Commons Sense

House of Commons · Ministers' Questions

Tax System: Fairness

Tuesday 6 February 2024 · 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 2 Not answered 0

Key points

  • Labour party proposes a 28 billion spending commitment with unclear funding sources.
  • The Government criticizes Labour for opposing measures against tax avoidance without offering alternatives.
  • The Minister attributes tax increases to pandemic and cost-of-living support, not to mismanaged procurements.

Topics (select to filter)

Questions & Answers

Q1 Clive Betts Lab Sheffield South East
Taxation Housing Local Government
Context

The question arises from concerns over fairness and equity in the UK tax system, particularly regarding recent council tax increases despite national tax cuts.

Question

What steps have been taken to ensure fairness in the tax system given that most households will see a 5% increase in their council tax due to local government funding issues? Why did the Chancellor freeze budgets for levelling up and housing, leading to an OBR forecast of £13 billion more in council tax?

Answer from Nigel Huddleston

We have provided additional £600 million to local councils, though future spending will be determined at future fiscal events. The tax system supports fairness with progressive measures and cuts for many taxpayers, addressing those who avoid paying their fair share.

Partly answered

Not addressed: The question about the impact of frozen departmental budgets on council funding was not directly addressed; focus shifted to praise for councils and additional funds provided.

How: Shifted Focus, Highlighted Positive Actions

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Q2 Clive Betts Lab Sheffield South East
Economy Taxation
Context

Discussion about fairness in taxation, prompted by concerns over a Labour proposal to spend £28 billion without specifying funding sources.

Question

Considering the Labour party's proposed £28 billion spending commitment, which group would bear the heaviest tax burden if implemented?

Answer from Nigel Huddleston

Labour's policy lacks clarity on funding sources; any increase in spending would come from taxpayers' pockets or further borrowing, impacting everyone's finances.

Answered

Not addressed: null

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Q3 James Gray Con
Taxation
Context

Concern over tax avoidance and the need to close loopholes for non-doms, private schools, and private equity to fund public services.

Question

Has the Government assessed or plans to assess the merits of Labour's proposals to close tax loopholes affecting non-domiciled individuals, private schools, and private equity?

Answer from Nigel Huddleston

The Government supports measures against tax avoidance but criticises Labour for opposing such measures in the Finance Bill without proposing alternatives. No direct response to the assessment inquiry.

Partly answered

Not addressed: Whether an assessment is planned was not directly answered; instead, criticism of Labour's voting record was highlighted.

How: Criticised Opposition

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Q4 Darren Jones Lab Bristol North West
Taxation
Context

Concern over waste in procurement and governance of major projects leading to higher taxes due to inefficient use of public funds.

Question

Given the Comptroller's report on mismanaged procurements costing up to £28 billion annually, does the Minister agree that this waste contributes to tax increases?

Answer from Nigel Huddleston

Tax rises are due to pandemic support (£350 billion) and cost-of-living measures (£100 billion), not mismanaged procurements. The Government reduces taxes when possible, contrasting with Labour's approach of increasing them both necessary and chosen times.

Not addressed: The question about government waste was shifted to address the reasons for tax increases instead.

How: Changed Subject, Provided Alternative Reason

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Q5 Darren Jones Lab Bristol North West
Economy Taxation
Context

Discussion on the necessity of tax increases due to economic support measures versus waste in government spending.

Question

While noting that up to £28 billion is wasted annually, does the Minister agree this wastage contributes to higher taxes?

Answer from Nigel Huddleston

Tax increases are a result of economic support (£350 billion for pandemic and £100 billion for cost-of-living), contrasting with Labour's stance on raising taxes unnecessarily. The Government reduces taxes when possible, unlike Labour's continuous tax hikes.

Not addressed: The question about wastage was not directly answered; instead, focus shifted to reasons for previous tax increases.

How: Changed Subject, Provided Alternative Reason

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