Oral Answers to Questions

Tony Baldry Excerpts

Tuesday 24th April 2012 Commons Chamber

[Mr Gauke]

No, the cut from 50p to 45p will have a direct cost in reduced income tax of about £100 million. As it happens, the indirect benefit of additional indirect taxes is likely to exceed that number.

[Tony Baldry (Banbury) (Con)]

It is important to remember, though, that for 12 out of the 13 years that they were in government, the Opposition thought it appropriate to have a top rate of tax at 40p. Is not the important thing the yield that is raised by the top rate of tax, not having a tax rate that is punitive just for the sake of having punitive taxes?

[Mr Gauke]

My hon. Friend is right. The Opposition had the 50p in place for only 36 days of the 13 years that they were in power. If a tax is judged on how much revenue it raised, the 50p rate was a failure.