Economy Update

Tanmanjeet Singh Dhesi Excerpts

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

Japan, as my right hon. Friend will appreciate, is a very particular case, but even Japan is experiencing its highest relative inflation rate in many years. For Switzerland, there are a couple of reasons. The first is a particularly strong Swiss franc, which happens at times like this. The second is a different mix of energy, which I believe from memory is provided overwhelmingly by hydro and nuclear. That is a completely different energy mix, which means that Switzerland suffers less from the shock we are experiencing.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

Almost five months after Labour called for a windfall tax on oil and gas producers to help seriously struggling Brits, I am glad that this out-of-touch, out-of-ideas Government have had that damascene conversion and performed today’s screeching U-turn. However, it is already too late for many, including many of my constituents, who have been forced into destitution and had to choose between eating and heating. Talking of U-turns, will the Chancellor today perform another one by scrapping the national insurance tax hike? It is seriously hurting working people, and we are the only G7 country to be taxing working people so much that we now have the highest tax burden since the 1960s.

[Rishi Sunak]

Some 70% of people in work—including, I would imagine, the hon. Gentleman’s constituents—will pay less tax this year than last year as a result of the increase in the national insurance primary threshold. That is delivering a tax cut to the vast majority of people, but it is right that those with broader shoulders help to contribute to funding the NHS properly, as it needs.