Taxation Impact on Working People 2025-03-04
2025-03-04
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Inflation, borrowing costs, economic weakening, and increased defence spending are pressing issues. The context is a concern that these factors might necessitate an increase in income tax.
Borrowing costs are soaring, the economy is weakening and we need to spend much more on defence. In those circumstances, can people be absolutely confident that to meet her fiscal rules, the Chancellor will not be raising income tax in the course of this Parliament?
The OBR’s spring forecast will take place on 26 March and be accompanied by a statement to Parliament from the Chancellor. Ahead of the statement, the Government will not give a running commentary responding to forecasts and economic developments, but I reassure the hon. Member that the Chancellor’s commitment —indeed, the whole Government’s commitment—to our fiscal rules is non-negotiable.
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Assessment & feedback
The questioner asked for an assurance about no income tax increase in this parliament, but the response provided no concrete commitment or timelines regarding specific actions to avoid such increases.
Response accuracy
Q2
Partial Answer
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Context
Growing wealth inequality and the need to improve living standards are highlighted. The suggestion is that an annual wealth tax of 2% on individuals with over £10 million in assets could raise approximately £26 billion annually, aiding in equalising society.
It should not be working people who pay more tax, because wealth inequality is growing in the UK and improving living standards is ultimately what the Government will be judged on. Does the Minister see the merit in introducing an annual wealth tax of 2% on people with over £10 million-worth of assets, which would go an awful long way to raising £26 billion per annum to equalise society?
I hope my hon. Friend will welcome the £200 million investment in the Grangemouth facility, which has already been spoken about today. I hope he will also support the Government’s decision to restore fiscal responsibility to public finances within the tough fiscal rules that the Chancellor set out at the Budget.
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Assessment & feedback
The questioner asked for a response on whether there was merit in introducing an annual wealth tax, but James Murray diverted the conversation towards a local investment and fiscal responsibility without addressing the proposal for a wealth tax.
Response accuracy