Budget Resolutions and Economic Situation

That is precisely the point. In my area, although perhaps not in the hon. Gentleman's, the ratio in respect of average earnings and average house prices is the highest in the country. People are trying to buy into a market that is determined by people from other parts of the country with far more money than they have, which is simply not fair. The third element of the Budget that I would have liked to see is a real emphasis on reconstruction: reconstruction of industry, reconstruction of green investment—to be fair, the Chancellor did indicate that he was moving towards that, but I should like to see it actually happen—and reconstruction of the financial sector. Why are we so timid about dealing with the problems of the banks? Why are we so timid about recognising the value of the mutual sector and revitalising it? Why are we so timid about recognising that we cannot expect a retail bank and a casino bank to co-exist in the same organisation and work effectively together? It worries me that we have banks that are too big to fail. "Too big to fail" is anathema to me, because it means they are holding this country to ransom. They assume that the taxpayer will prop them up, and they will continue to assume that until they are cut down to size, which is what we need to do. Let us look at the Chancellor's boasts. He says that he has got more income than he expected from the tax on bankers' bonuses; he has attracted £2 billion, which is twice as much as he had thought. The reason for that is that the banks have been paying out £4 billion in bonuses because there is a 50 per cent. tax rate. What a failure of policy! A policy that was supposed to restrict the high rollers from paying out these extraordinary bonuses has actually resulted in their being doubled in order to pay the tax bill. It is not a successful strategy, therefore. We have seen the effect of the recession on businesses. I hope we are coming out of the recession, but I see the scars left behind: the shop closures in the high streets of the small towns and villages in my constituency. Some of those retail premises—in particular those in villages—will never reopen. The 6 per cent. shrinkage in the economy has had a dramatic effect on a lot of small businesses, and we now need the processes of local investment. Although we need the banks to be lending money, of course, we also need to find ways of localising, rather than nationalising, investment and providing opportunities. I would like there to be local stock exchanges, for instance, as they would provide investment income at a regional level. I would also like us to do something effective and long term about the business rates, which still cripple a lot of businesses. Turning to matters affecting individuals, I have already touched on tax allowances, but the council tax continues to increase. The hon. Member for Birmingham, Selly Oak says she is supportive of council tax, but I say that it is an unfair tax because it is not related to the ability to pay, and because it increases every year, causing real problems for people on low or fixed incomes, including pensioners. Even the way it is administered is unfair.