Oral Answers to Questions

Paul Blomfield Excerpts

Tuesday 19th March 2024 Commons Chamber

[Jeremy Hunt]

Well, it is not, because it is actually growing faster than France, Germany and a bunch of other countries. However, I am glad that the hon. Gentleman mentioned 14 years, because we can look at what has happened under 14 years of Labour in Wales, where unemployment is higher, NHS waiting lists are longer, school standards are worse and growth is lower. What is Labour’s reaction to that terrible record? It has just promoted the Economy Minister to First Minister.

[Paul Blomfield (Sheffield Central) (Lab)]

3. What recent assessment he has made of the potential impact of his tax policies on living standards.

[Dan Carden (Liverpool, Walton) (Lab)]

6. What recent assessment he has made of the potential impact of his tax policies on living standards.

[The Financial Secretary to the Treasury (Nigel Huddleston)]

Thanks to the combined impact of national insurance cuts and above-inflation increases to thresholds since 2010, an average worker on £35,400 in 2024-25 will pay over £1,500 less in personal taxes than they otherwise would have done. These national insurance contribution cuts were possible due to the significant progress we have made in combating inflation.

[Paul Blomfield]

I heard what the Minister has to say but does he not recognise the OBR’s assessment of the interplay between the Government’s threshold changes and NICs? The OBR concludes that for every 5p gain per year there is a 10p loss, particularly for those on lower wages. Does he accept the OBR assessment?

[Nigel Huddleston]

I am sure that if the hon. Gentleman looks carefully, he will see that the Government have demonstrated their commitment to supporting the most vulnerable in society. He will also have heard my hon. Friend the Member for North East Bedfordshire (Richard Fuller) explain the circumstances as to why we have higher taxes than we would desire. If the hon. Gentleman is telling me that Labour party policy is to change the thresholds, perhaps he can have that conversation with the shadow Chancellor, who can explain how she would pay for that.

--- Later in debate ---

[Jeremy Hunt]

I would be delighted to do that. The independent Resolution Foundation said that, because of measures that this Government have taken, pensioners are £1,000 better off in real terms than in 2010. We did two things specifically in the Budget: we put £6 billion into the NHS, which is used more by pensioners than anyone else; and we backed workers’ tax cuts to support growth in the economy, which means that we can continue to fund the triple lock for many years to come.

[Paul Blomfield (Sheffield Central) (Lab)]

T6. One of my constituents wrote to me last week about her son Fred. He has Down’s syndrome and severe learning disabilities, is profoundly deaf and has an autism diagnosis. His parents and grandparents did the right thing and put money into a child trust fund for him. Fred will be 18 next month, but he lacks the capacity to access his money and there is no easy way for his parents to do so. Will the Chancellor work with colleagues in the Department for Work and Pensions and the Ministry of Justice to unlock the money for Fred and an estimated 80,000 disabled young people?

[Bim Afolami]

I am happy to meet the hon. Member to discuss the precise circumstances of his constituent’s case. In general terms, it is a priority for us to ensure that people get access to that money if it is due to them.