Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Greg Mulholland Excerpts
Tuesday 28th January 2014

(10 years, 9 months ago)

Commons Chamber
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David Gauke Portrait Mr Gauke
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My hon. Friend makes a perfectly fair point. It is right that the Government take steps, through the public health responsibility deal, to encourage companies to reduce calories in their products, and that we encourage participation in sport. That is more effective and targeted than a tax increase.

Greg Mulholland Portrait Greg Mulholland (Leeds North West) (LD)
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8. What steps he has taken to reduce the cost of living for those on low incomes.

Danny Alexander Portrait The Chief Secretary to the Treasury (Danny Alexander)
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In addition to lifting the income tax personal allowance, which I mentioned earlier, the Government are supporting working households’ income through other measures such as freezing fuel duty, supporting a council tax freeze and, most importantly, sticking to an economic plan that is getting hundreds of thousands more of our fellow citizens back into work.

Greg Mulholland Portrait Greg Mulholland
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I thank my right hon. Friend for that answer. The best way to help people and families on lower incomes is to take them out of tax. What is the effect of the increase in the tax threshold compared with the last Government’s disgraceful decision to abolish the 10p tax rate?

Danny Alexander Portrait Danny Alexander
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That is a very good question. The tax threshold increases that we have presided over will have taken 2.7 million people out of tax. The personal allowance is a zero rate, whereas a 10p rate would halve the rate of income tax, so raising the personal allowance is literally twice as good.