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Finance Bill

Exactly, and if these bodies are then to be burdened by this VAT increase, that will severely affect them. On the VAT issue, I wish now to discuss an excellent document, which I believe has been sent to all hon. Members, produced by Save the Children and headed "Why the rise in VAT must be cancelled". It makes all the arguments that the excellent Library note makes about the poorest being affected the worst, but it also gives some very good examples. A table on page 3 shows that the essential items to which my hon. Friend the Member for Stretford and Urmston (Kate Green) was referring are not luxuries but items that a family would require. I am talking about things such as washing machines, electric ovens and hobs and children's bed frames, which will all be affected by this increase. The hon. Member for Solihull said that people should rush out to buy these things now to avoid the VAT increase in January. What she does not understand is that some individuals do not have the disposable income to be able suddenly to go out, shop around and get them. Many of these people rely on credit, so they face a double whammy of credit, usually at a high interest rate, and the effect of the coming VAT increase. The Liberal Democrats should hang their heads in shame for supporting this Budget and especially these proposals, which are not progressive but will hit the hardest up in our society. I just hope that when it comes to the votes on the VAT increases they have the courage to oppose them; otherwise, they will have an electoral price to pay at the ballot box in local elections and others. The proposals in the Budget to increase the insurance premium have not been given a lot of attention tonight.