Clause 23
Finance (No. 2) Bill
10:30 am
John Healey (Financial Secretary, HM Treasury; Wentworth, Labour)
May I begin by welcoming you to the Chair, Mr. Benton? I have had the pleasure of serving previously under your chairmanship and that of your co-Chair, Mr. O’Hara. I look forward to doing so again.
It may not feel like it to members of the Committee, but we have now reached part 3, chapter 1 of the Bill. Clause 23 imposes income tax for the year 2006-07. The starting rate of 10p, that we first introduced in 1999, means that more than 3 million low earners continue to see their marginal rate of tax halved. We have kept our election promises not to raise the basic or the top rate of tax, which remain at 22p and 40p respectively, and the 22p basic rate is the lowest basic rate in the UK for more than 70 years. The income tax rates set out in the clause are part of the Government’s commitment to maintaining macro-economic stability and sound public finances. I commend the clause to the Committee.