Financial Statement

Clive Efford Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

My hon. Friend, as ever, makes a thoughtful point. Innovation, broadly defined, along with multi-factor productivity, accounts for about half our productivity growth. The pace has slowed recently and we need to reinvigorate it. I set out a strategy to do that at the Mais lecture, and key to that will be driving up private sector investment in R&D and innovation. The tax cuts and reforms we will put in place in the autumn will help us to achieve that end.

[Clive Efford (Eltham) (Lab)]

Can the Chancellor confirm that someone in employment who is on universal credit will see an increase in the taper between £9,500 and £12,500—a £1,290 clawback to the Chancellor? What is he doing to address that issue, which will involve the poorest workers in the country facing a £1,290 increase in their taxes?

[Rishi Sunak]

I think the hon. Gentleman is describing how the taper works. It withdraws benefits as people’s incomes rise. That is how the system is designed. However, I can tell him that, because we took action to cut the universal credit taper rate last autumn, we delivered a tax cut of £2 billion for almost 2 million people. I gave the example earlier of a single mother with two children who is renting and working full time on the national living wage. As a result of all our tax, welfare and wage changes, that person will be £1,600 better off.