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Value Added Tax

That is a matter for every household to decide. It depends on the situation in which the household finds itself. I am certain that a very large number of people will choose to spend the £20 extra that they will have, on average, at the end of the month, but others will choose to save it and to rebuild their household finances. Of course, it is perfectly appropriate for them to do so. I want to respond to some of the points that we have heard in the debate. Unsurprisingly, we have heard some comments about Germany, which the hon. Member for Runnymede and Weybridge (Mr. Hammond) mentioned. The key is to look at what the German Government are actually doing. Germany has borrowings that are significantly greater than those of the UK. On 5 November, Germany announced a €32 billion fiscal stimulus—a larger stimulus, proportionately, than that in the UK. I refer the hon. Gentleman and others to what the German Chancellor said last week:"““We support the view of the””—" European—"““Commission that we need to provide 1.5 per cent. of GDP for the stimulus package to strengthen the economy””." On Monday, the German Economy Minister said that Germany had an obligation to introduce new measures to stimulate its economy. He wants Germany to introduce tax measures totalling €25 billion next year. The chief economist of DekaBank, Ulrich Kater, made the point that reducing VAT would have been more efficient than the methods that have been adopted. In Germany, the key is to look beyond some of the words to see the decisions that are being made. This move is the right stimulus for families, for businesses and for the UK economy and I commend the order to the House.