Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Royston Smith

Tuesday 2nd July 2019 Commons Chamber

[Mr Philip Hammond]

As I think the hon. Gentleman knows, that position is enshrined in statute, and only this House of Commons could change it.

[Royston Smith (Southampton, Itchen) (Con)]

More of my Southampton constituents are in work than ever before, but many of their jobs are low-paid, with few career prospects, if any. What are the Government doing to improve employment opportunities for my constituents?

[Mr Hammond]

We have worked hard to build a stronger, fairer economy, dealing with the deficit that we inherited, helping people into work and cutting taxes for people, families and businesses, and the result is that the economy has grown continuously for the past nine years. Employment is currently at record high levels, unemployment is currently at the joint lowest rate since 1975, and real wages are rising again. We have created 3.5 million new jobs, but the next stage must be about increasing real wages by raising productivity, because that is the only sustainable way to raise the living standards of working people in this country.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Royston Smith

Tuesday 16th January 2018 Commons Chamber

[Royston Smith (Southampton, Itchen) (Con)]

2. What assessment he has made of the effect on average personal incomes of recent increases in the national minimum wage and national living wage.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

In April, the national living wage will rise to £7.83. That means an annual pay rise of over £2,000 for a full-time national living wage worker since the introduction in 2016 of the national living wage, which has helped reduce the proportion of full-time jobs that are low paid to the lowest level in at least 20 years.

Sustaining long-term pay growth relies on improving productivity. That is why we have increased the national productivity investment fund to over £31 billion, and it is why we are taking further action on skills, retraining and capital investment as we build a Britain fit for the future.

[Royston Smith]

Could the Chancellor tell the House whether income inequality has gone up or down since 2010? How does income inequality today compare with levels under the last Labour Government?

[Mr Hammond]

Income inequality is lower than it was in 2010. In fact, it remains lower than at any point under the last Labour Government. The Gini coefficient, which is an internationally recognised measure of income inequality, is now 3% lower than in 2010. Since my autumn statement in 2016, we have increased the tax contributions of the highest earners while those on the lowest incomes have gained overall.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Royston Smith

Tuesday 24th October 2017 Commons Chamber

[Royston Smith (Southampton, Itchen) (Con)]

13. What assessment he has made of the effect of recent increases in income tax thresholds on household income.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

In 2017-18, as a result of increasing the tax-free personal allowance and the higher rate threshold, 31 million individuals will see their income tax bill reduced and 1.3 million individuals will be taken out of income tax altogether; 585,000 individuals will have been taken out of the higher rate of tax in 2017-18.

[Royston Smith]

In 2017-18 and beyond, all basic rate taxpayers will pay £1,000 less per year in tax than they did in 2010. Can my right hon. Friend confirm that an employee paying the basic rate of tax would need to earn an additional £1,471 annually to take home £1,000 in extra income?