Value Added Tax Bill

Part of the debate – in the House of Commons at 10:35 am on 8th February 2019.

Alert me about debates like this

Photo of Neil O'Brien Neil O'Brien Conservative, Harborough 10:35 am, 8th February 2019

I thank my hon. Friend for being so generous in giving way again. I think he is wrong to say that it is not the approach of the Front Bench to think in dynamic terms: the Treasury has produced a wonderful paper showing that a third of the cuts in corporation tax are made up for by dynamic gains. Active work is being done on this; it is a Conservative belief. However, I would only ask my hon. Friend what proportion of the £4 billion or £6 billion loss to the Exchequer that he is talking about does he think might be made up for by dynamic effects? I agree that there are dynamic effects and I agree that this is a wonderful simplification; I just caution him that another Conservative principle is sound money and not running a huge £150 billion a year deficit like Labour did.