Oral Answers to Questions

Baroness Harman Excerpts

Tuesday 20th March 2012 Commons Chamber

[The Deputy Prime Minister]

I, too, think it is an excellent idea. It will provide citizens of this country with far greater transparency on how the money that they provide to those of us in government is spent. That goes to the heart of greater accountability in government. It will empower citizens to know where their money is spent. I am sure that the Chancellor will consider any opportunity to bring this good initiative forward, where it is feasible.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

Last November, when talking about the top rate of tax on income over £150,000, the Deputy Prime Minister said:

“I do not believe that the priority…is to give a tax cut to a tiny, tiny number of people who are much, much better off than anyone else.”

If the Chancellor announces any cut in the top rate of tax, Opposition Members will vote against it: will he?

[The Deputy Prime Minister]

The right hon. and learned Lady will have to wait until the Chancellor announces his Budget tomorrow. The priority for me and for the whole coalition Government is to provide real help to people on middle and low incomes, who have faced higher prices and great difficulties because of the economic implosion that she and her colleagues presided over in government. Whatever changes there are to this bit of the tax system or that bit of the tax system, Government Members believe that the wealthy should pay more, because the broadest shoulders should bear the heaviest burden.

[Ms Harman]

We will see about that. Next month, low-income families will be hit by a massive cut to their tax credits, which the Lib Dems voted for. It is now clear that they will go along with a cut in the top rate of tax. I suppose that we should not be surprised after what they have done on VAT, the police and tuition fees. By signing up to cutting the top rate of tax, the Deputy Prime Minister is giving thousands of pounds to the very rich, while cutting tax credits for people who are struggling to make ends meet. Surely, even by Lib Dem standards, that is a step too far.

[The Deputy Prime Minister]

Next month, this Government will take more than 1 million people on low pay out of paying income tax altogether. Next month, we will deliver the largest cash increase in the state pension ever. There will be no more of Labour’s 75p pension insults. Next month, thousands of children from disadvantaged backgrounds will receive an uplift in the pupil premium to give them the head start in life that they never got under Labour. That is a record that I am proud of.