Income Tax: Top Rate

Debate between Lord Newby and Lord Borwick

Monday 16th March 2015 Lords Chamber

[Lord Borwick (Con)]

My Lords, in my noble friend Lord Forsyth’s absence, and at his request, I beg leave to ask the Question standing in his name.

[Lord Newby (LD)]

My Lords, the latest projections show that income tax receipts from additional rate taxpayers in 2013-14 were £45.9 billion, compared with £38 billion in 2012-13, which was the last year when the additional rate was 50%.

[Lord Borwick]

My Lords, there was therefore an £8 billion increase in revenue as a result of lowering tax by 5%. Would my noble friend agree that Labour’s policy of putting the tax rate back up would not increase revenue, but rather discourage entrepreneurs, who are so responsible for increasing employment?

[Lord Newby]

Yes, my Lords.