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I notice the Leader of the Opposition is still not saying whether he supports our energy price guarantee. This is very relevant, because it is the biggest part of our mini-Budget. The fact is that all the Opposition have said is that people should be supported for six months. Does he think that, in March, pensioners should be facing very high energy bills? That is what will happen if he does not support our energy price guarantee.
I notice the Leader of the Opposition is still not saying whether he supports our energy price guarantee. This is very relevant, because it is the biggest part of our mini-Budget. The fact is that all the Opposition have said is that people should be supported for six months. Does he think that, in March, pensioners should be facing very high energy bills? That is what will happen if he does not support our energy price guarantee.
The Prime Minister knows very well that, on this side, we voted against the national insurance rise in the first place. She voted for it, so who is doing the U-turn? Honestly.
Last week, the Prime Minister was forced to U-turn on her unfunded tax cut for the super-wealthy. This week, she is beginning to realise that she needs to extend the windfall tax, one step behind the CEO of Shell, but she is still going ahead with £18 billion of tax cuts for the richest businesses, and they did not even ask for it. She has still gift-wrapped a stamp duty cut for landlords, just as renters feel the pinch, and she is still holding out tax cuts for those who live off stocks and shares. Why does she expect working people to pick up the bill for her unfunded tax cuts for those at the top?
I thank the right hon. and learned Gentleman for his welcome. I hope that we will be able to work together, particularly in areas we agree on. I know that we have had strong support from the Opposition in opposing Vladimir Putin’s appalling war in Ukraine, and I want us to continue to stand up to that appalling Russian aggression, which has led to the energy crisis we face now. I am against a windfall tax. I believe it is the wrong thing to be putting companies off investing in the United Kingdom, just when we need to be growing the economy.
I thank the right hon. and learned Gentleman for his welcome. I hope that we will be able to work together, particularly in areas we agree on. I know that we have had strong support from the Opposition in opposing Vladimir Putin’s appalling war in Ukraine, and I want us to continue to stand up to that appalling Russian aggression, which has led to the energy crisis we face now. I am against a windfall tax. I believe it is the wrong thing to be putting companies off investing in the United Kingdom, just when we need to be growing the economy.
Thank you, Mr Speaker. May I congratulate the Prime Minister on her appointment? When she said in her leadership campaign that she was against windfall taxes, did she mean it?
I understand that people across our country are struggling with the cost of living, and they are struggling with their energy bills. That is why I as Prime Minister will take immediate action to help people with the cost of their energy bills. I will be making an announcement to this House on that tomorrow, and giving people certainty to make sure that they are able to get through this winter, able to have the energy supplies and able to afford it. But we cannot just deal with today’s problem; we cannot just put a sticking plaster on it. What we need to do is increase our energy supplies long term. That is why we will open up more supply in the North sea, which the right hon. and learned Gentleman has opposed, and why we will build more nuclear power stations, which the Labour party did not do when it was in office. That is why we will get on with delivering the supply, as well as helping people through the winter.
I understand that people across our country are struggling with the cost of living, and they are struggling with their energy bills. That is why I as Prime Minister will take immediate action to help people with the cost of their energy bills. I will be making an announcement to this House on that tomorrow, and giving people certainty to make sure that they are able to get through this winter, able to have the energy supplies and able to afford it. But we cannot just deal with today’s problem; we cannot just put a sticking plaster on it. What we need to do is increase our energy supplies long term. That is why we will open up more supply in the North sea, which the right hon. and learned Gentleman has opposed, and why we will build more nuclear power stations, which the Labour party did not do when it was in office. That is why we will get on with delivering the supply, as well as helping people through the winter.
I thank the Prime Minister for her answer. I ask because Treasury estimates are that the energy producers will make £170 billion in excess profits over the next two years. The Prime Minister knows that she has no choice but to back an energy price freeze, but that won’t be cheap, and the real choice—the political
choice—is who is going to pay. Is she really telling us that she is going to leave those vast excess profits on the table and make working people foot the bill for decades to come?
The reality is that this country will not be able to tax its way to growth. The way we will grow our economy is by attracting investment, keeping taxes low, and delivering the reforms to build projects quicker—that is the way that we will create jobs and opportunities across our country.
The reality is that this country will not be able to tax its way to growth. The way we will grow our economy is by attracting investment, keeping taxes low, and delivering the reforms to build projects quicker—that is the way that we will create jobs and opportunities across our country.
I look forward to tomorrow’s statement, but the money has got to come from somewhere. The Prime Minister knows that every single pound in excess profits that she chooses not to tax is an extra pound on borrowing that working people will be forced to pay back for decades to come. More borrowing than is needed—that is the true cost of her choice to protect oil and gas profits, isn’t it?
The right hon. and learned Gentleman is looking at this in the wrong way. The last time we cut corporation tax, we attracted more revenue into the Exchequer because more companies wanted to base themselves in Britain, and more companies wanted to invest in our country. If taxes are put up and raised to the same level as in France—that is what the current proposal is, which I will change as Prime Minister—that will put off investors, and it will put off those companies investing in our economy. Ultimately, that will mean fewer jobs, less growth, and fewer opportunities across our country.
The right hon. and learned Gentleman is looking at this in the wrong way. The last time we cut corporation tax, we attracted more revenue into the Exchequer because more companies wanted to base themselves in Britain, and more companies wanted to invest in our country. If taxes are put up and raised to the same level as in France—that is what the current proposal is, which I will change as Prime Minister—that will put off investors, and it will put off those companies investing in our economy. Ultimately, that will mean fewer jobs, less growth, and fewer opportunities across our country.
So, Mr Speaker, the right hon. Lady’s first act as Prime Minister is to borrow more than is needed because she will not touch excess oil and gas profits. On that topic, how much would her planned corporation tax cut hand out to companies?
I am on the side of people who work hard and do the right thing. That is why we will reverse the national insurance increase, and that is why we will keep corporation tax low, because ultimately we want investment right across our country. We want new jobs and new opportunities, and that is what I will deliver as Prime Minister.
I am on the side of people who work hard and do the right thing. That is why we will reverse the national insurance increase, and that is why we will keep corporation tax low, because ultimately we want investment right across our country. We want new jobs and new opportunities, and that is what I will deliver as Prime Minister.
It is extraordinary that the Prime Minister is not only refusing to extend the windfall tax but choosing to hand the water companies who are polluting our beaches a tax cut. She is choosing to hand the banks a tax cut. Add it all together, and companies who are already doing well are getting a £17 billion tax cut while working people pay for the cost of living crisis, stroke victims wait an hour for an ambulance and criminals walk the streets with impunity. Families and
public services need every penny that they can get. How on earth does she think that now is the right time to protect Shell’s profits and give Amazon a tax break?
There is nothing new about a Labour leader who is calling for more tax rises. It is the same old, same old tax and spend. What I am about is reducing taxes, getting our economy growing, getting investment and getting new jobs for people right across the country.
I am afraid to say that the right hon. and learned Gentleman does not understand aspiration. He does not understand opportunity. He does not understand that people want to keep more of their own money. That is what I will deliver as Prime Minister. I will take immediate action to help people with their energy bills but also secure our long-term energy supply. I will take immediate action to ensure that we have lower taxes and grow the economy. In that way, I will ensure that we have a positive future for our country and get Britain moving.
There is nothing new about a Labour leader who is calling for more tax rises. It is the same old, same old tax and spend. What I am about is reducing taxes, getting our economy growing, getting investment and getting new jobs for people right across the country.
I am afraid to say that the right hon. and learned Gentleman does not understand aspiration. He does not understand opportunity. He does not understand that people want to keep more of their own money. That is what I will deliver as Prime Minister. I will take immediate action to help people with their energy bills but also secure our long-term energy supply. I will take immediate action to ensure that we have lower taxes and grow the economy. In that way, I will ensure that we have a positive future for our country and get Britain moving.
The Prime Minister claims to be breaking orthodoxy, but the reality is that she is reheating George Osborne’s failed corporation tax plans, protecting oil and gas profits, and forcing working people to pay the bill. She is the fourth Tory Prime Minister in six years. The face at the top may change, but the story remains the same.
There is nothing new about the Tory fantasy of trickle-down economics and nothing new about this Tory Prime Minister who nodded through every single decision that got us into this mess and now says how terrible it is. Can she not see that there is nothing new about a Tory Prime Minister who when asked, “Who pays?” says, “It’s you—the working people of Britain”?
No, it will not be paid for by a windfall tax. I do not believe that we can tax our way to growth. I want to see us using more of our UK energy supply, including more oil and gas from the North sea and nuclear power in Scotland. I hope I can count on the SNP’s support for that.
No, it will not be paid for by a windfall tax. I do not believe that we can tax our way to growth. I want to see us using more of our UK energy supply, including more oil and gas from the North sea and nuclear power in Scotland. I hope I can count on the SNP’s support for that.
I am sure that the thoughts and prayers of everyone in the House will be with the families caught up in the terrible shooting over recess in Kyle and Lochalsh, and indeed in Liverpool. I trust that the families will be fully supported.
Let me congratulate the Prime Minister and her family on her appointment, but I am sorry to say that her reputation for straight talking is falling apart at the first PMQs. After nine questions, she has still not told us who will pay for her energy plan. Today, the public are waiting to find out the response to the economic crisis, and they want answers. Will she finally answer two very simple questions? Will she freeze energy prices at their current levels, and will that be paid for by a windfall tax—yes or no?
I am not quite sure what the right hon. Gentleman’s position is, because on one hand he does not seem to want oil and gas extraction from the North sea, and on the other hand he wants them to pay more taxes. Why does he not make up his mind?
I am not quite sure what the right hon. Gentleman’s position is, because on one hand he does not seem to want oil and gas extraction from the North sea, and on the other hand he wants them to pay more taxes. Why does he not make up his mind?
The Prime Minister may have changed, Mr Speaker, but it is the same old Tories shouting us down.
On her first full day as Prime Minister, she has failed to rule out a Truss tax on households and businesses. Instead of targeting the profits of massive corporations with a windfall tax, the Prime Minister’s plan appears to be a decade-long raid on the bank accounts of ordinary taxpayers. These costs must not be passed on to consumers and businesses by deferring bills. The Government must announce an enhanced windfall profits tax, making sure that those oil and gas producers pay their fair share from excess profits. Does the Prime Minister understand that her first act as Prime Minister will now define her: a Truss tax that households and businesses will be paying for years to come?
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of change the level of tax for NHS consultants working overtime.
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of change the level of tax for NHS consultants working overtime.
The Government keeps public sector pay and pensions policy under constant review in the context of the wider public finances. The same tax rules must apply identically to everyone in the same situation, regardless of their employer.
Pensions tax relief is one of the most expensive reliefs in the personal tax system. In 2017/18 income tax and employer National Insurance Contributions relief cost over £50 billion, with around two-thirds going to higher and additional rate taxpayers.
The Government has listened carefully to specific concerns raised by some high-earning NHS consultants impacted by annual allowance tax charges.
In response, the Secretary of State for Health and Social Care has announced his intention to consult on proposals for a new 50:50 option providing pension flexibility for senior clinicians in the NHS. This flexibility will give senior clinicians in England and Wales more choice in respect of their pension accrual, and therefore the ability to control better any pensions tax charges.
Urgent question on the implications for patients of the taxation of NHS pensions.
Urgent question on the implications for patients of the taxation of NHS pensions.
To ask the Chancellor of the Exchequer, what programmes were allocated funding from the Soft Drinks Industry Levy in 2018-2019.
To ask the Chancellor of the Exchequer, what programmes were allocated funding from the Soft Drinks Industry Levy in 2018-2019.
In 2018-19 the following programmes were allocated money through funds collected from the levy:
- The PE and Sport Premium;
- The Healthy Pupils Capital Fund;
- Breakfast Clubs in over 1700 Schools
- The Essential Life Skills (ELS) programme
- Activities to support Mental Health/Personal, Social, Health and Economic (PSHCE)
The funding from the Soft Drink Industry Levy has meant the following increases in allocations in recent years:
- In September 2017 DfE doubled the primary school PE and sport premium from £160 million per year to £320 million per year to help schools support healthier, more active lifestyles. This funding will enable primary schools to make further improvements to the quality and breadth of PE and sport they offer
- The Levy has provided up to £26 million funding to expand breakfast clubs in up to 1,700 schools
The Devolved Administrations receive money from the levy through the Barnett formula. We do not hold information on the programmes they choose to support.
To ask the Chancellor of the Exchequer, if he will make an estimate of the number of NHS employees in Linlithgow and East Falkirk constituency who face increased tax bills as a result of the changes to the tapering of the annual allowance combined with the introduction of the 2015...
To ask the Chancellor of the Exchequer, if he will make an estimate of the number of NHS employees in Linlithgow and East Falkirk constituency who face increased tax bills as a result of the changes to the tapering of the annual allowance combined with the introduction of the 2015...
HM Treasury sets the UK-wide tax rules for pensions, and does not set the rules for individual schemes. The Government keeps all aspects of the tax system under review through the annual Budget process.
Health is a devolved matter for the Scottish Government. The Scottish Public Pensions Agency are responsible for the administration of the pensions for employees of the National Health Service schemes in Scotland. HM Treasury therefore does not hold relevant data about NHS employees in the Linlithgow and East Falkirk constituency.
To ask the Chancellor of the Exchequer, how much money has been raised through the apprenticeship levy in each month since its introduction.
To ask the Chancellor of the Exchequer, how much money has been raised through the apprenticeship levy in each month since its introduction.
Monthly receipts data for the Apprenticeship Levy is published by HM Revenue & Customs in their Tax & NIC Receipts publication which can be found online at: https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk
A condensed version of the relevant table has been copied below:
HM Revenue and Customs receipts
| Year | Apprenticeship Levy |
| May-17 | 162 |
| Jun-17 | 198 |
| Jul-17 | 211 |
| Aug-17 | 210 |
| Sep-17 | 206 |
| Oct-17 | 207 |
| Nov17 | 208 |
| Dec-17 | 176 |
| Jan-18 | 252 |
| Feb-18 | 218 |
| Mar-18 | 223 |
| Apr-18 | 278 |
| May-18 | 228 |
| Jun-18 | 212 |
| Jul-18 | 220 |
| Aug-18 | 228 |
| Sep-18 | 213 |
| Oct-18 | 218 |
| Nov-18 | 219 |
| Dec-18 | 213 |
| Jan-19 | 233 |
| Feb-19 | 227 |
Amounts : £ million
As I have said, we are moving on from the benefits freeze. We are in a position now where real wages are growing and benefits will increase in line with inflation from 2020. However, the best route out of poverty and to helping people is ensuring that children get a good education and that more jobs are available in our economy.
As I have said, we are moving on from the benefits freeze. We are in a position now where real wages are growing and benefits will increase in line with inflation from 2020. However, the best route out of poverty and to helping people is ensuring that children get a good education and that more jobs are available in our economy.
T4
.
Debbie Abrahams (Oldham East and Saddleworth) (Lab):
Last month’s Office for National Statistics figures show that life expectancy for the poorest has fallen whereas for the rich, it has increased. Analysis into the key drivers of that, including Public Health England’s investigations, shows that it is the result of cumulative tax and social security changes. I therefore ask the Chancellor, once again, what will he do about that, and particularly, will he stop immediately the benefit freeze that has such a devastating effect on people’s lives?
To ask the Chancellor of the Exchequer, how much (a) English and (b) Welsh police services did claim from the apprenticeship levy in 2018.
To ask the Chancellor of the Exchequer, how much (a) English and (b) Welsh police services did claim from the apprenticeship levy in 2018.
To ask the Chancellor of the Exchequer, when his Department next plans to meet with representatives of (a) the Scottish Government and (b) Scottish business to discuss the allocation of funds raised by the apprenticeship levy.
To ask the Chancellor of the Exchequer, when his Department next plans to meet with representatives of (a) the Scottish Government and (b) Scottish business to discuss the allocation of funds raised by the apprenticeship levy.
The Treasury meets with the Scottish Government regularly to discuss matters of mutual interest.
The Scottish Government will receive £239 million in 2019-20, which represents a population share of the Apprenticeship Levy forecast. Skills is devolved in Scotland and it is for the Scottish Government to determine how to use this funding.
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of refunding the tax contribution made to the education budget by parents who educate their children at home.
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of refunding the tax contribution made to the education budget by parents who educate their children at home.
The obligation to pay taxes is a general one. In general, tax receipts go into the ‘Consolidated Fund’ and taxes are not earmarked to any particular purpose.
I do appreciate that not all taxpayers make direct use of every service provided by the government, and that parents who choose to educate their children at home are one example of this. However, a similar argument for a tax refund could be made by anyone who does not use a publicly provided service, or some aspect of that service, including those who are not parents. Primary and secondary education is primarily funded through general taxation, irrespective of usage, and not through charging users.
To ask the Chancellor of the Exchequer, whether he has made an estimate of the revenue that will accrue to the public purse from an age-related levy to pay for social care; and if he will make a statement.
To ask the Chancellor of the Exchequer, whether he has made an estimate of the revenue that will accrue to the public purse from an age-related levy to pay for social care; and if he will make a statement.
The revenue raised by any new tax or levy would depend on the way it is designed, including how the tax base is defined, how the tax is structured, and the rate or rates of taxation applied to the base. It would also depend on the economic circumstances at the time the tax or levy is introduced.
We are seeing a growing number of young people taking up high-quality apprenticeships, which is fantastic news. We were able at the Budget to improve flexibility, so that it is easier for small and medium-sized enterprises and companies in the supply chain to take on apprentices.
We are seeing a growing number of young people taking up high-quality apprenticeships, which is fantastic news. We were able at the Budget to improve flexibility, so that it is easier for small and medium-sized enterprises and companies in the supply chain to take on apprentices.
8.
Luke Hall (Thornbury and Yate) (Con):
Can the Minister update us on what analysis the Treasury has conducted of the effectiveness of the apprenticeship levy in helping young people get into high-paid roles once they finish their apprenticeships?