Capital Gains Tax (Rates)

Debate between David Ward and Iain Duncan Smith

Monday 28th June 2010 Commons Chamber

[Mr Duncan Smith]

I am happy to consider a race impact assessment—that is reasonable—and if the right hon. Gentleman wants to come and talk to me, my door is open.

We believe that there is enough housing in London. Of course, I did not say that this was going to be easy. The point is that far too many people in houses in central London are paid significant sums—over £100,000 in some cases. That is unsustainable. As much as I like the right hon. Gentleman—he is a fellow Tottenham supporter—I have to say to him that he knows as well as I do that these are tough choices, but they are ones that we believe that we can manage. We have tripled the discretionary fund to allow for difficult cases, and I suspect that a significant amount of that will be used in London because the nature of London means that there will be issues. We will get through this, and I guarantee that we will keep the situation under review. My offer to the right hon. Gentleman still stands.

[Mr David Ward (Bradford East) (LD)]

The Chancellor ended his Budget speech by saying that it

“laid the foundations for a more prosperous future. The richest paying the most and the vulnerable protected: that is our approach.”—[Official Report, 22 June 2010; Vol. 512, c. 180.]

If the actuality falls out of line with the intention, will measures be brought forward to bring it back into line?

[Mr Duncan Smith]

My hon. Friend has to recognise that one needs to see the Budget in the round, over the lifetime of this Parliament and in terms of reform. What I want to do is introduce reforms that focus benefit money—the money that we spend—hugely on the poorest in society. That must be our priority. Right now, the benefit system that we inherited is out of kilter, and has sucked in too many people on higher incomes, and has left too many people on low incomes desperately looking for work, but unable to find it. The answer to my hon. Friend’s question is that we are absolutely—and I am, too—determined to reform the system, so that the poorest benefit the most, and we make sure that they receive assistance to change their lives and become more profitable in all that they do.