Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Baroness Burt of Solihull Excerpts
Tuesday 12th October 2010

(14 years, 1 month ago)

Commons Chamber
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David Gauke Portrait Mr Gauke
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The OTS is looking at two areas. One is reliefs and exemptions, and although the timing of the publication is to be finalised and that is a matter for the OTS, there will be an interim report, I believe in November, on this area. With regard to the reform of small businesses, including IR35, the OTS intends to report in time for the Chancellor to take into account its views in preparation for the Budget.

Baroness Burt of Solihull Portrait Lorely Burt (Solihull) (LD)
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12. What steps he is taking to make the tax system fairer.

David Gauke Portrait The Exchequer Secretary to the Treasury (Mr David Gauke)
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The Government believe that the tax system should give more support to those on low to middle incomes and reward the efforts of those who choose to work. At the June Budget, we announced a £1,000 increase in the personal allowance for 2011-12, which will remove 880,000 of the lowest-income taxpayers from tax altogether. Our longer-term goal is to raise the allowance to £10,000, with real-terms steps in that direction every year.

Baroness Burt of Solihull Portrait Lorely Burt
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I am grateful for that answer. May I ask my hon. Friend what the coalition Government can do for my constituent Kath Hemmings and many like her? Kath is a single mum who has raised her daughter Victoria with no support and has at the same time worked hard and built her career. She is on the higher rate of tax by just a few pounds. Many children in Victoria’s class have two parents who earn under the top rate and have kept their benefit. What can we do to make things fairer for Kath, Victoria and many like them?

David Gauke Portrait Mr Gauke
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I understand the concern that my hon. Friend raises. The situation that we face is that there will be difficult decisions to get the deficit down—a point that Government Members appreciate. The difficulty is that looking at the issue on a household basis would mean creating a complex and large bureaucracy. We have come up with a proposal that will ensure that the poorest households are protected and will continue to receive child benefit.