Throughout this Parliament I have argued the case of tax cuts for all. I have argued for tax cuts for most people so they pay less tax, as one of the best ways to help rising living standards. I have argued for tax rate cuts for the rich so they stay and pay more tax. So how have I got on?
Big increases in the tax threshold for Income Tax. Conservatives and Liberal Democrats have made this their central tax cut by mutual agreement. It has allowed many people to keep more of their income.
Reduced fuel duty. The abolition of Labour’s fuel duty escalator has meant cheaper petrol and diesel through a period when the very high taxes added to high oil prices have made this a major strain on budgets. Robert Halfon led this successful campaign which I supported.
Stamp Duty. I successfully argued to get rid of the slab approach, converting it into only paying the higher rate over the threshold. I did not argue for the higher rates also adopted. However, everyone buying a house under £937,000 will be better off.
Capital Gains. I urged resisting the Liberal democrat idea of 40% CGT as this would have stopped many transactions and cost revenue. I did not agree with putting the rate up from 18% to 28%, which also lost revenue to a lesser extent than the Lib Dem proposal.
40% Tax threshold. I was one of a group who urged that we start to raise the threshold before people have to pay 40% tax on their income. The Chancellor made a start in the latest Autumn Statement, and Conservatives are pledged to raise the threshold to £50,000 over the next Parliament.
The top rate of Income tax. I have urged reduction to the Labour rate of 40%. The government with the reluctant agreement of the Lib Dems has now cut it from 50% to 45% which will bring in more revenue. The 50% rate lost us tax revenue.