It is a great pleasure to serve under your chairmanship, Sir Roger.
I will deal with new clause 2 in a moment, but what has driven this debate, initiated by the Opposition, is the cost of living. That is an important matter for our constituents and the Government recognise the pressures that households face. We are taking action to support households with the cost of living, within the fiscal constraints that exist.
A key part of that has been to increase the personal allowance. Clause 3 will ensure that the benefits of that increase are shared fairly. In 2010, when the coalition was formed, individuals could earn just £6,475 before they began to pay income tax. Thanks to the actions of this Government, from April next year, the figure will be £10,000. That is an increase of £3,525, which means
that the personal allowance will have risen by more than 50% in just four years, thereby helping our constituents with the cost of living. Our priority has been to help those on low and middle incomes, and we have. The changes in clause 2 mean that a typical basic rate taxpayer is already nearly £600 better off in cash terms under this Government. From next year, that figure will rise to more than £700.
That is not the only action that we are taking to help households with the cost of living. The fuel duty increase that was planned for September will be cancelled. The Finance Bill keeps fuel duty frozen at current levels, maintaining the longest freeze in fuel duty for 20 years. That is helping households and businesses with the cost of motoring. Fuel duty is 13p per litre lower than it would have been had we implemented the Labour party’s planned increases. We have also taken action to help local authorities in England to freeze their council tax for the third year in a row and to cap rail fares for commuters.