Capital Gains Tax (Rates) Debate

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Department: HM Treasury
Wednesday 23rd June 2010

(14 years, 5 months ago)

Commons Chamber
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Claire Perry Portrait Claire Perry
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Thank you very much for giving way, and I am looking forward to hearing what else you have to say. What you have said so far would, however, have much more credibility if you had not represented a Government who tried a different approach for 13 years, with high-falutin’ goals to reduce poverty to help your constituents, and who failed miserably in that. Is the hon. Gentleman truly saying that in his view there should be no cuts—that the broken economic model should roll on as before and that that is the way to repair the economy—or does he have some idea of where the cuts should have fallen?

Baroness Primarolo Portrait Madam Deputy Speaker (Dawn Primarolo)
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Order. Before the hon. Gentleman replies, may I just say to the hon. Lady, first, that interventions are supposed to be brief—I hope that all Members will take note of that? Secondly, on the use of “you”, may I remind the hon. Lady that her comments are not addressed to me in the Chair? Given that we have been back in the Chamber for quite some time now, I think Members need to come back to addressing each other correctly when putting questions.

Huw Irranca-Davies Portrait Huw Irranca-Davies
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My apologies, Madam Deputy Speaker, for not welcoming you to the Chair.

My answer to the hon. Lady’s second question is: absolutely not. None of us can resile from the fact that there will need to be not just efficiencies, but cuts and prioritisation of projects and spending, and that will hurt. My fundamental point, which I shall return to in some detail shortly, is about how we do it and when we do it; the timing of it.

I have to say that I could not disagree more with the hon. Lady’s earlier point, and neither could most of the child charities or the Joseph Rowntree Foundation. [Interruption.] Yes, we have had criticism for not going far enough, but I return to the remarks of the hon. Member for Strangford (Jim Shannon) about child tax credits. They can sometimes be complicated. I sometimes have constituents in my office who say, “Can you help me sort this out, because we have letters going back and forth?” I tell the hon. Member for Devizes (Claire Perry) this, however: none of my constituents would do without them because of the material difference they have made to them.

When I send my children to school, I know that if they come home and say they have a trip to go on and it will cost a fiver, a tenner or £20, I can say to them, “Don’t you worry. I’m on an MP’s salary; it’ll be okay.” I also know, however, that there are constituents of every Member in this House who will have to make the choice between putting groceries on the table and putting that money towards things such as school trips. So when the hon. Lady says this makes no difference, I can honestly say to her, “Go and look at the statistics. Go and look at the numbers of those who have been lifted out of absolute poverty under the previous Government.” If she shares this commitment—as I am sure she does—I tell her to put the pressure on the coalition Government to make it clear before the summer what their poverty targets are, and not for two years, but for five years.

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Baroness Primarolo Portrait Madam Deputy Speaker
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Order. I want to be helpful to the Chamber by explaining that when hon. Members make their contributions, they address the Chair. When hon. Members say “you”, they mean the occupant of Chair—and according to parliamentary convention, the Chair should not be blamed for everything. Also, interventions should be brief.

Angela Smith Portrait Angela Smith
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Thank you, Madam Deputy Speaker. All that I would say about the hon. Gentleman’s intervention is that the recession was caused by the collapse of the global economy, and principally by the bankers. If the hon. Gentleman would like to come and have a look at the ex-mining and ex-steelworking areas of my constituency, I could show him how much progress was being made in repairing the damage and how much that repair is now at risk because of the policies pursued by this Government.

I fear the worst for the young of our country. The 1980s saw the creation of a lost generation, and we are still feeling the effects. I believe this coalition will create yet another lost generation. I fear for the poor, the sick, the unemployed, the elderly and the hard-working public sector. Now we are getting to know just what the “big society” is all about. It is about an ideological drive towards a US-style small state; it is about people being left on their own; it is about the poor and the disadvantaged being left to help themselves; it is a return to the days we thought had been left far behind when the previous Tory Government left office. The only surprise is that this time they are being aided and abetted by the Lib Dems. That just goes to show that, as we have always suspected in south Yorkshire, the Lib Dems are yellow Tories at heart.

Increasingly, when I look at the Lib Dems in government, I am reminded of George Orwell’s “Animal Farm”. The pigs, led by Napoleon, campaign for an overthrow of the old politics on the farm. Gradually, however, the pigs morph into the humans they once despised, and their slogan of “Four legs good, two legs bad” changes to “Four legs good, two legs better”. In Sheffield, we are all aware that our Napoleon has started walking on two legs. The Deputy Prime Minister is a Tory in all but name, and we fear the consequences of his betrayal for our economy, both regionally and nationally. He should hang his head in shame.