Taxation: Deficit Reduction

Lord Howarth of Newport Excerpts

Thursday 28th October 2010 Lords Chamber

[Lord Sassoon]

I am very grateful to my noble friend. I completely agree with his sentiments. This is not a Government who believe in medium and long-term high marginal rates of taxation. We have to incentivise the private sector to go out and generate wealth in order to deal, among other things, with the rebalancing of the economy which is now so necessary.

[Lord Howarth of Newport]

My Lords, does the noble Lord really expect us to believe that engineering a wholesale reduction in demand in the economy is the way to prepare for growth? Will the noble Lord be candid and say whether he considers that the Government are more politically vulnerable on account of their failure to provide growth, or of their failure to provide fairness?

[Lord Sassoon]

My Lords, I will cite the latest figure this week for quarterly growth in the economy. The naysayers said that growth in the last quarter would be 0.4 per cent, but it was 0.8 per cent, coming on top of 1.2 per cent in the previous quarter. With more than 300,000 new private sector jobs created in the second quarter, that is the way in which we will deal with the economic situation.