We have a record of increasing the personal allowance. This is a very good time to make that point, as we are debating, among other things, clauses 1 to 5, under which the personal allowance will move up to £11,000 during the next few years. We have a record of being able to deliver big increases in the allowance, and that is what we will do.
Let me now press on. The economic recovery is well under way, and last year Britain grew faster than any other major advanced economy in the world. The Government will not consider any action that would put the United Kingdom’s recovery at risk. While the additional rate has been reduced to ensure that the UK remains internationally competitive, the Government’s policy is to repeatedly increase the tax contribution of the wealth. The share of income tax paid by the top 1% of taxpayers is projected to rise from 25.1% in 2010-11 to 27.3% in 2014-15, which means that they are expected to pay a greater share of income tax in 2014-15 than in any year under the last Government.
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I should add that the 50p rate was one of the most uncompetitive income tax rates in the G20 and it is about time the Opposition simply accepted that it did not work. The Government need to spend their resources effectively and efficiently, and the Treasury and HMRC have no plans to introduce rolling annual reports on the impact of changes in tax rates. Nevertheless the Government always keep tax rates under review and monitor receipts, and on this basis I do not believe the amendment is necessary, and I ask the hon. Lady to withdraw it.
Clause 1 allows the Government to collect income tax, something I am sure both sides will agree is essential, notwithstanding the votes on the Budget resolutions. Let me stress again that the impact of reducing the additional rate of income tax has been examined in great detail. The 50p rate was both ineffective at raising revenue and meant risking the recovery everyone in this country is working hard for. As a result the report proposed by the Opposition in amendment 1 is entirely unnecessary, and I move that clause 1 stand part of the Bill without the amendment.