Income Tax

Lord Phillips of Sudbury Excerpts

Wednesday 19th November 2014 Lords Chamber

[Lord Newby]

My Lords, paying the living wage is something that the Government support but, as we have discussed before in your Lordships’ House, there is a balance between rising wages and unemployment. That is the basis on which the minimum wage is set. I gave an example from the Dispatch Box the last time we discussed this: having spoken to people working in the textile industry in Leicester, they demonstrated to me that a big increase in the wage that they were paid would mean that fewer of them would be earning it, because they would be out of the job.

[Lord Phillips of Sudbury (LD)]

My Lords, is it not the case that income tax should be a good deal higher, particularly if those in the higher ranges of income paid their full amount of tax? What are we doing to tighten the receipt of income tax from all who should pay it?

[Lord Newby]

My Lords, the amount of income tax paid by the top 1% is now 28% of the total income tax revenues, which is the highest proportion it has ever been. That is because this Government have put substantially more money into fighting tax avoidance and evasion—far, far more—than the previous Administration.