Commons Sense

House of Commons · Ministers' Questions

Wealth Tax

Tuesday 14 November 2023 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 3 Not answered 0

Key points

  • Rachael Maskell questioned the government on the impact of a wealth tax, citing a University of Greenwich study.
  • The Minister offered to meet Rachael Maskell and other members of the Conservative Environment Network to discuss a tax anomaly affecting less wealthy homeowners.
  • Richard Fuller asked the Minister about the potential abolition of non-dom tax status to fund NHS support and free breakfast clubs for primary-age children.

Topics (select to filter)

Questions & Answers

Q1 Rachael Maskell Labour (Co-op) York Central
Taxation
Context

The MP questioned the fairness of the current tax system and highlighted the disparity in wealth accumulation between the richest families and the rest of the population.

Question

But the burden of tax is increasingly falling on working people's incomes, while the richest 50 families have accumulated a combined wealth equivalent to half the UK's population. Research from the University of Greenwich shows that a wealth tax could generate £70 billion for public services. Will the Government establish a commission to investigate and introduce fairer taxation?

Answer from Nigel Huddleston

We have a progressive tax system in the UK where the top 5% of taxpayers are projected to pay nearly half of all income tax, while the top 1% will contribute as much as 28%, compared to figures from 2010 when Labour was in power.

Partly answered

Not addressed: Did not address the request for a wealth tax investigation or commission establishment

How: Progressive Tax System

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Q2 Rachael Maskell Labour (Co-op) York Central
Taxation
Context

The MP highlighted the disparity between VAT rates for electric car charging for those with driveways versus terraced houses, suggesting it is less wealthy individuals who suffer.

Question

Those living in terraced homes face a 20% VAT rate to charge cars commercially while those with driveways pay only 5%. Given this tax anomaly affects less wealthy homeowners, will the Minister meet me and other members of the Conservative Environment Network to address this issue?

Answer from Nigel Huddleston

My right hon. Friend is a great champion on such issues and I would be delighted to meet her to further discuss how we might address this anomaly.

Answered
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Q3 Vicky Ford Con
Taxation
Context

The MP noted the Government's efforts to raise personal allowances, benefiting low-income earners. He asked if similar focus will be given to reducing taxes for hard-working middle-income families.

Question

While raising personal allowances benefits lower-income individuals, does the Treasury now plan to focus on reducing tax burdens for hard-working, middle-income families?

Answer from Nigel Huddleston

Since 2010, we have taken over 3 million of the lowest-paid people out of paying income tax altogether; however, I cannot comment further given it is close to a fiscal event.

Partly answered

Not addressed: Did not address if the Treasury will consider measures for middle-income families specifically

How: Close To Fiscal Event

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Q4 Gregory Campbell DUP East Londonderry
Taxation
Context

The MP welcomed the new minister and noted a humorous situation regarding tax proposals from both opposition backbenchers and government backbenchers.

Question

I welcome my hon. Friend to his post. Is there humour in Opposition Back Benchers proposing taxes that Front Benchers reject, while Government Back Benchers want tax cuts but are rejected by their Front Bench?

Answer from Nigel Huddleston

We have heard such proposals before from Labour, which did not work in the '70s and will fail now. We are proud of our record on taking the lowest-paid out of income tax.

How: Same Old Labour, Tax Record

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Q5 Richard Fuller Con North Bedfordshire
NHS Taxation Children & Families
Context

The MP welcomed the minister and urged him to abolish non-dom tax status to fund NHS improvements and free breakfast clubs for primary children.

Question

I welcome the Minister to his place. Given the opportunity, will the Chancellor abolish non-dom tax status next week, using funds for NHS support and free breakfast clubs for primary-age children?

Answer from Nigel Huddleston

The hon. Gentleman is aware that abolishing non-dom tax would make the UK less attractive; non-doms paid £8.5 billion in income tax and invested over £7 billion in the UK last year.

Partly answered

How: Less Attractive, Investment

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