Finance (No. 2) Bill

Baroness Laing of Elderslie Excerpts

Committee of the whole House
Wednesday 8th May 2024 Commons Chamber

Question proposed, That the clause stand part of the Bill.

[The Chairman of Ways and Means (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

Clauses 2 to 4 stand part.

New clause 1—Review of impact of section 2—

“(1) The Chancellor of the Exchequer must, within three months of this Act being passed, publish a review of the expected impact of section 2 of this Act.

(2) The review must include analysis setting out the number of individual taxpayers facing a marginal tax rate in the tax year 2024-25 of—

(a) the basic rate of 20%, and

(b) the higher rate of 40%.

(3) For comparative purposes, the review must take account of—

(a) equivalent actual figures to those in subsection (2)(a) and (b) for the tax years 2021-22, 2022-23 and 2023-24, and

(b) equivalent projected figures to those in subsection (2)(a) and (b) for the tax years 2025-26, 2026-27 and 2027-28.”

This new clause requires a review of how many people will be liable to pay income tax at 20% and 40%, and would compare figures for the current tax year with those for the three preceding and three subsequent tax years.

New clause 4—Review of impact of section 1 on pensioners—

“(1) The Chancellor of the Exchequer must, within three months of this Act being passed, publish a review of the expected impact of section 1 of this Act on those over State Pension age.

(2) The review must include analysis setting out, for the tax year 2024-25—

(a) the total number of people over the State Pension age paying tax under section 1, and

(b) the average tax liability per person of those in subsection (2)(a).

(3) For comparative purposes, the review must take account of equivalent projected figures to those in subsections (2)(a) and (2)(b) for the tax years 2025-26, 2026-27 and 2027-28.”

This new clause requires a review of how many pensioners will be liable to pay income tax this year and in each of the next three years, and what the average pensioner’s tax bill will be in each of those years.

New clause 5—Impact of income tax and corporation tax provisions on Wales, Scotland and Northern Ireland—

“The Chancellor of the Exchequer must, within three months of this Act being passed, publish an analysis of the impact of the measures in sections 1 to 4, 12 and 13 of this Act on—

(a) Wales,

(b) Scotland, and

(c) Northern Ireland.”

This new clause requires an analysis of the income tax and corporation tax measures in the Bill on Wales, Scotland and Northern Ireland.

New clause 6—Report on impact of section 2—

“Within three months of this Act being passed, the Chancellor of the Exchequer must lay before the House of Commons a report setting out—

(a) the number of taxpayers that will pay income tax at each rate during the tax year 2024-2025 under section 2;

(b) the number of those taxpayers that are pensioners or are of State Pension Age;

(c) comparative figures for each tax year since 2021; and

(d) comparative projected figures for each tax year to 2030.”

--- Later in debate ---

I do not think we need the two new clauses kindly proposed by Labour, which probably already has quite a lot of the knowledge that the new clauses seek, as the hon. Member for Ealing North (James Murray) implied. If we do not increase the thresholds, of course more people will end up paying tax. I do not want too many more people paying the higher rate of tax, but to get an upward shift in the thresholds in due course, we will need to go over the issues to see where we could free up some cash. The Government should look at the losses, the employment situation and productivity to find their crock of gold, and then we can all be happier.

[The Chairman of Ways and Means (Dame Eleanor Laing)]

I call the SNP spokesman.