Oral Answers to Questions

Debbie Abrahams Excerpts

Wednesday 15th July 2015 Commons Chamber

The Secretary of State was asked—

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

1. What discussions he has had with the Chancellor of the Exchequer on the effect on claimants in Scotland of changes in entitlement to working tax credits and child tax credits.

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

The Chancellor has regular discussions with Treasury colleagues, as well as with the rest of the Cabinet, on a wide range of topics. The changes to tax credits are at the centre of the Government’s intention to move to a higher wage, lower tax and lower welfare society.

[Debbie Abrahams]

The independent Institute for Fiscal Studies has shown that the poorest 20% of the population will lose proportionately more than any other income group as a result of the benefit and tax changes. Given that International Monetary Fund analysis has shown that an increase in income to the poorest 20% stimulates growth, what is the Minister’s assessment not just of the increase in poverty in Scotland but of the stifling of growth?

[Mr Gauke]

The point I would make to the hon. Lady is that if we want to have a strong economy, we have to move to a higher wage, lower tax and lower benefits system. That is what the Government have been elected to do; that is what we are delivering.