Oral Answers to Questions

Debate between Lord McCabe and David Gauke

Tuesday 27th January 2015 Commons Chamber

[Mr Gauke]

I completely agree with my hon. Friend, who puts it well. We want a strong NHS, but a strong NHS requires a strong economy, and that requires the Government’s policies to continue.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

In the long-term economic plan—[Hon. Members: “Hurray!”] I would wait for the second part of the question. In the long-term economic plan, is missing a target by 50% evidence of success or failure?

[Mr Gauke]

We have turned the British economy around, and we grew faster in 2014 than any major western economy. Employment is increasing and unemployment is falling, including by 40% since 2010 in the hon. Gentleman’s constituency. That is a success.

Stamp Duty Land Tax

Debate between Lord McCabe and David Gauke

Thursday 4th December 2014 Commons Chamber

[Mr Gauke]

My hon. Friend raises an interesting and important point, and we could provide information on the basis of local authorities figures. What I can tell him is that in the Gloucester local authority area—I am not sure whether it is coterminous with his seat—more than 99% of those who pay SDLT will pay less as a consequence of these changes.

It is striking to note the diversity of commentators who have been positive. Estate agents, professional bodies and others have all shown support. The Royal Institution of Chartered Surveyors has called it a “long overdue” reform. The director-general of the Council of Mortgage Lenders said:

“This fundamental reform has been a long time coming...the vast majority of mortgaged transactions will benefit from lower tax as a result of this move.”

The Building Societies Association has welcomed the announcement. It said:

“It will help individuals and families buy their own home, and smooth out the crazy tax jumps buyers have suffered around the top of each band.”

This is a principled reform that exemplifies the Government’s commitment to a fairer and more efficient tax system.

The previous SDLT regime created distortions in the housing market, imposed perverse incentives and made it harder to get on and move up the property ladder, or indeed move down the property ladder for those wishing to downsize. This major and, as some have argued, overdue reform demonstrates that even in the past six months of this Parliament, we are a Government who are continuing to make radical change for the benefit of the British people.

We realise that this is a big change, even for those who will benefit at such a significant moment in their lives. We have ensured that the changes have been properly explained. Her Majesty’s Revenue and Customs has produced full guidance on the Government website, including a calculator that compares the old and the new systems. As of 9 am this morning, that calculator had been used almost 500,000 times, with no significant delays reported, showing the level of interest in this reform among the public. Critically, HMRC’s specialist call centre was manned until midnight last night when the changes took effect, and is open now. HMRC specialists responded to around 250 inquiries by telephone and all but 3% were resolved immediately, and the remaining handful are being followed up.

[Steve McCabe]

Will the Minister confirm that, under the Labour party’s mansion tax proposals, it would take more than five years for a person in a £2 million property to pay the same amount of tax that they will pay on a single transaction under these proposals? Is that a recognition that people in those properties are simply not paying enough tax?

[Mr Gauke]

The point I would make, as the hon. Gentleman draws me into that issue, is that it is better to collect this tax at the point at which people are entering into transactions, the revenue is available, and there are not the same cash-flow difficulties and problems with the asset-rich cash poor. This is a much better policy than a mansion tax, which would create very significant difficulties—a point that was repeatedly made by a number of Opposition Members who represent London seats.

Oral Answers to Questions

Debate between Lord McCabe and David Gauke

Tuesday 25th June 2013 Commons Chamber

[Mr Gauke]

Yes, absolutely. There needs to be a much stronger private sector in Northern Ireland, as has been accepted by this Government and by all the parties in Northern Ireland.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

9. What his Department’s estimate is of the likely level of public sector net debt as a share of GDP in 2015-16.

Oral Answers to Questions

Debate between Lord McCabe and David Gauke

Tuesday 11th December 2012 Commons Chamber

[Mr Gauke]

My hon. Friend is right to highlight the fact that we have introduced a range of measures that will have an impact on all parts of society, including the highest earning 10% to 15% through the child benefit changes. Of course, we look to do whatever we can to support families. That includes providing free early learning for three and four-year-olds and extending the 15 hours a week of early years education and care from 2012-13 to all disadvantaged two-year-olds.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Is cutting maternity pay part of the Government’s strategy to support stable families?

[Mr Gauke]

I will be interested to know whether the hon. Gentleman will support the benefits uprating Bill. He is shaking his head, so I take it that we have finally got an answer on the Labour party’s position.

Oral Answers to Questions

Debate between Lord McCabe and David Gauke

Tuesday 6th November 2012 Commons Chamber

[Mr Gauke]

My hon. Friend is right to raise the issue of energy prices. The Government are doing what they can on that front. We are supporting Ofgem’s work in ensuring that there is competition in the energy markets, and of course we are determined to do what we can to get people on lower tariffs.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Does the Minister accept that the Government’s increase in VAT has led to 5p on a pint of beer and 3p on a litre of fuel?

[Mr Gauke]

We have to take action to try to deal with the deficit that we inherited, and let us not forget that. The hon. Gentleman mentions fuel. Because of the steps that we have taken on fuel duty, petrol pump prices could be as much as 10p lower per litre than they would have been had we stuck with the fuel duty escalator that we inherited.

Child Benefit

Debate between Lord McCabe and David Gauke

Tuesday 21st February 2012 Westminster Hall

[Mr Gauke]

I have a great deal of sympathy with my hon. Friend’s concern. I may or may not be able to furnish him with the numbers that he has asked for. None the less, we have looked at that issue on several occasions. He will not be surprised to learn that we are constrained by European regulations relating to social security payments, which means that we are not able to address his concern in the way that he would like. European economic area nationals can claim child benefit and tax credits as long as they meet the relevant conditions. That is the constraint, I am afraid. There is not the easy choice that he seeks.

[Steve McCabe]

Will the Minister give way?

[Mr Gauke]

I am conscious that I have three minutes left and I have barely begun to deal with the various points raised by my hon. Friend the Member for Christchurch, who secured this debate.

We recognise that most higher rate taxpayers are not super-rich. But, as my right hon. Friend the Chancellor has said,

“a system that taxes working people at high rates only to give it back in child benefit is very difficult to justify at a time like this.”

He went on to say:

“We simply cannot ask those earning just £15,000 or £30,000 to go on paying the child benefit of those earning £50,000 or £100,000.”

The debts of the previous Government have to be addressed. Consequently, we have had to make difficult choices. By removing child benefit from higher rate taxpayers, the Office for Budget Responsibility estimates that we will save £2.5 billion a year. The savings mean we can continue to direct child benefit support to where it is needed most, supporting millions of families, and millions of children from birth until the time when they leave full-time education at the age of 18 or even 19.

Oral Answers to Questions

Debate between Lord McCabe and David Gauke

Tuesday 8th February 2011 Commons Chamber

[Mr Gauke]

My hon. Friend is right to say that we have increased the personal allowance, taking 880,000 people out of income tax, resulting in an income tax cut for millions of people. It is none the less the fact that we must tackle the deficit. To the extent that the Labour party wants to do anything about the deficit, it advocates reducing the deficit by increasing taxes by more. Think what that would do.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

17. What assessment he has made of the effectiveness of support and advice on financial planning and financial literacy for young people and vulnerable groups.