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Tax Thresholds

Oral Answers to Questions — Treasury – in the House of Commons on 1st October 2019.

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Photo of Janet Daby Janet Daby Labour, Lewisham East

What assessment his Department has made of the effect of increases in income tax thresholds on income distribution in the last 10 years.

Photo of Jesse Norman Jesse Norman Financial Secretary to the Treasury and Paymaster General

That was a cruel blow for my right hon. Friend, Mr Speaker, if I may say so.

In answer to the hon. Lady’s question, the House will I am sure rejoice that between 2010 and 2019 the personal allowance has been increased by more than 90%, so that those on the lowest incomes do not pay any income tax, and since 2015-16 alone 1.74 million people have been taken out of income tax altogether. We will publish a full distributional analysis of the recent spending round alongside the next Budget, and it will also capture the effect of any budgetary announcements made at that time.

Photo of Janet Daby Janet Daby Labour, Lewisham East

Can the Minister explain how it is fair that a small handful at the very top have run into the distance, making up the top 10% of the population and owning 44% of the nation’s wealth?

Photo of Jesse Norman Jesse Norman Financial Secretary to the Treasury and Paymaster General

The hon. Lady may not be aware that at the moment the top 1% of the country pay 29% of all tax. That is up from the 25% in 2010-11.