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Budget Resolutions and Economic Situation

My hon. Friend is absolutely right. The Labour party will not make progress with the electorate until it does two things: apologise for the debt millstone they left to our children and grandchildren, and develop a policy that is not written on the back of a fag packet. I welcome the cut in corporation tax, which gives us the fourth lowest such tax rate in the G20. I welcome the reduction in the top rate of income tax from 50p to 45p, too, as the 50p rate was damaging competitiveness and not collecting the sums it should have collected, and was an impediment to entrepreneurial activity and business growth in our country. Let us nail the myth about taking poorer working people out of tax. It is a Conservative policy, enunciated by Lord Forsyth in the tax commission in 2005, and restated by Lords Saatchi and Tebbit. It is a Conservative policy to boost people's incomes because we trust them to spend their money wisely. I also support the policy on age-related allowances. There is consensus on the issue of generational fairness—even the hon. Member for Pontypridd (Owen Smith) will agree with me about that—and this Government have a very good record on provision for pensioners, including the largest ever cash rise in the basic state pension from April this year, the uprating of the pension credit guarantee, and the help with fuel bills for poorer pensioners. We have a much better story to tell on that than the last Labour Government had, with their ridiculous and insulting 75p pension rise in 2000.