Finance Bill
Debate between Catherine McKinnell and Nicholas Dakin(11 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Catherine McKinnell
The Government clearly do not support that approach because one of the first things they did when they came to power was increase VAT and the costs for ordinary families up and down the country. We have said all along that we would not have taken those decisions. We would not have chosen to give a tax cut to those on the highest incomes. We would not have slapped a 2.5% charge on poor families who are struggling to make ends meet. We have made that very clear, but the Government have ignored that call. We think the Government should be taking action now to try to stimulate the economy and put some money back into very hard-pressed families’ hands.
Nic Dakin (Scunthorpe) (Lab)
My hon. Friend is stating the case for this new clause very clearly. Does she agree that the increase in VAT took a lot of individuals’ spending power out of the economy and also took out a lot of confidence, and that that is what has led to the decline in growth?
Catherine McKinnell
Yes, it was a huge blow for families across the country to see costs spiral overnight. This Government seem incredibly complacent about the impact their spending decisions have had, not only on families but on economic growth. We need to look at the facts. The Chancellor promised growth of 6% in 2010. He also promised that he had asked the country for all he would ask for and would not come back for more, but there he was last week, planning for more cuts in 2015 and completely failing to recognise both that his economic plan has resulted in 1% growth, not the 6% he promised, and that his increase in VAT was very much a part of the reason for that.
Oral Answers to Questions
Debate between Catherine McKinnell and Nicholas Dakin
Nic Dakin (Scunthorpe) (Lab)
4. What discussions he has had with the Secretary of State for Business, Innovation and Skills on skills and employment in the energy sector.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
13. What discussions he has had with the Secretary of State for Business, Innovation and Skills on developing skills in the low-carbon sector.