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Capital Gains Tax (Rates)

I am very grateful to you for calling me to speak in the debate, Mr Deputy Speaker, and I feel privileged to follow my hon. Friends the Members for West Suffolk (Matthew Hancock) and for Bromsgrove (Sajid Javid), who outlined in their compelling speeches why the Budget is incredibly important. The issue that we have not really focused on enough is the context of the Budget. We all—even Opposition Members—accept that the deficit is too large and that at some point in this Parliament we have to deal with it. The big point of contention between the coalition Government and the Opposition is how soon we should grapple with the deficit. We forget the fair hopes that we had in 1997 when the then Chancellor of the Exchequer produced his first Budget, entitled "Equipping Britain for our long-term future". That was the message that he wanted to send. That financial statement and Budget report came out in July 1997, and it was in that report that he famously stated his golden rule:""The golden rule means that over the economic cycle the Government will borrow only to finance public investment and not to fund current expenditure."" So far so good. The second rule was that he would maintain stable public finances—a requirement for our long-term economic stability.