Welfare Benefits Up-rating Bill

Debate between Anne Main and David T C Davies

Tuesday 8th January 2013 Commons Chamber

[David T. C. Davies]

Put simply, the total amount of tax that we are taking from the rich has increased, as my right hon. Friend the Secretary of State has said, and that has not been denied by any Opposition Member. The total amount of money that we are taking from the rich has increased, which means that the total amount that we have to take from those who are not so rich has gone down somewhat. That is how I would justify it.

[Mrs Anne Main (St Albans) (Con)]

It might be worth reminding Opposition Members about the 10p tax fiasco that they imposed on some of the poorest members of my community. They have not been forgiven for it.

[David T. C. Davies]

I should also like Opposition Members to recognise the economic truism of the Laffer curve, which has proved that the more we try to tax the rich, the less we get off them. That is why so many people are queuing up to come over here from France at the moment, and good luck to them. We will have their money and spend it on less well-off people here.

I have listened carefully today to Opposition Members and I have not heard any of them explain how they would manage to maintain benefits at their current level or fund the increases that they want to impose. What would they cut in order to fill that gap? What extra taxes would they impose on people? Would they simply continue to do what Labour Governments have done since the time of Attlee, which is just to borrow the money they need in order to pay for projects that they cannot afford?

Opposition Members simply have no credibility left. Government Members are going to take a difficult decision, but with absolutely no pleasure whatsoever. We are doing so because what happened in 2008 was bad, but it was nothing compared with the financial catastrophe that would engulf us if we continued to spend £120 billion a year that we do not have.

Opposition Members and their many supporters outside in the unions and the pressure groups have complained about the bankers. I could complain about bankers as well. Why is it that these people want to put more money into the hands of the bankers by borrowing money from bankers, getting us more into debt and giving them greater amounts of interest? Who are the true friends of the bankers—the people who are trying to keep down their interest payments or the people who want us to be in hock to them?

I do not want to be a Member of Parliament who presides over Britain being turned into Greece, but without the sunshine. That is why I will vote for the Bill today.