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Finance Bill

My hon. Friend is being very generous. Would not even the most basic analysis by an A-level economics student have told the Chancellor that the cut in VAT was a waste of time, because in a recession people will seek to pay down debt? Even if they were spending on white goods or luxury goods, they would be spending on foreign goods, which are imported into this country, which would have little long-term impact. The Government could have spent the money on other things last November, such as the 9,000 empty housing association units, which could have helped people on the housing waiting list to get off it. Surely the money has been completely wasted by the Government.