Tax Increases

Lord Hannan of Kingsclere Excerpts

Thursday 10th July 2025 Lords Chamber

[Lord Livermore (Lab)]

My noble friend is right to point out the long-standing and long-term challenges that we face in fiscal policy. As the noble Lord opposite said, the OBR set out some long-standing economic realities in its fiscal risks report this week. That is why it is so important that we are committed to ensuring stability in the economy through our fiscal rules. My noble friend mentioned special educational needs. He is absolutely right that, right now, the system is not working; less than half of education, health and care plans are issued within the 20-week deadline and only 22% of children with special educational needs are reaching the expected levels in maths and English. We absolutely need to deliver better support for vulnerable children and their parents, which is why we will set out wider plans for SEND reform later this year as part of the upcoming schools White Paper. On the longer-term debate that my noble friend talks about, I am always more than happy to discuss those issues with him.

[Lord Hannan of Kingsclere (Con)]

My Lords, does the Minister accept that there is a point when higher tax rates lead to lower government revenues? We heard an example from my noble friend Lord Leigh in the last Question that the Minister dealt with about non-doms provoking some companies to change their domicile or listing. There will come a point when it causes people to retire early, emigrate or work differently. If he accepts that there is such a point, how close does he think we have got to it?

[Lord Livermore (Lab)]

The noble Lord is just talking about the revenue maximisation point. We are past that, for example, on tobacco taxes, as a deliberate government policy. Of course it exists; I do not think it is particularly novel.