Proceeding contribution from David Gauke (Conservative) in the House of Commons on Thursday, 22 March 2007. It occurred during Budget debate on Budget Resolutions and Economic Situation.
Budget Resolutions and Economic Situation
No, I have given way. I wish to conclude with this point on tax credits: another clear difficulty with them is that although they try to address the poverty trap for people entering employment, there has been difficulty with people in low-paid employment who move up, whether they are earning more or whether they are moving from part-time to full-time work, because of the very high marginal rate. According to one figure that I have seen, since 1997 the number of people facing a marginal rate of 50 per cent. or more has increased by 874,000. I think that the Government tried to address that yesterday, to some extent, by raising the threshold of the working tax credit, but I would be grateful to learn whether more people will be caught by the higher marginal rate. I do not know whether an analysis of that has been done, but there is concern that more people might be caught. I do not wish to dwell on the administrative difficulties with the tax credits system. I am sure that if I did the Paymaster General would intervene frequently—
Secondary information
- Type
- Proceeding contribution
- Reference
- 458 c1031
- Session
- 2006-07
- Chamber / Committee
- House of Commons chamber
- Subjects
- Corporation tax Budgets Health services Finance Education Further education Income tax Higher education Economic situation NHS Welfare tax credits Schools Taxation Budget March 2007
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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