Oral Answers to Questions

Debate between Helen Goodman and Danny Alexander

Tuesday 27th January 2015 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

14. What recent estimate he has made of the effect on household budgets of tax and benefit decisions taken in the present Parliament.

[The Chief Secretary to the Treasury (Danny Alexander)]

Since 2010, I have published regular distributional analysis of the impact on households of our reforms to tax, welfare and public spending. It is the most comprehensive analysis available. The most recent analysis we published, alongside the autumn statement last month, shows that the wealthiest continue to make the biggest contribution towards reducing the deficit. By 2015-16, the net contribution of the richest 20% will be larger than the remaining 80% put together.

[Helen Goodman]

Today, the second independent report in as many weeks shows that proportionately the Government have hit the poorest and those with small children the hardest. Today, half a million more children are living in absolute poverty than when the right hon. Gentleman walked into the Treasury. Will he tell us why, instead of tackling that, he supported tax cuts for millionaires?

[Danny Alexander]

Those analyses ignore some of the most important and most progressive policies put in place by the Government. They ignore the pupil premium, which is investing money in the life chances of young people. They ignore the extra early years education provided to three and four-year-olds, and to the most disadvantaged two-year-olds. They are not included in those analyses, but they are helping to ensure that young people have better life chances under this Government.

Investing in Britain’s Future

Debate between Helen Goodman and Danny Alexander

Thursday 27th June 2013 Commons Chamber

[Danny Alexander]

I agree with both my hon. Friend’s points. We need to invest in the road networks to support growth and the economy and this is the biggest plan for road investment since the 1970s. Affordable house building by housing associations accounts for 40% of all new housing starts this year. It is very important we maintain that record and build on it in the years to come.

[Helen Goodman (Bishop Auckland) (Lab)]

Yesterday we learned that of the £530 million the broadband delivery unit had been allocated, only £3 million had reached local authorities. Today, the Chief Secretary said that beyond 2015 he was allocating £250 million to broadband roll-out, but previously we were told that the BBC licence fee would be top-sliced to the tune of £300 million. What has the Chief Secretary done with that £50 million? Has he cut it or has he lost it?

[Danny Alexander]

In due course we will be investing it.

Amendment of the Law

Debate between Helen Goodman and Danny Alexander

Monday 26th March 2012 Commons Chamber

[Danny Alexander]

I certainly share the hon. Lady’s joy that the new A11 is being built by this Government. It has been campaigned for by Members from Norfolk for many decades and never agreed to before. I just wish that I could say the same for my constituents regarding the long-awaited investment in the A9 that the Scottish Government still are not delivering.

On omissions, we heard a lot of carping from the Labour party about individual measures but there were almost no references to the single biggest measure in the Budget. Opposition Members should follow the money in this Budget. More than three quarters of the money raised in this Budget is being spent on one policy measure alone—the biggest tax cut for people on low and middle incomes in this country for a generation. We have set the goal of raising the personal tax-free allowance to £10,000—from the Liberal Democrat election manifesto to the coalition agreement to the pockets of the British people in this Budget. Next month, the income tax personal allowance will rise to £8,105. That gives real help to the working people of this country this year. Taken with the previous increase that has come through this year already, it will lift more than 1 million low-income people out of tax altogether, but we are going further and faster.

[Helen Goodman (Bishop Auckland) (Lab)]

It is clear that the Government are going further on personal income tax cuts, but it is equally clear that they have not got a strategy for growth. How many jobs will be produced by the cut in the 50p rate?

[Danny Alexander]

First, I am very grateful to the hon. Lady for at least agreeing that we are going considerably further on the personal income tax allowance. That was sadly lacking from most of the contributions from the Opposition. They will also know that the OBR’s forecast that was published alongside the Budget revised downwards the forecast for the claimant count this year, next year and in every year over this Parliament.

As I was about to say, in this Budget we have announced the largest ever increase in the amount that people can earn tax-free—an increase next April of £1,100 to £9,205. That is a tax cut of £3.5 billion for working families and is the biggest ever increase in the personal allowance. It is the biggest income tax cut for people on low and middle incomes for a generation—a tax cut for more than 23 million people. It means £220 for every basic rate taxpayer, or £170 in real terms. The tax bill of someone who works full time on the minimum wage will already have been halved by this Government.

Public Service Pensions

Debate between Helen Goodman and Danny Alexander

Wednesday 2nd November 2011 Commons Chamber

[Danny Alexander]

The hon. Gentleman is absolutely right: I can confirm that that would be the case. In some cases the figure would be more, depending on how the scheme-by-scheme talks that will go forward resolve the issue. In order to acquire a pension of the sort that we are rightly talking about for public sector workers, people in the private sector would need to acquire a pension pot of £500,000 or more, which would require a substantial salary contribution, of the order of a third.

[Helen Goodman (Bishop Auckland) (Lab)]

The Chief Secretary made much of preserving accrued rights. However, to return to the CPI and RPI, what will the average loss be to public sector workers of making the switch permanent?

[Danny Alexander]

I think the hon. Lady may have been trying to welcome the protection of accrued rights, in which case I am grateful for her comments. She is right that the switch from RPI is a change to public service pensions that will reduce the benefits over the long term, although that will depend on the scheme and the individual involved. However, it is the right thing to do, because we are talking about the measure of inflation used by the Bank of England to set rates. The answer to the hon. Lady’s question will depend on the individual scheme and the individual person.

Comprehensive Spending Review

Debate between Helen Goodman and Danny Alexander

Thursday 28th October 2010 Commons Chamber

[Danny Alexander]

I agree wholeheartedly with my hon. Friend. If we had not tackled the deficit, the poor in this country would have suffered most.

[Helen Goodman (Bishop Auckland) (Lab)]

Will the Chief Secretary give way?

[Danny Alexander]

I will give way to the hon. Lady, and then I will press on.

[Helen Goodman]

I am grateful. The Chief Secretary has pointed to the forecasts made by the OBR. He will know that between 1994 and 2008, the private sector created 100,000 jobs a year. In that period, growth was 2.8%. The OBR projects growth of 2.4%. How, then, is it possible that 1 million jobs can be created in the forthcoming period?

[Danny Alexander]

In fact the OBR forecast more private sector jobs than the hon. Lady suggests. She will know that in the past two quarters several hundred thousand jobs have been created in the private sector. I will explain later in my speech the measures that we are taking to support the private sector.

Finance Bill

Debate between Helen Goodman and Danny Alexander

Tuesday 6th July 2010 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

rose—

[Danny Alexander]

I will not give way.

Clause 7 amends the tax rules for the expenses incurred by Members of Parliament, following the creation of the Independent Parliamentary Standards Authority. I know that that is of interest to many Members. The clause will broadly have the effect of maintaining the tax system and treatment that applied to similar expenses paid under the previous regime.

Public Spending

Debate between Helen Goodman and Danny Alexander

Thursday 17th June 2010 Commons Chamber

[Danny Alexander]

I have looked very carefully at this and all the projects that we are cancelling or suspending. I believe that the decision that we have made is the right one on value-for-money and affordability grounds. I have discussed it with my right hon. Friend the Secretary of State for Business, Innovation and Skills. In the context of the pressures on budgets and the affordability and value-for-money criteria that we have applied, I am afraid I am not able to go back and reconsider. Officials from the Department for Business, Innovation and Skills will work with the company to try to ensure that it gets access to a private sector solution. As to the nuclear industry, the hon. Gentleman will know that the coalition agreement commits us to no public subsidy for nuclear power.

[Helen Goodman (Bishop Auckland) (Lab)]

This afternoon, the Chief Secretary has taken a further £1 billion out of the Department for Work and Pensions and the fact that one of the cuts is to the young person’s guarantee demonstrates how empty is the Government’s rhetoric about being concerned about the vulnerable. Moreover, both the Tories and the Liberals voted with the Government for the legislation in March that provided for the two-year jobseeker’s guarantee. How can the Chief Secretary defend saying one thing in March and another thing today?

[Danny Alexander]

Well, there is no money left. The more important point is that we are cancelling programmes that we believe are ineffective and replacing them with the Work programme, which will start during next year and will be more effective at helping people who need help to get back into work quickly. That is an objective that we share; I believe our programme will be more effective in doing that. The hon. Lady will know that in the £6.2 billion announcement that we made a few weeks ago, one of the areas to which money was recycled was additional funding for 50,000 more apprenticeships. That is valuable additional support to help young people find jobs now.