Autumn Statement

Fiona Mactaggart Excerpts

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

My hon. Friend is a powerful champion for Nuneaton, and I am glad that the enterprise zone is going to help his town. He specifically raised with me the issue of whether we could introduce an above-the-line R and D tax credit. I listened to his arguments and those of business organisations, and I am delighted that we are able to go ahead with that. We will set out the precise details of the rate and so on in the Budget.

[Fiona Mactaggart (Slough) (Lab)]

In view of the fact that the published Treasury tables suggest that the poorest fifth of the population have lost more from the Chancellor’s statement than anyone else apart from the richest fifth, will he tell the House what impact his announcements will have on child poverty?

[Mr Osborne]

The Treasury is very clear that in the precise way in which child poverty is measured against the baseline, it has gone up. We have been honest about that in the document. However, there is also an inflationary increase in the child tax credit and other benefits, so the picture is more mixed and better for tackling child poverty. I would also make the broader argument that investing in early years education and schools, and so transforming people’s life chances, will do more to lift people out of poverty. That is surely a lesson that we have learned over recent years.