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Dawn Primarolo: That intervention is breathtaking. The landfill tax was introduced by a Conservative Government and the hon. Gentleman is a Conservative Member. We happen to think that it is a good environment tax. Fly tipping needs to be taken seriously and tackled, but that problem is not a reason to weaken the commitment to the landfill tax or to relax our pressure on people to recycle.

My hon. Friend the Member for Luton, South (Ms Moran) spoke about the comments from the front line of Luton. At a business breakfast, we had the benefit of discussing the Budget proposals with business men and women from her constituency. Like many others, my hon. Friend rightly welcomed the commitments to small business; the reduction in national insurance contributions; the amalgamation of the Contributions Agency into the Inland Revenue; the reduction in corporation tax; and the investment relief changes.

My hon. Friend the Member for Dudley, North (Mr. Cranston) made some good comments on the cash basis proposals in the Bill. He has taken a great interest in anti-avoidance--a matter covered in the Bill--and undoubtedly he will be interested, when the draft clauses are produced for consultation, to see whether we can build on the tax law rewrite proposals to introduce a general anti-avoidance regulation.

The hon. Member for Kingston upon--

Mr. Edward Davey: Kingston and Surbiton.

Dawn Primarolo: The hon. Member for Kingston and Surbiton (Mr. Davey) mentioned insurance premium tax.

21 Apr 1998 : Column 686

I remind him that it too was introduced by the previous Government because of identified value shifting, and that that reasoning still applies, especially in the case of cars and televisions--the examples that he took. The higher rate of IPT on certain travel insurance was applied because of specific market conditions that have developed in this sector. [Interruption.]

Mr. Deputy Speaker: Order. There is far too much background noise. We must hear the Financial Secretary.

Dawn Primarolo: In Committee, we shall be happy to discuss value shifting and IPT, but the Government's position remains the same on the sectors that the hon. Gentleman identified.

Mr. Malcolm Bruce: The hon. Lady is going through a catalogue of taxes. Will she now acknowledge that Government borrowing this year will be less than £1 billion against the previous Government's forecast of £19 billion? Will she explain why, contrary to Government pledges, spending on education as a percentage of GDP should still be falling and say when the nurses and teachers will be able to share in the country's prosperity--in which the hon. Lady says she wants everyone to share?

Dawn Primarolo: I am trying to answer the points that were put to me during the debate, which for numerous hours Conservative Members have implored me to do. We are putting the accounts in proper order and there has been a real increase in spending on education and health. It would be nice if, just occasionally, Liberal Democrats could acknowledge that.

My hon. Friend the Member for Halton (Mr. Twigg) talked about the importance of reducing inequality, to which the Budget makes a key contribution. He talked about the importance of extending the additional personal allowance and removing discrimination.

The right hon. Member for Cities of London and Westminster (Mr. Brooke) asked three specific questions. With regard to the hydrocarbon oil duties, I think that I have already said that we are increasing the differential between ultra-low-sulphur diesel and diesel. The right hon. Gentleman is right that we need to build incentives into the system. We are encouraging the distribution of city diesel by increasing the differential and we are encouraged by the number of retail outlets, particularly large supermarkets, that have said that they intend to ensure that that is available.

The right hon. Gentleman asked specific questions about inheritance tax provisions and a series of detailed questions about public access security for owners and, in particular, how we shall ensure that agreements already entered into will be honoured. Given the pressure of time, if the right hon. Gentleman will forgive me, I shall write to him on those points and on the points that he made about casinos, particularly London casinos. As a Londoner, there is no way in which I would want to see London persecuted, and it is not the Government's intention to do so either.

My hon. Friend the Member for Edmonton (Mr. Love) made several important points about making work pay and how the Budget seeks to do that.

21 Apr 1998 : Column 687

The hon. Member for Guildford (Mr. St. Aubyn) asked whether the new enterprise investment scheme will hit the alternative investment market. It is right to target tax reliefs where they are needed most. The purpose is to encourage the provision of start-up and those who do not already have access to the capital market. The alternative investment market provides an active market share and there is no need for the Exchequer to subsidise it further.

The hon. Gentleman also asked about regulations concerning the taxation of policy holders' gains. They will be included in secondary legislation. The aim is to restrict the charge to a narrow range of products. Using secondary legislation enables us to consult the industry to obtain the definitions and ensure that the legislation is correct.

The hon. Gentleman also asked several questions about the working families tax credit and why it is scored as it is in the Red Book. It follows the national accounts convention for similar schemes such as MIRAS. Where payments are in excess of individuals' total tax liability it will be scored as public expenditure, otherwise it will be seen as tax.

My right hon. Friend the Chancellor's Budget represents the Government's commitment to fairness in the economy and to a tax system that delivers to those who want to work. It will ensure that small businesses can thrive and that, by agreement and consultation, the Government base their policies on what is good for the country instead of on what is good for the political party in power, as the Conservative Government did. I commend the Bill to the House.

Question put, That the amendment be made:--

The House divided: Ayes 144, Noes 350.

Division No. 249
[10 pm


AYES


Ainsworth, Peter (E Surrey)
Amess, David
Ancram, Rt Hon Michael
Arbuthnot, James
Atkinson, Peter (Hexham)
Baldry, Tony
Beggs, Roy
Bercow, John
Beresford, Sir Paul
Blunt, Crispin
Body, Sir Richard
Boswell, Tim
Bottomley, Peter (Worthing W)
Brady, Graham
Brazier, Julian
Brooke, Rt Hon Peter
Browning, Mrs Angela
Bruce, Ian (S Dorset)
Burns, Simon
Cash, William
Chope, Christopher
Clappison, James
Clark, Rt Hon Alan (Kensington)
Clarke, Rt Hon Kenneth
(Rushcliffe)
Clifton-Brown, Geoffrey
Collins, Tim
Cormack, Sir Patrick
Cran, James
Curry, Rt Hon David
Davies, Quentin (Grantham)
Davis, Rt Hon David (Haltemprice)
Day, Stephen
Dorrell, Rt Hon Stephen
Duncan, Alan
Duncan Smith, Iain
Emery, Rt Hon Sir Peter
Evans, Nigel
Faber, David
Fabricant, Michael
Fallon, Michael
Flight, Howard
Forsythe, Clifford
Forth, Rt Hon Eric
Fowler, Rt Hon Sir Norman
Fox, Dr Liam
Fraser, Christopher
Gale, Roger
Garnier, Edward
Gibb, Nick
Gillan, Mrs Cheryl
Gorman, Mrs Teresa
Gray, James
Green, Damian
Greenway, John
Grieve, Dominic
Gummer, Rt Hon John
Hamilton, Rt Hon Sir Archie
Hammond, Philip
Hawkins, Nick
Hayes, John
Heathcoat-Amory, Rt Hon David
Hogg, Rt Hon Douglas
Horam, John
Howard, Rt Hon Michael
Howarth, Gerald (Aldershot)
Hunter, Andrew
Jack, Rt Hon Michael
Jackson, Robert (Wantage)
Jenkin, Bernard
Johnson Smith,
Rt Hon Sir Geoffrey
Key, Robert
King, Rt Hon Tom (Bridgwater)
Kirkbride, Miss Julie
Laing, Mrs Eleanor
Lait, Mrs Jacqui
Lansley, Andrew
Leigh, Edward
Letwin, Oliver
Lewis, Dr Julian (New Forest E)
Lidington, David
Lilley, Rt Hon Peter
Lloyd, Rt Hon Sir Peter (Fareham)
Luff, Peter
Lyell, Rt Hon Sir Nicholas
MacGregor, Rt Hon John
McIntosh, Miss Anne
MacKay, Andrew
Maclean, Rt Hon David
McLoughlin, Patrick
Madel, Sir David
Major, Rt Hon John
Malins, Humfrey
Maples, John
Mates, Michael
Mawhinney, Rt Hon Sir Brian
May, Mrs Theresa
Moss, Malcolm
Nicholls, Patrick
Norman, Archie
Ottaway, Richard
Page, Richard
Paice, James
Paterson, Owen
Prior, David
Randall, John
Redwood, Rt Hon John
Robathan, Andrew
Robertson, Laurence (Tewk'b'ry)
Roe, Mrs Marion (Broxbourne)
Ruffley, David
St Aubyn, Nick
Sayeed, Jonathan
Shephard, Rt Hon Mrs Gillian
Shepherd, Richard
Simpson, Keith (Mid-Norfolk)
Smyth, Rev Martin (Belfast S)
Soames, Nicholas
Spelman, Mrs Caroline
Spicer, Sir Michael
Spring, Richard
Stanley, Rt Hon Sir John
Steen, Anthony
Streeter, Gary
Swayne, Desmond
Syms, Robert
Tapsell, Sir Peter
Taylor, Ian (Esher & Walton)
Taylor, John M (Solihull)
Taylor, Sir Teddy
Thompson, William
Tredinnick, David
Trend, Michael
Tyrie, Andrew
Walter, Robert
Wardle, Charles
Whitney, Sir Raymond
Whittingdale, John
Widdecombe, Rt Hon Miss Ann
Wilkinson, John
Winterton, Mrs Ann (Congleton)
Winterton, Nicholas (Macclesfield)
Woodward, Shaun
Yeo, Tim
Young, Rt Hon Sir George

Tellers for the Ayes:


Mr. Oliver Heald and
Mr. Nigel Waterson.


NOES


Abbott, Ms Diane
Adams, Mrs Irene (Paisley N)
Ainger, Nick
Ainsworth, Robert (Cov'try NE)
Alexander, Douglas
Allan, Richard
Allen, Graham
Anderson, Donald (Swansea E)
Armstrong, Ms Hilary
Ashdown, Rt Hon Paddy
Ashton, Joe
Atherton, Ms Candy
Austin, John
Baker, Norman
Ballard, Mrs Jackie
Barnes, Harry
Barron, Kevin
Bayley, Hugh
Beard, Nigel
Beckett, Rt Hon Mrs Margaret
Begg, Miss Anne
Bell, Martin (Tatton)
Benn, Rt Hon Tony
Bennett, Andrew F
Benton, Joe
Berry, Roger
Best, Harold
Betts, Clive
Blackman, Liz
Blears, Ms Hazel
Blizzard, Bob
Blunkett, Rt Hon David
Boateng, Paul
Bradley, Keith (Withington)
Bradley, Peter (The Wrekin)
Brake, Tom
Brand, Dr Peter
Breed, Colin
Brinton, Mrs Helen
Brown, Rt Hon Gordon
(Dunfermline E)
Brown, Rt Hon Nick (Newcastle E)
Brown, Russell (Dumfries)
Browne, Desmond
Bruce, Malcolm (Gordon)
Buck, Ms Karen
Burnett, John
Burstow, Paul
Butler, Mrs Christine
Byers, Stephen
Cable, Dr Vincent
Caborn, Richard
Campbell, Alan (Tynemouth)
Campbell, Menzies (NE Fife)
Campbell, Ronnie (Blyth V)
Campbell-Savours, Dale
Canavan, Dennis
Cann, Jamie
Caplin, Ivor
Casale, Roger
Caton, Martin
Chidgey, David
Chisholm, Malcolm
Church, Ms Judith
Clapham, Michael
Clark, Rt Hon Dr David (S Shields)
Clark, Dr Lynda
(Edinburgh Pentlands)
Clarke, Eric (Midlothian)
Clarke, Rt Hon Tom (Coatbridge)
Clwyd, Ann
Coaker, Vernon
Coffey, Ms Ann
Coleman, Iain
Colman, Tony
Connarty, Michael
Cook, Frank (Stockton N)
Cook, Rt Hon Robin (Livingston)
Cooper, Yvette
Corbett, Robin
Corston, Ms Jean
Cotter, Brian
Cousins, Jim
Cranston, Ross
Crausby, David
Cryer, John (Hornchurch)
Cummings, John
Cunningham, Jim (Cov'try S)
Cunningham, Ms Roseanna
(Perth)
Curtis-Thomas, Mrs Claire
Dafis, Cynog
Darling, Rt Hon Alistair
Darvill, Keith
Davey, Edward (Kingston)
Davey, Valerie (Bristol W)
Davies, Rt Hon Denzil (Llanelli)
Davies, Rt Hon Ron (Caerphilly)
Dawson, Hilton
Dean, Mrs Janet
Denham, John
Dewar, Rt Hon Donald
Dismore, Andrew
Dobson, Rt Hon Frank
Donohoe, Brian H
Dowd, Jim
Drown, Ms Julia
Eagle, Angela (Wallasey)
Eagle, Maria (L'pool Garston)
Edwards, Huw
Efford, Clive
Ennis, Jeff
Ewing, Mrs Margaret
Fearn, Ronnie
Field, Rt Hon Frank
Fitzpatrick, Jim
Fitzsimons, Lorna
Flint, Caroline
Foster, Rt Hon Derek
Foster, Don (Bath)
Galbraith, Sam
Galloway, George
Gapes, Mike
Gardiner, Barry
George, Andrew (St Ives)
George, Bruce (Walsall S)
Gibson, Dr Ian
Gilroy, Mrs Linda
Godman, Dr Norman A
Goggins, Paul
Golding, Mrs Llin
Gordon, Mrs Eileen
Gorrie, Donald
Grant, Bernie
Griffiths, Nigel (Edinburgh S)
Griffiths, Win (Bridgend)
Grocott, Bruce
Grogan, John
Gunnell, John
Hain, Peter
Hall, Mike (Weaver Vale)
Hanson, David
Harman, Rt Hon Ms Harriet
Harvey, Nick
Heal, Mrs Sylvia
Heath, David (Somerton & Frome)
Henderson, Ivan (Harwich)
Hepburn, Stephen
Heppell, John
Hewitt, Ms Patricia
Hill, Keith
Hinchliffe, David
Hodge, Ms Margaret
Hoey, Kate
Home Robertson, John
Hood, Jimmy
Hoon, Geoffrey
Hope, Phil
Howarth, Alan (Newport E)
Howarth, George (Knowsley N)
Howells, Dr Kim
Hoyle, Lindsay
Hughes, Ms Beverley (Stretford)
Hurst, Alan
Hutton, John
Iddon, Dr Brian
Illsley, Eric
Jackson, Ms Glenda (Hampstead)
Jackson, Helen (Hillsborough)
Jamieson, David
Johnson, Alan (Hull W & Hessle)
Johnson, Miss Melanie
(Welwyn Hatfield)
Jones, Barry (Alyn & Deeside)
Jones, Helen (Warrington N)
Jones, Ieuan Wyn (Ynys Mon)
Jones, Dr Lynne (Selly Oak)
Jones, Martyn (Clwyd S)
Jones, Nigel (Cheltenham)
Kaufman, Rt Hon Gerald
Keeble, Ms Sally
Keen, Alan (Feltham & Heston)
Keen, Ann (Brentford & Isleworth)
Keetch, Paul
Kennedy, Charles (Ross Skye)
Kennedy, Jane (Wavertree)
Khabra, Piara S
Kidney, David
Kilfoyle, Peter
King, Andy (Rugby & Kenilworth)
King, Ms Oona (Bethnal Green)
Kirkwood, Archy
Kumar, Dr Ashok
Ladyman, Dr Stephen
Lawrence, Ms Jackie
Laxton, Bob
Lepper, David
Leslie, Christopher
Levitt, Tom
Liddell, Mrs Helen
Linton, Martin
Livingstone, Ken
Livsey, Richard
Llwyd, Elfyn
Love, Andrew
McAllion, John
McAvoy, Thomas
McCafferty, Ms Chris
McCartney, Ian (Makerfield)
McDonagh, Siobhain
Macdonald, Calum
McFall, John
McGuire, Mrs Anne
McIsaac, Shona
Mackinlay, Andrew
McLeish, Henry
Maclennan, Rt Hon Robert
McNulty, Tony
MacShane, Denis
Mactaggart, Fiona
McWalter, Tony
McWilliam, John
Mahon, Mrs Alice
Mandelson, Peter
Marsden, Gordon (Blackpool S)
Marshall, David (Shettleston)
Marshall, Jim (Leicester S)
Marshall-Andrews, Robert
Martlew, Eric
Maxton, John
Meacher, Rt Hon Michael
Meale, Alan
Merron, Gillian
Michael, Alun
Michie, Mrs Ray (Argyll & Bute)
Milburn, Alan
Miller, Andrew
Mitchell, Austin
Moonie, Dr Lewis
Moore, Michael
Moran, Ms Margaret
Morgan, Ms Julie (Cardiff N)
Morgan, Rhodri (Cardiff W)
Morley, Elliot
Morris, Ms Estelle (B'ham Yardley)
Mudie, George
Mullin, Chris
Murphy, Denis (Wansbeck)
Murphy, Jim (Eastwood)
Murphy, Paul (Torfaen)
Oaten, Mark
O'Brien, Bill (Normanton)
O'Brien, Mike (N Warks)
Olner, Bill
O'Neill, Martin
Organ, Mrs Diana
Osborne, Ms Sandra
Palmer, Dr Nick
Pearson, Ian
Pendry, Tom
Pickthall, Colin
Pike, Peter L
Plaskitt, James
Pond, Chris
Pope, Greg
Pound, Stephen
Powell, Sir Raymond
Prentice, Ms Bridget (Lewisham E)
Prentice, Gordon (Pendle)
Prescott, Rt Hon John
Primarolo, Dawn
Purchase, Ken
Quinn, Lawrie
Radice, Giles
Rapson, Syd
Raynsford, Nick
Reid, Dr John (Hamilton N)
Rendel, David
Robertson, Rt Hon George
(Hamilton S)
Rogers, Allan
Rooker, Jeff
Rooney, Terry
Ross, Ernie (Dundee W)
Rowlands, Ted
Roy, Frank
Ruane, Chris
Ruddock, Ms Joan
Russell, Bob (Colchester)
Russell, Ms Christine (Chester)
Salter, Martin
Sanders, Adrian
Savidge, Malcolm
Sedgemore, Brian
Shaw, Jonathan
Sheldon, Rt Hon Robert
Short, Rt Hon Clare
Skinner, Dennis
Smith, Rt Hon Chris (Islington S)
Smith, John (Glamorgan)
Smith, Llew (Blaenau Gwent)
Smith, Sir Robert (W Ab'd'ns)
Soley, Clive
Southworth, Ms Helen
Spellar, John
Squire, Ms Rachel
Starkey, Dr Phyllis
Steinberg, Gerry
Stevenson, George
Stewart, David (Inverness E)
Stewart, Ian (Eccles)
Stinchcombe, Paul
Stoate, Dr Howard
Stott, Roger
Strang, Rt Hon Dr Gavin
Stuart, Ms Gisela
Stunell, Andrew
Sutcliffe, Gerry
Swinney, John
Taylor, Rt Hon Mrs Ann
(Dewsbury)
Taylor, Ms Dari (Stockton S)
Taylor, Matthew (Truro)
Temple-Morris, Peter
Thomas, Gareth (Clwyd W)
Tipping, Paddy
Todd, Mark
Touhig, Don
Trickett, Jon
Truswell, Paul
Turner, Dennis (Wolverh'ton SE)
Turner, Dr Desmond (Kemptown)
Turner, Dr George (NW Norfolk)
Twigg, Derek (Halton)
Twigg, Stephen (Enfield)
Tyler, Paul
Vaz, Keith
Wallace, James
Ward, Ms Claire
Wareing, Robert N
Watts, David
Webb, Steve
Welsh, Andrew
White, Brian
Whitehead, Dr Alan
Wigley, Rt Hon Dafydd
Williams, Rt Hon Alan
(Swansea W)
Williams, Alan W (E Carmarthen)
Williams, Mrs Betty (Conwy)
Willis, Phil
Wills, Michael
Winnick, David
Woolas, Phil
Wright, Anthony D (Gt Yarmouth)
Wright, Dr Tony (Cannock)
Wyatt, Derek

Tellers for the Noes:


Mr. Jon Owen Jones and
Janet Anderson.

Question accordingly negatived.

21 Apr 1998 : Column 691

Main Question put forthwith, pursuant to Standing Order No. 62 (Amendment on Second or Third Reading), That the Bill be now read a Second time:--

The House divided: Ayes 298, Noes 190.


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