Economic Update

Esther McVey Excerpts

Thursday 3rd February 2022 Commons Chamber

[Rishi Sunak]

It is worth pointing out that the energy companies that the right hon. Gentleman talks about are already subject to a far higher rate of corporation tax. In fact, at 40% versus 19%, it is double the rate of corporation tax that other companies pay. I will not repeat my earlier arguments about the windfall tax.

We believe that the right way is to make sure that people can keep more of what they earn, which is why we cut the universal credit taper rate by 8 percentage points. That is a £2.2 billion tax cut that will benefit 2 million of the lowest paid people in our society. It is making working pay, it is strengthening incentives to work, it is the right policy and it is a Conservative policy.

[Esther McVey (Tatton) (Con)]

Many families across the country will struggle with their energy bills this year, so I am grateful that we have a Chancellor who is in touch with that. Will he commit to continuing to ensure that those in middle Britain, as well as those on the very lowest incomes, are supported by this Government?

[Rishi Sunak]

My right hon. Friend is absolutely right and I can give her that reassurance. I hope that today’s announcements will provide her with the confidence she needs that both I and this Government are committed to being on the side of those hard-working families, whom she does an enormous amount to represent and champion in this House.