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Finance (No. 2) Bill

The hon. Gentleman asks me why one should provide support for council tax. If there is to be consistency of argument, it hardly seems logical that support for council tax payers should be a reflection of the pressure of energy prices. The specific answer to his question is that there were a number of years of rises in council tax of about 7 per cent., and at the conclusion of that, among other things, the Government offered support to pensioner households. As I have explained already to the hon. Member for Rugby and Kenilworth (Jeremy Wright), that support was first announced at £50 for households with pensioners in a certain age group, for 2005, and then increased to £200 in last year’s Budget, because my right hon. Friend the Chancellor was able to find more resources for it. Like all hon. Members, I have significant sympathy for those on fixed incomes who have to face the pressures that increased energy bills generate. However, it is unlikely that I, as a Minister, or any other Labour Member, will take any lessons from a party with such a record on VAT on energy and a lack of support for the steps that we have taken to help the poor. The answer to the hon. Gentleman’s question is that year after year while we have been in power, we have supported pensioner households with specific payments to help them with their energy costs. We have given winter fuel allowances to households, and increased and maintained them. We indicated in the Budget that year on year, pensioners can look forward to such support.