Amendment of the Law

Debate between Damian Collins and Andrew Miller

Thursday 22nd March 2012 Commons Chamber

[Andrew Miller]

Yes, I got the tape measure out. It said: “‘Granny tax’ hits 5m pensioners”. The papers referred to a £3 billion tax raid on pensioners over the next four years, and pointed out that nearly 4.5 million pensioners who pay income tax will lose an average of £83 per year next April and that people turning 65 next year will lose up to £322. As you are in the Chair and know me rather well, Mr Deputy Speaker, I suppose I should declare an interest, as it is my 63rd birthday tomorrow. Whatever the Chancellor says about increasing the income tax personal allowance, a family with children, earning just £20,000, will lose about £253 from this April. Shockingly, he slipped out that £3 billion tax raid on pensioners over the next four years. All this comes from a Government whose economic policies on growth, jobs and the deficit have utterly failed.

Of course, there have to be tough decisions on tax, spending and pay; otherwise, we would not get the deficit down. However, although the restoring of the cuts in the science budget is one of the few measures I agree with, a lot more funding is needed if we are to retain the quality of British science. I agree with Imran Khan, the director of CaSE—the Campaign for Science and Engineering—who said today:

“I suspect the Government realises that the multi-billion pound, 50% cut made to research capital in 2010 simply is not sustainable. Despite difficult times, they are trying to put it right, and it is not going to go unnoticed.

However, simply reversing the cuts isn’t going to be a game-changer for the UK. We need to be far more ambitious if we’re serious about having a high-tech future. The Chancellor should re-invest the windfall from the auction of 4G mobile spectrum, due later this year, into science and engineering.”

The Budget said nothing about that.

[Damian Collins]

Will the hon. Gentleman give way?

[Andrew Miller]

No I will not.

I also agree with the Engineering Employers Federation. Although it welcomed the changes to research and development tax credits, it stated:

“Whilst there are some helpful measures, they fail to send a strong enough signal to growing manufacturers”.

This morning’s Financial Times states that John Longworth of the British Chambers of Commerce said that

“small and medium-sized companies felt the Budget measures would ‘overwhelmingly benefit the biggest businesses’ and were disappointed he did not do more to boost confidence across the economy.”

Finally, as the shadow Chancellor said, the Chancellor’s plan has failed. Trying to raise taxes and cut spending too far has backfired. With his tax cut for millionaires, the Chancellor is piling insult upon injury for millions of families and pensioners across Britain. This is a Budget full of failed promises that will fail the country. I urge the House to vote against it on Monday.