Direct Tax and National Insurance Contributions

Baroness Bennett of Manor Castle Excerpts

Tuesday 25th October 2022 Lords Chamber

[Viscount Younger of Leckie (Con)]

My noble friend is right: the Prime Minister has said, over a long period of time, that he is a tax-cutting individual—now a tax-cutting PM—but when the economic conditions allow. It is the right way forward, but there is a lot to do before we get to that point.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the Minister referred to the percentage of tax coming from richer earners. I am sure he is aware of the figures showing that, in the last five years, median income has risen by 2.2% on average, but for the richest fifth of people it has risen by 4.7%, while the poorest fifth of people have seen a real fall of 1.6%. Does the Minister agree that this rising inequality of income is a problem?

[Viscount Younger of Leckie (Con)]

First, on a serious note, we are very aware of the issues that many people are having to deal with at the moment, with the rising cost of energy and so on. The House is very aware of that. However, I do not agree with the noble Baroness, because the UK fares very well on an international basis. The UK’s taxes on wealth are on a par with those of other G7 countries, including inheritance, estate and gift taxes.