Anne McGuire
Main Page: Anne McGuire (Labour - Stirling)Department Debates - View all Anne McGuire's debates with the Scotland Office
(13 years, 9 months ago)
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David Mundell
When I had the opportunity to visit the Clydebank jobcentre in the hon. Lady’s constituency, I found that the people there—who are on the front line in helping the unemployed into work—welcomed the Government’s measures to replace the myriad schemes introduced by the previous Government with a single Work programme.
Mrs Anne McGuire (Stirling) (Lab)
10. What recent discussions he has had with the Chancellor of the Exchequer on the effect on households in Scotland of the proposed increase in the rate of value added tax.
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
The VAT rise is part of a fair and progressive Budget. Difficult decisions are necessary to tackle the record deficit that this Government have inherited, but the richest will pay more than the poorest.
Mrs McGuire
Given that every independent analysis says that VAT rises are not progressive but regressive, did the Minister examine the impact of the rise on any aspect of Scottish industry and, in particular, the tourism industry in my constituency, which is a large employer and very relevant to household incomes? Did the Government look at the impact of the increase in VAT on anything?
David Mundell
The right hon. Lady makes a good point about the tourism industry and she will know that many jobs in that industry are low paid. The decision to raise the income tax personal allowance for under-65s by £1,000 in 2011-12 will benefit 2 million basic rate income tax payers in Scotland, including many working in the tourism industry.