Budget Resolutions and Economic Situation

Debate between Lord Tyrie and Iain Stewart

Tuesday 22nd June 2010 Commons Chamber

[Mr Tyrie]

All tax rises slow down growth in one way or another. They, by definition, take demand out of the economy. The only question is how one should do it. The Chancellor has had a very difficult choice to make.

[Iain Stewart (Milton Keynes South) (Con)]

Does my hon. Friend recall that when the former Chancellor temporarily reduced VAT to 15%, a Treasury document clearly showed that afterwards the Labour Government were planning to increase it to 20%?