Oral Answers to Questions

Owen Smith Excerpts

Tuesday 24th April 2012 Commons Chamber

[Mr Gauke]

My hon. Friend is absolutely right. We saw that in leaflets before the election and we see it in leaflets now. None of it is true.

[Owen Smith (Pontypridd) (Lab)]

The Chancellor claims to be credible and consistent in his decision making, including his decision to withdraw the age-related tax allowances—the so-called granny tax that my hon. Friend the Member for Blaenau Gwent (Nick Smith) just asked about. In that case, will the Minister confirm why, in February 2009, the present Chancellor explicitly called for the tax-free allowance for pensioners to be increased?

[Mr Gauke]

In the light of the very substantial increase in the general personal allowance and of the concerns raised by the Office of Tax Simplification that the current structure does not have support, that is the right move. Pensioners are well protected by our policies and will continue to be so, but that move is one that results in a simpler and fairer tax system.