Finance Bill

Kwasi Kwarteng Excerpts

Tuesday 20th July 2010 Commons Chamber

[Matthew Hancock]

Of course, the bond market could see a Conservative—or coalition—Government coming, and that is exactly what happened. I will say this to the right hon. Gentleman: when there is a flight to safety, I would rather it was to British bonds, not to bonds overseas, which is what could easily happen if we did not have a credible policy.

[Kwasi Kwarteng (Spelthorne) (Con)]

Those of us who have looked at bond yields will have noticed that the tightening—as it called—of British bonds actually happened in April. That happened as a consequence of the markets being sure that the Labour Government would be voted out, as everyone in the City has mentioned.

[Matthew Hancock]

I am always delighted to talk about when the previous Labour Government lost office, so I thank my hon. Friend for that intervention. Let me go through a few more elements of the economic evidence. I have here an extremely good literature review, by Policy Exchange, the think-tank, which lists—

--- Later in debate ---

[Mary Creagh]

I know that there is to be an increase of £150. I will come to that if the hon. Gentleman will show a little patience and allow me to make progress with my speech. He spoke for 13 minutes, and I hope to take less time than that.

As I was saying, the toddler tax credit would have provided an extra £208 a year for families with children aged one or two. Moreover, child benefit has been frozen for three years, which means a real-terms cut.

[Kwasi Kwarteng]

Will the hon. Lady give way?

[Mary Creagh]

I have already said that I am not going to give way to Opposition Members. It is true that child tax credit will rise by £150 above inflation for one year—