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Finance Bill

Thank you, Mr. Deputy Speaker. The Bill underpins our commitment to the short-term support that people and businesses need to help them through the current difficulties, while laying longer-term foundations, so that we can make the most of the new opportunities that will emerge when the upturn comes. The Bill is about fairness, opportunity, and supporting businesses so that we can invest and grow our way out of the recession. The shadow Chief Secretary to the Treasury, the hon. Member for Runnymede and Weybridge (Mr. Hammond), made a number of interesting points, and I want to deal with some of them in the time that I have. He asked a question about the tax rate on trusts. Rates were aligned in 2004 to prevent avoidance of the higher rate by routeing income through a trust. The trust rate will be increased in line with the higher rate, so we are not opening up opportunity for trusts to be used for avoidance. Those for whom the lower rate is appropriate can reclaim tax; many do so already. In the case of self-assessment, that will happen automatically. If, as was suggested, the trust is for a vulnerable beneficiary or a bereaved child, for example, an election can be made under the vulnerable beneficiary legislation, which has a special tax regime. On bingo, which came up in the debate, we have increased the rate of bingo duty, but withdrawn VAT on participation fees. The overall consequence of that is to reduce the rate of tax on bingo from 24 or 25 per cent. to 22 per cent. I am sure that change will assist those in the bingo industry. The shadow Chief Secretary welcomed the announcement in the Budget and in the Bill on foreign profits taxation, and I am grateful to him for that. He made the point that there had been a good consultation exercise, and I thank him for that as well. I hope he will have a word with the hon. Member for Fareham (Mr. Hoban), who took a slightly different position in his winding-up speech. I agree that we have made an important announcement that will increase and improve the competitiveness of the UK.