Clause 8

Part of Finance (No. 3) Bill – in a Public Bill Committee at 6:15 pm on 10th May 2011.

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Photo of David Gauke David Gauke The Exchequer Secretary 6:15 pm, 10th May 2011

Well, we have been clear. As the right hon. Gentleman will remember, the Chancellor made clear in his Budget speech precisely what we are doing with the switch from the RPI to the CPI. It is the right thing to do. Yes, it will have an impact and create some savings for the Exchequer, but we have been absolutely upfront about that, so there is nothing stealthy about it. We have fully acknowledged the consequences of the change, and we believe that the CPI is consistent with what happens elsewhere in Government.

Clause 8 will make a simple technical change. It will also confirm that the annual exempt amount for 2011-12 is £10,600. I trust that it will be uncontroversial.