Economic Performance and Business — Reduce taxes during this recession — rejected — 21 Oct 2008 at 21:43

The majority of MPs voted against the motion, which read:^[1]

• This House
• notes that, despite inheriting a strong economy and presiding over 10 years of growth, the Government has raided pension funds, increased taxation, reduced savings, encouraged debt, increased government borrowing and that 1.7 million people are now unemployed;
• further notes that inflation is at a 16-year high, unemployment is rising at the fastest rate for 17 years and property sales are at a 30-year low;
• regrets the pain that is now being caused to business by the severe financial turmoil and the Government's failure to prepare the British economy for any downturn;
• further notes with concern the Ernst & Young Item Club's report that the UK economy has deteriorated dramatically in the past three months and is already in recession;
• further notes that the number of British businesses in distress has more than doubled since the start of the year;
• expresses concern that the limited availability of credit and the predatory behaviour by both banks and HM Revenue and Customs risks exacerbating the detrimental effects on business;
• calls on the Government to introduce an urgent package of measures to alleviate business pain, including allowing small and medium sized enterprises to defer their VAT bills for up to six months and cutting small business National Insurance contributions by 1p for at least six months; and
• endorses these measures as a first step towards alleviating business pain.

In its place another motion was proposed and passed with a vote.^[2]

• [1] Alan Duncan MP, House of Commons, 21 October, 2008
• [2] Division 280, House of Commons, 21 October 2008

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