Commons Sense

House of Commons · Ministers' Questions

Taxation: Impact on Working People

Tuesday 4 March 2025 · 2 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • Julia Lopez inquired about the possibility of income tax hikes due to rising borrowing costs and economic challenges.
  • Brian Leishman proposed introducing an annual wealth tax of 2% on individuals with over 10 million in assets to address wealth inequality.
  • The Minister assured fiscal responsibility and adherence to the Chancellor's fiscal rules without providing specific details on tax changes.

Topics (select to filter)

Questions & Answers

Q1 Julia Lopez Con Hornchurch and Upminster
Economy Taxation
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.

Question

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?

Answer from The Exchequer Secretary to the Treasury (James Murray)

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.

Partly answered

Not addressed: 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.

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Q2 Brian Leishman Lab Alloa and Grangemouth
Economy Taxation
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.

Question

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?

Answer from The Exchequer Secretary to the Treasury (James Murray)

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.

Not addressed: 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.

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