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Richmond upon Thames Liberal Democrats:Covering the constituencies of Twickenham and Richmond Park |
Clegg quizzes Brown at PMQs
January 6, 2010 10:58 PM
• Nick Clegg: ' . . LAST weekend, the Prime Minister said that he was all in favour of aspiration. Could he explain to us exactly what is aspirational about a tax system that he has created in which the poorest 20 per cent. pay more from their income in tax than the richest 20 per cent.?'
I also add my own expressions of profound sympathy and condolence to the family and friends of the brave British soldiers who have lost their lives serving in Afghanistan since the House last sat: Corporal Simon Hornby, Lance Corporal Michael Pritchard, Lance Corporal Christopher Roney, Lance Corporal Tommy Brown, Rifleman Aidan Howell, Sapper David Watson and Private Robert Hayes.
I would also like to pay my own tribute to David Taylor, who sadly died during the Christmas recess. I was once one of the MEPs for his area, and he had a reputation then-and always has-as an outstanding constituency MP and someone who always spoke his own mind. My heart goes out to his wife Pam and his four daughters.
Last weekend, the Prime Minister said that he was all in favour of aspiration. Could he explain to us exactly what is aspirational about a tax system that he has created in which the poorest 20 per cent. pay more from their income in tax than the richest 20 per cent.?
The Prime Minister: It was because of all these things that we introduced the tax credit system, which is the means by which we take people out of poverty. We reward work for people who are in work, and for people who pay income tax it removes their liability by giving them tax credits instead. It is the means by which we bring greater justice, take people out of poverty and make work pay, and I hope that the right hon. Gentleman will continue to support the tax credit system, which is an essential part of our tax and benefits system in this country.
Mr. Clegg: The Prime Minister talks about justice. He has not delivered justice or fairness in the tax system. He is the one who scrapped the 10p tax rate. It is his rules that allow a City banker to pay less tax on capital gains than a cleaner pays on wages. He is about to hit millions of average earners with higher national insurance bills. Where is the fairness, where is the aspiration, in any of that?
The Prime Minister: The aspiration is helping people into jobs, giving people the chance to earn a decent living, and ensuring that the tax system is fair.
Presumably the hon. Gentleman will now support our 50 per cent. tax on the bonuses of the banks. Presumably he will support the raising of the top rate of tax to 50 per cent. Presumably he will support the removal of pension tax reliefs, which we are carrying out as very much part of the deficit reduction plan. What we have tried to do is ensure that in these difficult times, as we make changes, the burden is shared fairly, which means that those with the broadest shoulders must pay more. I hope that the hon. Gentleman will agree with that.
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