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Lord Wallace of Saltaire (LD)

Speaking in the House of Lords on 10 July 2025

Debate

Tax Increases

Contribution

My Lords, I was very struck by the article in the Times the other day by Paul Johnson, former leader of the Institute for Fiscal Studies, in which he said that we have an entirely illusory debate about tax and spend. There are calls from a substantial number of newspapers and at least one political party for tax cuts, but nobody ever says where they will fall or what our spending parameters are. This Government have made a commitment to raise our defence spending by over 1% of GDP, which I assume that all the major parties support. That means that tax rises are likelier than tax cuts, unless there are severe cuts elsewhere—for example, in pensions. Could the Government not make some attempt to reach an agreement among the parties such that, when discussing taxes rising and falling, we also discuss what the spending priorities are and what cuts may necessarily be possible?

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