Tax Credits (Working Families)

Wes Streeting Excerpts

Tuesday 7th July 2015 Commons Chamber

[Mr Gauke]

Cutting corporation tax rates for small businesses, introducing the employment allowance, helping under-21s and apprentices whose employers no longer have to face national insurance contributions, reducing the regulatory burden, restoring the economy to health and ultimately improving access to finance is what helps small businesses, and that is a record that we are proud of.

[Wes Streeting (Ilford North) (Lab)]

On two occasions in this House, the Secretary of State for Work and Pensions has been challenged on his argument that we can cut tax credits because we can increase the minimum wage or encourage employers to pay the living wage. The problem with that argument is that unless employers are encouraged or coerced to do that overnight, which would hurt small businesses disproportionately, it will hit families with children on tax credits the hardest. Is the Minister saying that the Government will not cut tax credits without compelling employers to pay the minimum wage? If he is not, the lectures he is giving us on hard choices are nothing compared with the hard choices facing those families.

[Mr Gauke]

The hon. Gentleman is trying to draw me in on the announcements that will be made tomorrow—

[Wes Streeting]

Of course.

[Mr Gauke]

He did it very skilfully, but unsuccessfully, I fear. If we want to help small businesses, we need to put in place a pro-enterprise environment and if he wants to see a Government who have done that, he should look at the record of the Government over the past five years.