Finance (No. 4) Bill

Claire Perry Excerpts

Monday 16th April 2012 Commons Chamber

[Jacob Rees-Mogg]

My hon. Friend is absolutely spot-on, because every single socialist Government this country has ever had have always left the country in a financial mess, as they believe that by squeezing the rich until the pips squeak they can get more revenue, when history shows that they cannot.

The success of the Government’s fiscal plan is shown day in, day out by the bond market. Interest rates on our 10-year gilts are just about 2%. When we look abroad—when we look to the continent—we see how quickly those rates can deteriorate for countries in which the markets lose confidence. The greatest tribute to this Government’s economic policy is what has been happening in the bond market.

We must thank our Liberal friends for another great measure in this Finance Bill: the raising of thresholds. That has, quite rightly, been adopted by Conservatives. It is sensible that people should not pay tax when they are on benefits. The higher the threshold can be raised so that we avoid this merry-go-round of tax and benefits, the better.

[Claire Perry (Devizes) (Con)]

I thank my hon. Friend for making that point about thresholds. Does he share my pleasure in the fact that the majority of people benefiting from that threshold being raised are women, many of them working part time?

[Jacob Rees-Mogg]

That is a tremendously important point, because we have heard some complaints that couples, where both are working, are particular beneficiaries. But I think that that is great; I think that where the husband and wife are both going out to work, one of them is a relatively low earner and the whole family income benefits, that is good for men, women and probably their children, too. So this is absolutely the right policy.

In addition, we have cut corporation tax, a pro-business policy. We saw how well Ireland did by cutting corporation tax—[[Hon. Members: “It went bust!”] The reason Ireland went bust was not its low corporation tax. The reason Ireland went bust was because it joined the euro, a policy of which a lot of Labour Members were all in favour. Ireland’s corporation tax was behind it becoming a very successful economy and attracting companies to go there to do business. We want to do the same and I am glad that the Government have so much ambition to continue reducing corporation tax, to the benefit of the nation.

When we look at these great and bold things that have been done—getting the deficit under control, lowering the top rate of tax, raising thresholds and lowering corporation tax—we see that big, important measures have been taken. Yet what is the Budget criticised for? What is the Finance Bill criticised for? The answer is pasties. I have to say that the VAT levels charged are required to raise revenue and they include all sorts of funny things and they exclude some odd ones, too. Many of us will remember all the fuss there was about whether Jaffa cakes were cakes or biscuits, and whether, as a cake, they were exempt or whether, as a biscuit, they had VAT paid on them.