It is a great pleasure to serve under your chairmanship, Sir Roger.
First, I shall say a word about the clauses in this group. Clause 1 provides the charge and sets the rates for income tax for 2015-16; clause 2 relates to limits and allowances; clause 3 sets the personal allowance for 2015-16 at £10,600; clause 4 relates to the basic rate limits; and clause 5 sets the personal allowance for 2016-17 at £10,800 and for 2017-18 at £11,000. That is a dramatic increase on the rate we inherited in 2010, when it was below £6,500, and makes good progress towards the target that my party and the Liberal Democrats have set of £12,500 by the end of the next Parliament.
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Income tax is the Government’s biggest revenue source, and the annual charge, legislated for in the Finance Bill, is essential for its continued collection. In 2015-16, there will be about 30 million income tax payers, and clause 1 states that they will pay income tax this year at the same rates as in 2014-15. The basic and higher rates remain at 20% and 40%, and the additional rate is 45%. On Monday, Labour voted against the Budget resolution renewing income tax, but thankfully it was defeated. It would have put a £150 billion hole in the public finances—reckless even for Labour. I can only hope it was a symbolic vote that they had no desire to win. It was perhaps more a protest vote than anything else.