Oral Answers to Questions

Lord Evans of Rainow Excerpts

Tuesday 11th December 2012 Commons Chamber

[Sir Tony Baldry (Banbury) (Con)]

10. What steps he is taking to reduce the cost of living.

[Graham Evans (Weaver Vale) (Con)]

15. What steps he is taking to reduce the cost of living.

[The Chief Secretary to the Treasury (Danny Alexander)]

The Government continue to take steps to support households. We will increase the personal allowance further to £9,440 in April 2013 to support hard-working individuals. That cash increase of £1,335 in 2013-14 is the largest ever. We have also cancelled the 3p fuel duty increase that was planned for January, and announced a third council tax freeze and a two-year reduction in the cap on rail fares.

--- Later in debate ---

[Graham Evans]

I welcome the announcements in the autumn statement, particularly the announcement of an increase in the personal allowance, which will take 2.6 million people in the north-west of England out of income tax altogether. Will my right hon. Friend reassure us that he will continue to raise the allowance to ensure that it always pays to work?

[Mr Speaker]

In relation to the cost of living?

[Graham Evans]

Indeed, Mr. Speaker.

[Danny Alexander]

Ensuring, through increases in the personal allowance, that low and middle-income workers in particular can keep more of the money that they earn rather than handing it over to the Exchequer helps those people to deal with pressures related to the cost of living. I can certainly assure my hon. Friend that I will continue to push that policy, along with my Liberal Democrat and Conservative colleagues. At the time of the last general election I made a key promise to lift the income tax threshold to £10,000, and I intend to deliver that promise as soon as possible. [Hon. Members:“ Like the promise about tuition fees?”]