Oral Answers to Questions

Debate between Lord Austin of Dudley and Alun Cairns

Wednesday 16th September 2015 Commons Chamber

[Alun Cairns]

I do not accept the premise of the question. The Government’s commitment to north Wales is significant. We are looking at the improvement of the railway line across north Wales, and the hon. Gentleman will be more than aware of the impact that the prison will have in north Wales. Of course we want to ensure that all the jobs are as efficient as possible. I will happily write to the hon. Gentleman on the detail of the point that he has brought to the attention of the House.

[Ian Austin (Dudley North) (Lab)]

What discussions has the Minister had with the people in the civil service who are responsible for the provision of library services about the appalling decision to remove an exhibition about Israeli and Palestinian people playing football together? Does he think that the decision to remove the exhibition will bring people together and further knowledge, which is what libraries are supposed to be about?

[Alun Cairns]

The hon. Gentleman makes an important point, referring to a disgraceful decision and act by Cardiff city council ahead of a visit from Israel to Cardiff. I hope that the leaders of his party on Cardiff city council will hear and take note of his comments.

Welfare Benefits Up-rating Bill

Debate between Lord Austin of Dudley and Alun Cairns

Tuesday 8th January 2013 Commons Chamber

[Alun Cairns]

I am grateful to my hon. Friend for that useful reminder that the Labour party did nothing on the issue. Few individuals—if any—would reject a benefit payment, even if in their hearts they were confused about why they were receiving it or uncomfortable with that. The then Chancellor knew well what he was doing and that withdrawing a payment after issuing it in the first place would create a difficult and almost impossible situation—the situation we are in now. Dependency on the state became more widespread, and with that came a significant political shift to the left. The centre ground of politics moved at that moment. It is, therefore, little wonder that £90 billion is now spent on welfare for people of working age.

During the seven years before the last general election, tax credit spend increased by a staggering 258%—that is the context I wished to create in response to the hon. Member for Edinburgh East (Sheila Gilmore). Adding insult to taxpayers’ injury, the tax credit regime was one of the most inefficient benefit systems ever devised, leading to £2 billion of fraud each and every year. Today’s Bill will lead to savings of £1.9 billion over two years, with the pain shared by those recipients whose increases in benefits will be limited. Although £1.9 billion is a significant sum, it does not go anywhere near the increases in spending introduced by the previous Government, particularly leading up to the 2010 general election.

[Ian Austin (Dudley North) (Lab)]

Will the hon. Gentleman give way?

[Alun Cairns]

I will in a moment but I want to develop my argument a little further. Presumably in an effort to drive the landscape even further to the left, tax credits increased dramatically—strangely—in the run-up to the 2005 general election, and, by coincidence, in the run-up to the 2010 general election.

[Alun Cairns]

My hon. Friend makes an excellent point. The previous Prime Minister knew exactly what he was doing and he did it for party political ends rather than to support and help families who needed tax credits.

[Ian Austin]

If the hon. Gentleman is so worried about helping people further down the income scale, why does he support a tax cut for people who earn more than £150,000 and a reduction in the living standards of the poorest people in Britain?

[Alun Cairns]

That is right on cue because I remember the 50% tax rate as being temporary. Is the hon. Gentleman saying that he is committed to that rate leading up to and beyond the next general election?

--- Later in debate ---

[Ian Austin]

I would rather see people who earn more than £150,000 make a contribution than take money off the poorest people in Britain, which is what the hon. Gentleman is arguing for today.

[Alun Cairns]

I would have much more respect for the hon. Gentleman if he told the House that that will be his commitment at the next general election.

[Ian Austin]

We will announce our policies for the next election but they will not be to give tax cuts to the wealthiest people in Britain while hammering the poorest. That is what the hon. Gentleman and his colleagues are supporting today.

[Alun Cairns]

It is obvious that there are two options. Either that will not be a commitment going into the next general election, or the Labour Government introduced the only temporary tax rate that would last almost 10 years. I hope the hon. Gentleman will allow me, in the minute I have left, to develop my second point.

On benefits and incomes, it is difficult to believe that out-of-work benefits have increased by 20% since 2007 and that earnings have increased by half that amount. What is the incentive to work? The Labour Government left a marginal rate of tax of 80% for some of the lowest earners and those on benefits. What sort of incentive was that to get people into work? They continue with the same principle in this debate. That inequality must be resolved, particularly given the nation’s debt, the need to encourage people into work and the demand for structural changes in the economy to deliver growth. It is Labour’s policy to increase spending, taxes and benefits and to take us into a further spiral of increased borrowing, spending and taxes. The people will not stand for it.