Finance (No. 4) Bill

Baroness Primarolo Excerpts

Thursday 19th April 2012 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I beg to move amendment 65, page 2, line 37, leave out subsection (2).

[The Second Deputy Chairman of Ways and Means (Dawn Primarolo)]

With this it will be convenient to discuss the following:

Amendment 66, page 3, line 5, leave out

‘was born after 5 April 1938 but before 6 April 1948’

and insert

‘is 65 or over at some time in the tax year, but under 75 throughout the tax year.’.

Amendment 67, page 3, line 17, leave out

‘had been born after 5 April 1948’

and insert

‘is under the age of 65 throughout the tax year’.

Amendment 68, page 3, line 19, leave out paragraph (d).

Amendment 69, page 3, line 26, leave out

‘was born before 6 April 1938’

and insert

‘is 75 or over at some time in the tax year.’.

Amendment 70, page 3, line 38, leave out

‘had been born after 5 April 1948’

and insert

‘is under the age of 65 throughout the tax year.’.

Amendment 71, page 3, line 40, leave out paragraph (d).

Amendment 72, page 3, line 42, leave out subsection (5).

Amendment 73, page 3, line 45, leave out sub-paragraph (i).

Amendment 74, page 4, line 2, leave out subsection (7).

Clause stand part.

[Rachel Reeves]

It is a privilege to serve under your chairmanship, Ms Primarolo.

I rise to speak to the amendments and to oppose clause 4, which will freeze age-related allowances for those who are receiving them and abolish them for those who are approaching retirement. I hope that Members from all parts of the Committee will join us in our opposition this afternoon. Defeating the clause would prevent a real-terms increase in tax for millions of older people in this country, which will cost £83 a year for 4.4 million people on modest incomes and as a much as £322 for 360,000 people who will reach the age of 65 next year.

We are seeking to reverse the Government’s freezing and abolition of age-related allowance for three simple reasons: first, that tax increase adds to the financial pressure already felt by older people on modest incomes facing rising costs; secondly, it picks the pockets of pensioners to fund an irresponsible tax cut for millionaires; and thirdly, the way in which it has been introduced adds insult to injury, breaking a promise made by the Chancellor just a year ago and using the language of tax simplification to cover up what is clearly and simply a tax grab.