Oral Answers to Questions
Debate between Michael Connarty and Danny Alexander(9 years, 7 months ago)
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Danny Alexander
The idea behind the starter homes scheme is precisely to offer homes at a discount to young people who want to get on the housing ladder. I would have thought that was an objective that everyone in the House would welcome. If the hon. Lady wants to look at social rented housing, in this Parliament—and continuing in the next Parliament—we have the highest annual rate of social house building than under the previous Government or for the past 20 years. During Labour’s 13 years in office, the number of social homes fell by 421,000; we have increased it by over 300,000.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
10. What recent discussions he has had with the Finance Secretary of the Scottish Government on devolution of taxes.
The Chief Secretary to the Treasury (Danny Alexander)
I have had frequent and largely constructive discussions with the Scottish Cabinet Secretary for Finance, Employment and Sustainable Growth, including on the matter of devolution of taxes, as have my ministerial colleagues. The Scottish Minister recently met the Chancellor of the Exchequer. We have made huge progress in the area of tax devolution.
Michael Connarty
From reading the text of the Smith agreement, it seems to me that we have handed over income tax in particular to the Scottish Government, whereby allowances and bands can be varied. In fact, we have created the possibility of an independent tax system, apart from hanging on to the 20p tax as a kind of fulcrum around which it must work. Has the Treasury looked at the impact on the UK if there were an entirely independent tax system in the north of the United Kingdom?
Danny Alexander
Yes, we have. The hon. Gentleman is right. The Smith commission—rightly, I believe—devolves power over rates and bands in the income tax system. It does not devolve control of the tax base or the personal allowance. One of the bits of work that remains to be done is to ensure that we have a fiscal framework in place around that which means that the fact of devolution does not offer a financial advantage in and of itself either to Scotland or to the rest of the United Kingdom. I have had constructive discussions with John Swinney on that point and on many others. It is, of course, a matter for the Scottish Government to make sure that they have competent administrative machinery in place, which they will need next month when the process of the first wave of income tax devolution starts.
Capital Gains Tax (Rates)
Debate between Michael Connarty and Danny Alexander(14 years, 4 months ago)
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Danny Alexander
I shall press on. I have already given way.
In response to the points raised by my hon. Friend the Member for St Ives (Andrew George), I can say that we have already demonstrated our commitment to transparency by publishing data on the distributional impact of the Budget measures, which has never been done before. We are committed to continuing with that level of transparency in future fiscal events, and we will continue to look at whether we can further improve the breadth of information provided. Parliament will, of course, as my hon. Friend requested, continue to have full scrutiny of the Government’s decisions, and I hope that the information that we have already provided, and will provide in future, will facilitate that debate.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
Will the right hon. Gentleman give way?
Danny Alexander
No, I want to press on.
Thirdly, this is a Budget for fairness. Fairness underpins this Budget, and fairness runs throughout this Budget. This is the first Budget to include an analysis of the distributional impact of its measures. It shows that overall the richest will contribute most to deficit reduction, and it will have no measurable impact on child poverty by 2012-13. That is a good start, and of course we will take further action to underpin fairness on future occasions and in future Budgets. It is important to stress to the House the fact that the principles that have shaped the Budget will also shape the decisions that we make in the spending review, too.
As my right hon. Friend the Chancellor said, this is a progressive Budget. It is a Budget that takes almost 1 million of the lowest-earning income taxpayers out of income tax altogether—that is progressive. It is a Budget that locks in an annual increase in the state pension in line with earnings, prices or 2.5%, whichever is highest, to the benefit of 11 million pensioners. That is progressive, too. It is a Budget that increases capital gains tax rates by 10% for higher rate taxpayers, but keeps it the same for basic rate taxpayers. That is progressive. It includes a radical programme of welfare reform to focus support on those most in need. The welfare bill has ballooned from £132 billion 10 years ago to £192 billion today. If we ignore the economic and social pressures caused by this system, we will only put the whole country and the front-line services on which we rely under even greater financial pressure in future. The Government will tackle that situation head on, including through the reforms in the Budget to the disability living allowance, housing benefits, and the uprating of benefits. As my right hon. Friend the Secretary of State for Work and Pensions said, these reforms will ensure that help is targeted on those most in need.
Public Spending
Debate between Michael Connarty and Danny Alexander
Danny Alexander
I share the hon. Gentleman’s hopes for higher standards in Parliament, but Ministers of the previous Government ought to have known in the context of the financial situation that the country faces and of their own plans to cut £50 billion from public spending that these additional spending commitments and claims on the reserve were simply unaffordable. That chicken is coming home to roost today.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
I note that £1.2 billion-worth of the cancelled projects, as they are called, are from the future jobs fund—for the young people of the right hon. Gentleman’s constituency and mine. I wonder what the consequences will be for the Scottish budget. Can he tell us what impact there will be on my constituents in Scotland, or have his Conservative bosses—let us be quite frank—done a deal with the tartan Tories in the SNP in Scotland?
Danny Alexander
The hon. Gentleman will know that benefit and Department for Work and Pensions spending is a reserved matter, so does not have a Barnett consequential. He will also know that the Government have set out plans to establish a Work programme, which will replace those programmes during next year. That will be a more targeted, quicker and effective programme, based on paying suppliers by results to ensure that people get back into work quickly. I welcome that programme and I hope that he will, too.