Finance Bill
Debate between David Gauke and Russell Brown(10 years, 10 months ago)
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Mr Gauke
I beg to move, That the Bill be now read the Third time.
The Finance Bill 2013 delivers the Government’s commitment to creating a tax system that is fair, that promotes growth and competitiveness and that rewards work. This Bill supports enterprise, helps families and ensures that everyone pays their fair share of tax.
We should pause for a moment to remember the background to the Bill. The Government inherited the largest peacetime deficit since the second world war, a deficit we have already reduced by a third over the three years since 2009-10. During this time, more than 1 million new jobs have been created by British business. We have had to make some tough choices, but the results show that we are making the right choices. The Government are leading the road to recovery—to putting the economy back on course—and this Bill continues that agenda.
Mr Russell Brown
Does the Minister recognise that the 1 million jobs that have been created are allocated disproportionately across the UK? My local authority area has lost 2,000 private sector jobs and the average wage has now fallen 24% below the national average. Some areas are hurting.
Mr Gauke
It was not that long ago that we were told that the reductions in public sector employment would not be met by new jobs in the private sector, but they have been met many times over. The reality is that we have an astoundingly good record on job creation over the past three years, despite the fact that the economy has faced significant challenges.
This Government have established a corporate tax system that attracts international investment to the country and that encourages UK businesses to grow. Corporation tax will be eight percentage points lower in 2015 than the levels we inherited in 2010. This Bill cuts the main rate to 21% next year and 20% the year after, which will give us the joint lowest rate in the G20, the lowest of any major economy in the world and the lowest rate this country has ever known.
The Bill does that alongside separate action to incentivise activity across the economy. It introduces a new above-the-line credit for large company research and development investment, provides reliefs that are among the most generous in the world for the animation and high-end television industries, and gives long-term fiscal certainty to the oil and gas industry on decommissioning tax relief.
Tax Fairness
Debate between David Gauke and Russell Brown(11 years, 2 months ago)
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Mr Gauke
We are left with the same issues of complexity of valuation across the board, and the issues of the asset-rich, cash poor. That is why my part of the coalition is not keen to proceed with that matter, but it is worth pointing out that we are raising more money from property. There is a stamp duty land tax of 7% on residential properties costing £2 million or more, a policy that is easy to administer and will not impact on existing home owners.
On the mansion tax, we have made no secret of the fact that the two parties disagree. If we did not disagree on some things, we would be one party, not two. But in the circumstances that we are in, it has been perfectly possible for two parties to work together in a sensible and mature way and to reach agreement on a host of measures that have made our tax system fairer, easier to understand and competitive. We heard much from the hon. Member for Nottingham East to the effect that we should do more to help low-income workers. May I just remind him and the House of the progress that we have made in raising the personal allowance? In 2010, someone on £6,500 was paying income tax at 20%. From next month, someone has to earn £9,440 before paying any income tax at all. Our measures on the personal allowance have provided a huge tax cut for millions of people and will take more than 2.2 million of the lowest earners out of income tax altogether. In fact, over the course of this Parliament, someone working full time on the national minimum wage will have seen their income tax bill cut in half.
Let us contrast our record with that of our predecessors. Let us remember that when the right hon. and absent Member for Kirkcaldy and Cowdenbeath (Mr Brown) did his last Budget, rather than cut taxes for the working poor, he increased them. People talk about the scrapping of the 10p rate, but Labour did not scrap it, they doubled it. They turned it into a 20p rate. For example, someone earning £9,000 a year in 2007 would have heard a Labour Chancellor stand up and announce that a Labour Government were going to increase their income tax bill by more than £200. Last year, someone on £9,000 a year would have heard a Conservative Chancellor stand up and announce that a coalition Government were going to take them out of income tax altogether. Our constituents on £9,000 a year will soon be paying no income tax at all, saving more than £500 since the coalition came to power. Labour turned a 10p rate of income tax into a 20p rate. This coalition has turned a 20p rate into a 0p rate.
Mr Russell Brown (Dumfries and Galloway) (Lab)
Will the Minister remind the House what he did with the personal allowance for pensioners? Am I not correct in saying that he froze that?
Mr Gauke
There is no particularly sensible reason why there should be a different personal allowance for someone who is 64, compared with 65 or 75. It is clearly a simpler and, I believe, fairer system that one personal allowance should apply to everybody. That was never an option available to the Labour party because the main personal allowance for someone under the age of 65 was so low. We have been able to increase it substantially so that one personal allowance can apply to everybody. That is a simpler and fairer way to deal with that issue. At the same time, we have increased pensions, thanks to the triple lock guarantee, by much more than we would have done if we had stuck with the plans that we inherited. Last year, pensioners saw their biggest increase in the state pension.
Scotland Bill
Debate between David Gauke and Russell Brown(12 years, 10 months ago)
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Mr Gauke
I have to make a confession to the House: I have come only relatively recently to these issues. My understanding, however, is that the Scottish National party has been interested in this policy for some years. I am sure that if it is a priority, and I understand that it is, we will receive the paper very soon. I look forward to receiving it.
Mr Russell Brown
Perhaps I should be directing this question not to the Minister but to the Secretary of State for Scotland, because he has been engaged in this process. Has there been any indication of how long we can expect to wait for these figures?