Oral Answers to Questions
Debate between David Gauke and Tom Clarke(11 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)
4. What recent estimate he has made of the effect on pensioners of plans to end age-related tax allowances.
The Exchequer Secretary to the Treasury (Mr David Gauke)
The impacts of the reforms to age-related allowances were set out alongside Budget 2012. Half of those over the age of 65 pay no income tax, and nobody will pay more tax in 2013-14 than in 2012-13 as a result of these changes. The Government remain committed to supporting pensioners and have introduced the triple guarantee for the basic state pension, ensuring that it will increase each and every year by the highest of earnings, prices or 2.5%.
Mr Gauke
The right hon. Gentleman will be aware that the policy announcements in the last Budget resulted in millionaires paying more in tax, not less. As far as this Government’s record on pensioners is concerned, let us not forget that the state pension is going up by £120 more compared with the Opposition party’s plans.
Oral Answers to Questions
Debate between David Gauke and Tom Clarke(13 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Gauke
Yes, and had the hon. Gentleman been in the Chamber at about quarter past 10 last night, he would have heard me doing so at some length. The fact is that for every 1% by which the gap between income tax and capital gains tax is reduced, we get an extra £60 million from income tax. However, there is also a countervailing pressure, which is that fewer transactions are entered into. The analysis based on studies done in America and elsewhere shows that 28% is about the level at which we maximise revenue.
Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)
9. What assessment he has made of the effect on low-income families of the implementation of the proposals in the June 2010 Budget.