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Finance Bill

We suggested a reduction to 20 per cent. That was our favoured route, and we thought it would be the optimal position. We must not have a race to the bottom, but we cannot compete with the lowest-cost economies: there must be a competitive package—that is the key. At the same time, we made it clear that that would not be done on day one. There must be a lead time, and where that has happened—and there is empirical evidence of this—the announcement effect on businesses coming here in preparation increased the tax yield even before the rates went down. If the hon. Member for Fareham responded to those points, I would be extremely grateful.