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(Clauses 1, 4, 8, 189 and 209, Schedules 1, 23 and 33, and certain new Clauses and new Schedules relating to value added tax)

I entirely appreciate that the hon. Gentleman's case applies to all sides—that there is much uncertainty about precisely the optimum rate of tax—but does he not accept that the 45p rate mooted three and a half years ago, which has now been put in place, was suggested simply because of the totemic effect of having to pay less than half one's income at the highest rate of income tax? That totemic effect has a massive impact on both entrepreneurial spirit here and the international competitiveness that my hon. Friend the Member for South West Norfolk (Elizabeth Truss) mentioned earlier.