Income Tax

Lord Davies of Oldham Excerpts

Wednesday 19th November 2014 Lords Chamber

[Lord Newby]

My Lords, it is not always that I agree with my noble friend—but in this case I do.

[Lord Davies of Oldham (Lab)]

My Lords, how will the deficit be reduced if wages continue to fall, as they have done for 71 out of 74 months, and if, as has happened for virtually the whole of this Administration, wages fall in real terms, so that less tax is paid?

[Lord Newby]

My Lords, wages have fallen, but they have started rising in real terms. The OBR and every other forecaster that has made projections of real wages for the next few years in the British economy are firmly forecasting consistent real-wage growth.