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Clause 2 - Personal allowance for 2013-14 for those born after 5 April 1948

Part of Finance (No. 2) Bill – in a Public Bill Committee at 4:15 pm on 23rd April 2013.

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Photo of Marcus Jones Marcus Jones Conservative, Nuneaton 4:15 pm, 23rd April 2013

Going back to the measly tax-free allowance that was in place when the Labour party was in Government, does my hon. Friend not agree that the previous Government put people in a perverse situation in which the tax-free allowance never, by any stretch of the imagination, kept pace with the increase in the minimum wage, which meant that year after year more and more people were trapped into income tax on very low incomes? The other perverse thing that happened was that those people who did not want to be trapped in income tax decided to work fewer hours and then claim tax credits, which put us in a situation in 2010 where the welfare bill was ballooning.