Finance Bill

I think I can reassure my hon. Friend that it is a probing amendment. It was put together at some speed, and I believe it is technically deficient, in ways to which I shall not draw attention. [Interruption.] No doubt others will. I hope, however, that the Exchequer Secretary will concentrate on the issues raised by the amendment rather than on its technical deficiencies, which I fully acknowledge. Amendment 56 seeks to achieve the same aim, but introduces a new concept. It proposes that the increase should apply only to purchases of more expensive goods. For the purposes of the debate I have set the level at £25,000, although I could have suggested that VAT on goods and services costing that amount should rise by a great deal more. There may also be an argument for a range of charges for goods and services between £2,500 and £25,000. The level, as such, is not something that I would die in a ditch to defend. I am concerned simply with the principle of adopting a measure intended to achieve what the Budget stated that it wished to achieve, by ensuring that those who can contribute most to restoring the public finances do so and the vulnerable are protected. Those who can buy expensive yachts, big Ferrari cars and other expensive consumer durables may be more able to make their contribution through a rise in VAT than the vulnerable households and individuals who have, I believe, been the predominant concern of Members on both sides of the House. I do not expect the Exchequer Secretary to accept the amendment without question this evening. However, I shall be interested to hear his response to the general theme. It has been acknowledged—certainly by the Institute for Fiscal Studies—that the lowest decile in terms of household income will pay a higher proportion of their income to meet the proposed tax rise, but I hope that a measure to reduce its impact on those with modest and low incomes will be acceptable to the Treasury, either now or in the future.