Lord Lea of Crondall
Main Page: Lord Lea of Crondall (Non-affiliated - Life peer)Department Debates - View all Lord Lea of Crondall's debates with the HM Treasury
(10 years, 6 months ago)
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Lord Newby
My Lords, it is true that the effect of the VAT increase ate into the benefit but the price is still 10p less than it would have been, even taking the VAT increase into account. I am not sure whether the noble Lord supports that policy but that is a very considerable net increase. As far as domestic energy prices are concerned, the noble Lord knows that his party’s proposed policy is nothing more than a gimmick.
Lord Lea of Crondall (Lab)
Arising from the question asked by the noble Lord, Lord Marlesford, about what economists call consumer surplus, is the Minister in agreement with the official data of the ONS that hydrocarbon taxes are the most regressive taxes in the country? In other words, they show that the lowest-paid pay—I think—four times more on petrol, as a percentage of their income, than the top decile. There is therefore a distinct impact on poverty, as was implicit in the original Question.
Lord Newby
My Lords, the noble Lord has made a powerful argument for the Government’s policy.