Treasury

Lucy Frazer Excerpts

Friday 19th November 2021 Ministerial Corrections

[Rushanara Ali]

The Minister mentioned fairness a few times, and also the challenges facing the country. Why have her Government decided to give banks a reduction in the surcharge taxes they pay, which will cost the taxpayer £1 billion a year, when increasing numbers of our constituents are going hungry because of the failure to support them in the challenges they have faced over the last 18 months?

[Lucy Frazer]

I am grateful for the opportunity to answer that question, because the hon. Lady talked about a reduction in the amount banks are paying but that is not accurate: the banks will actually be paying a higher rate than previously. The hon. Lady might have noted that I referenced in my speech the fact that corporation tax was going up to 25%, and banks will be paying a higher rate than everybody else, who will be paying 25%; the banks will now be paying 28%, not the 27% they are currently paying. We are also ensuring that we have a competitive operating environment for these banks, because the banking sector not only contributes to the economy but employs 1 million people.

[Official Report, 16 November 2021, Vol. 703, c. 496.]

Letter of correction from the Financial Secretary to the Treasury:

An error has been identified in my response to the hon. Member for Bethnal Green and Bow (Rushanara Ali).

The correct information should have been:

[Lucy Frazer]

We are also ensuring that we have a competitive operating environment for these banks, because the banking sector not only contributes to the economy but employs almost half a million people.