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Finance Bill

We have had an interesting debate and I look forward very much to more lively debates with some of those who have contributed, in the House next week and upstairs in the coming weeks. But the backdrop, of course, to this year's Finance Bill is the worst crisis in the world economy since the 1930s. The world economy is forecast to shrink this year for the first time since the second world war. But the economy in the UK has benefited from a great deal of support over recent months—the lowest interest rates we have ever had, additional support now from quantitative easing, and the stimulus introduced in the pre-Budget report, including the VAT cut, which, the evidence is now showing clearly, is having the effect that we hoped. [Interruption.] Of course I recognise that it is difficult for the Conservative party to eat humble pie and recognise that, as on so many things, they got their response on the VAT cut wrong, as they undoubtedly did. Speaking of humble pie, I just make the point that we have not heard much humility from the Conservative party in this debate. Nevertheless, evidence of the VAT reduction's effectiveness in supporting the economy is becoming clear, and is accumulating steadily. My right hon. Friend the Chief Secretary to the Treasury quoted from a Centre for Economics and Business Research report in her excellent speech opening the debate. I have the report with me; it was written by Doug McWilliams, who used to be described as an adviser to the Conservative party. I do not know whether he still is, or whether he has been sacked for expressing his views. His note is entitled "Credit where credit's due—the VAT cut is working". He looks at the evidence, such as the figures on retail sales, and makes a compelling case. [Interruption.] I accept that it is difficult for the Conservative party to recognise the evidence as it gathers, but that is fine; the evidence will continue to accumulate in the coming months, and perhaps in the end even Conservative Members will recognise that they were wrong about the support that we have provided to the economy, as they are about so many other things. The hon. Members for Mid-Worcestershire (Peter Luff), and for Bournemouth, East (Mr. Ellwood), asked—