Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

James Morris Excerpts
Tuesday 12th March 2013

(11 years, 9 months ago)

Commons Chamber
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David Gauke Portrait Mr Gauke
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There was an issue regarding end-of-year reconciliation, which is an errant part of the pay-as-you-earn system. When we came into office, 17 million cases needed to be dealt with. I think that backlog is about to be cleared—we have made great progress. We are reforming the PAYE system so that tax will be collected at the right rate at the right time, and much more accurately than in the past.

James Morris Portrait James Morris (Halesowen and Rowley Regis) (Con)
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Does the Chancellor agree that increasing the personal allowance again will mean that a basic rate taxpayer in my constituency will pay £600 less in tax as a result of the measures taken by the Government?

George Osborne Portrait Mr George Osborne
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That is already planned and was announced last year. In April, people will be £600 a year —£50 a month—better off. We have also taken 2 million people out of tax altogether, which is a sign of our commitment to those on low incomes and a sign of our commitment to all those who work hard and want to get on.