Cost of Living Increases — House of Commons, 2022-01-24
Topic: Macroeconomics
Thomas Sheppard (Scottish National Party, Centre-left): If the hon. Member does not mind, I would like to continue What the Government ought to be doing is recognising that we are coming towards a crisis in the cost of living, particularly with the fuel bills coming in April. They ought to make sure that the energy cap remains in place and does not rise. They ought to provide support for energy supply companies to be able to deliver that. They ought to make sure that the people who have already faced an increase in their bills are given a one-off payment to enable them to get through the rest of this year. But instead of doing that, they do nothing. Tax is another example of where the Government go out of their way, it seems, to make things worse When I talk about tax, it is worth bearing in mind that benefits are also part of the tax system. If the Government choose to withdraw benefits from people, the effect is exactly the same as if they were to increase taxes on their wage bill. That is why the cut of £20 a week to the 6 million poorest households in Britain is so iniquitous and so immoral. It would be at any time, but to do it in the middle of a cost of living crisis is beyond imagination. Of course that ought to be reversed, and of course the Government ought to do more to try to help those who are on fixed and low incomes, particularly those living on meagre state benefits. The fact is that, if the Government do not uprate in the next 12 months the level of benefits paid to those people who desperately need them, with rampant inflation, the real value of those incomes is going to go down even further, and the people who can least afford it are going to be the ones who will pay the most Of course, the increase in tax that the Government are proposing—the national insurance increase—is a tax increase that everyone will pay, and the proportion they will pay is exactly the same, no matter how rich or how poor they are. I have heard Ministers on the radio talk about this as a progressive tax. It is the farthest we can get from a progressive tax. It is fundamentally regressive. The reason it is being brought in is that this Government, who have to increase revenues because of the economic crisis, do not want to ask the very richest or the very wealthiest in our society to pay a bit more. If they had any morality to them, in a situation where they knew they needed to raise income through taxation, they would first consider taxing those who have the most and taxing accumulated wealth, before they levied a tax on people on poor and fixed incomes I think there are many Government Members who can see that this is not a good situation and that the Government’s response is quite abysmal. By the way, I do not know how much of this is by design, or how much of it is turbocharged by the fact that the current Administration are in complete inertia and paralysis; they are unable to do something because they are so scandal-ridden at this point in time. I accept that the lockdown crisis the Government have makes it harder for them to govern, but either way this Government’s honeymoon is long over—the veneer is disappearing. Those people in the red wall seats in the north of England who were conned into believing that this Government—this Tory Government—would stand up for their interests are going to see over the next 12 months things laid out very clearly for them. That is why, of course, there are a lot of nervous people on the Government Back Benches, and there are going to be a lot of problems for the Government in the 12 months ahead Let me turn, in my final remarks, to the situation in Scotland. I was going to congratulate the hon. Member for Moray (Douglas Ross), but he is no longer in his place. He brought into the debate the question of Scottish independence. He introduced it—it is not an SNP obsession. If we look at the text of the motion, the words "referendum" and "independence" do not appear in it. That is not just because we are capable of talking about many other things: it is because this debate, by itself, makes the case for independence. We do not need to write it down—it is self-evident If people want to see how things might be done differently or a different set of instincts, aspirations, attitudes and character at work, they can look north of the border and at what the Scottish Government have tried to do within the competence that they have available. The discretionary housing payment is ameliorating the bedroom tax. The child payments, already introduced and doubling in April, will mitigate some of the attacks on the very poorest in our community. Income tax increases for those who can afford to pay more, which the Conservatives claim make Scotland the most taxed part of the United Kingdom, in fact make Scotland the fairest taxed part of the United Kingdom.