Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Thangam Debbonaire Excerpts
Tuesday 9th April 2019

(5 years, 1 month ago)

Commons Chamber
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Mel Stride Portrait Mel Stride
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My hon. Friend makes the important point that there are many costs and taxes that bear down on the lowest paid. That is why, in addition to increasing the personal allowance, the Conservatives have introduced the national living wage, which has gone up well above the rate of inflation this April. We have frozen fuel duty for nine years in a row, which has saved the average car driver £1,000 cumulatively. We should also not forget that 28% of all income tax is paid by just the highest 1% of earners.

Thangam Debbonaire Portrait Thangam Debbonaire (Bristol West) (Lab)
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The Minister can say anything he likes, obviously. In fact, he knows that the tax system is skewed in favour of richer people. The poorest 10% pay 42% of their income in taxes, whereas the richest pay 34%. Does he have any plans to achieve greater parity, particularly in VAT?

Mel Stride Portrait Mel Stride
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I am surprised that the hon. Lady should mention the level of tax paid by the most wealthy, because under this Government, as I have just stated, the highest-earning 1% pay a full 28% of all income tax. Under the last Labour Government, that figure was substantially lower at around 24%.