Oral Answers to Questions

John Howell Excerpts

Tuesday 25th June 2013 Commons Chamber

[John Howell (Henley) (Con)]

4. What assessment he has made of the effect on living costs of changes to the personal allowance.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

It was announced in Budget 2013 that the Government would increase the annual personal allowance by a further £560 to £10,000 in April 2014, thus meeting a key coalition commitment a year ahead of schedule. By that date, as a result of the combined effects of all personal allowance increases under this Government, a typical basic-rate taxpayer will have gained by more than £700 a year in cash terms.

[John Howell]

Does my hon. Friend agree that the best way of tackling this issue is to put cash into people’s pockets, and that taking 2.7 million people out of tax altogether is an excellent way in which to proceed?

[Mr Gauke]

I do agree. What we have done is quite a contrast with what was done by the last Government, who increased the amount of income tax that some low earners would have to pay by £232. Now the equivalents of those people have been taken out of income tax altogether.