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Budget Resolutions and Economic Situation

It is very nice to see the right hon. Gentleman in the House, and I shall give way to him once I have made a little progress. The Chancellor's Budget sets out the choices we are making to secure Britain's future. The first one is to secure the recovery and promote growth and jobs while halving the deficit steadily over the next four years. The second is to match pay and spending restraint in lower priority areas with fair tax increases—the new top rate of tax, the bankers' bonus tax and the national insurance rise. Everyone will make a contribution, but 60 per cent. of the extra taxes will come from the richest 5 per cent. of the population. The third is that alongside detailed proposals for savings of £11 billion in every Government Department, including my own, action will be taken to protect front-line services, such as the police, schools and hospitals, which families need and which play such a vital role in our country.