Rt Hon Lord Lilley

    Mr. Peter Lilley (Hitchin and Harpenden): Are the Government proud that, according to the OECD, taxes are now rising more rapidly in this country than in any other major country, eroding our competitive advantage? How is it that similar countries are able to cut taxes while improving their public services, but this Government have done the reverse?

    Dawn Primarolo: The right hon. Gentleman will see from the pre-Budget report that taxes fell in this country as a proportion of national income. Given that he is a keen reader of the OECD‘s reports, he will also know that the OECD says that we have the lowest barriers to entrepreneurship of any major economy and that Britain is one of the best places in the world to do business.