Finance (No.2) Bill

James Paice Excerpts

Tuesday 8th April 2014 Commons Chamber

[Jonathan Edwards]

That is a fair point. We are making the case for a review. Let us have the figures divulged further. As I say, they are projections.

[Sir James Paice (South East Cambridgeshire) (Con)]

Does the hon. Gentleman want a review or does he want a higher tax rate? What would he do if that review demonstrated that 45p, 47p or 48p—anything less than 50p—was the point at which the Laffer curve tipped over? Is he interested in maximum receipts to the Treasury or in some sort of moral argument about equalising the distribution of income?

[Jonathan Edwards]

That is a very valid intervention. My political position would be to support a 50p rate, but let us have the evidence to make the decision. As I am outlining, the evidence suggests to me that 50p would be a better top rate than 45p, and certainly better than 40p.