Oral Answers to Questions

Debate between David Gauke and Iain McKenzie

Tuesday 9th December 2014 Commons Chamber

[Mr Iain McKenzie (Inverclyde) (Lab)]

3. What recent estimate he has made of how much the reduction in the additional rate of income tax to 45% is worth for a person earning £1 million a year.

[The Financial Secretary to the Treasury (Mr David Gauke)]

The cost of reducing the additional rate of income tax to 45% is estimated at about £100 million a year. That is set out in table 2.2 of Budget 2013. We have not broken down the impact by income ranges, because there is a significant behavioural response associated with the additional rate of income tax. That behavioural response is estimated in aggregate and reflected in the costing.

[Mr McKenzie]

Christmas is coming and it is a time for giving, but the truth is that this Government have been giving to millionaires for some time. The average tax cut to millionaires is worth £100,000 a year. Will the Financial Secretary confirm that that figure for the Government’s tax giveaway to millionaires is correct? How many of my constituents in Inverclyde have benefited from that reduction in tax?

[Mr Gauke]

What is a fact is that the proportion of income tax paid by the top 1% for the years since the 50p rate was cut has in every year been higher than in any of the years in which the 50p rate was in operation. It is this Government who have made changes to stamp duty land tax—that was just last week—and to capital gains tax, and who have dealt with reliefs and exemptions, to ensure that the wealthiest play a greater share than they have in the past.

Oral Answers to Questions

Debate between David Gauke and Iain McKenzie

Tuesday 4th November 2014 Commons Chamber

[Mr Speaker]

It was indeed an extremely ingenious question, as HMRC would not be the tax collector, but, understandably, that did not trouble the hon. Member for Kettering (Mr Hollobone) in any way.

[Mr Iain McKenzie (Inverclyde) (Lab)]

20. One in four children across the UK lives in poverty while this Government allow £34 billion in unpaid tax to go astray. Does the Minister not see an urgency in collecting that tax so that he can eliminate that disgraceful statistic?

[Mr Gauke]

Let us be clear: the tax gap is lower than it was under the previous Government and yield is higher. By international standards, the UK has one of the lowest tax gaps in the world. We have a good record, but we always seek to do more, which is why at the Budget and autumn statement we have always been able to bring forward measures to deal with tax avoidance and tax evasion, and that is a record with which we will continue.

Oral Answers to Questions

Debate between David Gauke and Iain McKenzie

Tuesday 25th June 2013 Commons Chamber

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

We remain committed to introducing video games tax relief as soon as possible and we are working with the industry to provide the Commission with the evidence that it needs to conclude its investigation quickly. These things can take a little time, but we have a history of succeeding in implementing new and innovative forms of state aid.

[Mr Iain McKenzie (Inverclyde) (Lab)]

T3. Since the Chancellor’s last spending review the US economy has grown four times faster than the UK’s. Is this not further evidence of the Chancellor’s failed policies?