SIR - John Norwood is mistaken when he says "the economy is shrinking with many people losing their jobs, which means fewer people paying tax".

In fact, more people than ever are working in Britain, unemployment is low, and more people than ever are paying not just income tax, but also inheritance tax and stamp duty on houses. The problem is Government waste.

To spend more than £234m on an office block (Portcullis House) for 210 MPs and staff is bad enough, but the £10m legal bill because they failed to follow their own procurement rules is absurd. The Scottish Parliament building cost around £430m. The NHS deficit has been estimated at £600m to £700m - the same as the cost of those two buildings. Which matters more - our health or their office blocks?

CHRIS DELL,

Aston Bank, Tenbury.