Tax Burden and Economic Growth
Debate between Lord Wilson of Sedgefield and Lord Hannan of Kingsclere(3 weeks, 2 days ago)
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Lord Hannan of Kingsclere (Non-Afl)
I thank the noble Baroness. Under Tony Blair, the Minister’s predecessor in Sedgefield in another place, the state was taking 34% of GDP, spending about £1 in every £3. Now, since the pandemic, it is closer to £1 in every £2. That has coincided with an extraordinary flattening of our growth rate. Will the Minister urge his colleagues in government to look at which taxes are the most deleterious to growth while bringing in the lowest revenues? I am thinking specifically of taxes on savings, investment and inheritance.
Lord Wilson of Sedgefield (Lab)
The noble Lord raises a very important point. We always have these taxes under review. No doubt when we have the Budget at the back end of October some statements will be made by the Chancellor reflecting what we need to do to ensure that the economy grows into the future. We will continue to do what is in the best interests of the British people.