We respond to Conservative Party tax and spending plans this week
Date Posted: Thursday 21st November 2019
Cuts to corporation tax largely benefit men
Reacting to Conservative Party tax and spending plans this week, Dr. Mary-Ann Stephenson, Director of the Women’s Budget Group said:
Cancelled cuts to corporation tax:
“WBG welcomes Conservative plans not to make further cuts to corporation tax. This will free up £5.3bn in 2020-21 to reinvest in vital public services. Returning to the rate of 20% that prevailed until 2017 would raise £7.8bn; returning it to 26%, the level it was at in 2011/12, would raise around £19bn. The majority (75%) of FTSE 250 shareholders are men and the majority of low earners (69%) are women so cuts to corporation tax largely benefit men.”
Increasing the National Insurance Threshold
“However, Boris Johnson’s plans to increase the threshold for National Insurance Contributions will largely benefit higher earners the majority of whom are men and will do nothing for the poorest who don’t earn enough to pay NICs (the majority of whom are women. It would be better to target this money at the least well off through increasing the level of Universal Credit. 33% of people claiming Universal Credit are in employment and 55% are women.
Notes for editors
The Women’s Budget Group is a feminist economics think and do tank. We are a network of academics, trade unionists, civil society organisations and activists who analyse the intersectional impact of economic policies on women and men and, promote alternatives for a more gender equal future.
You can read more on Taxation and Gender in our 2019 briefing: https://wbg.org.uk/wp-content/uploads/2019/11/Taxation-november-2019-with-cover.pdf