Finance (No. 4) Bill
Debate between Andrew Love and Alun Cairns(12 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Alun Cairns
Thank you, Mr Hood, for calling me to contribute to this debate on amendment 1. It is a privilege to follow the hon. Member for East Antrim (Sammy Wilson). I accept some of his points about the importance of the economics, but I certainly do not agree with his conclusion. I will comment on the weakness of the argument presented by the hon. Member for Pontypridd (Owen Smith) a little later.
Alun Cairns
My hon. Friend obviously makes an extremely strong point. It underlines the argument that the last Chancellor faced the same uncertainty as the current one. The last Chancellor made a judgment that he should increase the rate of tax, and the current one has made a judgment that he should reduce it. That is the core difference between the Labour and Conservative parties. We want to create wealth, unlike the Labour party, which is the party of envy and wants to punish people and spend their money instead of giving individuals greater choice.
Mr Love
The hon. Gentleman rightly says that because of the uncertainty about all these figures, the Chancellor had to make a judgment. Was that judgment a political one, casting doubt on the Government’s claim that it was made for purely economic reasons? It was not an economic decision; it was a political one.
Alun Cairns
It was quite obviously an economic judgment, but we cannot ignore the politics, which is what international investors interpret when they are considering placing their money and creating jobs in the hon. Gentleman’s constituency or mine. They consider how much they, their senior management, their greatest innovators and their scientists will have to pay under the top rate of tax. The politics cannot be ignored, but the economics, as demonstrated by the Chancellor and the Treasury team, is sound according to figures from the OBR, the IFS and HMRC. I absolutely accept them.