Finance Bill

Debate between Bill Esterson and Chris Evans

Monday 1st July 2013 Commons Chamber

[Chris Evans]

I find myself in shock, but I agree with a member of the Welsh nationalist party. There is some merit in that idea, which is something we can look at.

This new clause presents an opportunity for the Conservatives to reverse the inequality that I have talked about—the two Britains that are starting to emerge in our society. If we agree with a mansion tax, we will be able to fund a tax cut for millions of people. We support the increase in personal allowances, but the reintroduction of the 10p tax would mean that work pays once again. I know that the Tories will say that we abolished it. We must be big enough in politics to admit that we got something wrong, and we got it wrong when we abolished the 10p tax rate, which would give the lowest in society an opportunity to go out to work and make work pay. This is what I mean when I talk about how difficult it is to get back to work once someone is out of it. We can do this today.

[Bill Esterson (Sefton Central) (Lab)]

My hon. Friend makes an important point about how work will pay. The other side of the coin is how the 10p tax rate would make it advantageous for employers to take people on, because it becomes far more attractive to employers to do that. Does he see that benefit for employers, too?

[Chris Evans]

Yes, I do. I think this is a win-win situation for everyone. Yes, I have said that we got the 10p tax wrong, but I think a lot of employers would welcome a 10p tax rate. As I have said here before, Opposition Members agree that work is the only way out of poverty, and a mansion tax could provide a way forward on that.

The new clause deals with a mansion tax. Labour has often been accused of having no policies and of not setting out our policies or of not being forthcoming enough, but we have said that we need to introduce a mansion tax to bring about a 10p tax cut and bring some fairness into society. Fair taxation should not be a Labour issue, a Tory issue or a Lib Dem issue; it should be across party. Fair taxation should interest us all, but without a fairer and less complex system, we cannot hope to achieve what we want, which is to see more people in work, paying their taxes and bringing down the deficit that way. With that, and after a number of interventions from you, Mr Deputy Speaker, I shall sit down.