem. Will my right hon. Friend please look further into this on behalf of the small businesspeople of the United Kingdom?
In response David Davis MP said
I will personally draw this to the attention of the Treasury, and I will make sure that we think about it as we go through this process.