Derek McDowell (Labour)

In recent years, the phrase "stealth taxes" has been much in vogue. I am sure the Minister will agree that it is a much used and abused term, not least by elements of the Opposition. Most of what are termed "stealth taxes" are actually user charges. Some I agree with, while others I do not, depending on the importance of the particular service being provided.

However, the failure to increase tax credit is a classic and genuine stealth tax. We should be looking for an element of transparency. There is merit in the notion that there should be an automatic increase as per inflation for standard credits. This would then put the onus on the Minister for Finance in each year's Finance Bill to deliver. This would allow a measure of clarity in what the Minister is doing. I know from previous experience, the Minister, or any of his predecessors, is not much given to that.

Since the Minister digressed in his response, I wish to ask about the overall area of income tax. The end of February Exchequer returns show, as the Minister is aware, a substantial increase in income tax returns over and above that which was anticipated at budget time. Can the Minister inform us if this indicates greater buoyancy than he had anticipated or are there seasonal factors at play?