VAT, like a lot of indirect taxation, is extremely regressive. Before 2010, the hon. Member for Redcar (Ian Swales) campaigned vigorously against an increase in VAT, calling it a tax bombshell. He thought that at one point and might continue to think it.
Those policies have an impact, one on the other. Tax is not isolated from spend. As I said at the beginning of my speech, in decisions on dealing with the deficit, we must look at both. The balance we strike is extremely important. Increasingly, the burden is falling on spending cuts, which include cuts on various benefits and tax credits. The cuts to local authorities have been extremely important for many people who rely on the services that councils provide. They have found either that services are withdrawn or that the charges levied for them—for example, charges for social care, whether for people at home or in residential care are rising—are a big burden, as they are for a lot of families. We cannot look at those things in isolation. The Opposition have made proposals, as the hon. Gentleman knows, but at this stage, new clause 4 proposes having a proper look at the 50p tax rate. Labour has made its position clear: we would reinstate the 50p rate.