Oral Answers to Questions

Julian Knight Excerpts

Wednesday 3rd February 2016 Commons Chamber

[The Prime Minister]

I will look carefully at what the hon. Gentleman says. We must ensure that we look at all of these things in a fair and reasonable way, and perhaps I will write to him about the issue.

[Julian Knight (Solihull) (Con)]

Q11. A total of £38 billion a year is currently spent on pensions tax relief, with three quarters of that going to higher-rate taxpayers who need it the least. Does the Prime Minister agree that it will be a huge boost to social justice in this country if pensions tax relief was reformed to a single flat rate, which will benefit millions of hard-working Britons?

[The Prime Minister]

I know that my hon. Friend speaks on this issue with considerable expertise because of the career that he had before coming to this House, and that he brings a lot of knowledge about this sector. He is right that there are great costs related to pension tax relief, which is why the Chancellor published a consultation last summer to see whether the system should be reformed. As the saying goes, taxes are a matter for the Chancellor and his Budget.