Budget Resolutions
Debate between Justin Madders and Luke Evans(2 weeks ago)
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Justin Madders
My hon. Friend is right to point out that the policy punished children for being born, which is not something any Labour Government should be part of.
We hear that this decision may encourage people not to work, but we all know from the statistics that a majority of people in receipt of benefits are in some form of employment. As for the wider cost, the Child Poverty Action Group estimates the cost of child poverty to the country to be about £40 billion a year, so not only is scrapping the cap the morally correct thing to do; it is also the best thing for our country economically.
While I understand the pressures facing the Government, I hope that the fiscal circumstances will improve in such a way to see income tax thresholds readjusted to take account of the inflationary pressure recently experienced. Going forward, we must continue to ensure that those with the broadest shoulders carry the burden to ensure that more and more working people are not dragged into paying tax by fiscal drag.
I have to say, I would like an explanation of the Chancellor’s comments about how those in receipt of the state pension will not have to pay any tax at the point that the state pension reaches the tax threshold in future. Of course they should not have to pay any tax on it, but why should a pensioner who might have a small private pension of £20 a week have to pay tax on that and their state pension? Once we start to look at some of the implications of the policy, it becomes clear that there are a number of unintended consequences. I hope that when the extra headroom that has been created by this Budget goes on to inspire further ideas in future Budgets, we can look at stopping some of the anomalies that the fiscal drag has created.
I will conclude with a few words on the automotive sector. I am proud to have in my constituency a Stellantis factory—or a Vauxhall Motors factory, as it is more commonly known round where we live. It is a site I have fought hard for over the years. Of course, the factory now manufactures electric vehicles. I welcome that the Budget reinforces the commitments that were made to our automotive sector in the industrial strategy for manufacturers. I am pleased that funding for DRIVE35 has been expanded by £1.5 billion, providing £4 billion over the next 10 years, which will help to build on the important investment the automotive sector needs.
I am also happy that plans to change the rules for the employee car ownership schemes have been delayed from next year until 2030, as that would undoubtedly have left many of my constituents hundreds of pounds a month worse off. Having now seen the impact of that policy, I hope the Government go the whole hog and cancel it altogether.
Dr Luke Evans
I have the automotive industry in my area too, and electric vehicles are really important. The implementation of the pay-per-mile change for electric vehicles is causing huge anxiety, as is the impact on the second-hand car market. We do not understand how this measure will work. Does the hon. Gentleman agree that the Government must be clear on this, as it will have a big impact over the next two to three years while it is discussed?
Justin Madders
The hon. Gentleman must have seen my speech, because I am just about to talk about that issue. He is right that there are a number of unanswered questions.
First, it is important to say that we do need to change to a pay-per-mile system for electric vehicles. The revenue we raise from fuel duty is clearly going to go down over the coming years, so there has to be a change.
Oral Answers to Questions
Debate between Justin Madders and Luke Evans(1 year, 1 month ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
My hon. Friend is absolutely right that we need to get more people back into work, and need to support them to return. In the Employment Rights Bill, we are looking to increase the scope of sick pay to include people below the lower earnings limit, and to introduce payments from day one. We have no plans to increase the rate of statutory sick pay, but when we get the reforms through, we will no doubt look at how we can reform it for the better. My Department for Work and Pensions colleagues will consider that in due course.
Dr Luke Evans (Hinckley and Bosworth) (Con)