Cost of Living: Energy and Housing

Sheila Gilmore Excerpts

Thursday 5th June 2014 Commons Chamber

[Mr Davey]

My hon. Friend is absolutely right to make that point: competition, not Government intervention, is the best way of getting prices down and helping people with their living standards.

[Sheila Gilmore (Edinburgh East) (Lab)]

rose—

[Mr Davey]

I will give way to the hon. Lady in order to help her health.

[Sheila Gilmore]

Before the Secretary of State leaves the issue of tax allowances, does he not accept that for many of the lowest-paid workers the reduction in tax was more than outweighed by the reduction in tax credits? Moreover, the cost of this policy benefited higher earners disproportionately. That does not sound to me to be a very Liberal Democrat policy.

[Mr Davey]

I am afraid that the hon. Lady is completely wrong. Higher rate taxpayers did not get the allowance increase. This is one of the fairest tax cuts, because it is focused on the low-paid and people on moderate incomes. I must say that she does not understand how the tax system works.