Finance Bill

The Chief Secretary said that the Budget, the Bill and future legislation would lift people out of poverty. That may happen if the tax credit system works, the child tax credit take-up rate is more than 80 per cent., that of working tax credit is more than 60 per cent. and unclaimed entitlement is rather less than £5 billion. When I cited those figures in the debate yesterday, the Chief Secretary said:"““I do not know the basis of the figure quoted by the hon. Gentleman””.—[Official Report, 25 June 2007; Vol. 462, c. 119.]" The take-up rates were published by HMRC in 2007 and the entitlement figures, claimed and unclaimed, were also published by HMRC in 2007. If he did not know then, he certainly knows now. More importantly, the cumulative effect of the Finance Bill, the Budget from which it flows, and Finance Bills subsequent to this year’s Budget will be a tax take on business, particularly small business, leading to a loss of competitiveness, particularly for small businesses in Scotland. If all the provisions on personal taxation are put in place, it will lead to a tax take, particularly from the poorest and most vulnerable in society, with at least 52 per cent. of the working population in Kirkcaldy and Cowdenbeath being worse off.