Small Business, Enterprise and Employment Bill Debate
Full Debate: Read Full DebateGregory Campbell
Main Page: Gregory Campbell (Democratic Unionist Party - East Londonderry)Department Debates - View all Gregory Campbell's debates with the Department for Education
(10 years ago)
Commons ChamberThe hon. Gentleman misses the point. If he was in his place earlier—I have no reason to doubt that he was not; I just did not notice when he came in—he would have heard me say that HMRC had predicted a significant increase in tax take having already factored in the increase to £10,000 in the taxable allowance. Even taking that into account, it was projecting a significant increase in tax take, yet it has been flat. HMRC had accounted for the change in the personal allowance threshold and for the fact that unemployment is falling. Taking all those things into consideration, it projected that it should be getting substantially higher tax revenues, but it is not. That tells us something about the kind of employment market that this Government want to create.
This Government have made much of increasing the personal allowance, as some of us advocated many years ago. Now we are at the point where the personal allowance level is not offering any tangible benefit to those who are on the national minimum wage and are in part-time employment, because they are at or below the level to which the personal allowance has been raised. A combination of factors is required rather than merely raising the allowance.
There is a key balance in terms of raising the allowance. The poorest paid are not affected by any increases in the personal allowance, while everyone else benefits. There is a significant decrease in tax take from every taxpayer, but the lowest paid are not included in that.