---

Finance (No. 4) Bill

What a pleasure it is to follow that barnstorming speech by my hon. Friend the Member for Bassetlaw (John Mann), which is one of many powerful speeches that we have heard from Opposition Members. There have also been some interesting speeches from Government Members, which I will come to in a moment. People used to say that Budgets from Tory Chancellors, and Tory Chancellors themselves, were cruel but competent. After this Budget, they do not say that any longer. Opposition Members do not say it and nor do Government Members. We have heard quite a bit of criticism of the Budget, but little praise for it. Over the past few weeks, as the chicanery at the heart of the Chancellor's Budget has been exposed, line by line, clause by clause, in the newspapers and in this House, the scales have fallen from the eyes of people across this country, and especially from the eyes of the people who were kidded into voting Conservative at the last election; from the eyes of the people who thought that the Chancellor was an astute political strategist and a smart steward for the economy; from the eyes of the people who thought that the NHS was safe in the hands of the Conservatives; from the eyes of the people who bought the balderdash about the big society; and from the eyes of voters in my constituency and constituencies like it across the country who heard that, apparently, we were all in it together. That myth has been wholly debunked over the past couple of weeks, and in the speeches of my right hon. Friend the Member for Knowsley (Mr Howarth), my hon. Friends the Members for Dumfries and Galloway (Mr Brown), for Middlesbrough (Sir Stuart Bell), for Kingston upon Hull North (Diana Johnson) and for Llanelli (Nia Griffith), my right hon. Friend the Member for Stirling (Mrs McGuire), my hon. Friend the Member for Edinburgh East (Sheila Gilmore) and, of course, my hon. Friend the Member for Bassetlaw, we have heard it exposed once more today. They have exposed the black hole at the heart of the Bill where there ought to be measures for growth. The price for that black hole will be paid for by working people across this country. They have exposed the ludicrous, unthought-through, ill-judged measures, whether on pasties or caravans, that have been rightly and roundly mocked in the press. Government Members have also made significant and challenging speeches. The hon. Member for Cities of London and Westminster (Mark Field), with his characteristic candour, pointed out the lack of growth measures in the Bill and bemoaned the fact that the Chancellor has not done more to deliver growth and to stop the economy flatlining. The hon. Member for Christchurch (Mr Chope) exposed the perversity at the heart of the changes in clause 8, which relate to child benefit. The hon. Member for York Outer (Julian Sturdy) gave a particularly good dissection of the madness of the pasty tax and the caravan tax. Those Government Members know that they no longer have a Chancellor whom they can trust to run the economy or to take charge of their party in the future, because in this Budget he presided over a slow-motion car crash. With the tax on pasties, grannygate, the conservatory tax, VAT on vans and the charity charge, this is not a Budget to boost growth or a Budget for any particular sector of our economy, except for the headline writers. They are the ones who have been waving their Order Papers and who continue to celebrate this Budget—the gift that keeps on giving. Only this morning, we heard the Exchequer Secretary trying to justify the proposed changes on charitable giving and the 25% cap on tax relief. He did so by revealing that a handful of people in this country who earn more than £1 million and more than £10 million succeed in dodging paying their tax. There is no news in that. One would have thought that a competent Government who understood what they were doing would have realised that the flipside of that argument was to reveal that more than 75% of higher rate taxpayers—those paying 40% and 50%—do pay all of their taxes. Members do not need to believe my words about that, or even examine the Treasury's own analysis that reveals it. They simply need to read what the BBC's economics editor Robert Peston said today. He pointed out that more than 73% of people earning more than £250,000 had been paying the 40p and 50p rates. Even among people earning between £5 million and £10 million, 70% or 80% paid the full rate. What does that mean? According to the economics editor of the BBC, it"““implies that many tens of thousands of people were (and are) paying the 50% tax rate, and were unable to dodge it. To state the bloomin' obvious, all of those people were given a very lovely tax cut in the budget.””" It must surely have occurred to a competent Chancellor that he would be exposed by such analysis.