Oral Answers to Questions

Bob Stewart Excerpts

Tuesday 18th July 2017 Commons Chamber

[Andrew Jones]

Again, that is a question that will have to go to colleagues in another Department. I will make sure that they hear the hon. Lady’s comments.

[Bob Stewart (Beckenham) (Con)]

5. What assessment he has made of how to balance the needs of (a) business and (b) the Exchequer in setting the corporation tax rate.

[The Financial Secretary to the Treasury (Mel Stride)]

This Government believe in a tax regime that is fair and competitive. Since 2010, we have reduced the headline corporation tax rate from 28% to 19%, allowing companies, big and small, to invest in expanding their business, boost wages, create jobs and lower prices. Onshore corporation tax receipts have also increased by over 50% despite the rate being lowered.

[Bob Stewart]

Does the Minister agree that if we raise corporation tax, it is normally passed on by business to customers, and that if we lower it, we hope that prices will come down?

[Mel Stride]

My hon. Friend is entirely right. It is important to remember that the burden of corporation tax does not just fall on shareholders. If we were to follow Labour’s policy of increasing corporation tax, we would see less investment, lower growth, lower productivity and, as the Institute for Fiscal Studies has said, lower wages and indeed higher prices.

--- Later in debate ---

[Mr Philip Hammond]

The hon. Lady, I think, knows that there can be no definitive answer to that question. We do not yet know what the form of our agreement with the European Union will be and we do not yet know what arrangements will be in place for any kind of interim or transition period, so she is speculating. What I can tell her is that the Government are 100% focused on getting the best deal for Britain and delivering it in a way that protects British business and British jobs.

[Bob Stewart (Beckenham) (Con)]

T6. Several of my Beckenham constituents have suggested that the winter fuel allowance might be a taxable benefit. Is that being considered?

[Mel Stride]

We have no plans to tax the winter fuel allowance.