A Treasury minister has denied that rising numbers of higher rate taxpayers has amounted to a government "stealth tax".

Facing questions in the Commons on Thursday, Dawn Primarolo said that such outcomes were a result of the increased prosperity delivered by the government.

She was speaking after Labour MP Gordon Prentice said he was concerned that "the number of people captured in to the higher rate tax band seems to be growing exponentially".

He also warned that by the end of the next parliament there could be a "staggering" 4.4 million higher rate taxpayers.

Responding, the paymaster general said the government was "extremely happy at the economic stability, the growth in employment, the growth in earnings and the way that tax and benefit reform ensure that the very poorest in this country receive the most".

She also pointed out that the government had committed itself to not raising the basic or top rates of tax during this parliament.

But veteran left-winger Dennis Skinner said there was "another way of looking at this".

"If there are more people paying tax in the highest band then it means that this booming economy has resulted in more people getting more wages and salaries," he said.

"There is another argument that says if we add on another two per cent of tax on the higher rate taxpayers - like MPs and Cabinet ministers and directors - then we will be able to pay a pension of £150 a week for every single person."

In response, Primarolo said introducing reforms to ensure the poorest pensioners are better of, as the government had done, was yet another alternative.

Tax rise

For the Conservatives, George Osborne warned that 1.3 million people had been "sucked into" the higher rate band.

The shadow chief secretary to the Treasury noted that while average earnings were up 39 per cent the threshold had only risen by 29 per cent.

That meant the government "has in fact increased income tax for 1.3 million people".

"Because of the chancellor's stealth tricks with the tax threshold... the 1.3 million extra higher rate taxpayers now include deputy headteachers, police inspectors and warrant officers in the army," added Osborne.

"Does the minister think it is fair that these people pay the higher rate of income tax? Indeed, does she think they are rich?"

Primarolo said that the Tory criticisms were "just ridiculous".

She said that "in an economy that is growing with 1.8 million extra jobs these are what the figures would be".