Gerald Nash (Louth, Labour)
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Yes. I thank the Chair. This relates to developing a system where the cost of indexation of personal tax rates, credits and so on would be reflected in the summer economic statement published every year so there is clarity about what the cost would involve. The Minister will be aware there are forms of automatic indexation for personal tax rates and social protection systems in existence for some time in countries like Sweden, Belgium, Canada, Iceland, the Netherlands, Switzerland and many others. I have been reading quite a lot of OECD information on this recently. They are policy decisions those countries decide to make in their own contexts. These are countries against which we like to compare ourselves in terms of how our economy is managed and how our society is evolving. I was not always persuaded of introducing indexation on personal tax rates and credits but the more I read about it, the clearer the case is, especially in the context in the past two to three years of rising wages and the risk of people on very modest incomes being pushed into higher tax brackets and the challenging cost-of-living situation households find themselves in at the moment. I would like to hear the Minster's views on the proposition and if it is something the Government is prepared to consider.