Oral Answers to Questions

John Bercow Excerpts

Tuesday 9th December 2014 Commons Chamber

[Mr Gauke]

My right hon. Friend is correct in that assessment. That proportion is higher than occurred in any year under the previous Labour Government or, indeed, when the 50p rate was in place.

[Mr Speaker]

I call Pat Glass. Not here.

[Charlie Elphicke (Dover) (Con)]

5. What estimate he has made of corporation tax receipts in each year since 2010; and if he will make a statement.

[Charlie Elphicke]

Is my hon. Friend aware that non-oil corporation tax receipts have risen 16% over the course of this Parliament so far, compared with a rise of just 8% over the entirety of the previous 13 years? Does that not show that if you cut the rate, you up the take? [Interruption.] How will the diverted profits tax work?

[Mr Speaker]

Order. The question was simply too long. The hon. Gentleman should have cut it off when he was winning, instead of going on for too long, which is what he then continued to do.

[Mr Gauke]

It is right that we have reduced the corporation tax rate. Next year, it will give us the lowest rate in the G20. That is resulting in greater investment in the UK. It would certainly be a mistake to reverse that policy, as the Labour party intends. In terms of the diverted profits tax, I would point out that it will help to deal with aggressive tax avoidance. We will publish the draft legislation on that tomorrow, setting out the full details of how it will operate.

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[Mr Speaker]

Formally the group of questions falls if the Member with the lead is absent but I dare say we can improvise.

[Chris Ruane]

Thousands of hard-working families in my constituency have been bit by tax credit cuts, a £300 increase in their energy bills, the bedroom tax and the increase in VAT. This Government offer tax cuts to millionaires and porridge and food banks to low-paid workers. When will the Government allow British workers to share in the wealth of this country?

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[Yasmin Qureshi]

rose—

[Mr Speaker]

The hon. Lady’s opportunity is now. Her moment has arrived; her voice should be heard.

[Yasmin Qureshi]

Thank you, Mr Speaker. Will the Minister confirm that 10 million households will be affected by the two-year freeze on tax credits and benefits and that the average household will be £974 worse off? This will hit working people the most, and women in particular, so will the Government reconsider their position?

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[Andrea Leadsom]

My hon. Friend is right. The Opposition talk about balancing the books, but in fact what they are talking about is borrowing more once their current budget is in surplus, and that is a complete fabrication, because what the Opposition need to recognise is that the only way to return this country to prosperity is not just to deal with the massive debt left by Labour but also to get our economy back into long-term growth and long-term surpluses. [Interruption.]

[Mr Speaker]

Order. It is very disorderly for Members to yell at the Minister from a sedentary position, and I remind you, Mr Lucas, that you have still got to complete your apprenticeship to become a statesman. I keep updating the House on progress, but there is still a little distance to travel.

[Bill Esterson (Sefton Central) (Lab)]

Many people in work are relying on benefits just to survive, and they are not paying tax, all of which contributes to the reason why the deficit has gone up more than the Minister, and her Government when they came in, promised. Today’s OECD report says countries that promote equality will grow and prosper. Will she accept that her Government have got it disastrously wrong for so many people and adopt the policies suggested by the OECD, including a higher rate of top tax?

[Andrea Leadsom]

I find it absolutely extraordinary that the hon. Gentleman can talk about the under- achievement of this Government. It is not by chance that our economy is the fastest growing in the G7; it is not by chance that there are 2 million more people in work in the private sector; and it is not by chance that there are now 2 million apprentices, as of today. It is extraordinary that the Opposition do not see that it is all about economic recovery, not interfering and borrowing more.

[Mr Speaker]

As usual we are pressed for time, but I cannot allow excessively long early questions and answers to deny Members who have been waiting patiently, so we will now hear, I hope, from Mr Philip Hollobone.

[Mr Philip Hollobone (Kettering) (Con)]

17. What the basic rate personal tax allowance was in May 2010; what that rate would have been in May 2015 if indexed to inflation; and what that rate will be in May 2015.

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[Danny Alexander]

I absolutely recognise the importance of the video games industry to Dundee and other parts of the country, and indeed to many hon. Members. I do not know whether Candy Crush was developed in the hon. Gentleman’s constituency, but it is clearly very popular in the House. The package of measures in the autumn statement to support exporters will benefit the video games industry, as will the improvements to tax relief for research and development, which will particularly benefit small and medium-sized enterprises. If he has further ideas for measures that might benefit that industry in his area, I would be glad to hear them.

[Mr Speaker]

I know that the Chief Secretary to the Treasury will not want to talk out opportunities for his own hon. and right hon. Friends. I call Mr Roger Williams.

[Roger Williams (Brecon and Radnorshire) (LD)]

T6. On small business Saturday I visited retail businesses in Brecon, Llanwrtydwells and Talgarth. They told me how pleased they were with the employment allowance, which gave them a reduction of up to £2,000 in their employer national insurance contributions. More than 1,000 businesses benefit from that in my constituency, but up to 500 that are eligible have not applied. What can we do to encourage them to take up this important measure?

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[Several hon. Members]

rose—

[Mr Speaker]

Order. The hon. Member for Cardiff Central (Jenny Willott) would have been called earlier, but she was not here. She is now, and she can have a go if she prefers asking a question to talking to a Government Whip, albeit a distinguished Government Whip.

[Jenny Willott (Cardiff Central) (LD)]

Thank you, Mr Speaker, and my apologies. I wanted to ask about tax avoidance. At a time of falling incomes when many people are finding it difficult to make ends meet, does the Minister agree that those on high incomes should avoid using expensive lawyers—if they can afford to use them—to assist with tax avoidance? Does he share my hope that tax avoidance, like drink-driving, will become a moral taboo?

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[Several hon. Members]

rose—

[Mr Speaker]

Order. I am sorry but demand always exceeds supply. Last but not least, Stuart Andrew.

[Stuart Andrew (Pudsey) (Con)]

As my right hon. Friend heard earlier, there is currently a connectivity study on Leeds Bradford International airport. As someone who has been campaigning for that rail link, because the road network is always so congested, may I urge him to look at that study in great detail, as it will help us to contribute to that great economic powerhouse in the north?