Finance Bill

I am conscious that the Government argument is that the VAT rise was an alternative to a national insurance rise, which they characterised as the tax on jobs. Does my hon. Friend share my disappointment that the Chancellor did not take advantage of the reduced rate of VAT that is allowed for labour-intensive industries under existing EU rules? The Government could have reduced the rate for places such as hairdressers and restaurants—low-paid labour-intensive industries—which would have helped these people through a difficult patch. In effect, the Government have done the opposite, and they are going to put these people out of business and cost us the jobs accordingly.