Cable and Harris quiz Harman at PMQs (Twickenham & Richmond Liberal Democrats)

Cable and Harris quiz Harman at PMQs

January 30, 2010 6:18 PM

• [Jan 27] Vincent Cable: ' . . WILL she explain why now, after 12 years of Labour Government, income inequalities are the same-still shocking-wealth inequalities in shares and property are worse, and, as we discovered on Monday of this week, child poverty is growing? . . '

May I add my condolences for the loss of Lance Corporal Cooper and Rifleman Aldridge?

May I congratulate the Leader of the House on her foresight in establishing the National Equality Panel, which reported today? It helpfully reminds us that after 18 years of Conservative Government, inequality had widened and reached the level described in the report as "shocking". Will she explain why now, after 12 years of Labour Government, income inequalities are the same-still shocking-wealth inequalities in shares and property are worse, and, as we discovered on Monday of this week, child poverty is growing?

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Harriet Harman: I join the hon. Gentleman in thanking Professor John Hills and his panel for the important report by the National Equality Panel. The hon. Gentleman is right to say that the report states that under the Conservatives- [ Interruption. ] Under the Conservatives, inequality widened, and as a result of the effect of this Government's policies, most particularly on tax and benefit, the growing inequality has been stemmed. We have also tackled poverty, especially child poverty and pensioner poverty, but we think that inequality matters for the individual, for opportunity, for the economy and for a more peaceful society, so we are determined to do more to tackle inequality, which persists and can be handed down the generations.

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Vincent Cable: Well, the Government may be determined, but the brutal truth is that economic inequality is getting worse. Part of the problem is the failure to reform the unfairness of the tax system. We all understand why Conservative Governments might wish to give top priority to rewarding the wealthy, but why have the Labour Government given overriding priority to cutting the tax rate that wealthy people pay on their capital gains to a lower rate than the tax paid by working people on their earnings, and why have they left wholly unreformed a property tax system under which ordinary families pay the same amount of tax on a modest family house as billionaires pay on their multi-million pound mansions?

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Harriet Harman: The hon. Gentleman is simply wrong in what he says about the report's findings. It says that over the 13 years that we have been in government the effect of our tax policies, combined with our benefit policies, has been to narrow inequality. We have tackled poverty, in particular pensioner poverty and child poverty. One thing that would not help those on low and modest incomes would be the savage cuts proposed by the hon. Gentleman's party.

Evan Harris (Oxford West & Abingdon, Liberal Democrat): Question 6, Mr. Speaker.

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Harriet Harman (Lord Privy Seal, House of Commons; Camberwell & Peckham, Labour) rose-

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Hon. Members: Come on!

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Harriet Harman: It's all right. It will be worth waiting for-well, perhaps not.

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Evan Harris: What discussions he had at the Commonwealth Heads of Government meeting in November 2009 on the succession to the Crown of Catholics and women.

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Harriet Harman: The Government are in contact with other countries of the realm where the Queen is Head of State about updating the rules of succession.

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Evan Harris: The right hon. and learned Lady was right the second time.

In March, the Lord Chancellor himself said that the sort of anti-Catholic and anti-woman provisions at the centre of our constitution have no place in a modern society, and that the Prime Minister was ready to consult Commonwealth Heads of Government. Will the right hon. and learned Lady suggest that he write to them, if he is too busy to consult, so that we can get on with this reform?

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Harriet Harman: As the Prime Minister has said, people recognise the need for change, but that change can be brought about only by the Prime Minister working with the 16 other countries. The discussions are continuing. We cannot speak for those other countries, but we are sure that progress will be made.

Richmond upon Thames Liberal Democrats: