Justine Greening
Main Page: Justine Greening (Independent - Putney)Department Debates - View all Justine Greening's debates with the HM Treasury
(13 years, 11 months ago)
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John Robertson (Glasgow North West) (Lab)
2. If he will assess the merits of increasing the level of financial assistance to pensioners through the tax system.
The Economic Secretary to the Treasury (Justine Greening)
This Government are committed to supporting pensioners to ensure that they can live with the respect and dignity they deserve. We have already said that we will restore the earnings link, protect key pensioner benefits and ensure that the retirement age can rise if pensioners want to continue working in order to support themselves. We think that, despite the fiscal deficit left to us by the former Government, that is the fairest way to proceed.
John Robertson
I thank the hon. Lady, and welcome her to her position—but I am somewhat disappointed in her answer, because she has not identified exactly how she will support our elderly people at a time when cuts will be made all over the country and will affect everyone, including pensioners. What priority will she give to pensioners? What kind of increased payments will be made to cover some of the cuts, which will hit pensioners harder than anyone else?
Justine Greening
The hon. Gentleman seems to have missed the fact that this Government are having to tidy up a huge financial mess left to us by the previous one. We have made it clear that, despite that mess, we want, first, to protect key pensioner benefits—the benefits that Labour Members claimed we would take away—such as free bus passes, free prescriptions, free eye tests and the winter fuel allowance. That is a range of benefits that the Labour party said we would remove, but we are going to keep them. I can assure him on that, so he can go back to the pensioners in his constituency and explain why he was telling them mistruths during the last election.
Neil Carmichael (Stroud) (Con)
3. What steps his Department is taking to reduce the level of the budget deficit.
Ann McKechin (Glasgow North) (Lab)
8. What recent discussions he has had with the Secretary of State for Work and Pensions on the future of Government targets to eradicate child poverty; and if he will make a statement.
The Economic Secretary to the Treasury (Justine Greening)
The coalition Government have announced that they want to see an end to child poverty in the UK by 2020. We now have 1.9 million children living in workless households in the UK. The OECD says that we have the highest proportion of children living in workless households of any OECD country—nearly 18%. That is one of the reasons why my right hon. Friends the Chancellor and the Secretary of State for Work and Pensions have been discussing that matter. One of the early outcomes of those discussions, as I am sure Members will be aware, is the announcement of the review by the right hon. Member for Birkenhead (Mr Field) of child poverty and life chances. We think that that will be an informative way of engaging people in the debate, and of coming up with some policy options, which we can then feed into our consideration of child poverty.
Ann McKechin
The hon. Lady will be aware that disabled children are much more likely to live in poverty and have much reduced life chances. Given that, and given her Government’s decision to abolish the child trust fund, can she tell me how many disability organisations they consulted prior to that decision, and what assessment they have made of the impact that that decision will have on thousands of disabled children throughout the country?
Justine Greening
We are providing support for disabled children and their families. In fact, regarding the child trust fund, part of the package was the funding of 8,000 extra week-long breaks for the parents of disabled children—breaks that we know are well valued.
Mr Julian Brazier (Canterbury) (Con)
Does my hon. Friend agree that the main reason for the scale of child poverty in this country is that we have inherited a benefit system that punishes thrift, work and traditional families? If the right hon. Member for Birkenhead (Mr Field) does indeed think the unthinkable, will we, unlike the previous Government, support him?
Justine Greening
Unlike the previous Government, we all recognise that child poverty is about much more than just money. If we are to be successful in improving children’s life chances, wherever they start their lives in this country, we need to look at a little bit more than the child tax credit; we need to look far more broadly. We need to look at issues around health and education. That is one of the matters that we will consider over the coming months. It is vital to realise that if we do not tackle the root causes of child poverty, we are very unlikely to tackle the symptoms. Of course, the ultimate way of tackling child poverty is sorting out our economy and getting people back into jobs, so that children are not in workless households in the first place.
Mr David Hanson (Delyn) (Lab)
Under the previous Conservative Government, child poverty doubled; thanks to the efforts of the Labour Government, with the minimum wage, working families tax credit and child benefit rises, 500,000 children were taken out of poverty. Today, will the Minister, whom I welcome to her new position, not just commit to tackling the targets that the Labour Government set, but support the means—the minimum wage, working families tax credit, and child benefit?
Justine Greening
The previous Government managed to raise a number of children who were just below the poverty line just above it, without tackling the fundamental causes of why they were in that position in the first place. What is particularly depressing is that it is as if nothing has been learned from the experiment of the past 13 years. Clearly, we need to look more broadly, rather than just at giving households in poverty money. We need to help them to get back into work. It has to be wrong that in this country, the marginal tax rates for those in low-income families who are going back to work can be in the 90th percentile range. We would never dream of taxing people who are rich that much, but we tax people who are poor at those rates.
Charlie Elphicke (Dover) (Con)
10. What recent assessment he has made of the level of growth in the UK economy compared with those of other OECD countries.
Simon Kirby (Brighton, Kemptown) (Con)
17. What his policy is on taxation of the bingo industry; and if he will make a statement.
The Economic Secretary to the Treasury (Justine Greening)
We keep all taxes under review. It would not be appropriate to discuss taxation in relation to bingo before the Budget in a couple of weeks, but we are keen to have a dialogue with the industry.
Simon Kirby
Does the Minister agree that sometimes it is possible to increase revenue by reducing taxes?
Justine Greening
I think that my hon. Friend is probably referring to the well-known Laffer curve. I am sure that he is aware, too, that the tax on bingo participation clubs was reduced in the last Budget from 22% to 20%. As I said, I look forward to talking to the industry over the coming months.
Kelvin Hopkins (Luton North) (Lab)
Is it not the case that bingo is taxed more severely than other more dangerous forms of gambling, and that the Government would do well if they at least brought them into line?
Justine Greening
I know that that argument has been made by the industry, and I am aware of its campaign on fair taxation. We want fair taxation. One of the Government’s key priorities is tackling the budget deficit, and ultimately the best way for us to support not just bingo clubs but other companies in Britain employing staff is to get the economy back on its feet, creating jobs so that people have money in their pocket to spend, including in bingo clubs.
Mr Peter Bone (Wellingborough) (Con)
18. What recent representations he has received on the level of the budget deficit.
The Economic Secretary to the Treasury (Justine Greening)
We have received a number of representations on the budget deficit, not least from many other European countries, which are now taking steps, as we are, to reduce their deficit—a point that still seems lost on the Opposition.
Mr Bone
I am grateful to my hon. Friend for answering my question and for her arrival at the Dispatch Box, which is very welcome on our side of the House. Will she take a representation from me on reducing the Budget deficit? Can the emphasis be put on cutting public expenditure, rather than increasing taxes? Does she have any idea of the proportion that will be raised by tax increases and by public expenditure cuts?
Justine Greening
We have said that we want to see the bulk of the deficit reduced by restraining public spending. I know that a number of other countries have taken proportions of roughly 80%:20% on restraining public spending and increasing taxes. We are particularly keen to cut out as much of the waste as possible. As we work our way through the previous Government’s horrific spending plans—not that they had any projections into the future—we will do our best to make sure that we do not just bring down our public spending, but use this opportunity to ensure that it delivers better public services for the public whom it is there to serve.
Mr Clive Betts (Sheffield South East) (Lab)
In The Sun the Deputy Prime Minister wrote about the enticing prospect of progressive cuts. Can the hon. Lady explain what a progressive cut would look like?
Justine Greening
The hon. Gentleman might be better off directing that comment to the Deputy Prime Minister. I did not see it in the paper. We are conscious of the need to make sure that we can protect front-line services that people depend on. We have already debated pensions this morning, for example, and we are doing our best to protect money that supports the most vulnerable in our society.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
T1. If he will make a statement on his departmental responsibilities.
Kerry McCarthy (Bristol East) (Lab)
T5. I was disappointed to see no mention of the credit union movement in the coalition agreement. Although I admit that I have not yet got my head around what the big society is, I hope that there is a role in there for the credit union movement. When can we expect the Legislative Reform (Industrial And Provident Societies and Credit Unions) Order 2010 to be laid before the House?
The Economic Secretary to the Treasury (Justine Greening)
We do support credit unions. In fact, one of the first things that the new Secretary of State for Wales did on her appointment was to visit her local credit union in Wales. We have said that we want vibrant, sustainable credit unions. We are looking at the legislative reform order to which the hon. Lady referred and I hope that we can come back with some further dates in the next few weeks. As she can imagine, the focus right now has been on the emergency Budget, but I am aware of the order and officials are talking to me about the time lines for it.
Mr Mark Williams (Ceredigion) (LD)
T4. There was great relief in the tourism sector when the furnished holiday lettings rules were scrapped just before the election in the wash-up. What will the Government do to ensure that the rules are EU compliant, but do not disadvantage tourist operatives in the way that it was feared that the old rules would do?
Bob Russell (Colchester) (LD)
T9. Further to excellent question of the hon. Member for Bristol East (Kerry McCarthy), can the Minister who was briefed to answer the excellent Question 25, in my name, now give a more substantive answer? What will the Government do to support credit unions such as the excellent one in Colchester?
Justine Greening
The best thing that we can do to support credit unions is make sure that they are on a sustainable footing. When I talk to Conservative Members, many of them say that they want to see their credit unions merge. We need to ensure that credit unions can offer a broader range of products to local people, and we need to look at how credit unions operate. Interestingly, although complaints to the financial services ombudsman are broadly increasing, when it comes to credit unions they are falling. The most recently released statistics show that just one in 66,000 complaints related to a credit union. The hon. Gentleman is right to ask how we can support credit unions. The Prime Minister has been supportive of them and we look forward to seeing what more we can do to support them over the coming months.
Mr Dennis Skinner (Bolsover) (Lab)
If everybody has to share the burden of cutting the budget deficit, will the Chancellor start at the very top, and call upon the royal family to tell them that under no circumstances will they get a single penny of the £7 million increase that they are demanding in the civil list?