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Finance (No. 2) Bill

A number of points have been raised there. On the point about correlation and causation, of course I understand that they are not the same thing. However, in my remarks about corporation tax reductions, I did point to some of the causal links. The two causal links that I cited were, first, encouraging investment and, secondly, companies choosing to move their domicile—for example, from Switzerland back to the

UK. Therefore, there are two causal explanations as to why a reduction in the rate of tax might lead to an increase in the tax yield.