Peter Bone
Main Page: Peter Bone (Independent - Wellingborough)Department Debates - View all Peter Bone's debates with the HM Treasury
(13 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Gauke
Unless we get the public finances right, there will be no long-term consumer confidence. Can we imagine what the impact would be if the Government abandoned their approach and just started spending money, like the previous Government did, and failed to tackle the deficit? I am afraid that consumer confidence would go through the floor.
Mr Peter Bone (Wellingborough) (Con)
Is it not right to say that to compensate for the increase in VAT, the Government have increased the personal allowance for taxpayers, so that consumers have more money to spend?
Mr Gauke
My hon. Friend is right to say that we have increased the personal allowance, taking 880,000 people out of income tax, resulting in an income tax cut for millions of people. It is none the less the fact that we must tackle the deficit. To the extent that the Labour party wants to do anything about the deficit, it advocates reducing the deficit by increasing taxes by more. Think what that would do.