Finance Bill

Debate between Clive Efford and Madeleine Moon

Tuesday 6th July 2010 Commons Chamber

[Clive Efford]

Well, I am sorry, but the hon. Lady will hear it again and again, because it happens to be true.

During the general election the Prime Minister—he was Leader of the Opposition at the time—said to Jeremy Paxman on “Newsnight” on 23 April:

“We have absolutely no plans to raise VAT. Our first budget is all about recognising we need to get spending under control rather than putting up tax”.

In his closing remarks in the leaders’ debate, he said that he believed that the test of a good society is how it looks after the poorest and most vulnerable in difficult times. Well it did not take him long to fail that test. He promises good times ahead and a clean break. Who for? It is certainly not for the poorest in our communities.

The Deputy Prime Minister—I remind the House that he was the leader of the Liberal Democrats in opposition—said during the election campaign:

“The Conservatives have made a series of uncosted tax promises, tax bribes.”

That was referring to Tory promises to recognise marriage in the tax system, limit the national insurance rise, freeze council tax, and raise inheritance tax thresholds. He continued:

“The only way that they are going to deliver their tax promises is by dropping a tax bombshell, a VAT bombshell of £389 a year on every household in this country.”

What changed his mind? Was it when the ministerial Prius turned up outside his house or was it before that?

The Liberal Democrats launched their London election manifesto claiming that under them Londoners would save some £700 a year. They said that tax cuts would be paid for by “closing loopholes” and “increasing aviation pollution taxes”. They said their tax reform would be the most radical in a generation—any takers on the Conservative Benches for a radical change from the Liberal Democrats? I think not! Their manifesto also included a pledge

“to put 600 more police on the capital’s streets and an extra £520 million a year in London schools.”

Instead, however, we have seen a cut in Building Schools for the Future and in police numbers, and we are going to see a rise in unemployment as a result of their support for the Budget.

[Mrs Moon]

Is my hon. Friend, like me, going back to his constituency and finding a high level of concern, fear and anxiety about the future? This is not just about the VAT proposals in the Finance Bill; people are nervous about the future, their budgets and their capacity to spend and have a secure future. People are nervous about, and afraid of, every aspect of the Con-Dem coalition.

[Clive Efford]

My hon. Friend is right. That applies not just to individuals but to businesses. Many people are expressing concern about the impact of this emergency Budget.

On 8 April, the Deputy Prime Minister said on Sky News:

“We will not have to raise VAT to deliver our promises. The Conservatives will. Let me repeat that: our plans do not require a rise in VAT. The Tory plans do.”

Well, we all know it is a Tory plan now, do we not? And we all know who is voting for it.

What are the public to make of this sudden about-face? Who has the moral mandate for this level of tax increase and for taking this proportion of tax to pay for the deficit as opposed to rolling back the state? Where is the mandate for making the poorest pay for this Budget as they will? More importantly, however, where is the contribution from the banks?