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Budget Resolutions and Economic Situation

No, I will not give way. The Liberal Democrats would not give way to me on this point earlier. The Liberal Democrats claim that the rise in the tax threshold is a progressive measure that helps the poorest; the truth is that it is not and never has been. We were reminded by the hon. Member for Grantham and Stamford (Nick Boles) at Prime Minister's questions last week that the cause was originally championed from the right of the Conservative party by Norman Tebbit, but it was rejected even by the Thatcher Government as unjustifiable. It gives the same cash benefit to somebody earning £10,000 as to somebody earning £100,000—[Interruption.] Members should listen to this point. It gives a tax handout to, for example, every Member of this House. We, frankly, are not among those most in need; at this time, people such as us and those who earn more do not need a payout. The cruellest trick is to pretend that it is a progressive measure. The Institute for Fiscal Studies looked at the impact of lifting the personal allowance and stated, first, that"““the poorest third of adults do not benefit at all””;" secondly, for families, that"““the highest average gain occurs in the second-richest tenth of the income distribution””;" and concluded that the assertion that increasing the personal allowance is progressive"““is not true if one considers the gains across all families””." This Budget fails the test of fairness, it fails the test of growing the economy and it should fail to win the support of this House.