Tax Cuts: Fiscal Impact

Baroness Altmann Excerpts

Wednesday 13th July 2022 Lords Chamber

[Baroness Altmann (Con)]

My Lords, does my noble friend agree that there would be widespread opportunity for cutting taxes for millions of people across the country if the tax base was widened, such as by taxing large online companies or being rather less generous on offshore taxation? There is also the potential for reform of council tax and business rates, which could bring in more revenue.

[Baroness Penn (Con)]

My Lords, the Government have taken a number of initiatives in the areas that my noble friend refers to, including the reform of business rates and looking at an online sales tax. She is right that, as our economy changes, we must always look at how our tax system can keep up with it. On tax cuts, the most recent tax change brought in by this Government happened this month, the largest ever increase in a personal tax starting threshold, which took an additional 2.2 million people out of paying class 1 and class 4 national insurance contributions.