for tax families. i am demented when for tax on energy companies, 75% —— when full tax, and we have used that money from the tax to help pay around half of the typical family's energy bill over the past year. that is what we have done. 75% when full tax on energy companies, use that money to help pay for the average family's half energy bill. the living standards gap 8300 between typical households in britain, — between typical households in britain, combine with that, the lot

shed what you have to accept is, if energy— shed what you have to accept is, if energy bills — shed what you have to accept is, if energy bills are going cross europe,

we are _ energy bills are going cross europe, we are not_ energy bills are going cross europe, we are not alone in that. a energy bills are going cross europe, we are not alone in that.— we are not alone in that. a new international— we are not alone in that. a new international comparisons, - we are not alone in that. a new international comparisons, we | we are not alone in that. a new - international comparisons, we have had the fastest recovery from the pandemic and of any major european nation. the pandemic and of any ma'or european nation. , , . ., ., , pandemic and of any ma'or european nation. , , ., nation. the public of irons on surplus. _ nation. the public of irons on surplus, what _ nation. the public of irons on surplus, what other - nation. the public of irons on surplus, what other broad . nation. the public of irons on - surplus, what other broad shoulders of the _ surplus, what other broad shoulders of the uk, _ surplus, what other broad shoulders of the uk, the result the surplus, what other broad shoulders of the uk, the resul— of the uk, the result the scottish government _ of the uk, the result the scottish government has _ of the uk, the result the scottish government has received - of the uk, the result the scottish j government has received funding of the uk, the result the scottish - government has received funding from the uk. the most recent autumn statement means scottish government is receiving a record amount of money from the uk government. directly into scottish committees through the levelling up fund and the government is now cutting taxes for scottish families. if the

scottish government has chosen to make different choices, that is for them but we are very few that you want to cut taxes for families because that is how we can deal with the cost of living. i because that is how we can deal with the cost of living.— the cost of living. i would follow-up _ the cost of living. i would follow-up some - the cost of living. i would follow-up some of - the cost of living. i would follow-up some of those | the cost of living. i would _ follow-up some of those questions. follow—up some of those questions. this christmas will see sales of luxury— this christmas will see sales of luxury cars _ this christmas will see sales of luxury cars and private jets and super _ luxury cars and private jets and super yachts at an all—time high but food banks— super yachts at an all—time high but food banks in my constituency and i'm running — food banks in my constituency and i'm running out of food, if at at record — i'm running out of food, if at at record levels and 4 million people last year— record levels and 4 million people last year experienced destitution. do you _ last year experienced destitution. do you ever lie awake at night worrying — do you ever lie awake at night worrying about the economy and our country? _ worrying about the economy and our country? i _ worrying about the economy and our count ? ., , .,, worrying about the economy and our count ? ., , ., , ., ., country? i am pleased that we are makin: country? i am pleased that we are making progress _ country? i am pleased that we are making progress on _ country? i am pleased that we are making progress on that - country? i am pleased that we are making progress on that and - country? i am pleased that we are| making progress on that and there are facts, income and equality is lower than today than it was in 2010 and number of people living in absolute poverty is leather, 1.7 million fewer people. the number of

people in low paid work is the lowest on record.— people in low paid work is the lowest on record. there are now 300.000 _ lowest on record. there are now 300,000 more _ lowest on record. there are now 300,000 more children - lowest on record. there are now 300,000 more children living . lowest on record. there are nowj 300,000 more children living in poverty— 300,000 more children living in poverty and if you take a step back, the top _ poverty and if you take a step back, the top 1% — poverty and if you take a step back, the top 1% in — poverty and if you take a step back, the top 1% in our country have multiplied their wealth by 31 times more _ multiplied their wealth by 31 times more than the wealth of everybody else _ more than the wealth of everybody else. doesn't sound like an economy that is_ else. doesn't sound like an economy that is lucky— else. doesn't sound like an economy that is lucky for everybody. there are 1.7 million _ that is lucky for everybody. there are 1.7 million fewer _ that is lucky for everybody. there are 1.7 million fewer people - that is lucky for everybody. there | are 1.7 million fewer people living in absolute poverty today than there were in 2010. that include hundreds of thousands of children and when it comes to the progressivity of our tax system, it is more progressive today than it was in 2010, where the top 5% of taxpayers pay around half of all income tax. the tax system has become more progressive that the most wealthy are bearing a bigger burden and we are reducing inequality, reducing poverty. so why do we have the _ inequality, reducing poverty. so why do we have the worst _ inequality, reducing poverty. so why do we have the worst inequality - inequality, reducing poverty. so why do we have the worst inequality of. do we have the worst inequality of any major— do we have the worst inequality of any major european economy? |

do we have the worst inequality of any major european economy? any ma'or european economy? i don't have any major european economy? i don't have the international _ any major european economy? i don't have the international comparisons i have the international comparisons but i can tell you that from the level we inherited from the last labour government, we have reduced inequality and that is something i am proud of. the inequality and that is something i am proud of-_ inequality and that is something i am proud of. the wealth inequality has one am proud of. the wealth inequality has gone on _ am proud of. the wealth inequality has gone on and — am proud of. the wealth inequality has gone up and there _ am proud of. the wealth inequality has gone up and there are - am proud of. the wealth inequality. has gone up and there are 300,000 more _ has gone up and there are 300,000 more children living in poverty than there _ more children living in poverty than there were — more children living in poverty than there were a few years ago. we “ust have different �* there were a few years ago. we “ust have different numbers i there were a few years ago. we just have different numbers because - there were a few years ago. we just have different numbers because my| have different numbers because my numbers, there are 1.7 million fewer people living in absolute poverty, including children. no one wants children to grab in poverty in the best way to ensure that that happens is to ensure that children are growing up in a home where their parents are working because the children growing up in a workless household is five times more likely to be living in poverty than one that isn't and that is why all of our reforms to welfare, improving the national living wage, were doing enormous amount to ensure that children are lifted out of poverty. as well as our recent investment in

housing allowance, offering considerable support for those families with housing costs. around £800 for those most vulnerable families. ., , , , ., families. the outer tub list is a tax system. — families. the outer tub list is a tax system. you _ families. the outer tub list is a tax system, you agree - families. the outer tub list is a tax system, you agree that - families. the outer tub list is a j tax system, you agree that the families. the outer tub list is a - tax system, you agree that the tax system _ tax system, you agree that the tax system should be fair was yellow i do. system should be fair was yellow i do as_ system should be fair was yellow i do as i_ system should be fair was yellow i do. as i said, we have a more progressive _ do. as i said, we have a more progressive tax system than the one we inherited in 2010. you believe in principle _ we inherited in 2010. you believe in principle that those with a broader shoulders— principle that those with a broader shoulders should pay more? | principle that those with a broader shoulders should pay more? i believe a progressive — shoulders should pay more? i believe a progressive tax _ shoulders should pay more? i believe a progressive tax system _ shoulders should pay more? i believe a progressive tax system and - shoulders should pay more? i believe a progressive tax system and that - shoulders should pay more? i believe a progressive tax system and that is i a progressive tax system and that is what we have delivered. fine a progressive tax system and that is what we have delivered.— what we have delivered. one in five --eole are what we have delivered. one in five people are now— what we have delivered. one in five people are now set _ what we have delivered. one in five people are now set to _ what we have delivered. one in five people are now set to pay - what we have delivered. one in five people are now set to pay 40% - what we have delivered. one in five people are now set to pay 40% tax. is it people are now set to pay 40% tax. is it not — people are now set to pay 40% tax. is it not wrong that those who take their income inform investment income — their income inform investment income pay a rate of tax that is about _ income pay a rate of tax that is about half— income pay a rate of tax that is about half that? the income pay a rate of tax that is about half that?— about half that? the right of caital

about half that? the right of capital tax — about half that? the right of capital tax on _ about half that? the right of capital tax on is _ about half that? the right of capital tax on is higher- about half that? the right of capital tax on is higher than | about half that? the right of. capital tax on is higher than it about half that? the right of- capital tax on is higher than it is normally and with investment taxes, we are balancing the benefit to the economy of investment that creates jobs, and are not normally comment on tax policy beyond those broad principles. those are the physical events but broadly, investment taxes in this country are competitive internationally and we have more progressive tax system today than we did in 2010. , _, , did in 2010. investment income is now doubled. _ did in 2010. investment income is now doubled, 80 _ did in 2010. investment income is now doubled, 80 billion _ did in 2010. investment income is now doubled, 80 billion time. - now doubled, 80 billion time. pounds — now doubled, 80 billion time. pounds. when you file a tax return, you'll _ pounds. when you file a tax return, you'll be _ pounds. when you file a tax return, you'll be paying a tax rate of about 21, you'll be paying a tax rate of about 21. 20 _ you'll be paying a tax rate of about 21. 20 2%~ — you'll be paying a tax rate of about 21, 20 2%. that is you'll be paying a tax rate of about 21,20 2%. that is much you'll be paying a tax rate of about 21, 20 2%. that is much lower you'll be paying a tax rate of about 21,20 2%. that is much lower than one 21, 20 2%. that is much lower than one in— 21,20 2%. that is much lower than one in five — 21,20 2%. that is much lower than one in five taxpayers today. surely that is _ one in five taxpayers today. surely that is wrong. i one in five taxpayers today. surely that is wrong-— that is wrong. i think it was a olden that is wrong. i think it was a golden brown _ that is wrong. i think it was a golden brown he _ that is wrong. i think it was a golden brown he was - that is wrong. i think it was a golden brown he was the - that is wrong. i think it was a - golden brown he was the chancellor who reduced the rate of capital gains tax. i am just making the point that the person who made a change in our tax system which is now persisted for a long period of

time... sign that we have had plenty of latitude to return what you say is fair to the tax system. i am curious why haven't done that? i am not going to comment on tax policies specifically. broadly, and making the point, when it comes to capital gains tax, it was gordon brown who first reduced the rate and that has persisted as a feature of the tax system from that moment and actually, it has been increased for those on the second properties, for example. we those on the second properties, for examle. ~ ., ., those on the second properties, for examle. . ., ., ., example. we have got wealth inequality _ example. we have got wealth inequality that _ example. we have got wealth inequality that has _ example. we have got wealth inequality that has gone - example. we have got wealth inequality that has gone up, | example. we have got wealth i inequality that has gone up, we example. we have got wealth - inequality that has gone up, we have -ot inequality that has gone up, we have got the _ inequality that has gone up, we have got the top _ inequality that has gone up, we have got the top 1% not find a wealth faster— got the top 1% not find a wealth faster than anybody else, you seem to he _ faster than anybody else, you seem to be defending a tax system that means _ to be defending a tax system that means that those who take their income — means that those who take their income in — means that those who take their income in the form of investment pay half the _ income in the form of investment pay half the rate — income in the form of investment pay half the rate of tax as nobody else. that doesn't see morally right. perhaps — that doesn't see morally right. perhaps you are in the treasury at the time in a tax system was introduced.—

the time in a tax system was introduced. ., ., ., introduced. that was 13 years ago and wealth _ introduced. that was 13 years ago and wealth inequality _ introduced. that was 13 years ago and wealth inequality has - introduced. that was 13 years ago i and wealth inequality has multiplied substantially. said and wealth inequality has multiplied substantially-— substantially. said was a morally wron: substantially. said was a morally wrong then _ substantially. said was a morally wrong then but _ substantially. said was a morally wrong then but it _ substantially. said was a morally wrong then but it is _ substantially. said was a morally wrong then but it is morally - substantially. said was a morally i wrong then but it is morally wrong now? fair enough if you change your mind on it but... the capital gains tax system, the main change made to wait since then is to have a higher rate of capital gains tax the second properties, for example, so it is actually more progressive today than it was when you were in the treasury, partly in charge of the tax system with the then chancellor. you have seen the port from the trusseli — you have seen the port from the trussell trust that feedback demands from aprii— trussell trust that feedback demands from april to december were 16% higher— from april to december were 16% higher than from april to december were 16% higherthan in the from april to december were 16% higher than in the same period last year~ _ higher than in the same period last year~ you _ higher than in the same period last year. you said when he came the first time — year. you said when he came the first time last year, you would hope that try— first time last year, you would hope that by the — first time last year, you would hope that by the time of the election, food _ that by the time of the election, food bank— that by the time of the election, food bank demand would be falling. do think— food bank demand would be falling. do think that is likely to be the case? —

do think that is likely to be the case? |— do think that is likely to be the case? . �* , do think that is likely to be the case? ., �* , ., case? i haven't seen that report, so i can't case? i haven't seen that report, so i can't comment _ case? i haven't seen that report, so i can't comment on _ case? i haven't seen that report, so i can't comment on it _ case? i haven't seen that report, so i can't comment on it specifically, i i can't comment on it specifically, of course, you defer to people not to have to use free banks but as i said previously, iam to have to use free banks but as i said previously, i am grateful to all of those people who are involved in providing them because they provide support to people. what we can do is to continue to lift people out of poverty, improve their incomes and then supports families with food costs as we do three things... he with food costs as we do three thin . s. .. , . with food costs as we do three thins... , . ., things... he did expect that feedback — things... he did expect that feedback demand _ things... he did expect that feedback demand would - things... he did expect that feedback demand would be | things... he did expect that - feedback demand would be going things... he did expect that _ feedback demand would be going down by the _ feedback demand would be going down by the election, do you think that is iikeiy— by the election, do you think that is likely to — by the election, do you think that is likely to be achieved? what by the election, do you think that is likely to be achieved?- is likely to be achieved? what we have had since _ is likely to be achieved? what we have had since then _ is likely to be achieved? what we have had since then a _ is likely to be achieved? what we have had since then a significantl have had since then a significant inflation in the economy, which has impacted food prices which will obviously make it more challenging. i am generally confident that the policy to are putting in place are making a difference to help those valuables. that goes, national minimum wage increase, the supporter living this year, all of these

things are helping the income for those on welfare and i hope, that for reduced feedback usage. the last time that happened, _ for reduced feedback usage. the last time that happened, was _ for reduced feedback usage. the last time that happened, was when - for reduced feedback usage. the last time that happened, was when you l for reduced feedback usage. the last l time that happened, was when you are chanceiior— time that happened, was when you are chancellor at the beginning of the pandemic, in 2020, when it was based on the _ pandemic, in 2020, when it was based on the 30%~ _ pandemic, in 2020, when it was based on the 30%. from april 2020 april next year. — on the 30%. from april 2020 april next year. it— on the 30%. from april 2020 april next year, it has been frozen, in that— next year, it has been frozen, in that period. _ next year, it has been frozen, in that period, rents have risen quite a lot _ that period, rents have risen quite a lot i_ that period, rents have risen quite a lot ithink— that period, rents have risen quite a lot. i think it's clear what happened, people have to dig into that other— happened, people have to dig into that other income, in order to pay rent because housing support has an increase _ rent because housing support has an increase i_ rent because housing support has an increase. i wonder whether you recognise — increase. i wonder whether you recognise that that has been one of the major— recognise that that has been one of the major drivers of increased feedback— the major drivers of increased feedback demand over the four—year period? _ feedback demand over the four—year period? i_ feedback demand over the four-year eriod? ~ �* , feedback demand over the four-year eriod? ~ �*, , , ., period? i think it's probably hard to reduce feedback _

period? i think it's probably hard to reduce feedback demand - period? i think it's probably hard to reduce feedback demand as l period? i think it's probably hard l to reduce feedback demand as we know, there are a lot of reasons people are in the food bank. clearly inflation will have an impact on household finances, what is important for me to do is to make sure that we are targeting policy and support on those who most need it. the local housing allowance is a particularly good way of helping families. it is targeted on those on the lowest incomes, particularly those with children. it will provide around £800 to those who benefit from it. , �* ., , , ., from it. isn't there a very strong case the annual— from it. isn't there a very strong case the annual reaching, - from it. isn't there a very strong case the annual reaching, not i from it. isn't there a very strong| case the annual reaching, not an increase. — case the annual reaching, not an increase, then a foyer craze, then another— increase, then a foyer craze, then another increase?— increase, then a foyer craze, then another increase? ultimately, what the garment _ another increase? ultimately, what the garment has _ another increase? ultimately, what the garment has done _ another increase? ultimately, what the garment has done has - another increase? ultimately, what the garment has done has a - another increase? ultimately, what the garment has done has a plate l the garment has done has a plate welfare going into this next year, which will be twice the forecast

rate of inflation. so that is a significant uprating going into next year, well ahead of what forecast inflation will be and people is located about that. twice the rate of inflation, as well as this significant increase in l h a. these are all increase... significant increase in l h a. these are all increase. . ._ significant increase in l h a. these are all increase... there was a very stron: are all increase... there was a very strong case — are all increase... there was a very strong case for _ are all increase... there was a very strong case for keeping _ are all increase... there was a very strong case for keeping lha - are all increase... there was a very i strong case for keeping lha operated rather— strong case for keeping lha operated rather than _ strong case for keeping lha operated rather than the four—year phrase that we — rather than the four—year phrase that we have had. the stance of, there _ that we have had. the stance of, there will— that we have had. the stance of, there will councils have provided a last resort — there will councils have provided a last resort safety net for families with no _ last resort safety net for families with no where else to go. we don't know— with no where else to go. we don't know at— with no where else to go. we don't know at the — with no where else to go. we don't know at the moment whether that is going _ know at the moment whether that is going to _ know at the moment whether that is going to be — know at the moment whether that is going to be extended into the next financial— going to be extended into the next financial year and i wonder whether you would — financial year and i wonder whether you would accept that there is very strong _ you would accept that there is very strong case — you would accept that there is very strong case for extending it so much

that very— strong case for extending it so much that very important safety net remains — that very important safety net remains in place into the new financial— remains in place into the new financial year? it remains in place into the new financial year?— remains in place into the new financial ear? ., �* , financial year? it wouldn't be right for me to comment _ financial year? it wouldn't be right for me to comment on _ financial year? it wouldn't be right for me to comment on future i financial year? it wouldn't be right| for me to comment on future fiscal events. that was adduced that it might introduce doing the pandemic, so we ought to remember the context has not historically been a permanent feature for the welfare system. what we have done going into next year was increase or welfare payments by the, inflation being less than half of that. that works both ways- _ less than half of that. that works both ways. you _ less than half of that. that works both ways. you are _ less than half of that. that works both ways. you are right, - less than half of that. that works both ways. you are right, you i less than half of that. that works i both ways. you are right, you have stuck— both ways. you are right, you have stuck with— both ways. you are right, you have stuck with it. — both ways. you are right, you have stuck with it, i think that is the right— stuck with it, i think that is the right thing _ stuck with it, i think that is the right thing to do. | stuck with it, i think that is the right thing to do.— right thing to do. i think it is rare that _ right thing to do. i think it is rare that you _ right thing to do. i think it is rare that you have _ right thing to do. i think it is rare that you have such i right thing to do. i think it is rare that you have such a i right thing to do. i think it is - rare that you have such a mismatch and... sign that there was a bigger mismatch the other way round, a couple years ago. since i was

chancellor, we have consistently updated welfare. other than this past year, when it has been higher, when we have provided extra support. again, things can change, going into next year, while there will be updated at twice the forecast rate of inflation so whatever happened in the past, the change in wealth i will be higher than the forecast change in inflation by quite a considerable margin and i think that is worth, it is quite significant amount of extra support. it's the right thing to do to focus on that but i think it is worth just appreciating that those two things together are quite significant. i would ask you, fine minister, but the cost—of—living crisis and its

impact on women. we