Tax Credits

Debate between Edward Leigh and Damian Hinds

Tuesday 20th October 2015 Commons Chamber

[Damian Hinds]

As a matter of fact, living standards have this year reached beyond their pre-crisis point, or indeed any prior year.

We can make lasting economic reforms only because we have taken the tough decisions to get this country back on its feet after the financial crisis that crashed into Labour’s structural deficit, which was among the highest in the developed world. Some choose to indulge in a game of “What if we had unlimited money?” We face facts. In 2010, the Government inherited a deficit of £153 billion. That is almost £6,000 for every household in the country. Our budget deficit was 10.2% of GDP. For every £4 the Government were spending, £1 was borrowed. That could not be allowed to go on, because when Governments lose control of the national finances, those who lose the most are generally those who have the least.

[Sir Edward Leigh (Gainsborough) (Con)]

The Minister is making some excellent points and I fully support his desire to reduce the deficit and reform tax credit. This is a listening Government, so I just wonder whether, in the coming weeks as we consider the impact of the reform and in terms of compassion, it might be worth looking at tweaking the child tax credit—or the marriage allowance, which is very low—to try to soften the blow. I do not expect the Minister to answer now, but that is surely worth considering.

[Damian Hinds]

As I will come on to outline, the Government are doing a number of things that have some offset against what is happening on tax credits.

Finance Bill

Debate between Edward Leigh and Damian Hinds

Tuesday 21st July 2015 Commons Chamber

[Damian Hinds]

What “he” says is that eight out of 10 families will be better off as a result of the blend—the complete set—of measures in the summer Budget.

[Sir Edward Leigh]

With regard to the point about removing tax credits to families with more than two children, I want to establish a principle which I think is quite important. Perhaps I should declare an interest: I have six children. I apologise for that. I just want to establish that the Government are not following the sort of liberal line that there is an ideal family—that a family of two children is more worthy than one of one or three or four or five. The Government are not approaching the subject from that viewpoint, are they? We can at least establish that principle, can we not?

[Damian Hinds]

I can confirm that absolutely. We have not managed six in my household but we do have three, and I, like my hon. Friend, do not think there is an ideal number of children to have in a family. I do not think it is for Government to say what that should be. But what we do say is that in making decisions about starting a family and about growing their family, people in different circumstances, whether they are supporting themselves entirely through employment or with the help of benefits, should have to make the same sorts of decisions.