Economic Inequality 2021-12-07

2021-12-07

TAGS
Response quality

Questions & Answers

Q1 Partial Answer
Richard Burgon Lab
Leeds East
Context
The MP noted persistent income inequality despite government efforts.
What recent steps has the Government taken to help reduce economic inequality?
The distribution analysis published in the Budget showed that the actions of this Government since 2019 have benefited those on the lowest incomes the most. Income inequality is also lower than it was in 2010, and the best way to reduce inequality is to get people into well-paid jobs, which the government is doing.
Assessment & feedback
Did not provide specific steps or measures taken by the Government beyond general statements about benefits for low-income individuals.
Response accuracy
Q2 Partial Answer
Rachel Hopkins Lab
Luton South and South Bedfordshire
Context
The MP questioned the fairness of national insurance increases while banks receive a tax cut.
Income inequality in the UK has barely changed over the past 10 years, so how can it possibly be fair to ask working people to pay more tax through the national insurance increase next year, and will the Chancellor set out the impact on inequality?
Income inequality is lower than it was in 2010, fewer people are living in absolute poverty. The decision to fund the NHS through a progressive manner includes reforms to social care that benefit everyone. Regarding banks, the rate of corporation tax for banks will increase from 27% to 28%, while other businesses will pay at 25%. Financial services is a key UK asset employing 1 million people.
Assessment & feedback
Did not provide specifics on the combined impact of national insurance and bank tax cuts on inequality.
Response accuracy
Q3 Partial Answer
Kate Osamor Lab Co-op
Edmonton and Winchmore Hill
Context
The MP expressed concern over high unemployment rates and lack of access to bus services.
Will the Chancellor provide funding for Transport for London to maintain its services, particularly crucial for lower-income residents?
The Government is investing in jobs right across the country. Issues with transport were there before coronavirus and the Chancellor visited jobcentres to help people get into work and acquire skills.
Assessment & feedback
Did not provide assurances or investment plans for London's transport needs specifically, instead shifted focus to employment initiatives.
Response accuracy
Q4 Partial Answer
Rupa Huq Lab
Ealing Central and Acton
Context
The MP highlighted issues of a cashless society, particularly for those reliant on bank branches.
Will the Chancellor urgently look into economic inequality caused by the decline in bank branches and lack of access to cash?
The Economic Secretary is doing work on access to cash. The Government has committed to bringing forward legislation if required and would look into specific circumstances of the MP's constituent upon request.
Assessment & feedback
Did not provide a commitment or timeline for urgent action, only stated willingness to investigate further.
Response accuracy
Q5 Partial Answer
Richard Burgon Lab
Leeds East
Context
The MP criticized the government's treatment of disabled individuals over austerity measures and lack of support during covid.
Will the Government backdate payments to disabled people who were not given the £20 uplift in benefits?
The Government is committed to helping those who need it. Investments include £500 million for the disabled facilities grant, more support in the Department for Work and Pensions, and investment in Changing Places for better accessibility.
Assessment & feedback
Did not commit to backdating payments specifically mentioned by the MP.
Response accuracy
Q6 Partial Answer
Esther McVey Con
Tatton
Context
The MP questioned the fairness between online and high street businesses in terms of taxation.
When will business rates be modernised to achieve an even playing field for online and high street businesses?
Next year, 90% of retail, hospitality, and leisure businesses will see at least a 50% cut in their business rates bill. This is the biggest tax cut since the system was created, other than during coronavirus. An international tax treaty has been introduced to tax large multinational digital companies.
Assessment & feedback
Did not provide specific timelines for modernising business rates or achieving an even playing field.
Response accuracy
Q7 Direct Answer
Gareth Davies Con
Grantham and Bourne
Context
Davies noted the importance of equipping young people with skills to succeed. He mentioned a £126 million funding increase.
Does my right hon. Friend agree that one of the best ways in which we can reduce inequality is by ensuring that young people are equipped with the skills that they need to succeed, wherever they live? That is why the additional £126 million of funding for work placements and training is so important for young people in Grantham and Stamford.
My hon. Friend is absolutely right; I know that he is a staunch supporter of skills and getting young people into work in his constituency. He mentions traineeships, which are fantastic initiatives with a 75% success rate in helping young people and a great example of our plan for jobs in action, spreading opportunity right across the country.
Assessment & feedback
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Q8 Direct Answer
Context
Crabb discussed reducing the universal credit taper rate, increasing work allowance and highlighted record job vacancies.
Boosting the minimum wage, reducing the universal credit taper rate and increasing the work allowance will make a tremendous difference to the real-world choices of people living and struggling on low incomes. Does my right hon. Friend agree that, along with those Budget measures, the fact that we now have a record number of job vacancies means that we have a tremendous opportunity as a nation to really bear down on long-term unemployment and reduce economic inactivity, especially among the most disadvantaged groups?
My right hon. Friend obviously speaks with authority on the topic; I am grateful for his support and engagement on these matters over the past year and a half. He is absolutely right: thanks to the actions of this Government's plan for jobs, unemployment has now been falling for nine months in a row, record numbers of people are in work and wages are rising.
Assessment & feedback
Response accuracy
Q9 Partial Answer
Context
Crosbie mentioned her constituency's low GVA levels and the need for investment in a proposed thermal hydraulic testing facility.
My Ynys Môn island constituency has one of the lowest gross value added levels in the UK and is in desperate need of investment to reverse that inequality. Can the Chancellor confirm that the match funding announced in the nuclear sector deal is in place for the proposed thermal hydraulic testing facility on Anglesey?
I hope that my hon. Friend will forgive me for not treading on the toes of the Business Secretary, but what she will know is that we allocated £120 million for future nuclear development in the Budget and spending review.
Assessment & feedback
specific match funding for Anglesey facility
Not Treading On Toes Of Business Secretary
Response accuracy
Q10 Partial Answer
Pat McFadden Lab
Wolverhampton South East
Context
McFadden criticised the social care cap design, citing Sir Andrew Dilnot's concerns about negative impacts on low-value properties.
Thank you, Mr Speaker. It takes some doing to come up with an inheritance tax aimed at people in the lowest-value properties, but that is exactly what the Chancellor and the Conservatives have done in the way they have designed the social care cap. Even the original author of the policy, Sir Andrew Dilnot, has said that the changes that the Government have made mean that 'the less well off will not gain any benefit from the cap'. When it comes to tax, we should look at what the Government do, not what they say or the newspapers they brief. Why is the Chancellor imposing a tax rise on almost everyone to pay for a policy that will hurt those with the lowest-value properties in the country?
Our social care reforms will benefit millions of people up and down the country, because they will remove the anxiety that the entirety of their assets will be swamped by ever-escalating social care costs.
Assessment & feedback
specific tax rise impacts on low-value properties
Benefit Millions Removing Anxiety
Response accuracy
Q11 Partial Answer
Pat McFadden Lab
Wolverhampton South East
Context
McFadden questioned the economic forecasts, linking low levels of economic growth to the current cost-of-living crisis.
Families are heading into the winter facing a cost of living crisis with rising prices and the Chancellor's tax rises on the way. Last week, the Bank of England produced even lower growth forecasts than the Office for Budget Responsibility did at the time of the Budget, and now the Bank is forecasting that inflation will rise above 5% next year. Why does the Chancellor think that the Conservatives have produced such low levels of economic growth over the past 10 years? Has this lost decade of low growth not led directly to the cost-of-living crisis, the high taxes and the inequality that people are facing today?
Forgive me, Mr Speaker; I should have welcomed the right hon. Gentleman to his new position. I look forward to working with him in his new role.
Assessment & feedback
economic growth and tax rise impacts
Welcoming To New Position
Response accuracy
Q12 Partial Answer
Kevin Hollinrake Con
Thirsk and Malton
Context
Hollinrake mentioned regional inequality in G7 economies due to lack of regional mutual banks, emphasizing their importance for SME finance.
Regional mutual banks are a feature of all the other G7 economies, which have much lower levels of regional inequality. They are key to the provision of small and medium-sized enterprise finance. We have a number around the UK that are ready to go, led by experienced professionals; all they need is some pump-prime funding. Will my right hon. Friend agree to meet me to discuss this very exciting policy area?
I am always delighted to meet my hon. Friend and neighbour, and if we could do that in north Yorkshire, it would be fantastic.
Assessment & feedback
mutual banks funding needs
Meeting Request
Response accuracy
Q13 Partial Answer
Context
The question concerns the Chancellor's policies on universal credit taper rates and living wage, which are seen as inadequate for those who are disabled, carers or out of work. It highlights a concern about these groups being forgotten during the cost-of-living crisis.
Why has he abandoned and forgotten that group when they face a cost-of-living crisis this winter which will often affect them more than the rest of the population?
It is simply not right to say that we have forgotten anyone. We remain committed to supporting all the most vulnerable in our society. I have mentioned previously the various different mechanisms that we have to help people with energy bills, and indeed the recent increase in the local housing allowance. Those of us on the Government Benches believe fundamentally in the power and ability of work to transform people's lives. We want to make sure that people have great jobs, and we want to make sure that those jobs are well paid. The cut in the universal credit taper rate will ensure that there is a £2.2 billion tax cut for those on the lowest incomes.
Assessment & feedback
Specific details or mechanisms addressing disabled individuals, carers, and those out of work during the cost-of-living crisis were not provided.
We Remain Committed To Supporting All The Most Vulnerable In Our Society
Response accuracy