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Proceeding contribution from Lord Redwood (Conservative) in the House of Commons on Wednesday, 6 May 2009. It occurred during Debate on bill on Finance Bill.


Finance Bill

I think that the answer to my hon. Friend's first question is "Yes, he is absolutely right", while the answer to his second question is "No, there is no chance of getting the message through to the Government". That task proved too much for the Chief Secretary, who I believe has been the worst Chief Secretary on record because she has not for one minute during her time in the Treasury succeeded in controlling public expenditure. I wonder how she dares to draw her salary, frankly, as she makes no attempt to control public spending. What I think we need in this Finance Bill—and I hope my right hon. and hon. Friends will seek to achieve it as the Bill makes progress in Committee—is this. We need a Finance Bill that says to the Revenue and Customs not "Toughen your powers", but "Understand that these are very difficult times", as businesses have other priorities. While crooks should not be allowed, there is a need to be understanding and to work sensibly with business; otherwise, more jobs will be lost and more orders will be cancelled. I think we need the Finance Bill to be amended to say that we are going to try to optimise tax revenues by having competitive tax rates on business and incomes, not by plucking them out of the air for other reasons. We need to recognise that our corporation tax level is no longer competitive and that the Government now wish to set uncompetitive income tax rates. I think that we should try to tease out and clarify the Government's thinking on what they are trying to do with their increased taxes on drinks, cars, fuel and so forth. Are they trying to tax the poor? That seems to be what they are doing. Are they trying to reduce activity in those areas? That seems to be what they are doing. How does it square with what we were told was meant to be a reflationary Finance Bill? We need a lot of change in this Bill. I think that it is not a good Finance Bill for our current economic circumstances. The Government believe that they can get away with the borrowing in the short term, but if they were a decent Government—if they were interested in the long-term success, strength and stability of this country—they would realise that the gap between spending and revenue is simply too big.


Secondary information

Type
Proceeding contribution
Reference
492 c284 
Session
2008-09
Chamber / Committee
House of Commons chamber
Subjects
Children Alcoholic drinks Business Corporation tax Credit Bingo Borrowing Finance Income tax Excise duties Fuels Gaming Government assistance Economic growth Forecasts Personal savings Poverty Pensions Public expenditure Scotland Tax allowances Tax avoidance Taxation VAT Trusts Tax rates and bands Tax evasion North Sea oil Trade competitiveness Marginal tax rates
Legislation
Finance Bill 2008-09
Link
View this Proceeding contribution on www.publications.parliament.uk