Oral Answers to Questions

Debate between Nigel Huddleston and Paul Blomfield

Tuesday 7th May 2024 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

17. What recent assessment he has made of the potential impact of his tax policies on living standards.

[The Financial Secretary to the Treasury (Nigel Huddleston)]

Thanks to a combination of national insurance cuts and above-inflation increases to thresholds since 2010, the average worker on £35,400 will pay more than £1,500 less in personal taxes this year. In addition, maintaining fuel duty rates at their current levels represents a further £13 billion benefit to households over the three years since the introduction of the freeze.

[Nigel Huddleston]

The hon. Lady’s first comment was correct: everyone in this House recognises the extreme cost of living challenges over the past few years, and that is precisely why the Government have adopted the strategy of a laser focus on inflation, combined with tax cuts and, recently, national insurance cuts. We have a very constructive and positive relationship with the EU, and are always engaging with it on a variety of matters.

[Paul Blomfield]

In the run-up to last week’s elections, the Prime Minister never stopped talking about national insurance cuts, and the Minister talked about them again today, but the Government have been giving with one hand and taking away with the other. Does the Minister recognise that according to the Resolution Foundation, the combined impact of all the Government’s tax changes leaves workers who earn less than £26,000 a year worse off? Will he apologise to workers in South Yorkshire, whose average earnings are close to that level, for misrepresenting the position?

Oral Answers to Questions

Debate between Nigel Huddleston and Paul Blomfield

Tuesday 19th March 2024 Commons Chamber

[The Financial Secretary to the Treasury (Nigel Huddleston)]

Thanks to the combined impact of national insurance cuts and above-inflation increases to thresholds since 2010, an average worker on £35,400 in 2024-25 will pay over £1,500 less in personal taxes than they otherwise would have done. These national insurance contribution cuts were possible due to the significant progress we have made in combating inflation.

[Paul Blomfield]

I heard what the Minister has to say but does he not recognise the OBR’s assessment of the interplay between the Government’s threshold changes and NICs? The OBR concludes that for every 5p gain per year there is a 10p loss, particularly for those on lower wages. Does he accept the OBR assessment?

[Nigel Huddleston]

I am sure that if the hon. Gentleman looks carefully, he will see that the Government have demonstrated their commitment to supporting the most vulnerable in society. He will also have heard my hon. Friend the Member for North East Bedfordshire (Richard Fuller) explain the circumstances as to why we have higher taxes than we would desire. If the hon. Gentleman is telling me that Labour party policy is to change the thresholds, perhaps he can have that conversation with the shadow Chancellor, who can explain how she would pay for that.