Does my right hon. Friend agree that the problem is that the OBR’s forecasting never gives any credit for cutting a tax rate in order to get more revenue? This could be a good example of where that would work.
My right hon. Friend is absolutely right. The Centre for Economics and Business Research suggests that there is £10 billion to be made in lost GDP at the moment, as we are not attracting overseas visitors because our taxes are higher than those of our continental counterparts.