Finance Bill

Part of the debate – in the House of Commons at 5:54 pm on 6th July 2010.

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Photo of Lorely Burt Lorely Burt Chair of the Liberal Democrat Parliamentary Party 5:54 pm, 6th July 2010

The Bill is short, and I will keep my remarks short in keeping with the Bill's size. This is a coalition Bill, just as the Budget was a coalition Budget. It incorporates Liberal Democrat policies such as our policies on capital gains tax, raising the earnings threshold and the restoration of the earnings link. It also incorporates elements of Conservative policy, which is right because that is what a coalition does. In some respects it is a bit like Hovis, which calls its mix of white and brown bread "Best of both". That is what we have in the Bill.

Among the Bill's main elements is the capital gains tax increase from 18% to 28%. The Liberal Democrat policy would have taken it further, but we could run into the law of diminishing returns. We need to be not only practical but fair. It is fair because the well-off, who pay less tax than those who clean their offices, will start to pay a lot more tax. That loophole was never closed by the Labour party, and the measure will make a big difference in fairness and in the level at which those well-off people pay tax.

The entrepreneurs relief should be welcomed by hon. Members on both sides of the House.

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