Tax Credits

Debate between Lindsay Hoyle and Damian Hinds

Tuesday 15th September 2015 Commons Chamber

[Damian Hinds]

Time is short, so I am going to make some more progress.

For too long in this country—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order.

[Mr Deputy Speaker]

That is not a point of order.

[Damian Hinds]

For too long, low pay has been addressed in this country not by genuine reform and driving productivity, but by subsidising it through the tax credit system. In the decade to 2010, tax credit expenditure more than trebled in real terms. The changes introduced in this order will build on the last Parliament’s reforms and return real-terms tax credit spending to its 2007-08 levels—a decade into the Labour party’s tenure in government. It is not a stand-alone measure, but part of what my right hon. Friend the Chancellor called a “new contract” with working Britain. It says to businesses, “You will have to pay higher wages, but you will get lower business taxes and a stable economy”; it says to people, “You can get higher pay and lower tax, but with less benefit top-up”; and it says to the country, “We are going to spend less and live within our means”. These regulations are an important part of that, and I commend them to the House.