Capital Gains Tax (Rates)

Debate between David Evennett and Angela Smith

Wednesday 23rd June 2010 Commons Chamber

[Mr Evennett]

Exactly. My hon. Friend makes a good point. It is history repeating, is it not? I am sure that pensioners in my constituency and across the country will be pleased by the triple lock, whereby the basic state pension will rise by whichever is the higher out of earnings, prices measured by consumer price inflation or 2.5%. That is good news. One would not believe on listening to the Opposition that there was any good news at all in the Budget, but there is. We will never have pensioners getting a meagre increase of 75p on the basic pension, as happened one year under Labour. That was an insult and the pensioners knew it. We will not allow that to be repeated.

[Angela Smith]

I will be one of the first to admit that the 75p increase was a mistake. Will the hon. Gentleman acknowledge that, under the Budget, the means of raising the money to bring in the link to earnings a year early might be raising the age at which women can claim the state pension?

[Mr Evennett]

It is nice to hear the hon. Lady admit that the Labour Government did something wrong. I do not think we have had one word like that today, and I have sat through the whole debate. One would think that Labour Members thought that everything they did was wonderful, but in their heart of hearts they know the truth: there were mistakes. We are endeavouring to rectify those mistakes to make sure that those who are vulnerable, such as the elderly, have the dignity in old age that they deserve, and we passionately support and believe in that.

Fairness is key in the tax changes. Far too many people on low incomes pay too much tax. When I was in this place under the Governments of Margaret Thatcher and John Major, people on low incomes paid low tax, but in the past 13 years, because of the policies of the last Prime Minister, including when he was the Chancellor of the Exchequer, Labour managed to push more people into tax than ever before—people on low incomes who should never have been paying the level of tax they were. Five or six weeks into office, this Government are already taking action in the Budget to deal with the awful situation of people on low incomes having to pay tax.