Mr Joshua Reynolds

I think the hon. Lady will find that there is an anomaly within the Chancellor’s proposals: a 54% tax rate for certain pensioners on certain incomes. I do not necessarily believe that a 54% tax rate for pensioners is the right thing to be doing. Secondly, Liberal Democrats would make fairer choices about who pays. This Budget goes back once again to savers. Tax on savings and property income go up by another two points. That is on top of the two points that were announced last year. The retired couple who have put money away all their lives and the family who are saving for their deposit will be taxed more. The Government are giving savers a little with one hand while taking with another. There is a fairer option, though. Because of the high interest rates and the way that the Bank of England’s quantitative easing programme works, the Treasury is handing billions of pounds over to the big banks every year. That is a windfall that the banks did nothing to earn. It is a windfall that they keep, and businesses in our villages and towns are paying the price. Our plan to claw back some of that money would raise £5 billion a year on average. That has never been needed more. As UKHospitality confirms, the hospitality sector pays 82p in business taxes for every £1 it makes. That is the highest amount paid by a sector in our economy and double that of the banks. In my constituency, we have felt that more than ever. Last month, the Crown at Burchetts Green, ranked among the 50 best gastropubs in the country, closed its doors, with its owner blaming staff costs, rent, business rates and VAT. They said enough was enough. If a pub like that cannot make the numbers add up, what hope is there for cafés, restaurants and pubs across the country? That is why we would use some of the bank windfall tax to cut VAT for the hospitality sector, where it needs it most. The third thing we would do is take our security seriously.