Income Tax

Baroness Keeley Excerpts

Wednesday 5th November 2014 Commons Chamber

[Frank Dobson]

No, as I shall finish shortly.

None of these people would have any difficulty finding an extra 5p or even 10p in the pound on their income tax.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

Will my right hon. Friend give way?

[Frank Dobson]

Yes, I give way to my hon. Friend.

[Barbara Keeley]

I wanted to intervene because my right hon. Friend is talking about behavioural change among bankers, but Government Members were shaking their heads and tutting when we were referring to disabled people, and I—[Interruption.] Yes they were; they were doing so when we referred to disabled people being hit by this Government and their priorities. Does my right hon. Friend agree that one group of people who cannot change their behaviour are the 60,000 carers who are required by this Government to pay the bedroom tax? They cannot change their behaviour: they cannot work; they cannot change their hours. Some people can afford to pay 5p or 10p extra in the pound, but people who are being hit badly—disabled people and carers—cannot do so.

[Frank Dobson]

I entirely agree with my hon. Friend.

My final point is this: the bulk of people who will benefit are in the banks and the rest of the finance industry. This is a very privileged industry, because every other industry in the country has to pay a 20% transaction tax, which is known as VAT, yet the City businesses pay virtually no transaction tax. I think if we want to raise some more money we ought to be introducing a transaction tax in line with what Mrs Merkel has been suggesting.