Oral Answers to Questions

Annette Brooke Excerpts

Tuesday 8th January 2013 Commons Chamber

[The Deputy Prime Minister]

As I said before, the Labour rate for top taxpayers was 40p, so the hon. Gentleman needs to justify his support for 13 years for a lower rate applied to millionaires than will be introduced—[Interruption.] I know Opposition Members do not like it, and they are shrieking at the top of their voices, but the record shows that for the whole time of the Labour Government, apart from 30 days towards the end, the upper rate was 40p. We are introducing an upper rate of 45p. That is the first point.

The second point is that I hope the hon. Gentleman would celebrate with his constituents the fact that as of April this year, every single basic rate taxpayer in his constituency will be £600 better off because of the changes in the income tax allowance that we have introduced since the general election.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

T9. There is no doubt that the Government have to make some tough decisions, but what comment would my right hon. Friend make on the overall impact of Government policies on social mobility?

[The Deputy Prime Minister]

One thing we have learned is that if we could shift social mobility by pouring billions of pounds into the tax credit system—the Labour party’s approach—that would have worked a long time ago. In fact, despite a huge transfer of money through the tax credit system, social mobility barely budged during 13 years of Labour government. That is why we are investing more in early years initiatives and providing more child care support, and why we are giving more support to two, three and four-year-olds and—most importantly—providing £2.5 billion through the pupil premium to help the education of the most disadvantaged children in the country. We believe that that is the way to promote social mobility over time.