Oral Answers to Questions

Debate between Julia Lopez and James Murray

Tuesday 4th March 2025 Commons Chamber

[Julia Lopez (Hornchurch and Upminster) (Con)]

12. What assessment she has made of the impact of the level of taxation on working people.

[The Exchequer Secretary to the Treasury (James Murray)]

The Government are committed to keeping taxes on working people as low as possible, which is why we are not increasing the basic, higher or additional rates of income tax, employee national insurance contributions or VAT. The Government have published tax information and impact notes for tax policy changes made at the Budget, which give a clear explanation of the policy objective together with details of the tax impact on individuals. The OBR publishes an economic and fiscal outlook alongside the Budget, which sets out its assessment of the effects of Government decisions taken on tax.

[Julia Lopez]

Borrowing costs are soaring, the economy is weakening and we need to spend much more on defence. In those circumstances, can people be absolutely confident that to meet her fiscal rules, the Chancellor will not be raising income tax in the course of this Parliament?

[James Murray]

The OBR’s spring forecast will take place on 26 March and be accompanied by a statement to Parliament from the Chancellor. Ahead of the statement, the Government will not give a running commentary responding to forecasts and economic developments, but I reassure the hon. Member that the Chancellor’s commitment —indeed, the whole Government’s commitment—to our fiscal rules is non-negotiable.