Chloe Smith
Main Page: Chloe Smith (Conservative - Norwich North)Department Debates - View all Chloe Smith's debates with the HM Treasury
(12 years, 7 months ago)
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David Mowat (Warrington South) (Con)
9. What assessment he has made of the effect of energy costs on the Government’s growth strategy.
The Economic Secretary to the Treasury (Miss Chloe Smith)
Energy costs have an impact on the economy. The plan for growth in the autumn statement and the national infrastructure plan announced a programme of more than 250 economic reforms and investment in infrastructure, with action in the energy sector, including electricity market reform. The Government are focused on ensuring that the UK can deliver the investment it needs to provide a secure, affordable and decarbonised energy sector.
David Mowat
The Minister will be aware that gas is an important feedstock in many industrial processes. As of this morning, the price of gas in the US was four times less than it was in the UK and Europe, which is driving GDP and reducing fuel poverty. Is she willing to speak with her colleagues in the Department of Energy and Climate Change to ensure that we can emulate the US by driving GDP and also reduce carbon emissions?
Miss Smith
Gas prices in Europe and Asia are higher than those in the US, which commentators have attributed mainly to the impact of the large-scale development of shale gas in the US. The Government are examining the potential barriers to investment in gas-fired electricity generation in the UK and the role gas can play in delivering a secure and affordable low-carbon electricity supply. That would include examining the potential role of shale gas in the UK. The Government, including the Treasury, DECC and other Departments, are working together and will shortly issue a call for evidence to inform our strategy for gas generation, which we will publish in the autumn.
Albert Owen (Ynys Môn) (Lab)
Energy prices and uncertainty surrounding the support for low-carbon energy, alongside uncertainty about electricity market reform, are causing some companies to reassess their business plans in this country. Can the Minister assure us that the Chancellor and the Treasury will support market reform in the next Session of this Parliament and ensure that the subsidies are in place to get the jobs and prosperity that the country needs?
Miss Smith
The Treasury supports electricity market reform, as I think the hon. Gentleman knows. He will also know that we have also laid out our support for energy-intensive industries. I have no doubt that he will be able to direct questions about programming to the Leader of the House.
Andrew George (St Ives) (LD)
10. What steps he plans to take to ensure taxes owed are duly collected.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
13. How many families in (a) the UK and (b) Liverpool, Riverside constituency receiving child tax credits will be economically disadvantaged by the changes introduced in the Budget.
The Economic Secretary to the Treasury (Miss Chloe Smith)
Data limitations mean that we cannot assess impacts at a constituency level, but, taking into account the Budget’s unprecedented £1,100 increase in the personal tax allowance and the other measures that the Treasury can robustly model by household, I note that more than half of households entitled to child tax credits are better off and will gain on average £175 per year in 2013-14. There are less than half as many losers as winners, and their average loss is more than four times smaller, at £40 per year.
Mrs Ellman
I thank the Minister for her answer, but more than 825 households in Liverpool, Riverside will lose all their child tax credit or working tax credit. How can it be fair to penalise hard-pressed families when millionaires are gaining £40,000 from the very same Budget?
Miss Smith
The top 20% of earners in this country continue to make the biggest contribution to reducing the deficit, as has to be the case. The hon. Lady knows as well as anybody in the House that under the previous Government, spending on tax credits was out of control, with nine out of 10 families being eligible. Six out of 10 families will still be eligible for tax credits after our reforms.
Mr Jim Cunningham (Coventry South) (Lab)
14. By what means his Department determined which core cities would participate in the tax incremental finance scheme; and if he will make a statement.
Katy Clark (North Ayrshire and Arran) (Lab)
15. What assessment he has made of the effect of changes to working tax credit on couples in households where one person is retired.
The Economic Secretary to the Treasury (Miss Chloe Smith)
Working tax credit is a payment for working households that was introduced by the previous Government to improve work incentives. Retirement is not recognised in the tax credit system. However, there are separate eligibility rules for those over 60, and a level of income for those in retirement is guaranteed by pension credit.
Katy Clark
My constituent, Mrs Orr, is losing £290 a month as a result of the tax credit changes. She lives with her husband, who is retired, and her 13-year-old daughter. She works for 20 hours a week at Crosshouse hospital and has tried to increase her contractual hours, but has been unable to do so. She works any overtime that is available. How do you suggest that she makes ends meet?
Miss Smith
I thank the hon. Lady for raising that example in which the couple’s ages are more distant from each other than is the norm. She makes an interesting point. However, as I said in my initial answer, there are arrangements for those over 60 and for those in retirement in the tax credit system, the pensions system and other benefit systems. As I have said in previous Question Times, the economy is moving, there are work vacancies out there and we believe that the changes to working tax credit are fair. For example, they place couples on a par with lone parents.
Andrew Bingham (High Peak) (Con)
16. What steps he is taking to increase the availability of credit to small businesses.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
International connectivity is crucial to business in the north-east, and Newcastle international airport provides a vital link. Will the Government therefore support calls from regional airports for a congestion charge to be applied to air passenger duty to ensure the future viability not only of jobs and tourist income, but of international trade routes?
The Economic Secretary to the Treasury (Miss Chloe Smith)
As briefly discussed during last week’s debate on the Finance Bill, the Government are undertaking various pieces of work on aviation strategy and, more recently, received representations on regional congestion charges and other things during the APD consultation. I can confirm to the hon. Lady that, although I have not spoken to her personally about the matter, I am happy to meet her, her colleagues and representatives of those airports to hear more evidence of what they believe might occur if we set different tax rates.
Stephen Williams (Bristol West) (LD)
I am sure we have all received letters from constituents over the years saying that they did not want their taxes spent on one thing and preferred them to be spent on something else. It is right in principle, therefore, that the Government cap the ability of the super-rich to allocate taxes to charities of their choice. Will my right hon. Friend the Chancellor acknowledge, however, that universities and medical research charities have always depended on philanthropic support? In reviewing the cap on tax relief, will he ensure that those institutions’ interests are safeguarded?