Finance (No. 2) Bill

Debate between Jim Hood and Stewart Hosie

Thursday 18th April 2013 Commons Chamber

[Stewart Hosie]

I am broadly sympathetic to the proposal, which could stimulate the economy significantly, but VAT brings in about £100 billion a year, so the question the right hon. Member for Wokingham (Mr Redwood) asks is valid. Does “strong growth” mean consistently positive growth and, if so, at what level and for how long, or would it require a return to trend growth of about 2.5% and, if so, for how long, or would it require above-trend growth and, if so, for how long? To have an open-ended commitment to lose potentially £10 million a year for some years would be quite a serious and significant thing, irrespective of the positive impact it might have.

[The Temporary Chair (Mr Jim Hood)]

Order. I say to the hon. Gentleman, in case he is going to make any further interventions, that he should make them a bit shorter and get straight to the point.