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Finance Bill

Despite the almost universal scorn poured on the amendments, I am pleased that we have been able to have this constructive and important debate. As the hon. Member for South-West Hertfordshire (Mr. Gauke) said, the reason why it has been so difficult to table amendments is that Opposition parties cannot cover all the aspects of the proposals announced in the Budget. It is clear, however, where the costs will come from and where they will go. Table 1.2 shows that removal of the starting rate of income tax will raise revenue of £7.3 billion for the Treasury in the first year. The cost of reducing the basic rate will be £8 billion, which will partly be offset by aligning income tax and national insurance contributions. The Chief Secretary is right to say that changes to national insurance contributions require primary legislation, but the Finance Bill is primary legislation, so it could be used to adjust primary legislation on national insurance. He may say that in recent decades there has been no announcement of such changes to take effect in the same year, but over the past 10 years there have been no income tax changes at all.