argyrotsipi/train-dataset huggingface dataset:
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
David Michael Davis (Conservative, Centre-right): I shall not go too far down that road. Let me simply say that middle-class pensioners are now paying one of the highest effective income tax rates in the country. People who have saved a lot for their pensions and gone above the lifetime allowance must pay 55%. I think we ought to be a bit careful, because if we let the Treasury get at that deferred income, it will take as much as it can The third option, which I think is probably the winner—although not by itself; it would have to be modified—is to stage the cuts. I believe that the right hon. Member for Birkenhead lit upon this strategy as well. The cuts would be staged to match movements in the minimum wage and the living wage so that people would not lose The Government’s figures for 2020 seem broadly to balance, although they are not perfect. We shall have to work through the mitigation carefully, and that is where the impact statement comes in. Those figures do two things. They protect the working poor, but they also achieve the deficit reduction, which is vital. If we hit the deficit reduction target by 2020—this point was made by my hon. Friend the Member for Stevenage (Stephen McPartland)—each saving of £4 billion a year is not critical. It represents less than 1% of the economy. The really critical issue is how the financial markets see the position. The financial markets do not care about the trajectory from here to 2020; the fact that we get there is good enough. We do not need to worry about the £4 billion a year in between, but we do need to worry about the final outcome. My argument, therefore, is that we should cut the tax credits in step with the minimum wage and the living wage The criterion is what is important here. The criterion that the Government must meet is that there should be no losses for the least well off in any of the three intervening years. The poorest, the working poor and their dependants cannot afford to lose one pound. I was never a great fan of the minimum wage, but I was persuaded that it was worthwhile.
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
David Michael Davis (Conservative, Centre-right): I am afraid not. I have already taken two interventions, and if I take another, I shall lose time One of the things that persuaded me that the minimum wage was worth while was the information in social data that it cut crime. We must not lose sight of the social impact of changes such as this: the distress caused to families, the breaking up of families, and the pushing of families towards food banks and, worse, towards loan sharks and petty crime. We have to think about those things, because there is a cost to them as well The Institute for Fiscal Studies told the Work and Pensions Committee, which is chaired by the right hon. Member for Birkenhead, that the Government could hit the 2020 target on a staged route. That is what we should aim for. We can achieve the fiscal target, while still remaining faithful to Conservative "one nation" aims. That, after all, has been the leitmotiv of the last few months for us. If we do that, the Chancellor will have good reason to be proud of his achievement.
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
David Thomas Morris (Conservative, Centre-right): I very rarely stand up in the House of Commons and congratulate an Opposition Member on initiating a debate of such magnitude, but I thank my friend the right hon. Member for Birkenhead (Frank Field). Many in this Chamber see him as a leading light on the welfare of the people of this country. I remember very plainly from before I was in politics the right hon. Gentleman being sacked for thinking the unthinkable, and here we are debating tax credits The tone of the debate is very measured. We are hearing balanced views from all sides. Tax credits were brought in for the right reasons, but they spiralled out of control. When nine out of 10 people can claim a tax credit, we have to ask ourselves whether it is a sweetener for working or a benefit, as it was originally set up to be.
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
David Thomas Morris (Conservative, Centre-right): I disagree with my hon. Friend on the debate in the other place, because I think it was unprecedented that that motion was passed. However, I have my own words to say about that in another context, which he will probably read about over the weekend We were in a position where almost everyone was on a tax credit. They were a stepping-stone to gainful employment. The right hon. Member for Don Valley (Caroline Flint) said it right: employers do not know if their employees are on tax credits. I know that; I employed over 100 people and some were claiming tax credits, but I found that out only down the line in certain circumstances. So it is mainly a hidden benefit I applaud what the Chancellor is trying to do. I do not think this idea of a £1,300 average loss to 3 million households stacks up, because it is based on estimates. We do not know what is going to be in the spending review. However, we do know what has already happened by raising the personal tax allowance to £11,000 in April, with the aspiration for it to be £12,500 in 2020. That will help out and create a tax break worth about £1,000 to people all across the country. We are also offering 30 hours of free childcare, which amounts to £5,000. Fuel duty has been frozen, too, and the economy is on the up.
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
David Thomas Morris (Conservative, Centre-right): I thank the right hon. Lady for her eloquent intervention. She demonstrates that there is confusion in the whole sphere of tax credits and child tax credits. When tax credits were brought in, they helped families who were struggling in a time of great austerity. It has to be acknowledged that we are still in a time of great austerity, but the economy is now on the up and we are seeing projections that we are starting to come out of recession mode and that we will move into a lack of deficit within the next five to 10 years What do all these figures mean? Put simply, they mean that we have to balance the books and we have to look at every possible way of doing so. We have to think the unthinkable, as my right hon. Friend the Member for Birkenhead—I keep calling him my "Friend"—did all those years ago. I do actually have faith in the Chancellor. I know him personally, and he is a good, decent, caring man, despite what we read in the newspapers and despite what is said about him. I know that he will be watching this debate and hearing what we are saying. He will be thinking about this. Yes, nine out of 10 people were claiming tax credits. My right hon. Friend the Member for Birkenhead said that these measures could benefit eight out of 10 people, but we must care for the other two people in every 10 and ensure that we get the right deal for them.
Tax Credits — House of Commons, 2015-10-29
Topic: Social Welfare
Tania Mathias (Conservative, Centre-right): I pay tribute to the right hon. Member for Birkenhead (Frank Field) for securing the debate. I will support the motion and will make a short speech I support the motion because of the perspective I gained from having worked and lived abroad and from my experience more locally. I have lived and worked in communities with no welfare system whatsoever and I have also lived and worked in a community where almost everybody has been on some form of welfare or credit assistance. Neither of those are situations that I would wish for my constituents. That is why I am fully supportive of the Chancellor’s vision of a high wage, low tax and low welfare society and I know that in the places where I have worked they would wish for that in their communities if they could achieve it. I am also supportive of what the noble Lord Lawson said in the other place about welfare and tax credits having ballooned, but I also agree with Lord Lawson and my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) that we must protect those at the lowest end of the income scale As an NHS doctor and therapeutic counsellor in this country and in the area local to where I live, I have come across people going through some of the most challenging times of their lives. Contrary to what the right hon. Member for Birkenhead said, those people do not have weak shoulders. Their shoulders are stronger than mine or anybody’s in this place. I have met single parents who have escaped domestic violence bringing up their children in difficult circumstances and going out to work for some hours during the week. They go out to work because they want to and because they want to be a role model for their children. They are doing their best for their families and we must do our best for them. Ultimately, they become role models for our society. I support the Chancellor in looking for mitigation measures and am happy to support the motion today.
Tax Credits — House of Commons, 2015-10-29
Topic: Labor
Jeremy Mark Quin (Conservative, Centre-right): I hope that the hon. Lady recognises that the national living wage, which has been applauded, is already addressing exactly the concern that she has just raised. It has been a very effective way of raising the wages of those in employment.
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
Scott Leslie Mann (Conservative, Centre-right): I thank the right hon. Member for Birkenhead (Frank Field) for securing the debate. This is the first opportunity that I have had to contribute to the tax credits debate The primary aim of this Government is to pay down the deficit, reduce public spending and unshackle the £3,000 that hangs around the neck of every child that is born in the UK. The Prime Minister has lifted thousands of people in my constituency out of income tax altogether, given 30 hours of free childcare and introduced the new living wage. I am proud to associate myself with those measures When tax credits were first introduced by Labour, they cost £4 billion a year. This year, I believe, they cost £30 billion, so they clearly need reform.
Tax Credits — House of Commons, 2015-10-29
Topic: Social Welfare
Scott Leslie Mann (Conservative, Centre-right): I thank the hon. Gentleman for his contribution. I will deal with that as I continue my remarks The proposals presented by the Opposition over the past few days would maintain the status quo. They believe that we should not change the £30 billion tax credit bill at all. [Interruption.] I do not accept that. They have offered no credible plan to take this burden off our children. [Interruption.] I was elected on a manifesto to reduce the welfare bill and I hope we will do that. We on the Government Benches know that we have to take the difficult decisions that lie ahead in order to bring about spending reductions. It is all very well for the Leader of the Opposition to ask six questions on tax credits yesterday, but a policy that affects 3 million families cannot be changed on a whim. I welcome the Chancellor’s announcement that he will deal with the matter in the autumn statement.
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
Scott Leslie Mann (Conservative, Centre-right): Absolutely not. We are looking seriously at the proposal and we will make some announcements in the autumn statement North Cornwall, which I represent, is a modest-waged economy. We benefited from the economic improvements that the country has seen. We have seen rising school provision and many people in my constituency have benefited from the Help to Buy scheme. They are trying to improve their lot in life and trying to do the right thing. As my hon. Friend the Member for Tiverton and Honiton (Neil Parish) said so eloquently, the Government must ensure that we make it better for people to be in work than out of work, but we must support those who work.
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
Jeremy Mark Quin (Conservative, Centre-right): I do not want to put my hon. Friend off his stride, but remarks were made from a sedentary position on the Opposition Benches during the earlier part of this speech. In the course of this debate we have had a non-partisan discussion. I thought I heard Opposition Members say that Labour is keen to see changes in tax credits and would move to cut the £30 billion of expenditure. Does my hon. Friend, like me, look forward to hearing such remarks made from the Opposition Front Bench, with an explanation of how the Opposition would cut the bills?
Tax Credits — House of Commons, 2015-10-29
Topic: Social Welfare
Scott Leslie Mann (Conservative, Centre-right): Absolutely correct. It is ultimately our responsibility to look at all the financial provision that we make as a Government and ensure that that money is distributed to people who are trying to do the right thing.
Tax Credits — House of Commons, 2015-10-29
Topic: Social Welfare
Scott Leslie Mann (Conservative, Centre-right): Forgive me—I thought the two Opposition-day debates were aimed at abolishing the proposal completely This Government know they need to make tough decisions, but they need to make them with fairness and compassion. The measures that we are putting in place to manage the transition are to be welcomed, and the national living wage, the free child care arrangements, and the social rent reductions of 1% a year that are being implemented for those who live in social rented homes will help some people to manage the transition. However, it is evident that some people will fall between the cracks. People with older children aged between eight and 14, for example, who do not necessarily have child care provision that they can allocate, single parents who currently earn more than the living wage, and those in private accommodation who do not benefit from the rent reductions will be affected There are many better economists in the House than I. It is not a subject that I profess to be particularly good at, but I would like to offer some financial solutions. How about going after VW, which seems to owe a huge amount of money to our Government from the vehicle excise duty that it has not paid? We should use some of that money. How about abolishing national insurance for anyone who is under the income tax threshold? We could also give tax breaks to grandparents or provide a transferable allowance for that 30 hours of free childcare. Many working families use grandparents to provide care. I see no reason why we could not change the childcare arrangements to take account of that. We could consolidate tax credits for new claimants, which would reduce the welfare bill I welcome the opportunity to get on the record in this debate, and I welcome this moment of pause that has been presented to us by the other place. I am here today to stand up for the thousands of working people in North Cornwall and I urge the Chancellor to assist them in their efforts to work and to earn.
Tax Credits — House of Commons, 2015-10-29
Topic: Social Welfare
Robert John Blackman (Conservative, Centre-right): It is a pleasure to follow that thoughtful contribution from the hon. Member for Arfon (Hywel Williams). I, too, congratulate the right hon. Member for Birkenhead (Frank Field) on securing this debate, and the Backbench Business Committee on its wisdom in granting it—I had the pleasure of chairing that meeting. This is the first opportunity I have had to contribute to a debate on the vexed issue of tax credits It is a great shame that the right hon. Member for Birkenhead was unable to convince his party when it was in government of the wisdom of transforming the welfare system in this country, but we are where we are. My big criticism of the previous Labour Government is that instead of reforming the welfare system, every time a new problem arose they set up a new benefit. The system therefore became unwieldy and unworkable. When I was elected in 2010, a series of people came to see me about the hugely complicated financial arrangements they faced, both with working tax credits and child-based tax credits.
Tax Credits — House of Commons, 2015-10-29
Topic: Social Welfare
Robert John Blackman (Conservative, Centre-right): That is not quite what I said. I mentioned the welfare system and said that we had a series of different welfare benefits. Whatever the problem was, the Labour Government set up a new benefit, whether a tax credit or another arrangement. During a period of relatively high employment they failed to deal with the fundamental issue, which, as the hon. Gentleman rightly points out, is low wages. This debate was billed as the last chance to review what the Government are proposing before it became fact, but events in the other place mean that we are now in a position to make alternative proposals. Contributions this afternoon will therefore be helpful to the Chancellor in deciding what to bring forward in his autumn statement. Clearly, we have to strike a balance. The Conservative party manifesto laid out that we were going to save £12 billion in welfare. The challenge is therefore to come forward with alternative proposals on how welfare savings of £12 billion will be found. Some £4 billion of savings are envisaged from this change I start with sympathy for the people affected. When we reduce people’s benefits, they will always complain. When we increase the tax threshold so that they pay less tax, they will be quite happy and will not complain. When their wages are increased, they will not complain. But if we take benefits away, they will squeal. We clearly must look at the effect on individuals in the round. We must have the utmost sympathy for those people who are working full time and have no alternative but to receive tax credits to top up their wages. What can they do? They suffer a loss of income, and that will have an impact on their families. Therefore, the first thing I would like the Chancellor to do is examine the measures so that people in full-time work suffer no impact whatsoever, because this is grossly unfair on them Equally, we face a challenge in both the public and private sectors. Over time the Government have quite rightly reduced business taxation to encourage businesses to grow and to locate within the United Kingdom. That has got to be good news, because it has created jobs. However, they have also kept wages artificially low, and that has to change. Therefore, I greatly support the principle of a living wage, but clearly it is far too low at the moment. We need to see it increase dramatically so that work pays, instead of relying on the taxpayer to subsidise work in private industry, which cannot be right. I hope that the Government will look at that, in particular, so that we can encourage businesses to pay their staff more for the work they do. That has to be the right way to demonstrate that work should always pay We hear constant criticism from the Labour party about the creation of large numbers of part-time jobs in this country. One of the reasons for that is the fact that a large number of people know that if they take on a part-time job, perhaps working 16 hours a week, they will still have access to a large range of benefits. That is a lifestyle choice.
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
Robert John Blackman (Conservative, Centre-right): I will not give way again That is a lifestyle choice that people make. What we can see is that Government proposals and Government restrictions on taxation and benefits change people’s habits, so what we have to do is enable people—
Tax Credits — House of Commons, 2015-10-29
Topic: Social Welfare
Robert John Blackman (Conservative, Centre-right): I am not giving way again What we need to do is look at how people can change their behaviours to make sure their income is increased. The first area we have to look at is childcare. Working mothers and fathers who have childcare responsibilities need access to proper, decent childcare. I applaud the Government for the 30 hours’ free childcare, but that is not good enough for parents who, as a result, can only work part time. Please will the Government consider improving the amount of free childcare given—not the limited range we are discussing now, but more extensively—so that more people in this country can choose to take on more hours at work, and therefore improve their income at no cost to themselves? That would reduce the tax credits bill and ensure greater productivity in our industry Those two measures would start to alleviate the problem, but I believe that the Government, now in listening mode, need to consider where else we can save money in the welfare system. There is also a challenge for the Opposition: if they do not agree with reducing tax credits, from where else within the welfare system should the money come? That is a clear challenge, and I look forward to hearing in the winding-up speeches some of the answers to some of the questions raised in the debate The reality, and my greatest concern, is my constituents’ uncertainty about how they will be affected next April if the changes are introduced. As the right hon. Member for Don Valley (Caroline Flint) said, one of the problems is that people are making lifestyle choices now. It is not fair to those families and individuals who are thinking about what they should do in terms of work, where they study and so on to leave them in limbo. The quicker this is resolved, the better for everyone concerned.
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
Martin John Vickers (Conservative, Centre-right): I agree with my hon. Friend. Like me, he represents a coastal community with low pay. Does he acknowledge that, as well as the help that needs to be given to those who are in receipt of tax credits, we must consider the spending power that will be taken out of the local economy if we proceed with the proposals that were outlined by the Government, which will be very detrimental to our areas?
Tax Credits — House of Commons, 2015-10-29
Topic: Social Welfare
Peter James Guy Aldous (Conservative, Centre-right): My hon. Friend is quite right. There are some very clever people in the Treasury, but they often look at the country as a whole. They need to realise that things are very different in different places I have two final points on universal credit. The requirement to provide childcare bills on a monthly basis could mean that parents whose childcare costs are higher at certain times of the year will be financially worse off than they are under the current system. For those who receive help with their rent, the option for payments to go straight to the landlord should be more easily accessible In the longer term, the Government need to take stock of their approach to welfare reform. They have been right to rise to the challenge and most of their policies have been successful. How they move forward needs careful thought and reflection. Perhaps alongside the benefit cap there should be a benefit ceiling. In the short term—in the next four weeks—there is a lot to be done to get this policy right: to ensure that it is fair, that it does not penalise the working poor and that it provides them with a ladder of workplace progression.
Tax Credits — House of Commons, 2015-10-29
Topic: Macroeconomics
Guto ap Owain Bebb (Conservative, Centre-right): In the spirit of cross-party co-operation, does the hon. Gentleman not accept that there are small businesses in constituencies such as mine, where we do not go shooting and are not involved in that type of behaviour, which appreciate that the Treasury is allowing them time to adapt to a new living wage? The concern we have about the tax credit issue is that the time allowed for small businesses to adapt was not necessarily made available to the recipients of tax credits.