(11 months, 2 weeks ago)
Lords ChamberMy Lords, has my noble friend had the opportunity to read the report of the Economic Affairs Committee on universal credit, which pointed out the injustice of people who moved on to universal credit and who received overpayments under the previous system, through no fault of their own, having their universal credit reduced? Surely at a time of such pressures, the Treasury should write off the sum and acknowledge it was a mistake made by government, for which people who are under very stressed circumstances should not be paying?
I take note of the point raised by my noble friend. I am not able to comment directly on that, but I will take his points back to the Treasury.
(1 year, 7 months ago)
Lords ChamberThe noble Baroness will be well aware that we have raised many benefits—particularly the benefit cap, by 10.1%, which we think is pretty generous. But we also acknowledge that it continues to be tough for households and businesses across the UK at the moment, which is why we continue to provide support with the cost of living, as I alluded to earlier. This totals £94 billion over the next two years, which is equivalent to an average of £3,300 per household this year and next year.
My Lords, should we take that as a pledge that the Labour Party will uprate benefits by inflation, or is this just another example of the Opposition attacking the Government and having nothing to say?
My noble friend makes a good point. I will add to what I said: we are still on track to deliver the Government’s pledge, with the OBR—it has to be the OBR—forecasting that inflation will reduce to 2.9% by the end of the year. In my newspaper today, I noticed that there are signs that food prices, which have been extraordinarily high, are beginning to slip, so I very much hope that this is going in the right direction.
(1 year, 11 months ago)
Lords ChamberI take note of what my noble friend says but, as I say, we have no plans to change this policy.
My Lords, is my noble friend not immensely encouraged by the enthusiasm for tax cuts on the Opposition Benches?
My noble friend makes an excellent point.
The Prime Minister mentioned the levelling-up agenda today, and it is very much on course—as you probably heard, he cited the fact that we wish to revert back, which is quite right, to the 2019 manifesto. In terms of the noble Lord’s figures, I will need to look at Hansard to see what precisely he said, because it was a very specific issue that he raised.
My Lords, could my noble friend take these questions from the Labour Benches as a strong recommendation for the Government for simplifying the tax system and indeed, in time, for reducing the burden of tax by cutting the basic rate of income tax, as the Prime Minister has indicated he will do in the long term?
My noble friend is right: the Prime Minister has said, over a long period of time, that he is a tax-cutting individual—now a tax-cutting PM—but when the economic conditions allow. It is the right way forward, but there is a lot to do before we get to that point.
I do not take the view that the noble Lord has. The Government are focused on increasing economic growth to boost living standards through supply-side reform. This will create new, better-paid jobs, allowing people to keep more of what they earn, and ensure that people from across all spectrums of society, including the most vulnerable, will benefit. On the noble Lord’s question, the detail of the growth plan will be rolled out on 31 October. It is intended that we should show that we are fiscally responsible.
Does my noble friend think that the noble Lord, Lord Hain, did not notice that this week the Labour Party voted for the reversal of the national insurance increase? He asks what the Government are doing; what they have done is save people from energy costs that would have been £6,500 a year and save businesses from bankruptcy. Is that not the case? That is something which the Labour Party is unable to match, because its guarantee was for only six months while ours is for two years. Most people in the country will cheer that, will they not?
My noble friend is right. The Government are reducing the tax burden by delivering tax cuts worth around £45 billion by 2026-27. We know that is for both individuals, through the EPG, and businesses, through reversing the increase in corporation tax from 19% to 25%. It is an ambitious first step towards this mission of cutting taxes. However, as I said earlier, this includes looking at the public sector and liberating, in particular, the private sector.
As the noble and learned Lord will know, there are constant meetings regarding the pandemic with the Chief Medical Officers, but the Prime Minister himself is Minister for the Union and he met the First Ministers three times last year—there were meetings in June and October and bilateral calls in December. But it is more than this: last year there were more than 350 meetings at ministerial level. Co-operation is getting better and will certainly improve in 2022 after all the discussions on the IGR.
My Lords, is not the fact of the matter that the Prime Minister made the right judgment and the right call, and in England people were able to celebrate new year? In Scotland, for the first time ever, hogmanay celebrations were prevented, resulting in people having to go south of the border. It is a bit rich to blame the United Kingdom Government for the mistakes of the Scottish Parliament.
I take my noble friend’s point, but of course, as the House will know, it is up to the devolved Governments to make decisions themselves, based on the back of discussions that continue to take place between the four Governments.