Commons Sense

House of Commons · Ministers' Questions

Taxation: Living Standards

Tuesday 7 May 2024 · 5 questions

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

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Paul Blomfield asked about the impact of tax policies on living standards; the response cited national insurance cuts and above-inflation tax increases since 2010, with average workers on 35,400 paying less in personal taxes this year.
  • Kerry McCarthy raised concerns about the cost of living, suggesting a bespoke veterinary agreement with the EU could help; the response highlighted the Government's focus on inflation, tax cuts, and national insurance reductions while maintaining positive EU relations.
  • James Murray questioned the Conservative decisions' impact on families and pensioners, citing an 870 higher tax bill for average families and 960 more annually for pensioner taxpayers; the response noted improvements in tax-free allowance and the number of people out of paying income tax.

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Questions & Answers

Context

MP inquired about the recent assessment of the government's tax policies' impact on citizens' financial situations.

Question

What recent assessment has been made of the potential impact of your tax policies on living standards?

Answer from Nigel Huddleston

Thanks to national insurance cuts and above-inflation increases since 2010, the average worker on £35,400 will pay more than £1,500 less in personal taxes this year. Maintaining fuel duty rates at current levels represents a further £13 billion benefit to households over three years.

Partly answered

Not addressed: The answer did not address the specific ask of providing a recent assessment on impact.

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Q2 Kerry McCarthy Lab Bristol East
Context

MP noted the cost of living crisis and suggested a veterinary agreement could help reduce food prices.

Question

The Minister will know that people are still struggling with the cost of living. Seeking a bespoke veterinary agreement with the EU would not only cut costs for businesses but also stop food prices rising further. A future Labour Government would do this, so why won't the current government commit to it?

Answer from Nigel Huddleston

The hon. Lady's first comment was correct: everyone recognises cost of living challenges. The Government have adopted a strategy of focusing on inflation, tax cuts, and national insurance cuts. We maintain a positive relationship with the EU and engage on various matters.

Partly answered

Not addressed: The answer did not commit to seeking a bespoke veterinary agreement with the EU.

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Context

MP criticized government for misrepresenting national insurance cuts' positive impact, citing the Resolution Foundation.

Question

In pre-elections, the Prime Minister talked about national insurance cuts. However, workers earning less than £26,000 a year are worse off due to combined tax changes. Does the Minister recognise this? Will he apologize for misrepresenting the position?

Answer from Nigel Huddleston

We recognise challenges for those on lowest incomes, which is why we adopted measures including housing allowance. If so opposed to national insurance cuts, why did Leader of Opposition support them?

Not addressed: The answer deflected by questioning opposition's stance.

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Context

MP highlighted the cost of living crisis due to Ukraine conflict, suggesting UK should seize Russian assets for reconstruction costs.

Question

There is a real cost of living challenge related to the war in Ukraine. A key part of it relates to energy supplies. The US has seized Russian assets to pay for reconstruction; why shouldn't the UK do the same?

Answer from Nigel Huddleston

Sanctions on Russia are important, showing impact of Ukraine invasion globally. Thanks to action taken by this Government and Bank of England, inflation is now falling and will soon hit target.

Not addressed: The answer did not address the specific ask about seizing Russian assets.

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Q5 James Murray Labour (Co-op) Ealing North
Context

MP criticized the government for higher taxes, squeezed living standards, weaker public services, and loss of public confidence.

Question

The Conservatives' decisions mean average families face an £870 higher tax bill this year. Pensioner taxpayers will pay £960 more annually. The IFS director said 'This remains a Parliament of record tax rises.' Does the Minister understand why the country has lost confidence in them?

Answer from Nigel Huddleston

Many remember Labour's economic performance. Tax-free allowance was £6,475; now it is £12,570. Over 1.5 million people are out of paying income tax. We focus on putting more money in pockets with national insurance cuts and other measures.

Partly answered

Not addressed: The answer did not address loss of public confidence directly.

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