Energy (oil and gas) profits levy

Debate between Anna Firth and Shaun Bailey

Tuesday 22nd November 2022 Commons Chamber

[Anna Firth]

I apologise, Madam Deputy Speaker.

I remind Opposition Members that this budget is bringing in the largest ever increase to the national living wage—as we have heard, £1,600 on average for millions and millions of workers. These are not people at the top of the tree.

[Shaun Bailey]

My hon. Friend is making a very passionate speech. On the living wage, the Labour party will not commit to not raising taxes on low-end workers. How much would Labour’s tax bombshell take from those on the living wage? Clearly, we have got one incoming; we can see it over there. What is her estimate, if Labour does raise taxes on people at the lower end of the tax spectrum?

[Anna Firth]

I very much hope we are not going to see tax rises. On the Government Benches, we are absolutely committed to protecting hard-working people, but at the moment we have heard no clarity—my hon. Friend is absolutely right—from the Opposition. There has to be a doubt that under their policy, taxes will go up on hard-working people.

The second point is that we have heard a lot about benefits not going up in line with inflation—another extraordinary comment. I remind Opposition Members that the OBR forecast that UK inflation will be 9.1% this year, going down to 7.4% next year. So, on the contrary, rather than our uprating of benefits not being enough, our uprating of benefits to inflation at over 10% is generous. Again, that is helping the most vulnerable.

Thirdly, we are keeping energy bills down for every single household across the country. Fourthly, on top of that, we are offering direct support for 8 million low-income households to the tune of £900 per household. Then, of course, we come to the triple lock. When the Conservatives came into coalition Government in 2010, pensioner poverty was a real issue. It was one of the legacies we were left to sort out. Since then, over the last 12 years, which we are harangued about regularly, we have protected pensioners. We brought in the triple lock and we have now restored it—the biggest ever cash rise for every single recipient of state pension ever next April. But more than that, for the poorest pensioners, pension credit will go up and be linked to inflation. Again, there will be £1,470 for a pensioner couple and another £960 for a single pensioner. That is before we get to more funding for the NHS and schools. People would think that we were not funding our NHS at all when, in fact, we are increasing the spending on the NHS to £166 billion, the highest amount ever.