Capital Gains Tax (Rates)

Debate between David Evennett and Geoffrey Clifton-Brown

Wednesday 23rd June 2010 Commons Chamber

[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.

[Geoffrey Clifton-Brown]

My hon. Friend is making an impassioned and thoughtful contribution. There was no more cruel example of what he has just said than the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) abolishing the 10p tax rate, because that put so many poor people into paying not only a low rate of tax, but quite a high rate of tax, on relatively low earnings. In contrast, my right hon. Friend the Chancellor has taken a significant number of people out of the tax net altogether with this Budget.

[Mr Evennett]

That point is absolutely spot on. The Opposition’s crocodile tears on these issues are lamentable, because they did not do anything in government. They took away the 10p rate, as my hon. Friend has said, and they pushed people on very low incomes into paying tax when that was unfair. My right hon. Friend the Chancellor made it quite clear in yesterday’s Budget that fairness was the underlying key. It was about making sure that everyone pays a fair amount. Those on high incomes will pay more and those on low incomes will pay considerably less. Families, low earners and pensioners have to be a top priority.

In opposition, I was the shadow spokesman on further education and skills, and I believe that training and skills were one of the Labour Government’s greatest failings. Our society needs a well-trained work force who can adapt and take on board challenges, such as those facing small businesses, to make sure that they can get employment and worthwhile involvement in order to make something of their lives. One of Labour’s biggest failings during the recession was not properly investing in skills so that people who lost their jobs could reskill, upskill, retrain or find new jobs.