Economy: Budget Statement — Motion to Take Note

Part of the debate – in the House of Lords at 4:30 pm on 22 March 2012.

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Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury 4:30, 22 March 2012

My Lords, the simple fact is that if you talk to businesses around the world about why they are not moving business into this country and are not moving high-earning individuals back to this country, you will find that it is simply because of the disincentive effect of the 50p tax rate. It is entirely consistent that there is a disincentive effect on business decisions, even though the net take is nothing. I listened to what the real businesspeople in this House-the noble Lord, Lord Bilimoria, and my noble friend Lord Fink-said about the damaging effect of high rates of tax. Their voices present the true position.