John Redwood

ISAs speech in the Commons

Mr. Redwood: It was a market response in a rigged market, where the Government decided to sell the air, for heaven's sake. Our air is always for sale with this Government, and I suspect that they will put a tax on breathing when they have run out of ways to raise money for their nefarious and often wasteful purposes. The hon. Gentleman made one sensible point-of course house prices have gone up, which has led to increases in paper wealth for many people and practically all home owners. However, unless people resort to massive borrowing against the perhaps insecure foundations of that inflated asset price, they are not better off. They still need to live in their own home, and do not have the real wealth generated by the ownership of a PEP, TESSA, ISA or any other asset that can be freely traded and spent when the need for money arises. The hon. Gentleman should therefore accept that many of us do not think that borrowing a lot against the security of our homes is a particularly good idea for consumption purposes, and particularly not as people get closer to retirement.

People are being driven into such behaviour by the wreckage and carnage of their pension funds, which was caused by the £5 billion a year tax and the Government's insouciance about equity values. I therefore urge the Government to accept the advice of my hon. Friend the Member for Eddisbury and add to the Bill his new clause, or a Government variant drafted as they see fit. That would show for the first time during their term in office that they recognise the plight of the saver and want to rescue something at least from the disaster that they have created.