Treasury Committee: Inquiry

BUDGET MEASURES AND LOW-INCOME HOUSEHOLDS

Treasury Committee reports on consequences of the abolition of the starting rate of income tax

Report and oral and written evidence | Press Notice

The Government must do more to compensate the 1.1 million households who, even after the 13 May measures, will continue to lose out from the abolition of the starting rate of income tax, the Treasury Committee states in a report published today (28 June ).

The Report, Budget Measures and Low-Income Households, looks at the impact of the abolition of the 10p starting rate of income tax, considering separately the effects of the initial abolition as well as the impact of the changes to personal allowances announced on 13 May 2008.

Background to the inquiry

The Committee announced the inquiry into Budget Measures and Low-Income Households on Tuesday 22 April.

The Committee considered the effects of the abolition of the 10 pence rate of income tax and measures that might be taken arising from that abolition in the broader context of the tax, tax credits and benefits systems.

The Committee welcomed written evidence, including such evidence in response to the specific questions set out in the press notice announcing the inquiry.  The date for written evidence to be received was noon on Wednesday 14 May 2008.  Substantive memoranda received by that date are published below. 

Memoranda

Memoranda received by 14 May 2008

Further memoranda

Memoranda received by 20 May 2008

Memoranda from HM Treasury

Memoranda received ahead of meeting on 4 June

As part of this inquiry the following evidence sessions were arranged (please click on the link at the top of the page to access the evidence):

Wednesday 21 May 2008

Witnesses: Robert Chote, Director, and Mike Brewer, Director of Direct Tax and Welfare, Institute for Fiscal Studies, John Whiting, Low Incomes Tax Reform Group, Teresa Perchard, Director of Public Policy, Citizens Advice, and Ian Mulheirn, Chief Economist, Social Market Foundation.

Witnesses: Sally West, Policy Manager, Age Concern, Dr. Paul Dornan, Child Poverty Action Group, Carey Oppenheim, Co-Director, Institute for Public Policy Research, Peter Kenway, Director, New Policy Institute, and Richard Exell, Senior Policy Officer, Trade Union Congress.

Wednesday 4 June 2008, the Wilson Room, Portcullis House

Witness: The Rt. Hon. Alistair Darling MP, Chancellor of the Exchequer, and HM Treasury officials.