Finance Bill

Debate between David Gauke and Gordon Banks

Thursday 15th July 2010 Commons Chamber

[Mr Gauke]

I am not denying that we expect the increase to be passed on predominantly to consumers; we expect that the bulk of it will be. The analysis of VAT, another indirect tax, shows that two thirds tends to be passed on straight away and that much of the rest is passed on over the following 12 months. However, it is not always possible to predict and it partly depends on the level of competition.

[Gordon Banks]

I just want to make a simple point. The Minister is saying that he expects consumers to pay twice—once through increased premiums and once through increased IPT. Does he find that acceptable?