Capital Gains Tax (Rates)
Debate between Lord Jackson of Peterborough and Maria Eagle(14 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Stewart Jackson (Peterborough) (Con)
It is a pleasure, as always, to follow the hon. Member for Foyle (Mark Durkan). I pay tribute to my hon. Friend the Member for East Surrey (Mr Gyimah) for his fluent and assured maiden speech. There is a great future for him in this House.
The Budget that was presented to the House by the Chancellor of the Exchequer last week was brave and bold, and it was the right thing to do. History will record that it will set our country back on the road to economic recovery and prosperity. Just as it fell to Margaret Thatcher 30 years ago to deal with the poisonous legacy of Labour profligacy and financial ruin, the Prime Minister faces a similar challenge today. Labour Members, in their faux outrage at the Budget, barely comprehend the fiscal catastrophe that they inflicted on our country, displaying a mixture of cocky bravado and denial.
Mr Jackson
I will not at the moment.
A modicum of humility or contrition from Labour would surely be appropriate and in order. Given Labour’s utterly negative message at the general election, with no vision of what a fourth Labour Government would mean, it is no wonder that few commentators and fewer voters take its protestations seriously. It simply has no coherent alternative, other than to tax and spend, and to bribe the core vote with other people’s money. Labour’s plan to cut the deficit was completely empty of detail and its deficit reduction bill merely partisan window-dressing.
The Labour party would have had more credibility at the general election and in this debate if it had been honest with the voters about the 20% cuts in non-ring-fenced departmental budgets that the previous Chancellor had already planned. We know that Labour prepared position papers in the Treasury for a 20% VAT rise, which, most importantly, the party failed to rule out in its election manifesto. Labour bet the ranch over the past 13 years on financial services that were not properly regulated, on unsustainable increases in public spending and on a housing market built on a South Sea-style bubble. Labour lost, and we all lost: a £155 billion deficit—bigger in percentage terms than in Italy, Greece or Portugal—a structural deficit that is £12 billion more than we were led to believe, and a debt mountain of £1.4 trillion from the Government who gave us £3 billion overspends on welfare payments and wasted £780 million on the reorganisation of Departments and agencies.
It is scarcely possible to believe that during a dozen years of plenty so many of our fellow citizens were failed, and none more so than the so-called working poor—those who get up in the morning and go to work, pay their taxes, teach their children right from wrong, and have a sense of pride and self-respect. People are rational, and they will do rational things. If we pay for people not to go to work, they will take the path of least resistance and not work. That is Labour’s legacy: the people who need our help, trapped in a half-life of bureaucratic form-filling, and a hopeless and aimless existence on benefits. I believe that the Labour Government were not malevolent, but merely incompetent to an Olympian degree. After 13 years, the number of children in severe poverty is rising. We also have a higher number of children living in workless households than practically any other country in the European Union, 4.8 million people of working age in workless households, and one in five 18-year-old boys who are NEET—not in education, employment or training.