I contrast that with the zero rating on new build. So much for this Government’s pretence at being the greenest Government yet. It would be much greener to encourage alterations to listed buildings, to make them practical to use in the 21st century. Furthermore, far from stimulating the economy, the change is likely to discourage people from undertaking such work. Having to pay VAT at 20% will mean less money for the alterations and therefore

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less work for local builders who undertake the work, and we all know about the difficulties faced by the construction industry at the moment. Labour is calling for a cut to 5% in VAT on all household repairs precisely to stimulate the construction sector and provide more work for builders, plumbers, carpenters, electricians and so on.

I am glad to see the Chief Secretary to the Treasury in his place, as I am still very concerned that his Government are not succeeding in making banks do anything like enough to help business. In my constituency, I know businesses that have been subject to sudden changes in the terms and conditions of their loans, which they simply cannot cope with and which could easily send them under. My constituent Mr Alun Richards has encountered considerable difficulties with Lloyds bank. In particular, he has raised with me the issue of banks foreclosing on businesses and selling off the assets at way below market value. This is not acceptable to business customers, nor should it be acceptable to Lloyds bank’s shareholders. Last July, the firm acting as administrators for Lloyds sold one of Mr Richards’s assets—Mansel house in Swansea—for £125,000. The same property is now on the market for more than £300,000, whereas the local economic circumstances have not changed at all. That raises serious questions about such practices, especially as Mr Richards can cite many similar cases that merit investigation and changes to the law.

This Government need to get their act together on bank lending, getting the economy going, providing jobs for our young who are unemployed and thinking about fairness sensibly and properly. They should rewrite the Budget completely.

9.24 pm

Seema Malhotra (Feltham and Heston) (Lab/Co-op): This Budget comes at a crucial time for the British economy—at a crossroads, when business and families are looking to the Government to know that they are on their side as the economy stagnates and they face tough times. Some measures in the Budget are welcome. The creative industries tax credit—an extension of the Labour Government’s film tax credit—is a step in the right direction. Video animation, high-end TV and other creative industries—Arqiva in my constituency is an example—are strong in west London. Hounslow’s chamber of commerce is in the process of creating with partners a creative industry cluster. This is, however, only one step in the right direction, and we need to do more to invest in our work force and ensure that we have the designers, technicians, artists and animators of the future.

Local businesses have cautiously welcomed changes to corporation tax, although not without apprehensions. More than 95% of the nearly 3,000 businesses in Feltham and Heston are small businesses, and it is the worry of many that the Budget will disproportionately benefit larger firms and not our innovators. As the director general of the British Chambers of Commerce said last week:

“Smaller firms will be disappointed George Osborne did not do more to support confidence and growth in the real economy.”

There are wider concerns about the Budget, as it missed the opportunity to maximise the creation of jobs and growth, which this country so badly needs. There is

26 Mar 2012 : Column 1257

no necessary connection between cuts in corporation tax and growth. Businesses will just sit on assets if they do not believe that demand exists, as my right hon. Friend the Member for South Shields (David Miliband) so effectively argued. There is no overall coherent plan.

The losers of the Budget are the young, the old, people on lower and middle incomes and charities. An estimated 855 families in my constituency are set to lose their working tax credits, and nearly 18,000 families are to be affected by changes in child benefit—and this is the 13th worst-affected constituency in the country.

At a time when people on middle and low incomes are being squeezed by rising fuel prices, and with families seeing cuts to their working tax credits and child benefit and long-term youth unemployment in Feltham and Heston up by 208% in the last year, it is the wrong priority to cut taxes for people earning over £150,000. We could instead have seen a cut in VAT to stimulate spending and make life a little easier for so many people. Local businesses have told me that they would have liked to see more to support them in employing young people—for example, a reduction in national insurance contributions for employers. The Chancellor’s announcement that charities will not be able to claim tax relief on higher rate gifts is also sending shockwaves through the third sector. The Government need to work with philanthropists and those involved in encouraging giving to explore ways of reducing this impact.

The Government promised change, but things have got worse, not better. Their policies have failed on jobs, growth and the deficit, and the Chancellor’s new Budget does little to address these grave problems. There are still 1 million young people unemployed, 800 of whom live in my constituency, and the Budget does not do anything to help them. It is not too late for the Chancellor to change his mind and turn it into the Budget for fairness and growth that my constituency so desperately needs.

9.27 pm

Rachel Reeves (Leeds West) (Lab): This has been an important debate—one that will prove, I believe, to be a turning-point in the history of this Conservative-led government, in the reputation and standing of this Chancellor and most of all in the ongoing national debate about how we as a country meet the economic challenges we face and how we ensure that the burdens of doing so are fairly shared.

It is a privilege for me to follow my hon. Friend the Member for Feltham and Heston (Seema Malhotra). We have also heard powerful contributions from my right hon. Friend the Member for South Shields (David Miliband), who spoke of the challenges facing young people out of work, from my right hon. Friends the Members for Wolverhampton South East (Mr McFadden) and for Stirling (Mrs McGuire) and from many more of my hon. Friends. It is a privilege, too, to follow my right hon. Friend the Member for Edinburgh South West (Mr Darling), who argued forcefully that the tax cut for those on more than £150,000 a year is not and could not be the priority right now.

I could not help noticing one phrase that we did not hear from the Government side this evening—that “we’re all in it together”. It has been forgotten—at least by Government Members. I rather agreed with a man who told us in April 2010:

26 Mar 2012 : Column 1258

“When the Tories say we’re all in this together, what they really mean is you’re on your own. Their agenda is to take away help from those who need it, and offer it to those already at the top”.

He was right then, which is why it is so disappointing to see the Chief Secretary to the Treasury defending this disgrace of a Budget today, when he would have opposed it two years ago.

But let us try to be fair to the Liberal Democrats tonight. It is true that they played a big role in the Budget, and they deserve congratulations on winning the inclusion of one of their long-standing policy priorities, to which they have been committed for many years and which will be recognised as one of the Budget’s most important changes. I do not mean the mansion tax or the tycoon tax: the Chancellor cannot stomach those. No, I am speaking of a different policy, a stroke of genius for which the Chancellor should not be allowed to claim all the credit. According to The Daily Telegraph, since as long ago as 1998 it has been Liberal Democrat policy to abolish age-related allowances for pensioners. So there we have it: the granny tax, a Liberal Democrat policy since 1998, has finally been delivered by this coalition Government. I look forward to seeing that in the Liberal Democrats’ leaflets.

It is hard to know where to start with a Budget which contains so much that is wrong, but the big story about this Budget is not what is in it, but what is missing. I am talking about its utter failure to do anything in connection with the major task that faces our country: the need to get unemployment falling and the economy moving, which is essential to dealing with the deficit and securing our long-term economic future. In that regard, the judgment of the Government’s own independent Office for Budget Responsibility is clear. It has stated:

“We have made no other material adjustments to the economy forecast as a result of Budget 2012 policy announcements.”

There is nothing in the Budget to make the Office for Budget Responsibility reconsider its view that the economy will bounce along the bottom, and that unemployment will continue to rise month after month after month.

This is a Budget that fails on growth, but it is also a Budget that fails on fairness. It pilfers £500 million from the health budget at a time when the NHS is under pressure and needs every penny that it can get, and it introduces badly designed changes in child benefit which mean that a one-earner family on £55,000 will lose most of their benefit while a couple on as much as £99,000 can keep all theirs.

Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op): While my hon. Friend is dealing with some of the measures that are not specified in the Budget, would she care to comment on the £10 billion additional cuts in the Department for Work and Pensions’ budget for benefits, which may well cause severe harm to her constituents and mine, and those of many Labour Members in particular?

Rachel Reeves: I said earlier that the big story about the Budget was what was missing from it rather than what was in it. My hon. Friend has identified another thing that is missing, namely an explanation of how the Government will balance the books after the last two years of the current Parliament. We all know that the Government are now borrowing £150 billion more because of the failure of their policies and their decision to cut

26 Mar 2012 : Column 1259

too far and too fast, which choked off the economic recovery. As a result, deficit reduction will have to continue well into the next Parliament, but we have not heard how.

The Chancellor said that the Budget was about rewarding work. A Budget that takes tax credits from low-paid working couples with children, plunges them into poverty and leaves them better off if they leave their jobs is not a Budget for work, is it? As for the notorious hit on pensioners with modest incomes, springing it on people with no notice and then dressing it up as a simplification was not only ill-judged, but profoundly disrespectful to the millions of pensioners who made sacrifices to save during their working lives.

Alun Cairns: Did the hon. Lady make the same protests when her right hon. Friend the Member for Edinburgh South West (Mr Darling) introduced a granny tax in preparation for the financial year 2010-11?

Rachel Reeves: This is not just about freezing an allowance; it is about freezing an allowance this year, next year and the year after, and for many years to come. It is also about getting rid of the allowance, because it is disappearing for people who will retire next year. Next year people will receive not a reduced allowance but no additional allowance at all, and as a result they will be £323 worse off because of the choices that this Government have made.

I am sure that in a moment we will hear protestations from the Chief Secretary about his great triumph in raising the personal tax allowance for working-age people, but families with children have already lost £450 on average from the VAT increase, and another £530, starting on 6 April, through cuts to tax credits and the freezing of child benefit. Does the Chief Secretary really expect families to be thankful to be getting less than half this back in 2013? Is it not more likely that they will see this for what it is?

Ian Lucas: My hon. Friend rightly stresses the importance of VAT. Charities are among the types of business that are affected by a VAT hike. Chariotts in my constituency provides services to disabled people, and it will have to hike its charges by 20%. That will have to be paid by those disabled people, because of the VAT increase that this Government are pursuing. Does my hon. Friend agree that that is a disgrace?

Rachel Reeves: I agree. These are hard times for the charitable sector, and the VAT increase has hit it hard. That is one of the many reasons why charities, as well as ordinary families and businesses, would benefit from a reduction in VAT to 17.5% until the economy recovers. Charities are also affected by changes in tax allowances, and many have expressed fears that that will also create a big black hole.

Ian Swales: VAT cuts most benefit those who spend the most. Does the hon. Lady think that now is the right time to propose a policy under which the biggest winners would be pop stars, bankers and premiership footballers?

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Rachel Reeves: I suggest that after this debate the hon. Gentleman should sit down and read an economics textbook. It is well known that VAT is a regressive tax. The VAT increase has hit those on lower incomes particularly hard, as they have lost the most as a share of income. The evidence for that stands up to scrutiny. If the hon. Gentleman does not understand economics, that is his look-out, not mine.

Returning to my point, is it not more likely that families will see this measure for what it is: giving a little with one hand, while taking much, much more with the other? Warm words from the Government parties will not help families pay the bills, and fine words about fairness demean the very concept of that word.

This month, the Chief Secretary told his party conference:

“It’s only the Liberal Democrats who are brave enough to tell some of the wealthiest people in the land that—at a time when millions of families are struggling to get by—they will have to pay more.”

He seems not to have been so brave when it comes to standing up to the Chancellor. Perhaps I am wrong, however. Perhaps the Chief Secretary is making an even braver choice, in telling families that they will have to pay more while he spends £3 billion on a tax cut for the richest 1%, with a tax cut next year of more than £40,000 each for 14,000 individuals earning £1 million a year.

The people are not fooled, however. They know that they are worse off under this Government. So tonight we will vote against this Budget. It is a Budget that fails the biggest tests: on jobs and growth, a gaping hole where there should have been a plan for action; and on fairness, where millions were asked to pay more so millionaires could pay less.

Is not the truth that this Government have been listening to the wrong people? They have been listening to those who are struggling to get by on more than £150,000 a year, but they should have been listening to those who are suffering from the consequences of their failed economic policies: working families on modest incomes, about to be hit by a tax credit bombshell; small businesses looking to invest, but struggling to balance their books; young people applying for every job going, desperate to start working. These are the people whose lives the Prime Minister needs to understand. Perhaps he should have had some of them round for dinner.

9.39 pm

The Chief Secretary to the Treasury (Danny Alexander): This has been a fascinating debate and some excellent contributions have been made by Members from both sides. I refer, in particular, to the right hon. Member for Edinburgh South West (Mr Darling), the former Chancellor of the Exchequer, who made a typically thoughtful contribution, and to my right hon. Friend the Member for Bath (Mr Foster), who, along with a number of other Members, including the hon. Member for Birmingham, Northfield (Richard Burden), warmly welcomed the package of measures for the creative industries in this Budget. Indeed, a number of other Labour Members welcomed that point, too. The hon. Member for Blyth Valley (Mr Campbell) referred to, among other things, broadband funding in his constituency, which he welcomes. My hon. Friend the Member for Brentford and Isleworth (Mary Macleod) rightly made

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the point that we should be highlighting the positive news for business in this country, and she highlighted some of the positive news in her constituency.

Dr Thérèse Coffey (Suffolk Coastal) (Con): Will my right hon. Friend confirm what corporation tax rate companies will be paying in this country? Will it be the lowest in the G20?

Danny Alexander: I can certainly confirm that, as a result of the measures in this Budget and the measures that we announced in earlier Budgets, we will have not only the lowest corporation tax rate in the G7, but one of the lowest rates of tax in the G20. That will make a fundamental difference to this country’s attractiveness to investment from overseas.

Sir Stuart Bell rose—

Danny Alexander: I will give way to the hon. Gentleman in a moment, but first I wish to mention some of the other contributions. My hon. Friend the Member for Montgomeryshire (Glyn Davies) talked about the benefits of the Budget for rural areas. A number of Labour Members representing Scottish constituencies rightly referred to the absence of a contribution from the Scottish National party and to the damaging policies of the SNP Government in Scotland for the economy. [Interruption.] The hon. Member for Dundee East (Stewart Hosie) has just come in now, for the very closing speeches. The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), who represents Plaid Cymru, did make a speech, and I will refer to some of the points he raised.

Sir Stuart Bell: Does the right hon. Gentleman believe the corporation tax reduction will lead to growth or to shareholder dividends? Will he confirm that we actually get to that rate in 2014?

Danny Alexander: We have confirmed that we will get to that rate by 2014. The hon. Gentleman should know, as I am sure he has closely studied the Office for Budget Responsibility’s report published alongside the Budget, that the OBR assesses that the cut in corporation tax announced in this Budget will, in fact, lead to an increase in business investment in this country—that is something the OBR has confirmed.

This debate has mainly been significant for the astonishing omissions in speeches from Labour Members. There were no references, except in a few cases, to this country’s fiscal position, to the huge deficit that Labour left us or to the huge debts that this country has accumulated thanks to Labour’s profligacy in office. There was no reference at all to the scale of the mess that the Labour party left this country, far less an apology from any Labour Member to the people of this country for the mess they left this country in. The right hon. Member for South Shields (David Miliband), in an otherwise interesting speech, used the phrase “dangerously complacent”. I think that refers to the opinions of the Labour party in relation to this party’s fiscal position.

Andrew Miller (Ellesmere Port and Neston) (Lab): Talking about omissions, will the right hon. Gentleman explain to the House why it is to the advantage of the Liberal Democrats to vote for regional public sector

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pay? The north of Scotland, Northumberland, mid-Wales and the west country will all be losers—is he going to vote for that?

Danny Alexander: If the hon. Gentleman had studied the Budget resolutions, he would know that there is no vote on that subject on the Order Paper tonight, so the opportunity to do so simply does not arise.

To return to the fiscal position, let me be absolutely clear: we on the Government Benches will not return to the model of growth based on unsustainable debt, irresponsible spending and over-reliance on one sector, the City of London, and one region, the south-east of England. Neither will we jeopardise the progress we have made in tackling our debts. That is why this Budget will have a neutral impact on the public finances, and implements the deficit reduction as planned. The Opposition should know that this is their mess but we are clearing it up.

Elizabeth Truss (South West Norfolk) (Con): Does my right hon. Friend agree that investing in physical infrastructure is vital and is being done by this Government? Does he share my joy that people in Norfolk will soon see the new A11 being built from January to March next year?

Danny Alexander: I certainly share the hon. Lady’s joy that the new A11 is being built by this Government. It has been campaigned for by Members from Norfolk for many decades and never agreed to before. I just wish that I could say the same for my constituents regarding the long-awaited investment in the A9 that the Scottish Government still are not delivering.

On omissions, we heard a lot of carping from the Labour party about individual measures but there were almost no references to the single biggest measure in the Budget. Opposition Members should follow the money in this Budget. More than three quarters of the money raised in this Budget is being spent on one policy measure alone—the biggest tax cut for people on low and middle incomes in this country for a generation. We have set the goal of raising the personal tax-free allowance to £10,000—from the Liberal Democrat election manifesto to the coalition agreement to the pockets of the British people in this Budget. Next month, the income tax personal allowance will rise to £8,105. That gives real help to the working people of this country this year. Taken with the previous increase that has come through this year already, it will lift more than 1 million low-income people out of tax altogether, but we are going further and faster.

Helen Goodman (Bishop Auckland) (Lab): It is clear that the Government are going further on personal income tax cuts, but it is equally clear that they have not got a strategy for growth. How many jobs will be produced by the cut in the 50p rate?

Danny Alexander: First, I am very grateful to the hon. Lady for at least agreeing that we are going considerably further on the personal income tax allowance. That was sadly lacking from most of the contributions from the Opposition. They will also know that the OBR’s forecast that was published alongside the Budget revised downwards the forecast for the claimant count this year, next year and in every year over this Parliament.

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As I was about to say, in this Budget we have announced the largest ever increase in the amount that people can earn tax-free—an increase next April of £1,100 to £9,205. That is a tax cut of £3.5 billion for working families and is the biggest ever increase in the personal allowance. It is the biggest income tax cut for people on low and middle incomes for a generation—a tax cut for more than 23 million people. It means £220 for every basic rate taxpayer, or £170 in real terms. The tax bill of someone who works full time on the minimum wage will already have been halved by this Government.

Sheila Gilmore (Edinburgh East) (Lab): While he was arguing for the rise in the tax threshold, did the right hon. Gentleman at any time argue for the people who are losing their working tax credit from April this year, or did he just not bother to argue for those very low-paid people?

Danny Alexander: We have argued for measures to ensure that people on low and middle incomes are taken out of income tax altogether. We have made significant changes to the tax credit system, which, frankly, under the previous Government, reached way up the income distribution. The changes we have made are appropriate and fair, and it is right that we have drawn back on a system that was costing many billions of pounds under the previous Government.

Taken with the previous increase in the income tax personal allowance, this measure means that this coalition Government have reduced tax paid already by basic rate taxpayers by £350 in real terms. It is this coalition Government who, as a result of the measures in this Budget, will have lifted 2 million people out of income tax altogether—59% of them women, to respond to a point made during the debate. That is the right measure on taxation and the Labour party should support it. Labour thought it was right to double the tax on people on low incomes, but we do not; we think it right to halve the tax on people on the minimum wage.

Brandon Lewis (Great Yarmouth) (Con): I thank my right hon. Friend for giving way and being so generous with his time. Does he agree that one of the important measures in the Budget that will help people trying to get into work is the change in the oil and gas taxation regime, especially on decommissioning, which could create huge investment and huge numbers of jobs in areas such as Great Yarmouth?

Danny Alexander: My hon. Friend is absolutely right that the decommissioning relief and the additional field allowances that we announced in the Budget will make a significant difference to investment in the oil and gas sector.

Several hon. Members rose

Danny Alexander: No, I will not give way. I will make some progress.

Ed Balls (Morley and Outwood) (Lab/Co-op): Will the Chief Secretary give way?

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Danny Alexander: I will give way to the shadow Chancellor.

Ed Balls: Will the Chief Secretary explain why it is fair to take away the personal allowance from low and middle-income pensioners and soon-to-be pensioners—people aged 59, 60 and 61—when he is giving a £10,000 tax cut to existing taxpayers on incomes above £150,000?

Danny Alexander: I will take no lessons on the treatment of elderly people from the man who was responsible for the 75p increase in the basic state pension.

Ed Balls: Will the right hon. Gentleman give way?

Danny Alexander: Go on then—one more time.

Ed Balls: Will the Chief Secretary explain to the House how it is consistent with Liberal Democrat values to give a tax cut to existing top rate taxpayers worth, on average, £10,000 each? How is that fair?

Danny Alexander: So not one word of apology for the 75p increase in the basic state pension, not one word of apology for the mess that he and his colleagues left this country’s economy in—[ Interruption ]—and not one word of recognition that the costs of reducing the 50p rate are paid for more than five times over by other measures that impact on the wealthy.

Several hon. Members rose

Danny Alexander: I am going to make some progress—[ Interruption. ]

Mr Speaker: Order. The House needs to calm down a bit. I was listening intently, because I wanted to hear the Chief Secretary’s answer, and I was struggling somewhat to do so. I want to hear what he has to say.

Danny Alexander: It is no surprise that Labour Members want to drown out any reference to their record in government.

I think I know why the record increase in the income tax personal allowance has not been welcomed by Labour Members today and was hardly mentioned by the two Opposition Front-Bench speakers, despite the fact that Labour used to call itself the party of working people. This debate has also revealed something of lasting significance about the Labour party—

Simon Hughes (Bermondsey and Old Southwark) (LD) rose—

Danny Alexander: But I will give way to my right hon. Friend first.

Simon Hughes: Given that the shadow Chancellor is so keen to talk about pensioners, will the Chief Secretary remind us of the increase pensioners will have next month compared with what they got under Labour, and what they will have by the end of this Parliament in the citizen’s pension compared with what Labour never did in 13 years?

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Danny Alexander: My right hon. Friend is, as usual, absolutely spot on. From next month, pensioners will see the largest ever increase in the basic state pension, because we have put in place the triple lock promised in our manifesto to ensure that never again will pensioners be awarded derisory increases of the sort that Labour brought us. Thanks to my hon. Friend the Pensions Minister, who is in his place, we will also be introducing, as the Chancellor announced, the single-tier pension at £140 or thereabouts a week, so that new pensioners will no longer be trapped in the means-testing system that Labour left them in for so long.

Mr David Davis (Haltemprice and Howden) (Con): Will my right hon. Friend give way?

Danny Alexander: The full depths of the economic incompetence of the Labour party have been revealed in the course of the debate. [Interruption.] They are opposed to most of our spending reductions. They are opposed to many of the revenue-raising measures in the Budget. They have opposed tax cuts for business. I heard from the deputy Leader of the Opposition that they are opposed to our cap on unlimited tax reliefs for the wealthy. We know what Labour’s economic plan for this country would be—income taxes up, business taxes up, borrowing up, debt up, and interest rates and mortgage rates up. The only thing that would go down under the Labour party would be the British economy. It may seem astonishing that the party that got Britain into the worst economic crisis for a generation now wants to put us right back into the mess that this coalition Government are trying to get the country out of. The Labour party of the 1970s and 1980s is back and I hope the British public have been watching.

Mr Tom Harris (Glasgow South) (Lab): When the Chief Secretary meets the Chancellor every morning at the Treasury to receive his instructions for the day, has the Chancellor ever once explained to him how his party can possibly blame the spending of the Labour Government for the deficit while having supported every single penny of spending right up to November 2008— 18 months before the general election?

Danny Alexander: There we see it again—a party in denial about the mess it got this country into. [Interruption.] I know the hon. Gentleman is a rational man and has played a great role in Scottish politics, but he ought to have a bit more sense than to pretend that his party has no responsibility whatsoever.

Mr Davis: Will my right hon. Friend give way?

Danny Alexander: The Budget is fair. It raises additional taxes from the wealthiest and asks the wealthiest in this country to pay more. That is why, for example, we are capping—[Interruption.]

Mr Speaker: Order. There is so much noise that I am not sure the Chief Secretary can even hear that his right hon. Friend the Member for Haltemprice and Howden (Mr Davis) is seeking to intervene. Perhaps he can hear and does not want to give way, but if he cannot hear, he is not able to give way.

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Danny Alexander: You are quite right, Mr Speaker. I could not hear my right hon. Friend, but I am happy to give way to him.

Mr Davis: I will start by saying that I entirely support the growth orientation of the Budget, which is much better than everything we have heard for the past 10 years, but I hope my right hon. Friend will forgive me for raising a narrow issue, because 90% of the effect of one of his tax changes falls in and around my constituency—the VAT change on the production of static caravans. That will have an impact which, he says in his own Red Book, is £40 million positive, but the cost in unemployment will be £45 million negative. Will he review this issue?

Danny Alexander: My right hon. Friend will know that all these measures are consulted on, but I think the measure is appropriate. As he knows, mobile caravans are subject to VAT, but static caravans are not. Static caravans that are used for residential purposes, which people make their main home, will continue not to be subject to VAT. That may be some comfort to him.

I shall draw my remarks to a close by referring to the measures in the Budget that deal with the wealthiest in society. We have capped reliefs on income tax which the wealthy exploit. We have capped benefits; now we are capping reliefs. It is, if you like, a tycoon tax. We have introduced a new stamp duty land tax at the rate of 7% on properties worth more than £2 million. We are increasing the stamp duty charge to 15% for residential properties over £2 million and we are consulting on a new annual charge for people who continue to envelope their properties—a mansion tax on tax dodgers, if you like.

This is a fair Budget. It is for the millions, not for millionaires, a Budget for the many, not the few, and I commend it to the House.

Question put.

The House divided:

Ayes 326, Noes 243.

Division No. 503]

[9.59 pm

AYES

Adams, Nigel

Afriyie, Adam

Aldous, Peter

Alexander, rh Danny

Amess, Mr David

Andrew, Stuart

Arbuthnot, rh Mr James

Bacon, Mr Richard

Baker, Norman

Baker, Steve

Baldry, Tony

Baldwin, Harriett

Barclay, Stephen

Barker, Gregory

Baron, Mr John

Barwell, Gavin

Bebb, Guto

Beith, rh Sir Alan

Benyon, Richard

Beresford, Sir Paul

Berry, Jake

Bingham, Andrew

Binley, Mr Brian

Birtwistle, Gordon

Blackman, Bob

Blackwood, Nicola

Blunt, Mr Crispin

Bottomley, Sir Peter

Bradley, Karen

Brady, Mr Graham

Brake, rh Tom

Brazier, Mr Julian

Bridgen, Andrew

Brine, Steve

Brokenshire, James

Browne, Mr Jeremy

Bruce, Fiona

Bruce, rh Malcolm

Buckland, Mr Robert

Burley, Mr Aidan

Burns, Conor

Burns, rh Mr Simon

Burrowes, Mr David

Burstow, Paul

Burt, Lorely

Byles, Dan

Cable, rh Vince

Cairns, Alun

Cameron, rh Mr David

Campbell, rh Sir Menzies

Carmichael, rh Mr Alistair

Carmichael, Neil

Carswell, Mr Douglas

Cash, Mr William

Chishti, Rehman

Chope, Mr Christopher

Clappison, Mr James

Clark, rh Greg

Clarke, rh Mr Kenneth

Clifton-Brown, Geoffrey

Coffey, Dr Thérèse

Collins, Damian

Colvile, Oliver

Crabb, Stephen

Crockart, Mike

Crouch, Tracey

Davey, rh Mr Edward

Davies, David T. C.

(Monmouth)

Davies, Glyn

Davies, Philip

Davis, rh Mr David

de Bois, Nick

Dinenage, Caroline

Djanogly, Mr Jonathan

Dorrell, rh Mr Stephen

Doyle-Price, Jackie

Drax, Richard

Duddridge, James

Duncan, rh Mr Alan

Duncan Smith, rh Mr Iain

Ellis, Michael

Ellison, Jane

Ellwood, Mr Tobias

Elphicke, Charlie

Eustice, George

Evans, Graham

Evans, Jonathan

Evennett, Mr David

Fabricant, Michael

Farron, Tim

Field, Mark

Foster, rh Mr Don

Fox, rh Dr Liam

Francois, rh Mr Mark

Freeman, George

Freer, Mike

Fuller, Richard

Garnier, Mr Edward

Garnier, Mark

Gauke, Mr David

George, Andrew

Gibb, Mr Nick

Gilbert, Stephen

Gillan, rh Mrs Cheryl

Glen, John

Goodwill, Mr Robert

Gove, rh Michael

Graham, Richard

Grant, Mrs Helen

Gray, Mr James

Grayling, rh Chris

Green, Damian

Greening, rh Justine

Grieve, rh Mr Dominic

Griffiths, Andrew

Gummer, Ben

Gyimah, Mr Sam

Hague, rh Mr William

Halfon, Robert

Hames, Duncan

Hammond, rh Mr Philip

Hammond, Stephen

Hancock, Mr Mike

Hands, Greg

Harper, Mr Mark

Harrington, Richard

Harris, Rebecca

Hart, Simon

Harvey, Nick

Haselhurst, rh Sir Alan

Hayes, Mr John

Heald, Oliver

Heath, Mr David

Heaton-Harris, Chris

Hemming, John

Henderson, Gordon

Hendry, Charles

Herbert, rh Nick

Hinds, Damian

Hoban, Mr Mark

Hollingbery, George

Hollobone, Mr Philip

Holloway, Mr Adam

Hopkins, Kris

Horwood, Martin

Howarth, Mr Gerald

Howell, John

Hughes, rh Simon

Huhne, rh Chris

Hurd, Mr Nick

Jackson, Mr Stewart

James, Margot

Javid, Sajid

Jenkin, Mr Bernard

Johnson, Gareth

Johnson, Joseph

Jones, Andrew

Jones, Mr David

Jones, Mr Marcus

Kawczynski, Daniel

Kelly, Chris

Kirby, Simon

Knight, rh Mr Greg

Kwarteng, Kwasi

Laing, Mrs Eleanor

Lamb, Norman

Lancaster, Mark

Lansley, rh Mr Andrew

Latham, Pauline

Laws, rh Mr David

Leadsom, Andrea

Lee, Jessica

Lee, Dr Phillip

Leech, Mr John

Lefroy, Jeremy

Leigh, Mr Edward

Leslie, Charlotte

Letwin, rh Mr Oliver

Lewis, Brandon

Lidington, rh Mr David

Lilley, rh Mr Peter

Lloyd, Stephen

Lopresti, Jack

Lord, Jonathan

Loughton, Tim

Luff, Peter

Lumley, Karen

Macleod, Mary

Main, Mrs Anne

Maude, rh Mr Francis

May, rh Mrs Theresa

Maynard, Paul

McCartney, Jason

McCartney, Karl

McIntosh, Miss Anne

McLoughlin, rh Mr Patrick

McPartland, Stephen

McVey, Esther

Mensch, Louise

Menzies, Mark

Mercer, Patrick

Metcalfe, Stephen

Miller, Maria

Mills, Nigel

Mitchell, rh Mr Andrew

Moore, rh Michael

Mordaunt, Penny

Morgan, Nicky

Morris, Anne Marie

Morris, David

Morris, James

Mosley, Stephen

Mowat, David

Mulholland, Greg

Mundell, rh David

Munt, Tessa

Murray, Sheryll

Murrison, Dr Andrew

Neill, Robert

Newmark, Mr Brooks

Newton, Sarah

Nokes, Caroline

Nuttall, Mr David

Offord, Mr Matthew

Ollerenshaw, Eric

Opperman, Guy

Osborne, rh Mr George

Ottaway, Richard

Paice, rh Mr James

Parish, Neil

Patel, Priti

Paterson, rh Mr Owen

Pawsey, Mark

Penrose, John

Perry, Claire

Phillips, Stephen

Pickles, rh Mr Eric

Poulter, Dr Daniel

Pritchard, Mark

Pugh, John

Raab, Mr Dominic

Randall, rh Mr John

Redwood, rh Mr John

Rees-Mogg, Jacob

Reevell, Simon

Reid, Mr Alan

Rifkind, rh Sir Malcolm

Robathan, rh Mr Andrew

Robertson, Hugh

Robertson, Mr Laurence

Rogerson, Dan

Rosindell, Andrew

Rudd, Amber

Ruffley, Mr David

Russell, Sir Bob

Rutley, David

Sanders, Mr Adrian

Sandys, Laura

Scott, Mr Lee

Selous, Andrew

Shapps, rh Grant

Sharma, Alok

Shelbrooke, Alec

Shepherd, Mr Richard

Simmonds, Mark

Simpson, Mr Keith

Skidmore, Chris

Smith, Miss Chloe

Smith, Henry

Smith, Julian

Smith, Sir Robert

Soames, rh Nicholas

Soubry, Anna

Spelman, rh Mrs Caroline

Spencer, Mr Mark

Stanley, rh Sir John

Stephenson, Andrew

Stevenson, John

Stewart, Bob

Stewart, Rory

Streeter, Mr Gary

Stride, Mel

Stunell, Andrew

Sturdy, Julian

Swales, Ian

Swayne, rh Mr Desmond

Swinson, Jo

Syms, Mr Robert

Teather, Sarah

Thurso, John

Timpson, Mr Edward

Tomlinson, Justin

Tredinnick, David

Truss, Elizabeth

Turner, Mr Andrew

Tyrie, Mr Andrew

Uppal, Paul

Vaizey, Mr Edward

Vara, Mr Shailesh

Vickers, Martin

Villiers, rh Mrs Theresa

Walker, Mr Charles

Walker, Mr Robin

Wallace, Mr Ben

Walter, Mr Robert

Watkinson, Angela

Weatherley, Mike

Webb, Steve

Wharton, James

Wheeler, Heather

White, Chris

Whittaker, Craig

Whittingdale, Mr John

Wiggin, Bill

Willetts, rh Mr David

Williams, Mr Mark

Williams, Roger

Williams, Stephen

Williamson, Gavin

Willott, Jenny

Wilson, Mr Rob

Wollaston, Dr Sarah

Wright, Jeremy

Wright, Simon

Yeo, Mr Tim

Young, rh Sir George

Tellers for the Ayes:

Mr Philip Dunne and

Mark Hunter

NOES

Abbott, Ms Diane

Abrahams, Debbie

Ainsworth, rh Mr Bob

Alexander, rh Mr Douglas

Alexander, Heidi

Anderson, Mr David

Ashworth, Jonathan

Austin, Ian

Bailey, Mr Adrian

Bain, Mr William

Balls, rh Ed

Banks, Gordon

Barron, rh Mr Kevin

Bayley, Hugh

Bell, Sir Stuart

Benn, rh Hilary

Berger, Luciana

Betts, Mr Clive

Blackman-Woods, Roberta

Blears, rh Hazel

Blomfield, Paul

Blunkett, rh Mr David

Bradshaw, rh Mr Ben

Brennan, Kevin

Brown, rh Mr Gordon

Brown, Lyn

Brown, rh Mr Nicholas

Brown, Mr Russell

Bryant, Chris

Buck, Ms Karen

Burden, Richard

Burnham, rh Andy

Campbell, Mr Alan

Campbell, Mr Gregory

Campbell, Mr Ronnie

Caton, Martin

Chapman, Mrs Jenny

Clark, Katy

Clarke, rh Mr Tom

Clwyd, rh Ann

Coaker, Vernon

Coffey, Ann

Cooper, Rosie

Cooper, rh Yvette

Corbyn, Jeremy

Crausby, Mr David

Creagh, Mary

Creasy, Stella

Cruddas, Jon

Cryer, John

Cunningham, Alex

Cunningham, Mr Jim

Cunningham, Tony

Curran, Margaret

Dakin, Nic

Danczuk, Simon

Darling, rh Mr Alistair

David, Mr Wayne

Davidson, Mr Ian

Davies, Geraint

De Piero, Gloria

Denham, rh Mr John

Dobbin, Jim

Dobson, rh Frank

Dodds, rh Mr Nigel

Donaldson, rh Mr Jeffrey M.

Donohoe, Mr Brian H.

Doran, Mr Frank

Dowd, Jim

Doyle, Gemma

Dromey, Jack

Durkan, Mark

Eagle, Ms Angela

Eagle, Maria

Edwards, Jonathan

Efford, Clive

Elliott, Julie

Ellman, Mrs Louise

Engel, Natascha

Esterson, Bill

Evans, Chris

Farrelly, Paul

Field, rh Mr Frank

Fitzpatrick, Jim

Flello, Robert

Flint, rh Caroline

Francis, Dr Hywel

Gapes, Mike

Gardiner, Barry

Gilmore, Sheila

Glindon, Mrs Mary

Godsiff, Mr Roger

Goggins, rh Paul

Goodman, Helen

Greatrex, Tom

Green, Kate

Greenwood, Lilian

Griffith, Nia

Gwynne, Andrew

Hamilton, Mr David

Hanson, rh Mr David

Harman, rh Ms Harriet

Harris, Mr Tom

Havard, Mr Dai

Healey, rh John

Hendrick, Mark

Hepburn, Mr Stephen

Hermon, Lady

Heyes, David

Hillier, Meg

Hilling, Julie

Hodge, rh Margaret

Hodgson, Mrs Sharon

Hoey, Kate

Hopkins, Kelvin

Hosie, Stewart

Howarth, rh Mr George

Hunt, Tristram

Irranca-Davies, Huw

Jackson, Glenda

Jamieson, Cathy

Johnson, rh Alan

Johnson, Diana

Jones, Graham

Jones, Helen

Jones, Susan Elan

Jowell, rh Tessa

Kaufman, rh Sir Gerald

Keeley, Barbara

Kendall, Liz

Lammy, rh Mr David

Lavery, Ian

Lazarowicz, Mark

Leslie, Chris

Lewis, Mr Ivan

Lloyd, Tony

Long, Naomi

Love, Mr Andrew

Lucas, Caroline

Lucas, Ian

MacNeil, Mr Angus Brendan

MacShane, rh Mr Denis

Mactaggart, Fiona

Mahmood, Shabana

Malhotra, Seema

Mann, John

Marsden, Mr Gordon

McCabe, Steve

McCann, Mr Michael

McCarthy, Kerry

McClymont, Gregg

McCrea, Dr William

McDonagh, Siobhain

McDonnell, Dr Alasdair

McDonnell, John

McFadden, rh Mr Pat

McGovern, Jim

McGuire, rh Mrs Anne

McKechin, Ann

McKenzie, Mr Iain

McKinnell, Catherine

Meacher, rh Mr Michael

Meale, Sir Alan

Mearns, Ian

Michael, rh Alun

Miliband, rh David

Miliband, rh Edward

Miller, Andrew

Moon, Mrs Madeleine

Morden, Jessica

Morrice, Graeme

(Livingston)

Morris, Grahame M.

(Easington)

Mudie, Mr George

Munn, Meg

Murphy, rh Mr Jim

Murphy, rh Paul

Murray, Ian

Nandy, Lisa

Nash, Pamela

O'Donnell, Fiona

Onwurah, Chi

Osborne, Sandra

Owen, Albert

Paisley, Ian

Pearce, Teresa

Pound, Stephen

Raynsford, rh Mr Nick

Reed, Mr Jamie

Reeves, Rachel

Reynolds, Emma

Reynolds, Jonathan

Riordan, Mrs Linda

Ritchie, Ms Margaret

Robertson, Angus

Robinson, Mr Geoffrey

Rotheram, Steve

Roy, Mr Frank

Roy, Lindsay

Ruane, Chris

Ruddock, rh Dame Joan

Sarwar, Anas

Seabeck, Alison

Shannon, Jim

Sharma, Mr Virendra

Sheerman, Mr Barry

Sheridan, Jim

Shuker, Gavin

Simpson, David

Skinner, Mr Dennis

Slaughter, Mr Andy

Smith, rh Mr Andrew

Smith, Nick

Smith, Owen

Straw, rh Mr Jack

Stringer, Graham

Stuart, Ms Gisela

Tami, Mark

Thornberry, Emily

Timms, rh Stephen

Trickett, Jon

Turner, Karl

Twigg, Stephen

Umunna, Mr Chuka

Vaz, rh Keith

Vaz, Valerie

Walley, Joan

Watson, Mr Tom

Watts, Mr Dave

Weir, Mr Mike

Whiteford, Dr Eilidh

Whitehead, Dr Alan

Wicks, rh Malcolm

Williams, Hywel

Williamson, Chris

Wilson, Phil

Wilson, Sammy

Winnick, Mr David

Winterton, rh Ms Rosie

Wishart, Pete

Wood, Mike

Woodcock, John

Wright, David

Wright, Mr Iain

Tellers for the Noes:

Yvonne Fovargue and

Tom Blenkinsop

Question accordingly agreed to.

26 Mar 2012 : Column 1267

26 Mar 2012 : Column 1268

26 Mar 2012 : Column 1269

26 Mar 2012 : Column 1270

Resolved,

That

(1) It is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision in connection with finance.

(2) This Resolution does not extend to the making of any amendment with respect to value added tax so as to provide—

(a) for zero-rating or exempting a supply, acquisition or importation,

(b) for refunding an amount of tax,

(c) for any relief, other than a relief that—

(i) so far as it is applicable to goods, applies to goods of every description, and

(ii) so far as it is applicable to services, applies to services of every description.

26 Mar 2012 : Column 1271

Mr Speaker: Before I put the questions on the remaining Budget resolutions, I must inform the House that motion 67 on Stamp Duty Land Tax (Higher Rate for Certain Acquisitions by Companies etc.) has been corrected since the original printing. The version in today’s booklet of Budget resolutions is the correct version.

The Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)).

2. Income tax (charge and main rates)

Resolved,

That income tax is charged for the tax year 2012-13, and for that tax year—

(a) the basic rate is 20%,

(b) the higher rate is 40%, and

(c) the additional rate is 50%.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

3. Income tax (basic rate limit)

Resolved,

That—

(1) For the tax year 2012-13 the amount specified in section 10(5) of the Income Tax Act 2007 (basic rate limit) is replaced with “£34,370”.

(2) Accordingly section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply for that tax year.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

4. Income tax (personal allowance for those aged under 65)

Resolved,

That—

(1) For the tax year 2012-13 the amount specified in section 35(1) of the Income Tax Act 2007 (personal allowance for those aged under 65) is replaced with “£8,105”.

(2) Accordingly section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1) of that Act, does not apply for that tax year.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

5. Corporation tax (main rate for financial year 2012)

Resolved,

That—

(1) In section 5(2)(a) of the Finance Act 2011 (main corporation tax rate for financial year 2012 on profits other than ring fence profits), for “25%” substitute “24%”.

(2) The amendment made by this Resolution comes into force on 1 April 2012.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

26 Mar 2012 : Column 1272

6. Corporation tax (charge and main rate for financial year 2013)

Resolved,

That—

(1) Corporation tax is charged for the financial year 2013.

(2) For that year the rate of corporation tax is—

(a) 23% on profits of companies other than ring fence profits, and

(b) 30% on ring fence profits of companies.

(3) In paragraph (2) “ring fence profits” has the same meaning as in Part 8 of the Corporation Tax Act 2010 (see section 276 of that Act).

7. Corporation tax (small profits rate and fractions for financial year 2012)

Resolved,

That—

(1) For the financial year 2012 the small profits rate is—

(a) 20% on profits of companies other than ring fence profits, and

(b) 19% on ring fence profits of companies.

(2) For the purposes of Part 3 of the Corporation Tax Act 2010, for that year—

(a) the standard fraction is 1/100ths, and

(b) the ring fence fraction is 11/400ths.

(3) In paragraph (1) “ring fence profits” has the same meaning as in Part 8 of that Act (see section 276 of that Act).

8. High income child benefit charge

Question put,

That provision may be made for and in connection with a high income child benefit charge.

The House divided:

Ayes 318, Noes 244.

Division No. 504]

[10.15 pm

AYES

Adams, Nigel

Afriyie, Adam

Aldous, Peter

Alexander, rh Danny

Amess, Mr David

Andrew, Stuart

Arbuthnot, rh Mr James

Bacon, Mr Richard

Baker, Norman

Baker, Steve

Baldry, Tony

Baldwin, Harriett

Barclay, Stephen

Barker, Gregory

Baron, Mr John

Barwell, Gavin

Bebb, Guto

Beith, rh Sir Alan

Benyon, Richard

Beresford, Sir Paul

Berry, Jake

Bingham, Andrew

Binley, Mr Brian

Birtwistle, Gordon

Blackman, Bob

Blackwood, Nicola

Blunt, Mr Crispin

Bottomley, Sir Peter

Bradley, Karen

Brake, rh Tom

Brazier, Mr Julian

Bridgen, Andrew

Brine, Steve

Brokenshire, James

Browne, Mr Jeremy

Bruce, Fiona

Bruce, rh Malcolm

Buckland, Mr Robert

Burley, Mr Aidan

Burns, Conor

Burns, rh Mr Simon

Burrowes, Mr David

Burstow, Paul

Burt, Lorely

Byles, Dan

Cable, rh Vince

Cairns, Alun

Cameron, rh Mr David

Campbell, rh Sir Menzies

Carmichael, rh Mr Alistair

Carmichael, Neil

Cash, Mr William

Chishti, Rehman

Clappison, Mr James

Clark, rh Greg

Clarke, rh Mr Kenneth

Clifton-Brown, Geoffrey

Coffey, Dr Thérèse

Collins, Damian

Colvile, Oliver

Crabb, Stephen

Crockart, Mike

Crouch, Tracey

Davey, rh Mr Edward

Davies, David T. C.

(Monmouth)

Davies, Glyn

de Bois, Nick

Dinenage, Caroline

Djanogly, Mr Jonathan

Dorrell, rh Mr Stephen

Doyle-Price, Jackie

Drax, Richard

Duddridge, James

Duncan, rh Mr Alan

Duncan Smith, rh Mr Iain

Dunne, Mr Philip

Ellis, Michael

Ellison, Jane

Ellwood, Mr Tobias

Elphicke, Charlie

Eustice, George

Evans, Graham

Evans, Jonathan

Evennett, Mr David

Fabricant, Michael

Farron, Tim

Field, Mark

Foster, rh Mr Don

Fox, rh Dr Liam

Francois, rh Mr Mark

Freeman, George

Freer, Mike

Fuller, Richard

Garnier, Mr Edward

Garnier, Mark

Gauke, Mr David

George, Andrew

Gibb, Mr Nick

Gilbert, Stephen

Gillan, rh Mrs Cheryl

Glen, John

Goodwill, Mr Robert

Gove, rh Michael

Graham, Richard

Grant, Mrs Helen

Gray, Mr James

Grayling, rh Chris

Green, Damian

Greening, rh Justine

Grieve, rh Mr Dominic

Griffiths, Andrew

Gummer, Ben

Gyimah, Mr Sam

Hague, rh Mr William

Halfon, Robert

Hames, Duncan

Hammond, rh Mr Philip

Hammond, Stephen

Hancock, Mr Mike

Harper, Mr Mark

Harrington, Richard

Harris, Rebecca

Hart, Simon

Harvey, Nick

Haselhurst, rh Sir Alan

Hayes, Mr John

Heald, Oliver

Heath, Mr David

Heaton-Harris, Chris

Hemming, John

Henderson, Gordon

Hendry, Charles

Herbert, rh Nick

Hinds, Damian

Hoban, Mr Mark

Hollingbery, George

Hollobone, Mr Philip

Holloway, Mr Adam

Hopkins, Kris

Horwood, Martin

Howarth, Mr Gerald

Howell, John

Hughes, rh Simon

Huhne, rh Chris

Hurd, Mr Nick

Jackson, Mr Stewart

James, Margot

Javid, Sajid

Jenkin, Mr Bernard

Johnson, Gareth

Johnson, Joseph

Jones, Andrew

Jones, Mr David

Jones, Mr Marcus

Kawczynski, Daniel

Kelly, Chris

Kirby, Simon

Knight, rh Mr Greg

Kwarteng, Kwasi

Laing, Mrs Eleanor

Lamb, Norman

Lancaster, Mark

Lansley, rh Mr Andrew

Latham, Pauline

Laws, rh Mr David

Leadsom, Andrea

Lee, Jessica

Lee, Dr Phillip

Leech, Mr John

Lefroy, Jeremy

Leslie, Charlotte

Letwin, rh Mr Oliver

Lewis, Brandon

Lidington, rh Mr David

Lilley, rh Mr Peter

Lloyd, Stephen

Lopresti, Jack

Lord, Jonathan

Loughton, Tim

Luff, Peter

Lumley, Karen

Macleod, Mary

Main, Mrs Anne

Maude, rh Mr Francis

May, rh Mrs Theresa

Maynard, Paul

McCartney, Jason

McCartney, Karl

McIntosh, Miss Anne

McLoughlin, rh Mr Patrick

McPartland, Stephen

McVey, Esther

Mensch, Louise

Menzies, Mark

Mercer, Patrick

Metcalfe, Stephen

Miller, Maria

Mills, Nigel

Mitchell, rh Mr Andrew

Moore, rh Michael

Mordaunt, Penny

Morgan, Nicky

Morris, Anne Marie

Morris, David

Morris, James

Mosley, Stephen

Mowat, David

Mulholland, Greg

Mundell, rh David

Munt, Tessa

Murray, Sheryll

Murrison, Dr Andrew

Neill, Robert

Newmark, Mr Brooks

Newton, Sarah

Nokes, Caroline

Offord, Mr Matthew

Ollerenshaw, Eric

Opperman, Guy

Osborne, rh Mr George

Ottaway, Richard

Paice, rh Mr James

Parish, Neil

Patel, Priti

Paterson, rh Mr Owen

Pawsey, Mark

Penrose, John

Perry, Claire

Phillips, Stephen

Pickles, rh Mr Eric

Poulter, Dr Daniel

Pritchard, Mark

Pugh, John

Raab, Mr Dominic

Randall, rh Mr John

Redwood, rh Mr John

Rees-Mogg, Jacob

Reevell, Simon

Reid, Mr Alan

Rifkind, rh Sir Malcolm

Robathan, rh Mr Andrew

Robertson, Hugh

Robertson, Mr Laurence

Rogerson, Dan

Rosindell, Andrew

Rudd, Amber

Ruffley, Mr David

Russell, Sir Bob

Rutley, David

Sanders, Mr Adrian

Sandys, Laura

Scott, Mr Lee

Selous, Andrew

Shapps, rh Grant

Sharma, Alok

Shelbrooke, Alec

Shepherd, Mr Richard

Simmonds, Mark

Simpson, Mr Keith

Skidmore, Chris

Smith, Miss Chloe

Smith, Henry

Smith, Julian

Smith, Sir Robert

Soames, rh Nicholas

Soubry, Anna

Spelman, rh Mrs Caroline

Spencer, Mr Mark

Stephenson, Andrew

Stevenson, John

Stewart, Bob

Stewart, Rory

Streeter, Mr Gary

Stride, Mel

Stunell, Andrew

Sturdy, Julian

Swales, Ian

Swayne, rh Mr Desmond

Swinson, Jo

Syms, Mr Robert

Teather, Sarah

Thurso, John

Timpson, Mr Edward

Tomlinson, Justin

Tredinnick, David

Truss, Elizabeth

Turner, Mr Andrew

Tyrie, Mr Andrew

Uppal, Paul

Vaizey, Mr Edward

Vara, Mr Shailesh

Vickers, Martin

Villiers, rh Mrs Theresa

Walker, Mr Charles

Walker, Mr Robin

Wallace, Mr Ben

Walter, Mr Robert

Watkinson, Angela

Weatherley, Mike

Webb, Steve

Wharton, James

Wheeler, Heather

White, Chris

Whittaker, Craig

Whittingdale, Mr John

Wiggin, Bill

Willetts, rh Mr David

Williams, Mr Mark

Williams, Roger

Williams, Stephen

Williamson, Gavin

Willott, Jenny

Wilson, Mr Rob

Wollaston, Dr Sarah

Wright, Jeremy

Wright, Simon

Yeo, Mr Tim

Young, rh Sir George

Tellers for the Ayes:

Greg Hands and

Mark Hunter

NOES

Abbott, Ms Diane

Abrahams, Debbie

Ainsworth, rh Mr Bob

Alexander, rh Mr Douglas

Alexander, Heidi

Anderson, Mr David

Ashworth, Jonathan

Austin, Ian

Bailey, Mr Adrian

Bain, Mr William

Balls, rh Ed

Banks, Gordon

Barron, rh Mr Kevin

Bayley, Hugh

Bell, Sir Stuart

Benn, rh Hilary

Berger, Luciana

Betts, Mr Clive

Blackman-Woods, Roberta

Blears, rh Hazel

Blomfield, Paul

Blunkett, rh Mr David

Bradshaw, rh Mr Ben

Brennan, Kevin

Brown, rh Mr Gordon

Brown, Lyn

Brown, rh Mr Nicholas

Brown, Mr Russell

Bryant, Chris

Buck, Ms Karen

Burden, Richard

Burnham, rh Andy

Campbell, Mr Alan

Campbell, Mr Gregory

Campbell, Mr Ronnie

Caton, Martin

Chapman, Mrs Jenny

Clark, Katy

Clarke, rh Mr Tom

Clwyd, rh Ann

Coaker, Vernon

Coffey, Ann

Cooper, Rosie

Cooper, rh Yvette

Corbyn, Jeremy

Crausby, Mr David

Creagh, Mary

Creasy, Stella

Cruddas, Jon

Cryer, John

Cunningham, Alex

Cunningham, Mr Jim

Cunningham, Tony

Curran, Margaret

Dakin, Nic

Danczuk, Simon

Darling, rh Mr Alistair

David, Mr Wayne

Davidson, Mr Ian

Davies, Geraint

De Piero, Gloria

Denham, rh Mr John

Dobbin, Jim

Dobson, rh Frank

Dodds, rh Mr Nigel

Donaldson, rh Mr Jeffrey M.

Donohoe, Mr Brian H.

Doran, Mr Frank

Dowd, Jim

Doyle, Gemma

Dromey, Jack

Durkan, Mark

Eagle, Ms Angela

Eagle, Maria

Edwards, Jonathan

Efford, Clive

Elliott, Julie

Ellman, Mrs Louise

Engel, Natascha

Esterson, Bill

Evans, Chris

Farrelly, Paul

Field, rh Mr Frank

Fitzpatrick, Jim

Flello, Robert

Flint, rh Caroline

Flynn, Paul

Francis, Dr Hywel

Gapes, Mike

Gardiner, Barry

Gilmore, Sheila

Glindon, Mrs Mary

Godsiff, Mr Roger

Goggins, rh Paul

Goodman, Helen

Greatrex, Tom

Green, Kate

Greenwood, Lilian

Griffith, Nia

Gwynne, Andrew

Hamilton, Fabian

Hanson, rh Mr David

Harman, rh Ms Harriet

Harris, Mr Tom

Havard, Mr Dai

Healey, rh John

Hendrick, Mark

Hepburn, Mr Stephen

Hermon, Lady

Heyes, David

Hillier, Meg

Hilling, Julie

Hodge, rh Margaret

Hodgson, Mrs Sharon

Hoey, Kate

Hopkins, Kelvin

Hosie, Stewart

Howarth, rh Mr George

Hunt, Tristram

Irranca-Davies, Huw

Jackson, Glenda

Jamieson, Cathy

Johnson, rh Alan

Johnson, Diana

Jones, Graham

Jones, Helen

Jones, Susan Elan

Jowell, rh Tessa

Kaufman, rh Sir Gerald

Keeley, Barbara

Kendall, Liz

Lammy, rh Mr David

Lavery, Ian

Lazarowicz, Mark

Leslie, Chris

Lewis, Mr Ivan

Lloyd, Tony

Long, Naomi

Love, Mr Andrew

Lucas, Caroline

Lucas, Ian

MacNeil, Mr Angus Brendan

MacShane, rh Mr Denis

Mactaggart, Fiona

Mahmood, Shabana

Malhotra, Seema

Mann, John

Marsden, Mr Gordon

McCabe, Steve

McCann, Mr Michael

McCarthy, Kerry

McClymont, Gregg

McCrea, Dr William

McDonagh, Siobhain

McDonnell, Dr Alasdair

McDonnell, John

McFadden, rh Mr Pat

McGovern, Jim

McGuire, rh Mrs Anne

McKechin, Ann

McKenzie, Mr Iain

McKinnell, Catherine

Meacher, rh Mr Michael

Meale, Sir Alan

Mearns, Ian

Michael, rh Alun

Miliband, rh David

Miliband, rh Edward

Miller, Andrew

Moon, Mrs Madeleine

Morden, Jessica

Morrice, Graeme

(Livingston)

Morris, Grahame M.

(Easington)

Mudie, Mr George

Munn, Meg

Murphy, rh Mr Jim

Murphy, rh Paul

Murray, Ian

Nandy, Lisa

Nash, Pamela

O'Donnell, Fiona

Onwurah, Chi

Osborne, Sandra

Owen, Albert

Paisley, Ian

Pearce, Teresa

Pound, Stephen

Raynsford, rh Mr Nick

Reed, Mr Jamie

Reeves, Rachel

Reynolds, Emma

Reynolds, Jonathan

Riordan, Mrs Linda

Ritchie, Ms Margaret

Robertson, Angus

Robinson, Mr Geoffrey

Rotheram, Steve

Roy, Mr Frank

Roy, Lindsay

Ruane, Chris

Ruddock, rh Dame Joan

Sarwar, Anas

Seabeck, Alison

Shannon, Jim

Sharma, Mr Virendra

Sheerman, Mr Barry

Sheridan, Jim

Shuker, Gavin

Simpson, David

Skinner, Mr Dennis

Slaughter, Mr Andy

Smith, rh Mr Andrew

Smith, Nick

Smith, Owen

Straw, rh Mr Jack

Stringer, Graham

Stuart, Ms Gisela

Tami, Mark

Thornberry, Emily

Timms, rh Stephen

Trickett, Jon

Turner, Karl

Twigg, Stephen

Umunna, Mr Chuka

Vaz, rh Keith

Vaz, Valerie

Walley, Joan

Watson, Mr Tom

Watts, Mr Dave

Weir, Mr Mike

Whiteford, Dr Eilidh

Whitehead, Dr Alan

Wicks, rh Malcolm

Williams, Hywel

Williamson, Chris

Wilson, Phil

Wilson, Sammy

Winnick, Mr David

Winterton, rh Ms Rosie

Wishart, Pete

Wood, Mike

Woodcock, John

Wright, David

Wright, Mr Iain

Tellers for the Noes:

Yvonne Fovargue and

Tom Blenkinsop

Question accordingly agreed to.

26 Mar 2012 : Column 1273

26 Mar 2012 : Column 1274

26 Mar 2012 : Column 1275

26 Mar 2012 : Column 1276

9. Loss relief

Resolved,

That provision (including provision having retrospective effect) may be made amending Chapters 2 and 4 of Part of the Income Tax Act 2007.

10. Gains from contracts for life insurance etc.

Resolved,

That provision may be made amending Chapter 9 of Part 4 of the Income Tax (Trading and Other Income) Act 2005.

11. Income arising under a settlement

Resolved,

That provision may be made about income which arises under a settlement.

26 Mar 2012 : Column 1277

12. Qualifying time deposits

Resolved,

That—

(1) In section 866 of the Income Tax Act 2007 (qualifying time deposits), in subsection (1), after “deposit” there is inserted “made before 6 April 2012”.

(2) The amendment made by this Resolution comes into force on 6 April 2012.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

13. Expenditure on research and development

Resolved,

That provision may be made about tax relief for expenditure on research and development.

14. Real estate investment trusts

Resolved,

That provision may be made amending Part 12 of the Corporation Tax Act 2010.

15. Manufactured overseas dividends

Resolved,

That provision (including provision having retrospective effect) may be made in relation to the receipt of manufactured overseas dividends.

16. Loan relationships

Resolved,

That provision (including provision having retrospective effect) may be made in relation to loan relationships.

17. Companies carrying on leasing businesses

Resolved,

That provision may be made about companies carrying on businesses of leasing plant or machinery.

18. Corporate members of Lloyd’s (stop-loss insurance and quota share contracts)

Resolved,

That provision (including provision having retrospective effect) may be made in relation to stop-loss insurance or quota share contracts taken out or entered into by corporate members of Lloyd’s.

19. Insurance companies and friendly societies

Resolved,

That provision may be made about insurance companies and friendly societies.

20. Equalisation reserves for Lloyd’s corporate and partnership members

Resolved,

That provision may be made in relation to section 47 of the Finance Act 2009.

26 Mar 2012 : Column 1278

21. Financing costs and income

Resolved,

That provision (including provision having retrospective effect) may be made amending Part 7 of the Taxation (International and Other Provisions) Act 2010.

22. Company distributions

Resolved,

That provision may be made amending Part 23 of the Corporation Tax Act 2010.

23. Capital gains tax (annual exempt amount)

Resolved,

That provision may be made about the annual exempt amount.

24. Capital gains (foreign currency bank accounts)

Resolved,

That provision may be made about gains and losses accruing on the disposal of debts represented by credit balances in foreign currency bank accounts.

25. Collective investment schemes

Resolved,

That provision may be made about collective investment schemes.

26. Enterprise investment scheme

Resolved,

That provision (including provision having retrospective effect) may be made amending Part 5 of the Income Tax Act 2007 and Schedule 5B to the Taxation of Chargeable Gains Act 1992.

27. Venture capital trusts

Resolved,

That provision (including provision having retrospective effect) may be made amending Part 6 of the Income Tax Act 2007.

28. Capital allowances

Resolved,

That provision (including provision having retrospective effect) may be made about capital allowances.

29. Remittance basis of taxation

Resolved,

That provision may be made increasing the remittance basis charge and amending other rules relating to the remittance basis of taxation.

30. Employer pension contributions

Resolved,

That provision (including provision having retrospective effect) may be made in relation to employers who pay contributions under registered pension schemes and arrangements for which their contributions are used (directly or indirectly).

26 Mar 2012 : Column 1279

31. Finance arrangements

Resolved,

That provision may be made amending Chapter 5B of Part 13 of the Income Tax Act 2007 and Chapter 2 of Part 16 of the Corporation Tax Act 2010.

32. Giving through self-assessment return

Resolved,

That—

(1) Section 429 of the Income Tax Act 2007 (gift aid: giving through self-assessment return) is repealed.

(2) The following repeals are made in consequence of paragraph (1)—

(a) in section 426 of the Income Tax Act 2007 (election by donor: gift treated as made in previous tax year), omit subsection (8),

(b) in section 538 of that Act (requirement to make claim), omit subsection (3),

(c) in section 133 of the Finance Act 2008 (set-off etc. where right to be paid a sum has been transferred), in subsection (8)(a), omit the words from “except” to the end,

(d) in section 472 of the Corporation Tax Act 2010 (gifts qualifying for gift aid relief: corporation tax liability and exemption), omit subsection (5), and

(e) in section 475 of that Act (gifts qualifying for gift aid relief: income tax treated as paid and exemption), omit subsection (7).

(3) Accordingly, the following provisions are also repealed—

(a) section 130(9) of the Finance Act 2008, and

(b) paragraph 3(4) of Schedule 8 to the Finance Act 2010.

(4) The repeals made by this Resolution come into force on 6 April 2012.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

33. Gift aid and other income

Resolved,

That provision (including provision having retrospective effect) may be made about gifts qualifying for gift aid relief and other exempt income of charities and other bodies.

34. Site restoration payments

Resolved,

That provision may be made about site restoration payments.

35. Changes of accounting policy

Resolved,

That provision (including provision having retrospective effect) may be made about changes of accounting policy.

36. Controlled foreign companies

Resolved,

That provision may be made for and in connection with a charge on UK resident companies which have interests in non-UK resident companies controlled by UK resident persons.

37. Foreign permanent establishments

Resolved,

That provision may be made about foreign permanent establishments of UK resident companies.

26 Mar 2012 : Column 1280

38. Ring fence trades (chargeable gains)

Resolved,

That provision (including provision having retrospective effect) may be made amending section 171A of the Taxation of Chargeable Gains Act 1992.

39. Oil activities

Resolved,

That provision (including provision having retrospective effect) may be made amending Part 8 of the Corporation Tax Act 2010.

40. Tobacco products duty (rates)

Resolved,

That—

(1) For the table in Schedule 1 to the Tobacco Products Duty Act 1979 substitute—

“Table

1. Cigarettes

An amount equal to 16.5 per cent of the retail price plus £167.41 per thousand cigarettes

2. Cigars

£208.83 per kilogram

3. Hand-rolling tobacco

£164.11 per kilogram

4. Other smoking tobacco and chewing tobacco

£91.81 per kilogram”.

(2) The amendment made by this Resolution comes into force at 6 pm on 21 March 2012.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

41. Alcoholic liquor duties (rates)

Resolved,

That—

(1) The Alcoholic Liquor Duties Act 1979 is amended as follows.

(2) In section 5 (rate of duty on spirits), for “£25.52” substitute “£26.81”.

(3) In section 36(1AA) (rate of general beer duty)—

(a) in paragraph (za) (rate of duty on lower strength beer), for “£9.29” substitute “£9.76”, and

(b) in paragraph (a) (standard rate of duty on beer), for “£18.57” substitute “£19.51”.

(4) In section 37(4) (rate of high strength beer duty), for “£4.64” substitute “£4.88”.

(5) In section 62(1A) (rates of duty on cider)—

(a) in paragraph (a) (rate of duty per hectolitre on sparkling cider of a strength exceeding 5.5 per cent), for “£233.55” substitute “£245.32”,

(b) in paragraph (b) (rate of duty per hectolitre on cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£53.84” substitute “£56.55”, and

(c) in paragraph (c) (rate of duty per hectolitre in any other case), for “£35.87” substitute “£37.68”.

(6) For the table in Schedule 1 substitute—

26 Mar 2012 : Column 1281

“Table of Rates of Duty on Wine and Made-Wine Part 1 Wine or Made-Wine of a Strength not Exceeding 22 per cent
Description of wine or made-wine Rates of duty per hectolitre £

Wine or made-wine of a strength not exceeding 4 per cent

78.07

Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent

107.36

Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling

253.39

Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent

245.32

Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent

324.56

Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent

337.82

Part 2 Wine or Made-Wine of a Strength Exceeding 22 per cent
Description of wine or made-wine Rates of duty per litre of alcohol in wine or made-wine £

Wine or made-wine of a strength exceeding 22 per cent

26.81”

(7) The amendments made by this Resolution come into force on 26 March 2012.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

42. Alcoholic liquor duties (drawback)

Resolved,

That provision may be made repealing section 22 of the Alcoholic Liquor Duties Act 1979.

43. Fuel duty (private pleasure craft)

Resolved,

That—

(1) In section 14E of the Hydrocarbon Oil Duties Act 1979 (rebated heavy oil and bioblend: private pleasure craft), after subsection (7) insert—

“(7A) A relevant declaration must include an acknowledgement that nothing in this section or done under it (including the making of the declaration) affects any restriction or prohibition under the law of a member State other than the United Kingdom on the use of the heavy oil or bioblend as fuel for propelling craft outside United Kingdom waters (as defined in section 1(1) of the Management Act).”

(2) The amendment made by this Resolution has effect in relation to supplies made on or after 1 April 2012.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

44. Air passenger duty (rates of duty from 1 April 2012)

Question put,

That—

(1) Section 30 of the Finance Act 1994 (air passenger duty: rates of duty) is amended as follows.

26 Mar 2012 : Column 1282

(2) In subsection (2)—

(a) in paragraph (a) for “£12” substitute “£13”, and

(b) in paragraph (b) for “£24” substitute “£26”.

(3)In subsection (3)—

(a) in paragraph (a) for “£60” substitute “£65”, and

(b) in paragraph (b) for “£120” substitute “£130”.

(4) In subsection (4)—

(a) in paragraph (a) for “£75” substitute “£81”, and

(b) in paragraph (b) for “£150” substitute “£162”.

(5) In subsection (4A)—

(a) in paragraph (a) for “£85” substitute “£92”, and

(b) in paragraph (b) for “£170” substitute “£184”.

(6) After subsection (4A) insert—

“(4B)Subsection (4C) applies if—

(a) the passenger’s journey is a relevant Northern Ireland journey, and

(b) apart from subsection (4C), subsection (2) would not apply to the journey.

(4C) The applicable rate in subsection (2) applies to the journey instead of the applicable rate in subsection (3), (4) or (4A) (as the case may be).

(4D)A passenger’s journey is a “relevant Northern Ireland journey”—

(a)in the case of a journey which has only one flight, if the flight begins in Northern Ireland, and

(b)in any other case, if the first flight of the journey—

(i)begins in Northern Ireland, and

(ii)is not followed by a connected flight beginning at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A.”

(7) In article 3 of the Air Passenger Duty (Connected Flights) Order 1994 (S.I. 1994/1821) for “section 30(6), or section 31(3),” substitute “Chapter 4 of Part 1”.

(8) The amendments made by this Resolution have effect in relation to the carriage of passengers beginning on or after 1 April 2012.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

The House divided:

Ayes 323, Noes 13.

Division No. 505]

[10.28 pm

AYES

Adams, Nigel

Afriyie, Adam

Aldous, Peter

Alexander, rh Danny

Amess, Mr David

Andrew, Stuart

Arbuthnot, rh Mr James

Bacon, Mr Richard

Baker, Norman

Baker, Steve

Baldry, Tony

Baldwin, Harriett

Barclay, Stephen

Barker, Gregory

Baron, Mr John

Barwell, Gavin

Bebb, Guto

Beith, rh Sir Alan

Benyon, Richard

Beresford, Sir Paul

Berry, Jake

Bingham, Andrew

Binley, Mr Brian

Birtwistle, Gordon

Blackman, Bob

Blackwood, Nicola

Blunt, Mr Crispin

Bottomley, Sir Peter

Bradley, Karen

Brady, Mr Graham

Brake, rh Tom

Brazier, Mr Julian

Bridgen, Andrew

Brine, Steve

Brokenshire, James

Browne, Mr Jeremy

Bruce, Fiona

Bruce, rh Malcolm

Buckland, Mr Robert

Burley, Mr Aidan

Burns, Conor

Burns, rh Mr Simon

Burrowes, Mr David

Burstow, Paul

Burt, Lorely

Byles, Dan

Cable, rh Vince

Cairns, Alun

Campbell, rh Sir Menzies

Carmichael, rh Mr Alistair

Carmichael, Neil

Carswell, Mr Douglas

Cash, Mr William

Chishti, Rehman

Clappison, Mr James

Clarke, rh Mr Kenneth

Clifton-Brown, Geoffrey

Coffey, Dr Thérèse

Collins, Damian

Colvile, Oliver

Crabb, Stephen

Crockart, Mike

Crouch, Tracey

Davey, rh Mr Edward

Davies, David T. C.

(Monmouth)

Davies, Glyn

Davis, rh Mr David

de Bois, Nick

Dinenage, Caroline

Djanogly, Mr Jonathan

Dorrell, rh Mr Stephen

Doyle-Price, Jackie

Drax, Richard

Duddridge, James

Duncan, rh Mr Alan

Duncan Smith, rh Mr Iain

Ellis, Michael

Ellison, Jane

Ellwood, Mr Tobias

Elphicke, Charlie

Eustice, George

Evans, Graham

Evans, Jonathan

Evennett, Mr David

Fabricant, Michael

Farron, Tim

Field, Mark

Foster, rh Mr Don

Fox, rh Dr Liam

Francois, rh Mr Mark

Freeman, George

Freer, Mike

Fuller, Richard

Garnier, Mr Edward

Garnier, Mark

Gauke, Mr David

George, Andrew

Gibb, Mr Nick

Gilbert, Stephen

Gillan, rh Mrs Cheryl

Glen, John

Goodwill, Mr Robert

Gove, rh Michael

Graham, Richard

Grant, Mrs Helen

Gray, Mr James

Grayling, rh Chris

Green, Damian

Greening, rh Justine

Grieve, rh Mr Dominic

Griffiths, Andrew

Gummer, Ben

Gyimah, Mr Sam

Hague, rh Mr William

Halfon, Robert

Hames, Duncan

Hammond, rh Mr Philip

Hammond, Stephen

Hancock, Mr Mike

Harper, Mr Mark

Harrington, Richard

Harris, Rebecca

Hart, Simon

Harvey, Nick

Haselhurst, rh Sir Alan

Hayes, Mr John

Heald, Oliver

Heath, Mr David

Heaton-Harris, Chris

Hemming, John

Henderson, Gordon

Hendry, Charles

Herbert, rh Nick

Hinds, Damian

Hoban, Mr Mark

Hollingbery, George

Hollobone, Mr Philip

Holloway, Mr Adam

Hopkins, Kris

Horwood, Martin

Howarth, Mr Gerald

Howell, John

Hughes, rh Simon

Huhne, rh Chris

Hunter, Mark

Hurd, Mr Nick

Jackson, Mr Stewart

James, Margot

Javid, Sajid

Jenkin, Mr Bernard

Johnson, Gareth

Johnson, Joseph

Jones, Andrew

Jones, Mr David

Jones, Mr Marcus

Kawczynski, Daniel

Kelly, Chris

Kirby, Simon

Knight, rh Mr Greg

Kwarteng, Kwasi

Laing, Mrs Eleanor

Lamb, Norman

Lancaster, Mark

Lansley, rh Mr Andrew

Latham, Pauline

Laws, rh Mr David

Leadsom, Andrea

Lee, Jessica

Lee, Dr Phillip

Leech, Mr John

Lefroy, Jeremy

Leigh, Mr Edward

Leslie, Charlotte

Letwin, rh Mr Oliver

Lewis, Brandon

Lidington, rh Mr David

Lilley, rh Mr Peter

Lloyd, Stephen

Lopresti, Jack

Lord, Jonathan

Loughton, Tim

Lucas, Caroline

Luff, Peter

Lumley, Karen

Macleod, Mary

Main, Mrs Anne

Maude, rh Mr Francis

May, rh Mrs Theresa

Maynard, Paul

McCartney, Jason

McCartney, Karl

McIntosh, Miss Anne

McLoughlin, rh Mr Patrick

McPartland, Stephen

McVey, Esther

Mensch, Louise

Menzies, Mark

Mercer, Patrick

Metcalfe, Stephen

Miller, Maria

Mills, Nigel

Mitchell, rh Mr Andrew

Moore, rh Michael

Mordaunt, Penny

Morgan, Nicky

Morris, Anne Marie

Morris, David

Morris, James

Mosley, Stephen

Mowat, David

Mulholland, Greg

Mundell, rh David

Murray, Sheryll

Murrison, Dr Andrew

Neill, Robert

Newmark, Mr Brooks

Newton, Sarah

Nokes, Caroline

Nuttall, Mr David

Offord, Mr Matthew

Ollerenshaw, Eric

Opperman, Guy

Osborne, rh Mr George

Ottaway, Richard

Paice, rh Mr James

Parish, Neil

Patel, Priti

Paterson, rh Mr Owen

Pawsey, Mark

Penrose, John

Perry, Claire

Phillips, Stephen

Pickles, rh Mr Eric

Poulter, Dr Daniel

Pritchard, Mark

Pugh, John

Raab, Mr Dominic

Randall, rh Mr John

Redwood, rh Mr John

Rees-Mogg, Jacob

Reevell, Simon

Reid, Mr Alan

Rifkind, rh Sir Malcolm

Robathan, rh Mr Andrew

Robertson, Hugh

Robertson, Mr Laurence

Rogerson, Dan

Rosindell, Andrew

Rudd, Amber

Ruffley, Mr David

Russell, Sir Bob

Rutley, David

Sanders, Mr Adrian

Sandys, Laura

Scott, Mr Lee

Selous, Andrew

Shannon, Jim

Shapps, rh Grant

Sharma, Alok

Shelbrooke, Alec

Shepherd, Mr Richard

Simmonds, Mark

Simpson, Mr Keith

Skidmore, Chris

Smith, Miss Chloe

Smith, Henry

Smith, Julian

Smith, Sir Robert

Soames, rh Nicholas

Soubry, Anna

Spelman, rh Mrs Caroline

Spencer, Mr Mark

Stephenson, Andrew

Stevenson, John

Stewart, Bob

Stewart, Rory

Streeter, Mr Gary

Stride, Mel

Stunell, Andrew

Sturdy, Julian

Swales, Ian

Swayne, rh Mr Desmond

Swinson, Jo

Syms, Mr Robert

Teather, Sarah

Thurso, John

Timpson, Mr Edward

Tomlinson, Justin

Tredinnick, David

Truss, Elizabeth

Turner, Mr Andrew

Tyrie, Mr Andrew

Uppal, Paul

Vaizey, Mr Edward

Vara, Mr Shailesh

Vickers, Martin

Villiers, rh Mrs Theresa

Walker, Mr Charles

Walker, Mr Robin

Wallace, Mr Ben

Walter, Mr Robert

Watkinson, Angela

Weatherley, Mike

Webb, Steve

Wharton, James

Wheeler, Heather

White, Chris

Whittaker, Craig

Whittingdale, Mr John

Wiggin, Bill

Willetts, rh Mr David

Williams, Mr Mark

Williams, Roger

Williams, Stephen

Williamson, Gavin

Willott, Jenny

Wilson, Mr Rob

Wilson, Sammy

Wollaston, Dr Sarah

Wright, Jeremy

Wright, Simon

Yeo, Mr Tim

Young, rh Sir George

Tellers for the Ayes:

Greg Hands and

Mr Philip Dunne

NOES

Durkan, Mark

Flynn, Paul

Glindon, Mrs Mary

Hermon, Lady

Hosie, Stewart

MacNeil, Mr Angus Brendan

McDonnell, Dr Alasdair

Ritchie, Ms Margaret

Robertson, Angus

Skinner, Mr Dennis

Weir, Mr Mike

Whiteford, Dr Eilidh

Wishart, Pete

Tellers for the Noes:

Hywel Williams and

Jonathan Edwards

Question accordingly agreed to.

26 Mar 2012 : Column 1283

26 Mar 2012 : Column 1284

26 Mar 2012 : Column 1285

45. Air passenger duty (general)

Resolved ,

That provision (including provision having retrospective effect) may be made amending, or making amendments connected with, Chapter 4 of Part 1 of the Finance Act 1994.

46. Machine games duty

Resolved,

That provision may be made replacing amusement machine licence duty with a new excise duty and amending the Value Added Tax Act 1994 with respect to supplies in the area of gambling.

47. Amusement machine licence duty (rates)

Resolved,

That—

In section 23(2) of the Betting and Gaming Duties Act 1981 (amount of duty payable on amusement machine licence), for the table substitute—

“Table
Months for which licence granted Category A Category B1 Category B2 Category B3 Category B4 Category C
  £ £ £ £ £ £

1

555

280

220

220

200

85

2

1105

555

435

435

395

165

3

1655

830

655

655

595

250

4

2205

1105

870

870

790

330

5

2755

1380

1085

1085

985

410

6

3305

1655

1305

1305

1185

495

7

3860

1930

1520

1520

1380

575

8

4410

2205

1740

1740

1575

655

9

4960

2485

1955

1955

1775

740

10

5510

2760

2170

2170

1970

820

11

6060

3035

2390

2390

2170

900

12

6295

3150

2480

2480

2250

935”.

(2) The amendment made by this Resolution has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty’s Revenue and Customs after 4 pm on 23 March 2012.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

48. Vehicle excise duty (rates for light passenger vehicles etc)

Resolved,

That—

26 Mar 2012 : Column 1286

(1) Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) is amended as follows.

(2) In paragraph 1 (general)—

(a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder not exceeding 1,549cc), for “£215” substitute “£220”, and

(b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£130” substitute “£135”.

(3) In paragraph 1B (graduated rates of duty for light passenger vehicles)—

(a) for the tables substitute—

“Table 1 Rates Payable on First Vehicle Licence for Vehicle
CO 2 Emissions figure Rate
(1) (2) (3) (4)
Exceeding Not exceeding Reduced rate Standard rate
g/km g/km £ £

130

140

110

120

140

150

125

135

150

165

160

170

165

175

265

275

175

185

315

325

185

200

450

460

200

225

590

600

225

255

805

815

255

-

1020

1030

Table 2 Rates Payable on any other Vehicle Licence for Vehicle
CO 2 E missions F igure Rate
(1) (2) (3) (4)
Exceeding Not exceeding Reduced rate Standard rate
g/km g/km £ £

100

110

10

20

110

120

20

30

120

130

90

100

130

140

110

120

140

150

125

135

150

165

160

170

165

175

185

195

175

185

205

215

185

200

240

250

200

225

260

270

225

255

450

460

255

-

465

475”;

(b) in the sentence immediately following the tables, for paragraphs (a) and (b) substitute—

“(a) in column (3), in the last two rows, “260” were substituted for “450” and “465”, and

(b) in column (4), in the last two rows, “270” were substituted for “460” and “475”.”

(4) In paragraph 1J (VED rates for light goods vehicles)—

(a) in paragraph (a), for “£210” substitute “£215”, and

(b) in paragraph (b), for “£130” substitute “£135”.

(5) In paragraph 2(1) (VED rates for motorcycles)—

(a) in paragraph (b), for “£35” substitute “£36”,

(b) in paragraph (c), for “£53” substitute “£55”, and

(c) in paragraph (d), for “£74” substitute “£76”.

(6) The amendments made by this Resolution have effect in relation to licences taken out on or after 1 April 2012.

26 Mar 2012 : Column 1287

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

49. Value added tax (anti-forestalling charge)

Resolved,

That provision may be made for an anti-forestalling charge to value added tax related to changes in the descriptions of exempt or zero-rated supplies.

50. Value added tax (exempt supplies)

Resolved,

That provision may be made about exempt supplies.

51. Value added tax (public bodies)

Resolved,

That provision may be made about supplies of goods and services that are to be treated as made in the course or furtherance of a business.

52. Value added tax (imported goods of low value)

Resolved,

That—

(1) In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 (S.I. 1984/746) (reliefs for goods of certain descriptions), Group 8 (articles sent for miscellaneous purposes) is amended as follows.

(2) The existing Note becomes Note (1) (and accordingly “Note” in Group 8 becomes “Notes”).

(3) After that Note insert—

“(2)Item 8 does not apply in relation to any goods sent from the Channel Islands under a distance selling arrangement.

(3)For the purposes of Note (2)—

“distance selling arrangement”, in relation to any goods, means any transaction, or series of transactions, under which the person to whom the goods are sent receives them from a supplier without the simultaneous physical presence of the person and the supplier at any time during the transaction or series of transactions, and

“supplier” means any person who is acting in a commercial or professional capacity.”

(4) The amendment of that Schedule by this Resolution is without prejudice to any power to amend that Schedule by subordinate legislation.

(5) The amendments made by this Resolution have effect in relation to goods imported on or after 1 April 2012.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

53. Value added tax (groups of companies)

Resolved,

That provision may be made about the value of supplies made between members of a group.

54. Value added tax (means of transport)

Resolved,

26 Mar 2012 : Column 1288

That provision may be made about the timing of payments of value added tax on the acquisition or importation of goods consisting of a means of transport.

55. Value added tax (non-established taxable persons)

Resolved,

That provision may be made confining the exemption available under Part 1 of the Value Added Tax Act 1994 for businesses with a low turnover to persons with a business presence in the United Kingdom.

56. Landfill tax (standard rate)

Resolved,

That provision may be made about the standard rate of landfill tax.

57. Landfill sites in Scotland (retrospective provision)

Resolved,

That retrospective provision may be made about landfill sites in Scotland.

58. Landfill sites in Scotland

Resolved,

That the following provisions come into force, in so far as they extend to Scotland, on 21 March 2012—

(a) paragraph 19 of Schedule 2 to the Pollution Prevention and Control Act 1999 (which inserts paragraph (ba) into section 66 of the Finance Act 1996 (landfill sites)), and

(b) section 6(1) of the Pollution Prevention and Control Act 1999, so far as relating to paragraph 19 of that Schedule.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

59. Climate change levy (taxable supplies for use in recycling processes)

Resolved,

That—

(1) Schedule 6 to the Finance Act 2000 (climate change levy) is amended as follows.

(2) In paragraph 4(2)(b) (definition of taxable supply) for “45A” substitute “43B”.

(3) In paragraph 5(3) (taxable supplies: deemed supplies of electricity) for “45A” substitute “43B”.

(4) In paragraph 6(2A) (taxable supplies: deemed supplies of gas) for “45A” substitute “43B”.

(5) In paragraph 14(3A)(a) (use of electricity in an “exemption-retaining” way) for “, 18 and 18A” substitute “and 18”.

(6) Omit paragraph 18A (exemption: supply for use in recycling process).

(7) In paragraph 34 (time of supply of commodities other than gas and electricity: deemed supplies)—

(a) in sub-paragraph (1)(b), for “45A” substitute “43B”, and

(b) in sub-paragraph (4), for “45A” substitute “43B”.

(8) In paragraph 39(1)(c) (regulations as to time of supply) for “45A” substitute “43B”.

(9) In paragraph 42 (amount payable by way of levy)—

(a) in sub-paragraph (1)—

(i) in paragraph (a) after “supply” (in the second place it

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occurs) insert “or a supply for use in scrap metal recycling”,

(ii) in paragraph (c) for “were not a reduced-rate supply.” substitute “were a supply to which paragraph (a) applies;”, and

(iii) after paragraph (c) insert—

“(d)if the supply is a supply for use in scrap metal recycling, 20 per cent of the amount that would be payable if the supply were a supply to which paragraph (a) applies.”, and

(b) after that sub-paragraph insert—

“(1ZA) If a taxable supply is both a reduced-rate supply and a supply for use in scrap metal recycling, the amount payable by way of levy on the supply under sub-paragraph (1) is the lower of the two amounts provided for that supply under that sub-paragraph.”

(10) Before the cross-heading before paragraph 44 insert—“Supplies for use in scrap metal recycling43A (1) For the purposes of this Schedule, a taxable supply is a supply for use in scrap metal recycling if—

(a) the person to whom the taxable commodity is supplied intends to cause the commodity to be used as fuel in a process (“the recycling process”) to be carried out by that person which is the shredding (or fragmentation), pre-treatment and melting of scrap metal for recycling, and

(b) the condition in sub-paragraph (2) is satisfied.

(2) The condition is that there is another process (“the competing process”) that—

(a) uses taxable commodities otherwise than as fuel,

(b) produces a product of the same kind as one produced by the recycling process,

(c) uses a greater amount of energy than the recycling process to produce a given quantity of that product, and

(d) involves a lesser charge to levy for a given quantity of that product than would, but for paragraph 42(1)(d), be the case for the recycling process.

(3) For the purposes of sub-paragraph (2)(a), taxable commodities are used “otherwise than as fuel” only if the supplies of those commodities to the person using them are exempted from the levy by virtue of paragraph 18.

(4) Sub-paragraphs (5) and (6) apply where the recycling process or the competing process, as well as producing a product of the same kind as one produced by the other process (“the corresponding product”), also produces one or more products that are not (“different products”).

(5) If the production of the different products is merely incidental to the production of the corresponding product, the different products are to be treated for the purposes of sub-paragraph (2)(c) and (d) as being of the same kind as the corresponding product.

(6) If the production of the different products is not merely incidental to the production of the corresponding product—

(a) the amounts of energy referred to in sub-paragraph (2)(c), and the amounts of the charge to levy referred to in sub-paragraph (2)(d), are to be determined on a just and reasonable apportionment, and

(b) in calculating the amount payable by way of levy on the taxable supply, only the proportion of the supply that is the same as the proportion of the energy used by the recycling process to produce the corresponding product (as determined for the purposes of paragraph (a)) is to be treated as being a supply for use in scrap metal recycling.

(7) In this paragraph—

“melting” means—

(a) the pre-heating and first melting of scrap metal before casting into items (“intermediates”) for further processing or re-melting, or

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(b) the heating of scrap metal as part of the recycling process before any solidification and re-melting,

but excluding the melting of any metal which is not scrap but which is added at any stage to improve the quality or adjust the composition of the recycled metal or intermediates, and

“metal” means aluminium or steel.

(8) The Commissioners may by regulations make provision for giving effect to this paragraph.

(9) Regulations under this paragraph may, in particular, include provision for determining whether or not a taxable supply is a supply for use in scrap metal recycling (to any extent).

“Supplies for use in scrap metal recycling and reduced-rate supplies: deemed supply

43B (1) This paragraph applies where—

(a) a taxable supply (“the original supply”) has been made to any person (“the recipient”),

(b) the original supply was made on the basis that it was, to any extent, a supply for use in scrap metal recycling or a reduced-rate supply,

(c) it is later determined that the original supply was (or was to some extent) a different kind of supply, and

(d) the amount payable on the supply on the basis mentioned in paragraph (b) is less than the amount payable on the supply on the basis of the later determination.

(2) For the purposes of this Schedule—

(a) the recipient is deemed to make a taxable supply to itself of the taxable commodity, and

(b) the amount payable by way of levy on that deemed supply is—

(i) the amount payable on the original supply on the basis of the later determination mentioned in sub-paragraph (1)(c), less

(ii) the amount payable on the original supply on the basis mentioned in sub-paragraph (1)(b).

(3) This paragraph does not apply where a supply is treated as not being a reduced-rate supply by virtue of paragraph 45B.”

(11) Omit paragraph 45A (reduced-rate supplies: deemed supply).(12) After paragraph 62(1)(c) (tax credits) insert—

“(ca) after a taxable supply has been made on the basis that it was not a supply for use in scrap metal recycling, it is determined that the supply was (to any extent) a supply for use in scrap metal recycling;

(cb) after a taxable supply has been made on the basis that it was (to any extent) a supply for use in scrap metal recycling, it is determined that the supply was such a supply to a greater extent than previously determined;”.

(13) In paragraph 101(2)(a) (penalty for incorrect notification)—

(a) in sub-paragraph (ii) omit “, 18A”,

(b) omit the “or” after sub-paragraph (ii), and

(c) before sub-paragraph (iv) insert—

“(iiia) a supply (or supplies) for use in scrap metal recycling, or”.

(14) In paragraph 146(3) (regulations subject to affirmative resolution procedure) omit “18A,”.(15) In paragraph 147 (interpretation)—

(a) in the definition of “prescribed”, omit “, 18A”, and

(b) insert at the appropriate place—

““supply for use in scrap metal recycling” has the meaning given by paragraph 43A(1);”.

(16) Omit section 188 of the Finance Act 2003 (climate change levy: exemption for fuel used in recycling process).(17) The Finance Act 2011 is amended as follows.

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(18) In section 79 (which provides for a lower rate of climate change levy for Northern Ireland gas supplies treated as taking place before 1 November 2013), in subsection (2)—

(a) omit the “and” after paragraph (b), and

(b) after that paragraph insert—

“(ba) the supply is not a supply for use in scrap metal recycling (within the meaning of that Schedule (see paragraph 147)), and”.

(19) Omit section 80 (power to suspend exemption for supplies used in recycling process).(20) The amendments made by this Resolution have effect in relation to supplies of taxable commodities so far as the commodities are actually supplied on or after 1 April 2012.And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.