Oral Answers to Questions

Rachel Hopkins Excerpts

Tuesday 19th March 2024 Commons Chamber

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

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

[Rachel Hopkins (Luton South) (Lab)]

12. 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.

--- Later in debate ---

[Nigel Huddleston]

I completely disagree with the hon. Gentleman’s explanation. Not only will I repeat that our constituents completely understand the difficult global circumstances, with the pandemic and the cost of living challenges following the invasion of Ukraine, but I can say that we have grown faster since 2010 than many other major economies, and the IMF forecasts that we will grow faster than Germany, France, Italy and Japan. In the year to the third quarter of 2023, real household disposable income per person was around £1,100 higher than the Office for Budget Responsibility expected in its spring Budget 2023 forecast. We have turned a corner, and the best thing to do is to stick with the Conservatives.

[Rachel Hopkins]

The Minister says that the economy has turned a corner, but households will be £870 worse off on average under the Conservatives tax plan, and they will also be seeing their costs up by £110 a week compared with before the last election. Is the Minister proud of his record?

[Nigel Huddleston]

We are immensely proud of our record since 2010: living standards have increased, and growth is now better than that of many other major economies. Our absolute commitment to protecting the most vulnerable in society was shown recently when we provided an average of £3,400 in cost of living support for each household. We have turned a corner, and the economy is improving. I am just disappointed that the Opposition constantly talk down the UK economy and their constituents.