Oral Answers to Questions

Debate between Lilian Greenwood and Sajid Javid

Tuesday 10th September 2013 Commons Chamber

[Lilian Greenwood (Nottingham South) (Lab)]

11. What recent estimate he has made of the effect of fiscal policy on the level of child poverty.

[The Economic Secretary to the Treasury (Sajid Javid)]

The Government have protected vulnerable groups as far as possible while urgently taking action to tackle the record deficit we inherited. Work remains the best and the most immediate way out of poverty, and the Budget took action to support families and make the tax and welfare system simpler, including further increases in the income tax allowance to take 2.7 million people on low incomes out of tax altogether.

--- Later in debate ---

[Sajid Javid]

Work remains the best and the most immediate way out of poverty. The hon. Gentleman will be concerned that his constituency saw a 72% rise in unemployment during Labour’s last term in office. It has now fallen under this Government. He is rightly concerned about workless households, so he should welcome the fact that the number of children living in workless households is at an all-time low—the lowest since records began in 1996.

[Lilian Greenwood (Nottingham South) (Lab)]

Thirty-two per cent. of Nottingham children live in poverty compared with a national average of 20%, and we have the worst affected local authority in the east midlands. For all the Government’s warm words on early intervention, the city’s early intervention grant has been cut by £2.8 million. Is it not the case that across the country this Government’s policies are making child poverty worse?

[Sajid Javid]

I have taken five questions from Opposition Members so far, and not one of them has mentioned plan B; I wonder why. It is not very nice for Mr B. The best way to deal with poverty is by tackling the causes of poverty, and work remains the best way out of poverty. The hon. Lady should welcome the fact that jobs are growing at a record rate in our country, with 1.3 million jobs generated in the private sector in three years and more people employed than at any other time in our history.

Oral Answers to Questions

Debate between Lilian Greenwood and Sajid Javid

Tuesday 29th January 2013 Commons Chamber

[Sajid Javid]

My hon. Friend is right to raise this issue, and he has contributed to many debates on it in this House. Making the change would mean lost revenue, and we would have to find another way to cover that loss. He may find it useful if I point out some Government measures that have helped pubs, such as the changes in the annual investment allowance, the cut in the small profits rate of corporation tax and the extension of small rate relief holiday.

[Lilian Greenwood (Nottingham South) (Lab)]

Why does the Chancellor refuse to review the impact of alcohol taxation? Is he worried that it will show the effect of VAT on the prices in our pubs, and the impact that is having on our pub sector?

[Sajid Javid]

The hon. Lady will know that the beer duty escalator was introduced by her Government. This Government have inherited those plans and are carrying them out. If she does not like this tax, perhaps she could make a stronger case if she tells us how she would cover the lost revenue.

Oral Answers to Questions

Debate between Lilian Greenwood and Sajid Javid

Tuesday 11th September 2012 Commons Chamber

[Sajid Javid]

I thank my hon. Friend for her welcome. I will take a look at that, but given the amount of money from APD on which the Government rely to deal with the fiscal deficit we inherited, it is appropriate to point out that, if we changed the banding, APD might have to rise for others.

[Lilian Greenwood (Nottingham South) (Lab)]

13. What assessment he has made of the effect on families with children of the tax and benefit changes made in 2012-13.

[The Economic Secretary to the Treasury (Sajid Javid)]

The Government have taken unprecedented steps to increase the transparency of decision making. All but the highest income decile have on average gained from direct tax changes. The Government continue to help and protect the most vulnerable with, for example, increases in the child element of the child tax credit by £180 per annum above inflation in April 2011.

[Lilian Greenwood]

Up to 1,000 households in my constituency face having their tax credits withdrawn this year, and 275 families with 625 children faced losing working tax credit if parents could not increase their hours. Why is the Chancellor trying to balance the books on the backs of hard-working families, and will he concede that children are bearing the brunt of this Government’s failed policies?

[Sajid Javid]

Under the previous Government, spending on tax credits was out of control, having risen from £18 billion in 2003 to £30 billion in 2010, meaning that nine out of 10 families with children were eligible for tax credits. This Government have reduced that to six out of 10 by taking a more targeted approach. It is important that we support those on the lowest incomes while ensuring that those who can contribute to deficit reduction do so. There is nothing fair about running huge deficits for our children.