residential property. i have given plenty of public warnings that this abuse should stop and now we are taking action. i am increasing the staff duty land tax charge, applied to residential properties over 2 million pounds brought into a corporate envelope. the charge will be 15%, and it will take effect today. we will also con subject on the introduction of a large annual charge on those 2 million pound residential properties which are already contained in corporate envelopes. and to ensure the wealthy nonresidents are also caught by these changes, we will be introducing capital gains fax on properties held in envelopes. we will close down the sub sales relief rules as a route of avoidance. let me make this absolutely

clear to people. if you buy a property in britain that is used for residential purposes, then we will expect stamp duty to be paid. this is the clear intention of parliament, and i will not hesitate to move swiftly without with notice and relate electrospectively if inappropriate ways around these new rules are found. people have been warned. now, mr. deputy speaker. it is fair when money is tight and so many families could do with help that those buying the most expensive homes contribute more. from midnight tonight we will introduce a new land tax rate of 7% on properties worth more than 2 million pounds. i also intend to deal with the unlimited use of income tax release. let's be clear. most rich people pay a lot of tax. it is also right that we have tax reliefs that promote

investments, support collar itable giving and reflect genuine business loss. it want be right that some people make unlimited use of these reliefs year after year. everyone in this country and particularly those with the highest incomes should contribute a fair share. now, some reliefs like the enterprise investment scheme and pensions relief are already capped and i don't intend to make any significant changes to pensions relief in this budget. to make sure those on the highest income contribute a fair share, i'm introducing a new cap on those reliefs that are currently uncapped. anyone seeking to claim more than 50,000 pounds much these reliefs in any one year will have a cap set at 25% of their income. with capped benefits, now it is right to cap tax reliefs too. that brings me to the rate of

income tax and the additional rate of 50 pence. this tax rate is the highest in the g-20, it's higher not just than the tax rate of america, but france, italy and germany. it is widely acknowledged by business organizations and international orrers as harming the british economy. and like the previous chancellor who introduced it, i always said it was temporary. i also said three years ago, i would not be prepared to reduce it, while we were asking the whole public sector to accept a pay freeze. i will stick to those pledges. a 50 tax rate with all the damage it does to britain's competitiveness, can only be justified if it raises significant sums of money. in last year's budget, i asked her majesty's revenue and customs to look at evidence and especially to look at the

self-assessment tax receipts that have come in since this january. i am publishing that report today. what it reveals is that the tax rate has caused massive distortions. hmrc found an astonishing 16 billion pounds of income was deliberately shifted into the previous tax year, at a cost to the taxpayer of 1 billion pounds, something that the previous government's figures made no allowance for whatsoever. sell assessment receipts this year are the low forecast by some 3.6 billion, while other tax receipts have held up. the increase from 40 to 50 raised just a third of the three billion pounds we were told it would raise. of course mr. deputy speaker -- let me tell you what they say

about the difference between 50 and 45 p. their figures tell the story. the direct cost is only $100 million pounds a year. hmrc calculate the cost other tax revenues may cancel that out. in other words, it raises at most a fraction of what we were told and may raise nothing at all. so from april next year, the top rated tax will be 45 pence. no chance left. no chance to justify a tax record -- >> order! >> he's nearly coming to the end, and i want the same respect

given to the next speaker. >> no chancellor can justify a tax rate that damages our economy and raises next to nothing. it is as simple as that. and thank to the other new taxes on the rich, i've announced today, we'll be getting fiveoney each and every year from the well withthiest in our society. so the richest pay more -- >> you are getting very excited in the back, i'm sure you want to calm down. it's not good for your health. >> so the richest pay more, the economy benefits, britain is competitive again. the shadow chance, and quite a few members here, have said that the hmrc report is not enough. and that the office for budget sp judgment. they have. because these days, the direct applies to every budget measure is

independently assessed and certified. and unlike a previous government, they also assess the cashflow consequences of forestalling. when it comes to the 100 million pound direct permanent cost to this measure, they say this, we believe that this is a reasonable and central estimate. and they also assess as reasonable the estimate that the new taxes are introduced on the rich today directly raise five times that amount. and is half a billion pounds -- half a billion pounds, we can now use to help people on lower and middle incomes keep more of their earnings. mr. deputy speaker, in the spending review, we took the difficult decision to remove child benefit from families with a higher rate of tax. those earning 15 or 30,000

pounds a year to go on child benefits for those earning 80,000. all sections of society must make a contribution to dealing with the deficit without this measure we wouldn't get the job done. i wanted to do this in a way that is fair and does not set up a new means tax credit for millions of families. we want to avoid a cliff edge that mean s people lose all ther child benefit when they earnp a pound more. when people earn more than the high rate threshold, the benefit will only be withdrawn when someone in the household has an income of more than 50,000 pounds. 1% of child benefit for every extra 100 pounds earned over 50,000, there's no cliff edge. and only those with an income of

more than 60,000 pounds lose all of their benefits. this means an extra 750,000 families will keep some or all of their child benefit. 90% of families will remain eligible for child benefit. we can afford to implement the child benefit policy in this way, because instead of i extending the full benefit of this budget increase too all high rate taxpayers as we did last year, we will pass to high rate taxpayers and spend the rest on the bottom of the higher rate band as i've explained. mr. deputy speaker, that brings me on to the personal allowance and the central goal of this budget which is to support working familiesp. this coalition government believes the best way to support working people on the lowest incomes is to take them out of

tax all together. and the best way of getting money direct liz into the pockets of working families on middle incomes is to increase the amount of their earnings they can keep before they pay tax. that is why this government has set itself the goal of raising the personal taxpayer allowance to 10,000 pounds. we promise real increases every year to reach that. in my last two budgets, we have made great strides forward. last year the personal allowance rose by 1,000 pounds. in two weeks time it will go up to 8,105. these increases have taken over 1 million low paid people out of tax all together. today i want to go much further and much faster. i am announcing the largest ever increase in the personal allowance, that is the amount that people can earn tax free. from next april that amount will increase by 1,100 pounds.

every working person on low or middle incomes will benefit. people will be able to earn up to 9,205 pounds before they have to pay any tax. millions of -- millions of working people will be 220 pounds better off every year. that's 170 pounds better off after inflation. because higher rate inners will also benefit, 24 million people will gain from this measure, we are in touching distance of the goal of a 10,000 pound personal allowance we all share. and i can tell the country that as a result of our budgets, people working full time on the minimum wage will have seen their income tax bill cut in half. and this coalition government

will have taken 2 million people -- two million of the lowest paid people in our country out tax all together. mr. deputy speaker. in the middle of this parlor in difficult economic times, this coalition government has not settled for a do nothing budget. we have not done the difficult choices, we've taken them head on. a competitive attacks, more revenues from those best able to pay. fewer reliefs, a tax cut for working people, support for families, low income earners, taken out of tax all together. alongside it, one of the lowest rates business tax in the world. a simpler tax code and a country where its citizens know the taxes they are paying and what they are paying for, we have achieved all this, and kept to our deficit plan. let us be resolved, no people

will strive as the british will strive. no country will adapt as the british will adapt. no country will value those who work as we will value those who work. together the british people will share in the effort and share the rewards. this country borrowed its way into trouble. now we're going to earn our way out. >> order! order! order! >> the provision of taxes was decided without debate. will the chancellor please move formally.

the question is pursuant to section five of the professional collection of taxes of 1968, provisional effects shall be given to the following motions, a tobacco products, duty rates, motion number 40. b alcohol duties rate, motion number 41. amusement machine license. motion number 47. landfill sites in scotland motion number 58. stamp duty. prevention of avoidance, et cetera, motion number 65. and residential property consideration two million pounds. g stamp duty land tax, higher rate for certain acquisitions, companies, et cetera. motion number 67. as many with that opinion say aye. >> aye. >> those opposed, no? >> the ayes have it.

i shalt now call on the chancellor to now move -- amendment to law, and it is the motion the debate will take place on today and succeeding days. will the chancellor please move the amendments of the law motion? it's moved. the question is, exhibit them to amend the law with respect to the national debt and the public revenue. and to further provision in connection with the finance. two, that this resolution does not extend to making any amendment with respect to the value added tax, so as to provide for zero rating or exempting the supply acquisition of importation, the amount of tax. so far as this is applicable -- every description and two, so far it is applicable to services, applies to services of every description.

i now call the leader of the opposition, the honorable millenbaum. >> mr. deputy speaker. the chance lower spoke for an hour, but one of his phrases was missing. there was one thing he didn't say. today marks the end of we're all in it together, because after -- because after today's budget. >> order! order! >> because after today's -- >> i don't think we need you to lead the cheerleading. giving the respect to the chancellor, i expect the same respect to be given to the leader of the opposition. >> because after today's budget millions will be paying more while millionaires pay less. a year ago the chancellor said in his budget speech, now would

not be the right time to remove the tax rate, when we are asking others in our society -- is he saying -- didn't say -- he said now would not be the right time to remove the 50 p tax rate, with when we are asking others in the our society on much lower incomes to make sacrifices. that is exactly what he has done. tax credit cut, child benefit taken away. and what has he shown ing to make a priority? for britain's millionaires, a massive income tax cut each and every year. mr. deputy speaker, the test for this budget was when the chancellor used every penny he could to help middle income families that are squeezed. he has failed that test. anyone listening to the chancellor will be asking the same question, what planet are

he and the prime minister living on. a cost living crisis. they promise change, but things have got worse not better. what did he promise us in last year's budget? he said he would, and i quote, mr. deputy speaker, put fuel in the tank of the british economy. he promised growth of two and a half percent in 2012. today he comes to the house and tells us it will be just 80.8%. gross down this year, gross down last year, next year. every time he comes to the house, he offers a different excuse. the reality is, his plan has failed. last year, mr. deputy speaker, he told us, unemployment would peak in 2011 and what has he delivered? we're with into 2012 and unemployment is rising month

upon month upon month. his plan has failed, and he promised us also, mr. deputy speaker, the deficit would be gone by the end of the parliament. but today he admits, he's borrowing over 150 billion more than he said he would. his plan has failed. and in the face of failure, what does he offer? not a change in economic strategy. not a guarantee of jobs for the unemploy unemployed. not targeting every penny he could out working families. we know the driving ambition of this budget for the chance lower was to deliver a tax cut to people earning over 150,000 pounds a year. there are 30 million taxpayers in this country. this policy will do absolutely nothing for 29 million 700,000 of them. how can the priority for our country be an income tax cut for the richest 1%, at a time when

the squeezed middle are phasing rising petrol higher energy bills, tax credit and child benefits being cut? think of what he could have done with the money. he could have reversed his cuts to tax credits. he could have done something for pensioners. and in fact i think there is a tax rise for pensioners hidden in the detail of this budget. he could have done more to undo the damage on child benefit, but he claims he can't afford it. let me tell the chancellor every time in the future he tries to justify an unfair decision by saying times are tough, we'll remind him he is the man who chose to spend hundreds of millions of pounds on those who need it least. wrong choices, wrong priorities, wrong values, out of touch, same old tories. and let's come to his claims on stamp duty. let's come to his claims on

stamp duty, mr. deputy speaker. there are 300,000 people benefitting each and every year from his top rate tax cut. there are 4,000 houses sold each year for more than two million pounds. so 99% of those who gain from his millionaires tax cut will be totally unaffected by the rise in stamp duty. and they will get a massive windfall from this chancellor. now, now mr. deputy speaker, the chancellor didn't tell us what this meant in pounds and pence. so let me -- oh, the prime minister thinks the chancellor did say how much each person is getting as a result of the top rate tax cut. he didn't, he didn't, he didn't. and i'm going to tell him how much. there are 14 -- there are 14,000 people earning over a million pounds in britain. the chancellor's decision today means each of them get a tax cut. not of a thousand pounds, not of 5,000 pounds, not of 10,000

pounds. a tax cut of over 40,000 pounds. >> order. it's not good for the opposition to not allow the leader of the opposition to speak. ed miliband. >> not just this year, but for every year. and mr. deputy speaker, what happens to those families who earn in one year half of what the chancellor has so cagily given away to the richest in the last hour? families earn 20,000 a year, even after the personal allowance change, they're not going to be better off. they're going to be worse off. put aside the vhe rise and all the other tax rises that have happened. from this april alone, there will be a further 253 pounds a year worth off. all he is doing for ordinary families is giving with one hand

and taking far more away with the other. it's a millionaire's budget that squeezes the middle. i don't think choices, wrong priorities, wrong values, out of touch, same old tories. under his tax cut, under his tax cut, a banker earning 5 million pounds will get an extra 240,000 pounds a year. let's call this what it really is, the government's very own bankers bonus. now presumably, mr. speaker, he wants us to believe that a 240,000 pound tax cut is necessary to make them work harder, the bankers. it's one rule for them, and it's another rule for everyone else. because -- because this april, the chancellor will be telling a family working for 16 hours on the minimum wage that if they don't work more hours, they will lose nearly 4,000 pounds in tax credits. it tells you everything you need to know about the values of the

chancellor and prime minister. the poor will only work harder by making them poorer. the rich will only work harder by making them richer. wrong choices, wrong values, wrong priorities, same old tories. and while everybody else is squeezed, what is the chancellor's priority? it is the massive tax cut for his christmas card list. now the chancellor talked a lot about tax transparency. let's have some, mr. deputy speaker. let's have some. >> mr. helms, i think you need to calm down. it's not good for you. it's not good for the house. ed miliband. >> let's have some transparency. hands up in the cabinet if you're going to benefit from the tax cut. come on. come on. come on. >> order, order.

order, order. order! i have looked at you twice. i don't want to continue to look. i think we need a little bit of silence from you. if not, you might be better off leaving the chamber. i think we understand each other. ed miliband. >> he is the man who said sunlight is disinfectant. here is the challenge. benefit from it, or shake your head 23 you're not. come on, come on, come on. come on. we've got plenty of time. come on, we've got plenty of time. >> order, order. both sides of the house will come to order. the leader of the opposition will be heard in same way that the courtesy was given to the chancellor. i know it will be tough to rule because we will have to get firmer. it's only right that the country should hear what the sa

order. and i don't need any examples from you. ed miliband. >> one more chance, nod or shake your head, are you going to benefit?y speaker, mr. deputy speaker, i've got one thing to say to him. let sunshine win the day. but i hear -- but i hear it's good news for him, mr. deputy speaker. now he's going to be able to buy his own horse. >> order. we will not have any clapping in the chamber! no, seriously. i don't think his reputation any good when we can't hear the leader of the opposition. and i think it is both sides to give courtesy now. ed miliband. >> and mr. deputy speaker, what

about the hapless accomplice, the deputy prime minister. i do have to say, only the liberal democrats could be dumb enough to think of george osborne budget is a robin hood budget. calamity clegg strikes again. this is what he said to us a few months ago about the 50 p tax rate. no ifs, no butts. i do not believe the priority at a time like this is to give the tax cut to a tiny, tiny number of people who are much better off than anybody else. the party that once followed lloyd george now reduced to following george osborne. the party that delivered the people's budget of 1909 supporting the millionaires budget of 2012. they should be ashamed for all the talk, all the briefing, the deputy prime minister has done what he has done on every big issue. from tuition fees to the

betrayal on the nhs. he has rolled over and said "yes, prime minister." the truth is that for ordinary families, it's hurting, but it's not working, and we know why. because this government has been cutting too far and too fast. what did the chancellor say? what did the chancellor say? last, last august about america's more balanced reduction plan. he said this. those who spend the whole of the last year telling us to follow the american example need to answer this simple question. why has the u.s. economy grown more slowly than the uk? mr. deputy speaker, the numbers are in. the chancellor is plain wrong. the u.s. economy grew at 1.7% last year, twice the rate of ours. this government has run out of excuses. it's their mistakes which are damaging our future. it's the failure of their plan. now today we heard about more schemes from the chancellor. but mr. deputy speaker, why should we believe it?

every scheme he has put forward so far has failed. what was the big idea of his first budget? the national insurance holliday. now we didn't hear much about the national insurance holiday today, and it's no wonder, because he told us in his june budget it would help 400,000 firms. he has missed his target by 97%. the chancellor's plan has failed. and what about the centerpiece of last year's budget? it's easy to forget now, but it was called the budget for growth. now this one is my favorite. it's the business growth fund. the business growth fund. six regional offices opened, and how many businesses benefitting? six. one for each office. the chancellor's plan has failed. we needed a plan for growth that will work. we needed a guarantee on youth jobs, we needed a british investment bank to help small business. but on growth, on jobs, on how we pou