Oral Answers to Questions

Justine Greening Excerpts

Tuesday 21st June 2011 Commons Chamber

[Tony Baldry (Banbury) (Con)]

9. What fiscal measures he is taking to encourage bequests to charities.

[The Economic Secretary to the Treasury (Justine Greening)]

At the Budget this year we announced the most radical and generous series of charity tax reforms for more than 20 years. The measures were not just about improving support for gift aid and payroll giving—we also introduced new measures to improve the inheritance tax system so that we can encourage more bequests.

[Tony Baldry]

What estimate has my hon. Friend made of the number of charities that will benefit from the raising of the gift aid limits, the simplification of gift aid administration and the introduction of the gift aid small donation scheme?

[Justine Greening]

My hon. Friend is right to point out that we have taken a number of steps to improve the ability of gift aid to help charities. There are about 100,000 charities and community and amateur sports clubs currently registered for gift aid, all of which should be able to benefit in part or in entirety from these changes.

[Ian Lucas (Wrexham) (Lab)]

The reality of the Government’s approach to charities is that they have imposed a tax burden on charities by increasing VAT. If the Minister really wants to do something positive for charities, why does she not extend to them the same tax relief relating to VAT that is extended to local government?

[Justine Greening]

I emphasise to the hon. Gentleman that the measures we came up with for the Budget were ones that we talked to charities about in order to pull together. Over this Parliament, the measures will encourage approximately £600 million more going to charities from donations, and I think that all hon. Members across the House should welcome that.

[Paul Blomfield (Sheffield Central) (Lab)]

10. What assessment he has made of the level of taxation of banks.

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[Andrew Gwynne (Denton and Reddish) (Lab)]

14. What assessment he has made of the progressive effects of the measures in the June 2010 Budget which have been implemented to date.

[The Economic Secretary to the Treasury (Justine Greening)]

As the House knows, the Government published huge amounts of analysis of the impact of the measures announced in the Budget of June 2010. The majority of the measures have now been implemented. The charts in the Budget book show that the most well-off households make the largest contribution to the fiscal consolidation, both in cash terms and as a proportion of their net income.

[Andrew Gwynne]

I am grateful to the Minister for that reply, but has she seen the analysis produced by the House of Commons Library and my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) showing that the measures in the last Budget hit women three times as hard as they hit men? Why is that?

[Justine Greening]

I do not accept the premise of the hon. Gentleman’s question at all. As ever, what we have heard from the Opposition is a cheap political point-scoring jibe. They might be better advised to come up with an alternative plan for tackling the fiscal deficit. The hon. Gentleman had nothing to say to my response to him, which implied that it is the most well-off households in the country that are bearing the brunt of the fiscal consolidation.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

A year ago, when the Institute for Fiscal Studies analysis found that the Budget was a regressive one, the Treasury objected to that analysis on the basis that the IFS had not properly considered the incentives to economic growth that the Budget contained, but given that growth is now flatlining and seems to be frequently downgraded, is the Treasury willing to accept that the IFS analysis last year was entirely correct?

[Justine Greening]

The IFS analysis was very clear-cut that it was indeed the most well-off people in our country who were bearing the brunt of the fiscal consolidation measures. I draw the House’s attention to the need to look at the overall impact of not just the Budget 2010, but the spending review and the Budget this year. They show that the most well-off people in our country are bearing the brunt of the fiscal consolidation, whether that is measured in terms of their income or of their expenditure.

[Mr Philip Hollobone (Kettering) (Con)]

The incentives for job creation in the June 2010 and subsequent Budgets are to be welcomed, but given that for every 10 new jobs eight go to foreign-born workers, what more can be done to encourage the employment of the indigenous work force?

[Justine Greening]

As my hon. Friend knows, one of the key aspects of the Budget this year was to launch “The Plan for Growth”. A key part of that was to provide for more apprenticeships and more work experience so that we can make sure that people have the right skills that companies in this country need.

[Alison McGovern (Wirral South) (Lab)]

18. What assessment he has made of the most recent growth forecast by the Office for Budget Responsibility.

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[Mr Denis MacShane (Rotherham) (Lab)]

T2. Has the Chancellor by chance seen the interesting analysis by the House of Commons Library showing that the measures in his Budget will affect women three times as adversely as they will affect men? Is he a misogynist?

[The Economic Secretary to the Treasury (Justine Greening)]

rose—[Interruption.]

[Mr Speaker]

Order. Mr Ruane, I want to hear the Minister’s answer.

[Justine Greening]

The right hon. Gentleman’s hearing must be suffering, because he obviously did not hear my earlier answer to the hon. Member for Denton and Reddish (Andrew Gwynne).

[Mr Aidan Burley (Cannock Chase) (Con)]

T4. Dr Adrian Steele, the managing director of Mercian Labels in Cannock, has just been named as one of the midlands’ most promising entrepreneurs. His company supplies labels and barcodes to the medical industry and employs 32 people. Does the Chancellor agree that it is small business entrepreneurs such as Dr Steele who will grow our economy back to strength, and will he continue to support manufacturers, who were shamefully neglected by the Labour party?

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[Henry Smith (Crawley) (Con)]

Last week, a consortium of regional airports called for a congestion tax on London airports such as Gatwick in my constituency. Will the Treasury rule out such an absurd and, frankly, anti-free trade measure?

[Justine Greening]

My hon. Friend is right to refer to the importance of the aviation sector. As he will know, the consultation on reform of air passenger duty closed last Friday, and we have received a number of different representations from stakeholders. He will be aware that this is partly about looking at what we can do to support regional airports, but we certainly do not want to do that at the expense of our other key airports in the south-east.

[Mr Chuka Umunna (Streatham) (Lab)]

Several figures have been cited about the number of jobs created over the past 12 months. What percentage of those jobs were created before the spending review and are arguably attributable to the last Government, and what percentage have been created since?