§ 9. Mr. Cryerasked the Chancellor of the Exchequer what representations have been made against the increase in value added tax.
§ Mr. Peter ReesOver 400 representations, covering a wide range of subjects, have been received since the Budget.
§ Mr. CryerWhen the Minister receives representations from his Cabinet and ministerial colleagues and other hard-hearted and prosperous-looking Tories about taxing the unemployed and those on social security benefits, will he remember that VAT hits those on lower incomes much harder than it does the rich people who put the Tory Party into office? Will he accept that the swingeing increases in VAT help to underline the OECD report, published today, which suggests that this country is heading quickly towards recession and increasing inflation? Surely the VAT increases will accelerate that trend?
§ Mr. ReesOn the hon. Gentleman's first point, I remind him of what his right hon. Friend the Member for Heywood and Royton (Mr. Barnett) said at an earlier stage, namely, that VAT is nothing like as regressive as was at first thought.
§ Mr. AdleyIs my hon. and learned Friend aware that when the previous Conservative Government left office the flat rate of VAT was 10 per cent. and it is now 15 per cent., so the intervening five years of Socialist Government correspond with the 5 per cent. increase? We are having to pay 1 per cent. VAT per annum for Socialism. Is he further aware that most people are confident that five years from now the Government will have added a reduction in VAT to the reductions already made in direct taxation?
§ Mr. HefferHas the hon. and learned Gentleman had his attention drawn to the speech by Sir Maurice Laing and 1975 other constuction employers, who are no longer as enthusiastic as they were about Government policy in relation to the construction industry? Does he agree that the Government's proposals on value added tax will be disastrous for the future of that industry?