Clause 32 - Corporation tax starting rate and fraction for financial year 2002

Part of Finance Bill – in a Public Bill Committee at 3:39 pm on 16th May 2002.

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Photo of Mr Roger Casale Mr Roger Casale Labour, Wimbledon 3:39 pm, 16th May 2002

The hon. Gentleman seems to be developing an argument based on the idea that, if we implement a certain tax measure, everything else will stay the same, but one must not assume that what in this case is a gain for self-employed people is necessarily in the longer term a loss to the Exchequer. The point of the measure is to promote enterprise and business, which will in the longer term lead to greater revenues and lessen the loss to the Exchequer from the immediate impact of the measure. Surely the hon. Gentleman will accept that the tax might have dynamic effects as well as an immediate impact.