Finance Bill

Edward Leigh Excerpts

Tuesday 2nd July 2013 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

Will my hon. Friend allow me?

[Tim Loughton]

I briefly give way to my hon. Friend, who has been a great champion of this measure for many years.

[Sir Edward Leigh]

Not just the Prime Minister in a faraway place, but the Chancellor of the Exchequer, in my own home, not 300 yards away, in front of 40 MPs, gave a solemn pledge that this was going to be brought in before the general election. This will and must happen.

[Tim Loughton]

So the mystery is why on earth it is not happening and the Prime Minister has not been able to say, “We back this amendment.” However, I trust what he has said. Those I do not trust are those who oppose the amendment, because those who oppose it as some sort of 1950s throwback are the ones who are being judgmental about how certain people choose to live their relationships. That view has been endorsed on many Labour party members’ blogs. Disgracefully, they seek, in effect, to pit working mums or dads against stay at home mums or dads, who are of course no less, and often more, hard-working.

My support for a transferable married couples tax allowance has never been based on some moral stance on types of relationship. My concern, as might be expected, is based on what is best for children. That is why I have suggested that it is limited in the first instance to families with children under the age of five. Two statistics say why. For a 15-year-old living at home with both birth parents, there is a 97% chance that those parents are married. For a five-year-old with parents at home, there is a one in 10 chance of those parents splitting up if they are married, but a one in three chance if they are not married. The cost of family breakdown is £46 billion and rising. That is what we need to attack.

Marriage accounts for 54% of births but only 20% of break-ups among families with children under five. We must recognise that in the tax system and we do not. That is what this modest amendment seeks to put in statute as a starting point to appreciate that.

--- Later in debate ---

[Chris Leslie]

I will be very brief. I want first to pay tribute to the hon. Member for East Worthing and Shoreham (Tim Loughton). I have to hand it to him: he has got the Government jumping around and on the run on this issue. However, I am afraid that the Opposition are not convinced that the millions of people who are separated, divorced, or indeed widowed, would benefit from this policy, let alone those married couples where both partners work. I am all in favour of marriage, and Mrs Leslie might at first glance like the idea of the £150 give-away, but because she works and earns above the personal allowance, it would not be of benefit in our circumstances.

[Sir Edward Leigh]

Will the hon. Gentleman give way on that point?

[Chris Leslie]

I would rather hear from the Minister.

I think that the right hon. and learned Member for Rushcliffe (Mr Clarke) was right when he called this policy social engineering. He said that when he joined the Conservative party it was opposed to it. The hon. Member for East Worthing and Shoreham seems to have got a commitment that something will be done in the autumn, and we will hear what that happens to be in a moment. In a nutshell, the Opposition’s view is that if there is to be a tax break, it should be for all families, not just a select few, and for all households on lower and middle incomes. That is where tax breaks ought to be focused. I want to hear what the Minister has to say.

--- Later in debate ---

[Jim Shannon]

Transferable allowances work by families claiming against them for the previous year. Thus this year’s Finance Bill makes provision for transferable allowances for the financial year 2014-15. People will not be able to claim against them until the financial year 2015-16. I will be seeking from the Government an assurance that that will be addressed this year so that it can happen.

[Sir Edward Leigh]

This is simply a matter of justice. There are 2 million families where one partner is working and the other is not. They are uniquely disadvantaged in the benefits system, and it is a matter of justice—let’s do it.