Part of Finance Bill – in a Public Bill Committee am 12:30 pm ar 13 Mehefin 2013.
What concerns me is that we are regularly told about the necessity for this and that to be cut. For example, tax credits, on which many low-income families rely on considerably, have been extensively reduced in the past few years. The Child Poverty Action Group has published its assessment of what is happening with child poverty, and it shows just how big the cuts in the tax credit system have been at all levels. As a result of those cuts, 300,000 more children are now living in absolute poverty than were before. Many people have been asked, in a variety of ways, to help the country get out of its economic problems. We do not necessarily share the view that endlessly saying, “Cut, cut, cut” will get us out of our economic problems, but that is the Government’s view. We cannot ask low-income families to take this substantial hit.
We had a fairly extensive debate early on in our deliberations—it was probably months ago, because we seem to have been here that long—about the bedroom tax. My constituents are losing £12 out of a £71-a-week income. That is a lot of sharing the pain.
It is absolutely right to ensure that the pain is shared equally, and one way of trying to do that is through fair taxation. I share the Government’s view that sharing the pain through property taxation appears to be an effective way of taxing the very wealthy. It must be the very wealthy who are in this bracket, and property taxation will be easier.
I urge the Government, even at this late stage, to reconsider the convoluted way they have dealt with this matter, which presents us with all these concerns. After all, we do not know that another way will be found to get around this problem. The door has been closed on this mechanism, but will another door be opened by some other ingenious scheme? There clearly seem to be many of them. In many ways, straightforward simple taxation makes the matter easier. I urge the Government to reconsider their position.