Child Benefit (Rates) (Amendment) Regulations 2008

We on these Benches welcome this measure as far as it goes. I do not propose to make a slashing attack on government economic policy over the past 11 years, as the noble Baroness, Lady Noakes, has just made the case most powerfully. The audience consists of seven noble Lords, most of us pressed men and women. I see the noble Baroness the Conservative Chief Whip but, apart from her, we all have to be here and I am not sure that that will really be very productive. However, we believe that this provision is a way of getting money to people who are likely to spend it. On the general economic argument, we do not believe that the 2.5 per cent VAT cut will be in any way effective. Indeed, I bought a set of Leeds Monopoly last week. It cost £25 in WH Smith and £20 in Zavvi. I bought it in Zavvi, which charged me £19.46. It had not even bothered to show the new price with the VAT cut, so I think that shows us how ineffective the cut has been. This is a clear and simple benefit. Although it is not means-tested—I shall be interested to know whether the Minister has any figures on this—it tends to get spent on children by the parent, usually the mother. To that extent, we think that it is a sensible way of putting some spending power into the economy at this desperate time. The Conservatives are against fiscal loosening in principle and therefore we are not sure why the noble Baroness, Lady Noakes, does not oppose these regulations, even though they involve only a little bit of fiscal loosening. However, we support them. I shall leave it there and look forward to the Minister’s reply.