Tax Increases (Hansard, 14 February 1994)

11. Mr. Alan W. Williams
To ask the Secretary of State for Wales what assessment he has made of the impact of the tax increases due in April on economic recovery in Wales.

§ Mr. Gwilym Jones
I share the judgment of my right hon. and learned Friend the Chancellor of the Exchequer, who calculated that the recovery in the economy that has been under way since the middle of 1992 would not be prejudiced by the tax increases that are necessary to bring the public finances back into balance in the medium term.

Mr. Williams
In the context of the Government's "back to basics" policy, does the Minister agree that one of the basic virtues should be honesty? The Prime Minister said in the 1992 election campaign that there was no need to raise value added tax and spoke of tax cuts year on year. How does that square with the tax increases that are due in April, which will cost the average family £10 a week—the largest tax increase in our history? Were those promises at the time of the last election just lies?

§ Mr. Jones
I will take no lectures on honesty from the high-taxing, high-spending Labour party. It would not come clean with the electorate at the last general election. It still will not come clean with the electorate. It will never be believed on that subject.

§ Mr. Roger Evans
Does my hon. Friend agree that there is a simple explanation for the necessary tax increases in my right hon. and learned Friend's Budget—a recession which went on a great deal longer and was much deeper than anyone forecast, including every Opposition Member?

§ Mr. Jones
My hon. Friend is absolutely right. The taxation that we are imposing is the minimum necessary because only the Conservative party is committed to the lowest possible level of taxation.

§ Mr. Llew Smith
Does the Minister accept that the recession referred to by the hon. Member for Monmouth (Mr. Evans) was created by the Conservative Government?

§ Mr. Jones
I am amazed. There speaks a Member of the European Parliament. One would expect someone who travels so frequently outside his country at public expense to know that it was a world recession.