Queens' Speech — Tax on Bank Bonuses — Jobs Guarantee — VAT Reduction — Make Investment Sooner — 17 May 2012 at 17:50

The majority of MPs voted against measures to stimulate economic growth and job creation; against a tax on bank bonuses to fund guaranteed jobs for young people out of work for over a year; against reducing VAT; against a tax break for small firms taking on extra workers and against making infrastructure investment sooner.

MPs were considering sending a message to the monarch following the state opening of Parliament saying:

• Most Gracious Sovereign,
• We, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom of Great Britain and Northern Ireland in Parliament assembled, beg leave to offer our humble thanks to Your Majesty for the Gracious Speech which Your Majesty has addressed to both Houses of Parliament.

This vote was on adding the following:

• but
• regrets that whilst the UK economy is in recession, long-term unemployment is at its highest level since 1996 and one million young people are out of work the Gracious Speech contains no measures to address this crisis;
• notes that Britain will pay a long-term price for a prolonged period of slow growth and high unemployment;
• further notes that France, Germany and the Eurozone as a whole are not in recession while in the USA, where the Government has to date taken a more balanced approach to support economic recovery, the economy is now one per cent bigger than before the global financial crisis, while the UK economy is now 4.3 per cent smaller;
• recognises the criticism expressed by business leaders that your Government has not come forward with an adequate plan to boost economic growth;
• believes that cutting spending and raising taxes too far and too fast is self-defeating as slow growth and higher unemployment means that your Government is now set to borrow £150 billion more than planned;and
• calls on your Government to introduce a fair and balanced deficit plan, with measures to stimulate economic growth and job creation which are essential to get the deficit down, including a tax on bank bonuses to fund a guaranteed job for every young person out of work for more than a year, a temporary cut in VAT, a national insurance holiday for small firms taking on extra workers, and bringing forward infrastructure investment to strengthen the economy for the long-term.’.

Debate in Parliament | Source |