Dividend Tax Credits — 18 Jan 1999
Mr Paul Marsden MP, Shrewsbury and Atcham voted with the majority (No).
I beg to move,
That this House notes that from April 1999, 300,000 non-taxpaying pensioners and 330,000 other non-taxpayers will lose an average of £75 each because of the Government's decision to abolish the dividend tax credit; further notes that 80,000 of the pensioners affected will lose over £100 per year; considers that it is unacceptable that basic rate taxpayers and higher rate taxpayers are unaffected directly by this decision which only affects non-taxpayers, half of them poor pensioners, who by definition must be poorer than taxpayers; calls on the Government to act on the promise made to the House of 30th June when the then Paymaster General stated 'I am aware of the growing anxiety among poorer non-taxpayers who have been hit by the measure so I know that we need to make our position utterly clear as quickly as possible' (Official Report, 30th June, column 175); calls upon the Government to honour now this pledge by announcing that non-taxpayers will be able to continue to reclaim a 10 per cent. tax credit from April 1999 in the same way as taxpayers who hold PEPs or ISAs will be able to do so; and further notes that this is still a 50 per cent. cut from the current 20 per cent. dividend tax credit.
"I am aware also of the growing anxiety among poorer non-taxpayers who have been hit by the measure, so I know that we need to make our position utterly clear as quickly as possible. I am working to that end."--[ Official Report , 30 June 1998; Vol. 315, c. 174-75.]
I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:
"notes that the fundamental reform of company taxation carried out by the Government has removed major company taxation distortions from the system and put in place a sound base for better quality investment and growth that will lead to greater prosperity for everyone in the UK, including pensioners; that the Government has taken significant steps to help pensioners, including a guaranteed minimum income for the poorest pensioners through an increase in Income Support from this April worth over £236 extra per year for single pensioners and over £377 extra for couples, a minimum guarantee on tax so that pensioners have no income tax to pay unless their income rises above a certain level, £20 of winter fuel payments for every pensioner household, the introduction of free eye tests for pensioners from this April, new travel concessions on public transport and an extra £21 billion invested in the National Health Service; and further notes that this contrasts sharply with the record of the previous Government which introduced VAT on fuel at 8% and tried to increase it to 17.5%, which introduced charges on eye tests for pensioners, which presided over the mis-selling of pensions which severely damaged the financial security of many pensioners, which ran down the National Health Service on which many pensioners rely, and which was responsible for boom and bust economics which eroded the real value of pensioners' savings through inflation exceeding 10%.'.
There has been no explanation from the Paymaster General or anyone else as to why such circumstances have come about.
Question put, That the original words stand part of the Question:--
The House divided: Ayes 166, Noes 336.
Votes by party, red entries are votes against the majority for that party.
What is Tell? '+1 tell' means that in addition one member of that party was a teller for that division lobby.
What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.
What is Turnout? This is measured against the total membership of the party at the time of the vote.
|Party||Majority (No)||Minority (Aye)||Both||Turnout|
|Con||0||130 (+2 tell)||0||81.5%|
|Lab||335 (+2 tell)||0||0||80.8%|