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Parliamentary Debates (Hansard) Tuesday Volume 516 12 October 2010 No. 50 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 12 October 2010 £5·00 © Parliamentary Copyright House of Commons 2010 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through the Office of Public Sector Information website at www.opsi.gov.uk/click-use/ Enquiries to the Office of Public Sector Information, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 135 12 OCTOBER 2010 136 taking on more tax officers and ensuring a good House of Commons geographical spread to make sure we get in the maximum tax revenues possible? Tuesday 12 October 2010 Mr Gauke: As was made clear in the Chief Secretary to the Treasury’s statement, the Government are determined The House met at half-past Two o’clock to reduce the tax gap. It currently stands at £42 billion. It is too high, but we are determined to take measures to PRAYERS address it and we have already announced proposals by which we can reduce the tax gap. [MR SPEAKER in the Chair] Budget (Regional Differences) BUSINESS BEFORE QUESTIONS 2. Kevin Brennan (Cardiff West) (Lab): What representations he has received on variations between ELECTORAL COMMISSION the English regions and constituent parts of the UK in respect of the effects of the measures in the June 2010 The VICE-CHAMBERLAIN OF THE HOUSEHOLD reported to the House, That the Address of 15th September, Budget. [16481] praying that Her Majesty will appoint as Electoral Commissioners: 3. Paul Blomfield (Sheffield Central) (Lab): What representations he has received on variations between (1) Angela Frances, Baroness Browning, with effect the English regions and constituent parts of the UK in from 1 October 2010 for the period ending on 30 September respect of the effects of the measures in the June 2010 2014; Budget. [16482] (2) David Ross Howarth, with effect from 1 October 2010 for the period ending on 30 September 2014; The Chief Secretary to the Treasury (Danny Alexander): (3) Roy Francis, Lord Kennedy of Southwark, with We received representations from many interested parties effect from 1 October 2010 for the period ending on from all parts of the UK and at the time of the Budget 30 September 2014; and we published details of the impact of the Budget on (4) Rt. Hon. George Newlands Reid, with effect from each English region and each devolved Administration. 1 October 2010 for the period ending on 30 September 2012, Kevin Brennan: Does not the Government’s proposed closure of the passport office in Newport show that, far was presented to Her Majesty, who was graciously from us all being in this together, these Budget cuts will pleased to comply with the request. fall disproportionately on the poorest parts of the UK? Is this closure inevitable? Oral Answers to Questions Danny Alexander: I am grateful for the question, and I understand the sensitivity in the community about that decision. The spending review will, of course, result in some difficult decisions having to be made all over TREASURY the country. I can however say to the hon. Gentleman that we are looking very closely at the regional and national impact of particular decisions. One of the The Chancellor of the Exchequer was asked— reasons why the Deputy Prime Minister announced a regional growth fund for England is to deal with those Tax Compliance issues, and I hope very much that the Welsh Assembly Government might follow suit. 1. Nia Griffith (Llanelli) (Lab): What steps his Department is taking to increase the level of tax Paul Blomfield: Will the Chief Secretary acknowledge compliance. [16480] the analysis undertaken by the Institute for Fiscal Studies, whose head at that time now leads the Office for Budget The Exchequer Secretary to the Treasury (Mr David Responsibility, that found that the measures in the Gauke): The Chief Secretary to the Treasury announced emergency Budget will hit those on lowest incomes £900 million of investment in Her Majesty’s Revenue hardest and will have a disproportionate impact on and Customs to tackle avoidance, evasion and fraud, constituencies in the north? sending a clear signal that the spending review will be focused on both fairness and deficit reduction. It will Danny Alexander: If anything demonstrates the include an increase in prosecutions and steps to tackle independence of the OBR it is the appointment of the organised criminal excise smuggling. HMRC also recognises head of the IFS to be the head of the OBR, and I hope the importance of helping businesses to get their tax that will put an end to any such criticisms from the hon. right and has launched additional education and guidance Gentleman’s side of the House. The analysis was interesting, packages in order to do so. but the analysis we published at the time of the Budget was robust and soundly based. I have carefully studied Nia Griffith: Given the enormous importance of reducing the IFS’s additional analysis, and I think it makes some the tax gap, and thereby reducing the deficit, what assumptions that push the boundaries. As a result it is assurances can the Minister give that actually he will be not an analysis the Treasury would stand by. I would 137 Oral Answers12 OCTOBER 2010 Oral Answers 138 stand by the view that the measures we announced in Budget Deficit Reduction the Budget were progressive and fair and hit the people on the highest incomes hardest. 4. Mr Marcus Jones (Nuneaton) (Con): What recent representations he has received on steps to reduce the Charlie Elphicke (Dover) (Con): Can the Chief Secretary budget deficit. [16483] tell the House the benefits that the regional growth fund will have for neglected regions, in particular coastal and seaside towns? 6. Glyn Davies (Montgomeryshire) (Con): What recent representations he has received on steps to Danny Alexander: I fear that the hon. Gentleman will reduce the budget deficit. [16485] have to wait until a week tomorrow for the spending review announcement to hear details of that sort, but I The Chancellor of the Exchequer (Mr George Osborne): can tell him that the purpose of the regional growth The Government’s plan to tackle the record budget fund is precisely to ensure that areas hit hardest by deficit they inherited has been supported by the CBI, public spending cuts or areas most dependent on the the OECD and, now, the International Monetary Fund. public sector have an opportunity to put forward proposals We have received more than 60,000 representations for measures that would support their economic growth. from the public as to how to go about deficit reduction The regional growth fund has been established to meet and many of their suggestions are being put into effect. those proposals. To date, we have received no proposals and no suggestions from the official Opposition, who created the deficit in James Morris (Halesowen and Rowley Regis) (Con): the first place. This builds on what the Chief Secretary has just said. Does he agree that what we need with the regional Mr Jones: I thank my right hon. Friend for his growth fund is a much more focused regional policy, response. With the country set to pay £43 billion in rather than the waste that came from the previous interest in 2010-11, I am reassured that the general Government and their one-size-fits-all regional policy? public have been willing to contribute to the tough decisions required of this Government to turn our Danny Alexander: I would agree with that, although I economy around. Has he received any helpful advice am not going to go over the litany of spending by from the Labour party, past or present, other than that regional development agencies. Having a regional growth from Tony Blair? fund that is able to respond to bids from communities, along with a much more devolved set of arrangements, Mr Osborne: My hon. Friend is absolutely right through local enterprise partnerships, which require about debt interest; this country is now paying £120 million local authorities and local businesses to work together a day in debt interest. Debt interest under the previous on what is best for their areas, is a much more dynamic Government was forecast to rise to £60 billion a year, approach, and it is likely better to meet the needs of making it one of the largest items of Government those areas. expenditure. He talks about suggestions from Members of Parliament. The new leader of the Labour party Mr David Hanson (Delyn) (Lab): What account will said: the Chief Secretary take of last week’s joint statement by the leaders of the devolved Administrations in Wales, “I think whoever is the Labour leader will, by the time of the Scotland and Northern Ireland? They said that the spending review, have to show that they have an alternative plan”. proposed cuts in the comprehensive spending review are So the clock is ticking. “too fast and too deep”, that Glyn Davies: The Chancellor attended the IMF conference at the weekend. Can he share with us what “Front loading the cuts into the next two years is…the wrong approach” our international partners are saying about the coalition Government’s efforts to deal with the deficit? and that a failure to promote growth will damage the private sector? Will he now listen to those voices, which Mr Osborne: As I am sure my hon. Friend is aware, do not just argue for the public sector, but argue that the the IMF’s article IV study of the United Kingdom said: cuts that he proposes will damage private sector growth and private sector industry? “The government’s strong and credible multi-year fiscal deficit reduction plan is essential to ensure debt sustainability.” Danny Alexander: First, may I welcome the right hon.
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