Finance Bill

Debate between Lord Beamish and Chris Williamson

Tuesday 6th July 2010 Commons Chamber

[Chris Williamson]

Thank you, Mr Speaker. I merely wanted to make a brief reference to President Obama’s letter. I think that Government Members are familiar with it. I referred to it in a previous speech, and I will therefore move on.

From the historical precedents to which I have referred, and indeed the precedent of the Attlee Government in 1945, it is clear that by investing in our economy and not taking the course of action that the Government are taking in relation to VAT, corporation tax and the insurance premium tax, we can secure greater opportunity for recovery. If we can put people back to work by investing in our economy, that will ensure that the tax take is increased.

[Mr Kevan Jones]

Does my hon. Friend agree that, in his constituency, the VAT increases in the Finance Bill will have a disproportionate effect on the poorest individuals? Will that not hamper not only the recovery but the personal circumstances of those individuals?

[Chris Williamson]

I am grateful to my hon. Friend. Certainly the increases will impoverish countless people living on modest incomes in my constituency. That is very clear. The point that I was trying to make, though, was that growth is the key to recovery, and by investing in our economy we can secure that growth.