Finance Bill

I very much agree with my right hon. Friend on that point. The amendments would introduce only some elements of the package of reforms to the tax and benefit system announced by my right hon. Friend the Chancellor in the Budget. The House will of course have the opportunity to debate those changes in full when they are legislated for, and I very much look forward to that debate. Let me set out the background to the Budget announcements. There has been a major programme of reform to the tax and benefit system in the 10 years since 1997, with the aims of reducing, and over time eradicating, child poverty, which doubled during the 18 years of the previous Government; of supporting families; of promoting saving; and of ensuring security for all in old age. We have made very big changes to advance all those objectives. The Budget introduced the next stage in that programme by offering more support for work, families and pensioners. The package comprised eight separate reforms, including changes to income tax personal allowances, to national insurance thresholds and to tax credits. Between them, they amount to a total net reduction in personal taxation of £2.5 billion. Let me underline that point. It has been said in the debate, correctly, that the Budget as a whole is fiscally neutral, but the personal taxation elements constitute a net reduction of £2.5 billion.