amendment of the law

Debate between Rachel Reeves and Mike Thornton

Tuesday 25th March 2014 Commons Chamber

[Rachel Reeves]

I am sorry if the hon. Gentleman cannot afford a Lamborghini with his savings. I will come on to the welfare cap. We have been clear that we will be supporting the welfare cap in the vote in Parliament tomorrow.

If the Chancellor really wanted this to be a Budget for the makers, he would have cut business rates, supported a British investment bank to help small businesses, and committed to build more homes—the 200,000 extra homes a year that Labour has promised. If he really wanted it to be a Budget for doers, he would cut taxes for millions of working people with a 10p starting rate of tax, freeze energy bills and reform the broken energy market, and expand child care for parents with three and four-year-olds, as a Labour Government would.

[Mike Thornton (Eastleigh) (LD)]

On cutting taxes for ordinary working people, surely the hon. Lady must concede that putting the tax allowance up so that they are paying nothing on their first £10,000 or £10,500 is better than their paying 10p on that amount?

[Rachel Reeves]

The hon. Gentleman will know that the Institute for Fiscal Studies has counted the costs of what this Government have done. Taking into account all the changes to taxes, including VAT, which he voted to increase from 17.5% to 20% despite what was in his party’s manifesto, changes to tax credits and benefits have cost the average family £891. It is a case of giving with one hand but taking much, much more with the other.