Lucy Frazer
Main Page: Lucy Frazer (Conservative - South East Cambridgeshire)Department Debates - View all Lucy Frazer's debates with the HM Treasury
(2 years, 3 months ago)
Commons ChamberThe Government are committed to helping people keep more of what they own and I give credit to my hon. Friend for his work, which was instrumental in our lowering of the universal credit taper rate from 63% to 55%. That is a tax cut for low-paid workers on universal credit. He will know that from July we will raise the national insurance contributions threshold so that the amount that working people will be able to earn tax-free will increase by £2,690, helping to ensure that work pays.
I thank my right hon. and learned Friend for her kind comments. The changes that she has just re-announced are extremely welcome. With energy and food prices continuing to spiral, does the Treasury team accept that they will soon have to go even further? Do they agree that compared with increasing benefits, further cuts in these combined tax and benefits withdrawal rates will be a better way to put money in the pockets of many lower-paid families and that in future, the combined rates paid by less well-off families should never be higher than the top rates paid by the rich?
My hon. Friend has a keen interest in this area and I read his report, “Poverty Trapped”, with some interest. He makes a valuable point and will know that the Government have made progress in this area. The old system applied an effective tax rate of more than 90% to lower earners in some cases and, as a result of the changes we have recently made, an adult working 35 hours at the national living wage with two children over five will, for example, benefit from an additional £1,610 a year.
May I invite the Minister to come to Wakefield with me? I was there on Saturday morning. The people there have not read the Bloomberg report, but they can feel the impact of rising taxes and the cost of living. They know that they will be in desperate trouble in the coming months. Will she get real and bring the Chancellor to an area of good hard-working people who face the future with great fear?
I thank the hon. Gentleman and am sure that I will soon make a visit to Wakefield. The Government understand the issue with the rise in the cost of living but over this year we have committed £22 billion to support people in their time of need. The people in Wakefield that the hon. Gentleman talks about will also benefit from the cuts we have made to taxes, such as the universal taper rate, a tax cut for 1.2 million people and an extra £1,000 in their pockets. We have increased the threshold to the NICs rate, a £6 billion tax cut for £30 million working people. As I said—[Interruption.]
The Government are committed to ensuring a tax system that is fair and simple. I will give three examples: first, we have equalised the national insurance and income tax starting thresholds; secondly, our work towards OECD pillars 1 and 2 will help to ensure that multinational businesses pay their fair share; and thirdly, we are tackling avoidance and evasion to ensure that everyone pays the right amount of tax at the right time.
I am grateful to the Minister for that answer. Liverpool, Walton ranks as the most deprived community in the whole of England. I am used to constituents contacting my office unable to afford their bills and to survive on their own incomes. What is new is that local independent businesses are now telling me that they are going under. At the heart of the Liverpool economy is hospitality and the visitor economy. Locally run and owned restaurants and cafés are now facing apocalyptic price rises. The VAT on soft drinks and food consumed on premises, and hot beverages and food taken away, has risen back to 20%—it was 5% and then 12.5% during the pandemic. What will Ministers do to save local independent businesses through the tax system?
It is important that we support local businesses, and that is exactly what the Government have done. The hon. Member will know about the business rates support—amounting to £7 billion of support to businesses—that we provided at the last Budget, including £1.7 billion for the hospitality industry through a 50% rebate on business rates. For small businesses, we also increased the employment allowance by £1,000. That is a package of support for local businesses in his area and others across the country.
I thank my hon. Friend for his question and extend my heartfelt condolences to Naomi for the loss of her son. My hon. Friend may be interested to know that NHS England and NHS Improvement, along with the British Heart Foundation, Resuscitation Council UK and the Association of Ambulance Chief Executives, have developed the Circuit, which is a national defibrillator network that will register defibrillators in the UK and provide an overview of where they can be found. I know that the Chancellor and the Prime Minister are interested in this issue, as I met the Prime Minister with my hon. Friend the Member for Rushcliffe (Ruth Edwards). It is indeed an important issue.
I do not want to foreshadow what the Foreign Secretary may or may not say in her statement, but I assure the hon. Gentleman that with regard to the protocol, the Government’s overriding priority has been and continues to be preserving peace and stability in Northern Ireland.
Can my right hon. Friend the Chancellor confirm that a worker working full time, or 40 hours a week, on the living wage is now £1,700 a year better off in real terms than they were in 2010 and that, after July, that will rise to almost £2,000, with everybody earning less than £36,000 a year better off under this Conservative Government this year?