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Dawn Primarolo: The hon. Gentleman does himself a disservice when he seeks constantly to mislead the House of Commons and peddles his misrepresentations. My right hon. Friend the Chancellor spoke of "Today's" pensioners, people who are pensioners now, and that is our position. If the hon. Gentleman is so concerned, perhaps he could--

The Second Deputy Chairman of Ways and Means (Mr. Michael Lord): Order. The hon. Lady must not accuse other hon. Members of misleading the House of Commons. She must choose her words very carefully.

Dawn Primarolo: I am happy to withdraw my statement about misleading the House of Commons. I am sure that the hon. Gentleman was doing it unintentionally. He just manages to do it in every debate, using the same words. He should now acknowledge that my right hon. Friend the Chancellor said "Today's" pensioners.

Mr. Gibb: That is not what the hon. Lady said.

Dawn Primarolo: The record will show that that is what I said. That means what it says and there has been no betrayal, as the hon. Gentleman has suggested.

Mr. Gibb: All that is rich from a party in government that is introducing stealth tax after stealth tax. The

28 Apr 1999 : Column 376

impression is given--[Interruption.] The hon. Lady should read her correspondence. Instead of getting her civil servants to write and sign her letters, she should read some of it, including the correspondence that she receives. She should read what Age Concern is saying.

Dawn Primarolo: The hon. Gentleman knows full well that I sign my correspondence, and he should withdraw that remark. I sign my ministerial correspondence that goes out in answer to points raised by hon. Members. The hon. Gentleman should withdraw his remark.

Mr. Gibb: I have letters in my file from the hon. Lady which she has not signed. Many Members received letters from her when she was the Financial Secretary which she had not signed. If I am wrong, I shall withdraw my remarks. [Interruption.] I withdraw. I accept her comments but I know very well that there are letters that Members have received, and constituents, that have not been signed by the hon. Lady.

After April next year, married people turning 65 will have to pay an extra £500 a year in income tax. There will be no compensatory children's tax credit for the vast majority. In addition, 300,000 pensioners will lose £75 in dividend tax refunds. Almost 1 million pensioners will find themselves paying higher income tax on their savings income than their marginal rate of income tax. All that the Paymaster General can say in return is that there is a £100 winter fuel allowance. The Government take £500 with one hand and give £100 with the other. The message is clear: do not grow old under this new Labour Government.

My hon. Friend the Member for Cotswold (Mr. Clifton-Brown) was right when he said that a married couple approaching retirement will suffer doubly. First, they will have little chance of qualifying for children's tax credit, although last weekend I found that I had a retired constituent over 65 who had a young child from a second marriage. Secondly, the married couple will have no entitlement to the higher rate of the married couples allowance to which they thought they would be entitled.

Other hon. Members have made some valuable points. They include my hon. Friend the Member for Arundel and South Downs (Mr. Flight), who said that people make careful plans for their retirement. He is right. The Government should not give just one year's notice for the reduction in value of the allowance. It is right also that the elderly population have--

Mr. Gardiner: Will the hon. Gentleman give way?

Mr. Gibb: No, I will not give way. There is no time to do so.

My hon. Friend the Member for Arundel and South Downs was also right to say that the elderly population has rumbled the Government. It has done so on the minimum income guarantee and on the dividend tax credit. It is rumbling the Government on the savings tax and it will rumble them on the abolition of the married couples allowance for pensioners.

The Government's decision to abolish the married couples allowance has gone down badly with the public. It is yet another Labour stealth tax, and it is being seen as such. Their decision has also gone down especially

28 Apr 1999 : Column 377

badly with those approaching retirement. The Chancellor has no doubt received, as the Paymaster General is also receiving, no doubt, many letters of complaint. I shall quote just one from Mr. J. R. Brett of Bromley, who writes:


    "As I shall be 65 on 9th May next year this will mean that for the rest of my life, on today's figures, I shall, in retirement, pay £512.50 more in tax than other pensioners of equal age albeit five weeks older. This is not social justice . . . It is one thing to juggle with Allowances for those in work, but quite another to penalise pensioners who are unable to make any provision for the loss of such a large part of their income in retirement."

The clause creates social injustice and I urge the Committee to mitigate that injustice by voting for the amendment.

Question put, That the amendment be made:--

The Committee divided: Ayes 127, Noes 306.

Division No. 153
[5.39 pm


AYES


Ainsworth, Peter (E Surrey)
Amess, David
Ancram, Rt Hon Michael
Arbuthnot, Rt Hon James
Atkinson, Peter (Hexham)
Bercow, John
Beresford, Sir Paul
Boswell, Tim
Bottomley, Rt Hon Mrs Virginia
Brady, Graham
Brazier, Julian
Brooke, Rt Hon Peter
Browning, Mrs Angela
Bruce, Ian (S Dorset)
Burns, Simon
Cash, William
Chope, Christopher
Clappison, James
Clark, Rt Hon Alan (Kensington)
Clark, Dr Michael (Rayleigh)
Clifton-Brown, Geoffrey
Collins, Tim
Cran, James
Davies, Quentin (Grantham)
Davis, Rt Hon David (Haltemprice & Howden)
Donaldson, Jeffrey
Duncan, Alan
Duncan Smith, Iain
Emery, Rt Hon Sir Peter
Fabricant, Michael
Fallon, Michael
Flight, Howard
Forsythe, Clifford
Forth, Rt Hon Eric
Fowler, Rt Hon Sir Norman
Fox, Dr Liam
Fraser, Christopher
Gale, Roger
Garnier, Edward
Gibb, Nick
Gill, Christopher
Gillan, Mrs Cheryl
Gorman, Mrs Teresa
Gray, James
Green, Damian
Greenway, John
Grieve, Dominic
Hague, Rt Hon William
Hammond, Philip
Hawkins, Nick
Hayes, John
Heald, Oliver
Heathcoat-Amory, Rt Hon David
Hogg, Rt Hon Douglas
Horam, John
Howard, Rt Hon Michael
Howarth, Gerald (Aldershot)
Jack, Rt Hon Michael
Jackson, Robert (Wantage)
Jenkin, Bernard
Johnson Smith,
Rt Hon Sir Geoffrey
Key, Robert
King, Rt Hon Tom (Bridgwater)
Kirkbride, Miss Julie
Laing, Mrs Eleanor
Lait, Mrs Jacqui
Lansley, Andrew
Leigh, Edward
Letwin, Oliver
Lewis, Dr Julian (New Forest E)
Lidington, David
Lilley, Rt Hon Peter
Lloyd, Rt Hon Sir Peter (Fareham)
Lyell, Rt Hon Sir Nicholas
MacGregor, Rt Hon John
MacKay, Rt Hon Andrew
McLoughlin, Patrick
Madel, Sir David
Major, Rt Hon John
Maples, John
Mates, Michael
Maude, Rt Hon Francis
Mawhinney, Rt Hon Sir Brian
May, Mrs Theresa
Moss, Malcolm
Norman, Archie
Ottaway, Richard
Paice, James
Paterson, Owen
Pickles, Eric
Prior, David
Randall, John
Redwood, Rt Hon John
Robertson, Laurence (Tewk'b'ry)
Roe, Mrs Marion (Broxbourne)
Ross, William (E Lond'y)
Ruffley, David
St Aubyn, Nick
Sayeed, Jonathan
Shephard, Rt Hon Mrs Gillian
Shepherd, Richard
Simpson, Keith (Mid-Norfolk)
Smyth, Rev Martin (Belfast S)
Spicer, Sir Michael
Spring, Richard
Stanley, Rt Hon Sir John
Streeter, Gary
Swayne, Desmond
Syms, Robert
Tapsell, Sir Peter
Taylor, John M (Solihull)
Taylor, Sir Teddy
Trend, Michael
Viggers, Peter
Walter, Robert
Wardle, Charles
Waterson, Nigel
Whitney, Sir Raymond
Whittingdale, John
Widdecombe, Rt Hon Miss Ann
Wilkinson, John
Willetts, David
Winterton, Mrs Ann (Congleton)
Winterton, Nicholas (Macclesfield)
Woodward, Shaun
Yeo, Tim
Young, Rt Hon Sir George

Tellers for the Ayes:


Mr. Stephen Day and
Mrs. Caroline Spelman.


NOES


Adams, Mrs Irene (Paisley N)
Ainsworth, Robert (Cov'try NE)
Allan, Richard
Allen, Graham
Anderson, Donald (Swansea E)
Anderson, Janet (Rossendale)
Armstrong, Rt Hon Ms Hilary
Ashdown, Rt Hon Paddy
Ashton, Joe
Atkins, Charlotte
Austin, John
Ballard, Jackie
Barnes, Harry
Battle, John
Beard, Nigel
Beckett, Rt Hon Mrs Margaret
Begg, Miss Anne
Bell, Stuart (Middlesbrough)
Benn, Rt Hon Tony
Bennett, Andrew F
Benton, Joe
Bermingham, Gerald
Best, Harold
Betts, Clive
Blackman, Liz
Blears, Ms Hazel
Blizzard, Bob
Borrow, David
Bradley, Keith (Withington)
Bradley, Peter (The Wrekin)
Bradshaw, Ben
Brake, Tom
Breed, Colin
Brinton, Mrs Helen
Buck, Ms Karen
Burgon, Colin
Burnett, John
Butler, Mrs Christine
Cable, Dr Vincent
Caborn, Rt Hon Richard
Campbell, Alan (Tynemouth)
Campbell, Mrs Anne (C'bridge)
Campbell, Rt Hon Menzies
(NE Fife)
Campbell, Ronnie (Blyth V)
Campbell-Savours, Dale
Cann, Jamie
Caplin, Ivor
Casale, Roger
Caton, Martin
Cawsey, Ian
Chapman, Ben (Wirral S)
Chaytor, David
Chidgey, David
Clapham, Michael
Clark, Rt Hon Dr David (S Shields)
Clark, Paul (Gillingham)
Clarke, Eric (Midlothian)
Clarke, Rt Hon Tom (Coatbridge)
Clarke, Tony (Northampton S)
Clelland, David
Cohen, Harry
Coleman, Iain
Connarty, Michael
Cooper, Yvette
Corbett, Robin
Corston, Ms Jean
Cotter, Brian
Cousins, Jim
Crausby, David
Cryer, John (Hornchurch)
Cunningham, Rt Hon Dr Jack
(Copeland)
Cunningham, Jim (Cov'try S)
Curtis-Thomas, Mrs Claire
Dalyell, Tam
Darvill, Keith
Davey, Edward (Kingston)
Davey, Valerie (Bristol W)
Davidson, Ian
Davies, Rt Hon Denzil (Llanelli)
Davies, Geraint (Croydon C)
Dawson, Hilton
Dean, Mrs Janet
Denham, John
Dismore, Andrew
Dobbin, Jim
Dobson, Rt Hon Frank
Donohoe, Brian H
Doran, Frank
Dowd, Jim
Drown, Ms Julia
Dunwoody, Mrs Gwyneth
Eagle, Angela (Wallasey)
Eagle, Maria (L'pool Garston)
Edwards, Huw
Efford, Clive
Ennis, Jeff
Fearn, Ronnie
Fitzsimons, Lorna
Foster, Rt Hon Derek
Foster, Don (Bath)
Foster, Michael Jabez (Hastings)
Foulkes, George
Galloway, George
Gapes, Mike
Gardiner, Barry
George, Bruce (Walsall S)
Gerrard, Neil
Gibson, Dr Ian
Gilroy, Mrs Linda
Godsiff, Roger
Goggins, Paul
Golding, Mrs Llin
Gordon, Mrs Eileen
Griffiths, Nigel (Edinburgh S)
Griffiths, Win (Bridgend)
Grocott, Bruce
Gunnell, John
Hall, Patrick (Bedford)
Harris, Dr Evan
Heal, Mrs Sylvia
Healey, John
Heath, David (Somerton & Frome)
Henderson, Doug (Newcastle N)
Henderson, Ivan (Harwich)
Hepburn, Stephen
Heppell, John
Hesford, Stephen
Hewitt, Ms Patricia
Hill, Keith
Hinchliffe, David
Hodge, Ms Margaret
Hoey, Kate
Hood, Jimmy
Hoon, Geoffrey
Hopkins, Kelvin
Howarth, George (Knowsley N)
Howells, Dr Kim
Hoyle, Lindsay
Hughes, Ms Beverley (Stretford)
Hughes, Kevin (Doncaster N)
Humble, Mrs Joan
Hurst, Alan
Hutton, John
Iddon, Dr Brian
Illsley, Eric
Ingram, Rt Hon Adam
Jackson, Ms Glenda (Hampstead)
Jackson, Helen (Hillsborough)
Jamieson, David
Jenkins, Brian
Johnson, Alan (Hull W & Hessle)
Johnson, Miss Melanie
(Welwyn Hatfield)
Jones, Barry (Alyn & Deeside)
Jones, Helen (Warrington N)
Jones, Jon Owen (Cardiff C)
Jones, Dr Lynne (Selly Oak)
Jones, Martyn (Clwyd S)
Jowell, Rt Hon Ms Tessa
Kaufman, Rt Hon Gerald
Keeble, Ms Sally
Keen, Alan (Feltham & Heston)
Keen, Ann (Brentford & Isleworth)
Keetch, Paul
Kelly, Ms Ruth
Kemp, Fraser
Kidney, David
Kilfoyle, Peter
King, Andy (Rugby & Kenilworth)
King, Ms Oona (Bethnal Green)
Kirkwood, Archy
Kumar, Dr Ashok
Ladyman, Dr Stephen
Lawrence, Ms Jackie
Laxton, Bob
Lepper, David
Leslie, Christopher
Lewis, Ivan (Bury S)
Lewis, Terry (Worsley)
Liddell, Rt Hon Mrs Helen
Linton, Martin
Livingstone, Ken
Lloyd, Tony (Manchester C)
Llwyd, Elfyn
Lock, David
McAvoy, Thomas
McDonagh, Siobhain
McDonnell, John
McFall, John
McIsaac, Shona
McKenna, Mrs Rosemary
Mackinlay, Andrew
McNulty, Tony
MacShane, Denis
Mactaggart, Fiona
McWalter, Tony
Mahon, Mrs Alice
Mallaber, Judy
Mandelson, Rt Hon Peter
Marsden, Gordon (Blackpool S)
Marsden, Paul (Shrewsbury)
Marshall, David (Shettleston)
Marshall-Andrews, Robert
Martlew, Eric
Maxton, John
Meacher, Rt Hon Michael
Meale, Alan
Merron, Gillian
Michie, Bill (Shef'ld Heeley)
Miller, Andrew
Moffatt, Laura
Moonie, Dr Lewis
Moran, Ms Margaret
Morris, Ms Estelle (B'ham Yardley)
Mountford, Kali
Mowlam, Rt Hon Marjorie
Mudie, George
Mullin, Chris
Murphy, Denis (Wansbeck)
Murphy, Rt Hon Paul (Torfaen)
Naysmith, Dr Doug
Oaten, Mark
O'Brien, Bill (Normanton)
O'Brien, Mike (N Warks)
O'Neill, Martin
Öpik, Lembit
Palmer, Dr Nick
Pearson, Ian
Pendry, Tom
Perham, Ms Linda
Pickthall, Colin
Pike, Peter L
Plaskitt, James
Pollard, Kerry
Pope, Greg
Pound, Stephen
Prentice, Ms Bridget (Lewisham E)
Prentice, Gordon (Pendle)
Prescott, Rt Hon John
Primarolo, Dawn
Purchase, Ken
Quin, Rt Hon Ms Joyce
Quinn, Lawrie
Raynsford, Nick
Reed, Andrew (Loughborough)
Reid, Rt Hon Dr John (Hamilton N)
Rendel, David
Robertson, Rt Hon George
(Hamilton S)
Roche, Mrs Barbara
Ross, Ernie (Dundee W)
Rowlands, Ted
Roy, Frank
Ruddock, Joan
Russell, Bob (Colchester)
Ryan, Ms Joan
Salter, Martin
Sarwar, Mohammad
Savidge, Malcolm
Sedgemore, Brian
Shaw, Jonathan
Sheldon, Rt Hon Robert
Shipley, Ms Debra
Simpson, Alan (Nottingham S)
Singh, Marsha
Smith, Rt Hon Andrew (Oxford E)
Smith, Angela (Basildon)
Smith, Jacqui (Redditch)
Soley, Clive
Spellar, John
Steinberg, Gerry
Stevenson, George
Stott, Roger
Stringer, Graham
Stuart, Ms Gisela
Stunell, Andrew
Sutcliffe, Gerry
Taylor, Rt Hon Mrs Ann
(Dewsbury)
Taylor, Ms Dari (Stockton S)
Temple-Morris, Peter
Thomas, Gareth (Clwyd W)
Thomas, Gareth R (Harrow W)
Timms, Stephen
Tipping, Paddy
Tonge, Dr Jenny
Trickett, Jon
Turner, Dennis (Wolverh'ton SE)
Turner, Dr Desmond (Kemptown)
Turner, Dr George (NW Norfolk)
Twigg, Derek (Halton)
Twigg, Stephen (Enfield)
Tyler, Paul
Vaz, Keith
Walley, Ms Joan
Ward, Ms Claire
Wareing, Robert N
Webb, Steve
Whitehead, Dr Alan
Wicks, Malcolm
Williams, Rt Hon Alan
(Swansea W)
Williams, Alan W (E Carmarthen)
Williams, Mrs Betty (Conwy)
Willis, Phil
Wills, Michael
Winnick, David
Wise, Audrey
Wood, Mike
Wright, Anthony D (Gt Yarmouth)

Tellers for the Noes:


Mr. Mike Hall and
Jane Kennedy.

Question accordingly negatived.

28 Apr 1999 : Column 380

Mr. Edward Leigh (Gainsborough): I beg to move amendment No. 8, page 15, line 20, leave out '2000-01' and insert '2001-02'.

The amendment enables us to have what I trust will be an interesting debate on the married couples allowance, what it seeks to do, how it is to be phased out and the timing of that phasing out. I hope that it will also give us an opportunity to discuss whether the tax system should be neutral in determining people's behaviour. That view is commonly held on both sides of the House, but it is not my view. I believe that the tax system has a real role to play in determining people's behaviour and encouraging behaviour and a way of life that is useful to society. That is not to cast a judgment on other sorts of behaviour but to say that, generally, as every research study shows, marriage is a good thing. Apparently, the whole House believes that.

Whether we should take the next step and say that, having determined that marriage is a good thing, we should use the tax system to encourage it is a different question. It happens to be a question to which I would answer a strong yes, because I believe that the tax system has a useful role to play. It can be used in many other areas to encourage share ownership, private health insurance or pensions provision. That happens to be my personal view. I hope that we can discuss that matter in the context of the amendment, because it is very important.

I welcome the belated recognition by the Treasury that, over the years, the tax system has moved against families in favour of single people without dependants, and that move needs to be reversed. I also welcome the attack that the Treasury seeks to lead on child poverty. However, we should use this debate to question the Government more closely on the figures in the Red Book. Abolishing the married couples allowance in the year that is proposed sends out the wrong message. It seems to devalue marriage, and to take money away from families and give it to other taxpayers.

28 Apr 1999 : Column 381

In certain circumstances, the effect of all those complex changes appears to take money away from families who are poorer and give it to families who are better off.


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