Mr. Sebastian Barnes:

The corporation tax issue, as everyone is now well aware, is a major issue and a big problem that needs to be addressed. It is a big risk to the public finances. There could be some sudden reversal that could leave us with a big hole in the public finances. The more this goes on over time then the more it gets baked into the system. It also brings money into the economy that could ultimately contribute to overheating, so there is a real need to address the matter. It is a quite a broad and complicated issue so a plan is needed. For example, capping payments in respect of dependants at last year's level or having a plan to gradually reduce that would be preferable. Then one could think about how to use the money to reduce debt, increase the rainy day fund or revive the National Pensions Reserve Fund. I would not link it to tax changes in the budget because it is on a different scale.