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Budget Resolutions and Economic Situation

It is a pleasure to follow the hon. Member for Doncaster, North (Edward Miliband), who made a thoughtful speech emphasising the steps being taken to alleviate child poverty. He took us back to the Lawson Budget. I remember that Budget: the top rate of income tax was reduced to 40 per cent., and I think that I am right in saying that there was some movement in the House when that announcement was made. If anyone had said at the time that, nine years into a Labour Government, the top rate of tax would remain at the level fixed by Nigel Lawson, nobody would have believed them. By committing themselves not to change the standard rate—or, indeed, the top rate—of tax, the Labour Government have got into tremendous difficulties. They have increased expenditure but, instead of raising taxes to meet that expenditure in a fair way, they have put increasing emphasis on taxes that are either regressive—such as the council tax—or difficult to collect, or that have damaged our international competitiveness. I believe that there are many hon. Members sitting alongside the hon. Member for Doncaster, North who would have preferred an honest Labour approach of funding increases in public expenditure by increasing personal taxation, which is a progressive, open, honest and cheap way of funding a Labour programme.