Wealth

Lord Newby Excerpts

Monday 5th July 2010 Lords Chamber

[Lord Sassoon]

My Lords, there are simply some measures that, in the present fiscal position, are unaffordable. The child trust fund, regrettably, falls into that category. However, to ensure that children at greatest risk are protected, we have introduced above-indexation rises in child tax credit. If noble Lords look at the new tables set out in the Budget document on pages 64 to 70, they will see that the effect is progressive across all income bands.

[Lord Newby]

My Lords, does the Minister accept that one way to stop disparities in wealth growing disproportionately is for the wealthy to pay their taxes? The Government have at long last announced a review looking at the possibility of introducing a general anti-avoidance rule. Will the Minister assure the House that this review will be finished in time for legislation on this matter to be introduced in the next finance Bill?

[Lord Sassoon]

My Lords, the coalition agreement indeed commits the Government to make every effort to tackle tax avoidance. There was a Budget press notice on eight initiatives that we are taking. One is to examine whether the option of a general anti-avoidance rule should form one element of strengthened defences against avoidance. I assure my noble friend that there will be informal consultations on this possible anti-avoidance rule over the summer.