Oral Answers to Questions

Debate between Jesse Norman and Janet Daby

Tuesday 1st October 2019 Commons Chamber

[Janet Daby (Lewisham East) (Lab)]

16. What assessment his Department has made of the effect of increases in income tax thresholds on income distribution in the last 10 years.

[The Financial Secretary to the Treasury (Jesse Norman)]

That was a cruel blow for my right hon. Friend, Mr Speaker, if I may say so.

In answer to the hon. Lady’s question, the House will I am sure rejoice that between 2010 and 2019 the personal allowance has been increased by more than 90%, so that those on the lowest incomes do not pay any income tax, and since 2015-16 alone 1.74 million people have been taken out of income tax altogether. We will publish a full distributional analysis of the recent spending round alongside the next Budget, and it will also capture the effect of any budgetary announcements made at that time.

[Janet Daby]

Can the Minister explain how it is fair that a small handful at the very top have run into the distance, making up the top 10% of the population and owning 44% of the nation’s wealth?

[Jesse Norman]

The hon. Lady may not be aware that at the moment the top 1% of the country pay 29% of all tax. That is up from the 25% in 2010-11.