UK Economy

Baroness Falkner of Margravine Excerpts

Wednesday 21st February 2024 Lords Chamber

[Baroness Falkner of Margravine (CB)]

My Lords, the Minister referred to global headwinds. Would she accept that an economy such as the United States has experienced exactly the same headwinds? Instead of opening our newspapers and reading that the Chancellor intends to give enormous universal tax cuts on 6 March, would it not be more sensible for the Government to acknowledge that the people who are hurting the most from the cost of living crisis are the people at the bottom lower income deciles? Those are the people who should be targeted for assistance if there is any money going.

[Baroness Vere of Norbiton (Con)]

Obviously, I cannot comment on any potential tax cuts. I am sure the noble Baroness will agree that the US has a very different economic structure from the UK and tends to offer slightly less support to those at the bottom end of the ladder. She mentioned those who are the most vulnerable. Personal allowances have gone up by 30% in real terms than in 2010. That means that 30% of people now pay no tax. We are focusing our interventions on people at the lower end of the income scale, but we are also focusing them on growing business.