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Clause 2 - Personal allowance for 2013-14 for those born after 5 April 1948

Part of Finance (No. 2) Bill – in a Public Bill Committee at 2:15 pm on 23rd April 2013.

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Photo of Ian Mearns Ian Mearns Labour, Gateshead 2:15 pm, 23rd April 2013

When my hon. Friend the Member for Newcastle upon Tyne North made her contribution, Government Members seemed to pooh-pooh the idea that the tax cut created by raising the threshold was offset by more regressive measures such as the increase in VAT. I remind them that in 2009, somebody they know and love dearly said:

“You could try, as you say, to put it on VAT, sales tax, but again if you look at the effect of sales tax, it’s very regressive, it hits the poorest the hardest. It does, I absolutely promise you…VAT is a more regressive tax than income tax or council tax.”

That was none other than David Cameron, now the Prime Minister.