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Budget Resolutions and Economic Situation

The reason why we did not introduce it was because the economy was growing through most of our period in government, unlike the economy under her Government. That is the principal reason. Let us return to the taxable income elasticity measure. The OBR says that it might be reasonable, but it also says on no fewer than seven occasions throughout the document that there is ““huge uncertainty”” around the assumptions—not small uncertainty, but huge uncertainty. The Treasury itself, in its document—albeit buried on page 68 of 69—says:"““The results of this evaluation are highly uncertain.””" The reality is that based on the Laffer curve, the Government have made up that £100 million number, but over the last year we got £1 billion from the 50p rate.