Pre-Budget Report

I am sorry, but I have not got time. The Chancellor tells us that he considers all options before a Budget, but he did not test the credibility of the House by suggesting that for every one of those options, a fully worked-up explanatory memorandum is produced and signed on the behalf of a Minister by a civil servant. The Government's solution is increased taxes for everyone earning over £19,000 a year. We have heard from the delusional tendency on the Government Benches about the delights of a higher top tax rate for high earners, but we have heard from several hon. Members this afternoon that the Institute for Fiscal Studies estimated that the net effect of the new top rate will be approximately zero, meaning, as usual, that middle-income earners will be left to foot the bill as the Government seek to fill their black hole with permanently higher council tax, permanently higher fuel duty, permanently higher alcohol taxes and permanently higher national insurance contributions. There will be a tax on jobs for employees and employers alike. As my right hon. and learned Friend the Member for Rushcliffe pointed out, all that is to pay for a short-term tax cut that Britain cannot afford, and that will not save us from recession, business failures, soaring job losses and home repossessions. It will not save us because, as my right hon. Friend the Member for Fylde (Mr. Jack) pointed out, the reason people are not spending is not because goods are too expensive to the tune of 2.5 per cent. but because they are over-indebted, worried about their borrowing capacity and their creditworthiness. Their houses are shrinking in value, their jobs are at risk and they do not know whether they will be able to borrow to fund the big-ticket items that they want. The Government say—