Finance Bill

Debate between Jim Shannon and Edward Leigh

Tuesday 2nd July 2013 Commons Chamber

[Jim Shannon]

Transferable allowances work by families claiming against them for the previous year. Thus this year’s Finance Bill makes provision for transferable allowances for the financial year 2014-15. People will not be able to claim against them until the financial year 2015-16. I will be seeking from the Government an assurance that that will be addressed this year so that it can happen.

[Sir Edward Leigh]

This is simply a matter of justice. There are 2 million families where one partner is working and the other is not. They are uniquely disadvantaged in the benefits system, and it is a matter of justice—let’s do it.

Finance Bill

Debate between Jim Shannon and Edward Leigh

Tuesday 28th June 2011 Commons Chamber

[Jim Shannon]

I can tell the House that when I married, I married for love. I am one of those old-fashioned boys; that is just the way I am.

[Mr Leigh]

In the light of the intervention from the hon. Member for Linlithgow and East Falkirk (Michael Connarty), it is important to point out that we are not trying to penalise single-parent families or families in which there are two earners. All we are trying to do is remove the severe penalty on families in which there is only one earner, because our system is totally out of step with most of the rest of the world in that regard.

[Jim Shannon]

I thank the hon. Member for his contribution and for providing a bit of focus to this debate.

Given that the agreement pertains to a full Parliament, one ordinarily would not be concerned at the failure to action a commitment in just over a year. What we need is for legislative change to be approved by the coalition Government, to move forward and perhaps see this legislation coming through in two years. The latest publication of the international tax comparison, CARE’s “The Taxation of Families 2009-10” puts things in a very different light. It demonstrates that we are now headed to a place where the tax burden on a married family with children with one earner on an average wage is growing so much that it will soon be more than 50% greater than the OECD average. That breaks new ground, taking us into territory that not even new Labour dreamt of occupying.

Some will no doubt respond by saying that this is a result of the tax burden having to increase on everyone in the context of the debt crisis. I understand that, but it is not exactly the case. Let me quote a director of an influential think-tank, who said:

“Given that it will take some time between changing the law and implementing the actual recognition of marriage in the tax system, it is important that the Government makes this a priority, takes swift action. The change, or at least a recognition of it, should be made”.

I very much hope that that report can be taken seriously, that the Government can look further at the issue and perhaps bring it forward in future legislation.