Oral Answers to Questions

Lord Hanson of Flint Excerpts

Tuesday 19th April 2016 Commons Chamber

[Mr Speaker]

We have to move on—far too slow.

[Mr David Hanson (Delyn) (Lab)]

6. What assessment he has made of which groups within the UK population will benefit from planned changes to corporation tax.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

13. What assessment he has made of which groups within the UK population will benefit from planned changes to corporation tax.

[The Financial Secretary to the Treasury (Mr David Gauke)]

Corporation tax cuts have been a central part of the Government’s economic strategy, and that strategy is working; there are 2.3 million more people in employment since 2010. The further cuts in the main rate announced at the Budget, which will bring it down to 17% by 2020, will benefit over 1 million companies, large and small. Lower corporation tax rates will support UK companies to invest and grow, creating jobs as they do so.

[Mr Hanson]

One of the justifications for the corporation tax cut was that businesses would pass it on to workers through the increase in the living wage. Evidence is now emerging that some companies intend to pocket the tax cut and squeeze conditions for their employees, so what steps do the Government intend to take to monitor that?

[Mr Gauke]

The cuts in corporation tax will result in greater investment in this country, and greater investment drives productivity growth, and productivity growth is what will drive higher living standards. Let us remember that it is this Government who have brought in the national living wage, and we have seen very large numbers of people see increases in their wages and salaries.