“(1) The Chancellor of the Exchequer must a review of the expected effects of the provisions of Schedule 5 on payments to the Commissioners, and lay a report of that review before the House of Commons within 6 months of the passing of the Act.

(2) The review under subsection (1) must in particular consider—

(a) the expected change in corporation tax receipts attributable to those provisions, and

(b) the expected change in corporation tax receipts if—

(i) the provisions in Schedule 5 were not brought into force, an

(ii) the rate of corporation tax were to be changed to 26%.”.—(Peter Dowd.)

This requires a review of the effects of Schedule 5, and a comparison of the effects of that Schedule to an increase of the rate of corporation tax to 26%.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

The Committee divided:

Ayes 9, Noes 10.

Question negatived.

New Clause 16