Financial Statement

Richard Drax Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

I think the hon. Gentleman is describing how the taper works. It withdraws benefits as people’s incomes rise. That is how the system is designed. However, I can tell him that, because we took action to cut the universal credit taper rate last autumn, we delivered a tax cut of £2 billion for almost 2 million people. I gave the example earlier of a single mother with two children who is renting and working full time on the national living wage. As a result of all our tax, welfare and wage changes, that person will be £1,600 better off.

[Richard Drax (South Dorset) (Con)]

I commend my right hon. Friend for his statement, as far as it went. He is right to say that he cannot print more money, borrow more money or spend more money. Can I ask him to bring forward the tax cuts, particularly for the lower earners, because as he rightly says, they spend their money far more wisely than the Government do? That will put more cash in their pockets to meet the increasing bills.

[Rishi Sunak]

That is exactly what we are doing. The increase in the personal tax threshold in July was brought in far quicker than these things normally are, but we wanted to do it as quickly as possible. This will put £330 in the pockets of 30 million people up and down the country.