Welfare Benefits Up-rating Bill

Debate between Liam Byrne and Andrew George

Tuesday 8th January 2013 Commons Chamber

[Mr Byrne]

Many unemployed people in my hon. Friend’s constituency are young people. These are the people who need a jobs guarantee backed by a tax on bankers’ bonuses.

[Andrew George]

Of course we welcome the Labour party’s last-minute pre-election conversion to increasing tax for wealthy people. The right hon. Gentleman will have heard in my intervention on my right hon. Friend the Secretary of State my sincere misgivings and my wish to encourage him to review this rather arbitrary 1% cap and perhaps to find ways of relating it to average wages. Bearing in mind that the welfare budget is—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. It was only a few moments ago, I remind the hon. Gentleman, when I said interventions on a speech needed to be brief and should not become a speech in their own right.

[Mr Byrne]

I am grateful for the intervention because I think the hon. Gentleman, like us, is concerned that in our country today a food bank is opening every three days, and that 5 million people may resort to payday loans this year in order to balance the books for the end of the month. The Sun on Sunday this weekend, in an article carried next to the one by the Secretary of State, said that a quarter of mums are now turning off heating so that they have enough money to feed the kids. Is that the kind of country that we are becoming, because the Saint of Easterhouse has now become the punch bag of the Treasury? Once he talked about broken Britain; now he is presiding over breadline Britain because he keeps losing his battles with the Treasury.

[Andrew George]

In view of that and given that the welfare budget is £220 billion, does the right hon. Gentleman believe that it is something that needs a long hard look at? Particularly in a time of austerity, where does he believe the savings can be made within that budget?

[Mr Byrne]

I have been very clear about where I think the savings can be made. I just think it is wrong that we are giving £3 billion in a tax giveaway to Britain’s richest citizens.

Finance Bill

Debate between Liam Byrne and Andrew George

Tuesday 6th July 2010 Commons Chamber

[Andrew George]

I am going to draw my remarks to a close, so I will take no further interventions. My proposal was purely for VAT impact assessments, and through questions to Ministers, I am seeking further information on the impact of the VAT increase.

[Mr Byrne]

I am grateful to the hon. Gentleman for giving way—the House has been following his remarks with some care. Before the Liberal Democrats gave their consent to the proposals in the Budget, they will have discussed the matter. In the interests of the debate that he is trying to stimulate, was it ever explained in those discussions that an extra £9 billion of tax must be raised by the Budget because its overall effect is to slow the recovery to such a serious extent?

[Andrew George]

If the right hon. Gentleman does not mind, I will move on. That is part of the debate that he will no doubt continue with Treasury Ministers. If Labour Members wish to avoid a VAT increase such as that proposed in the Bill, they need to propose alternatives. Those might include a further increase in the banking levy or an increase in capital gains tax, or perhaps VAT increases could apply to luxury goods but not to others, but alternative measures to fill the £13 billion hole in the public sector accounts would be needed.

I hope that future stages of the Bill will provide a more constructive environment in which to debate VAT and other matters.