Lord Barnett

Between April and May 2014, the Office of National Statistics have reported that the total UK trade deficit widened from £2.1bn in April to £2.4bn in May. This £0.4bn¹ increase was driven by a £0.2bn increase in total exports while imports increased more, by £0.6bn. Goods exports increased by £0.1bn while goods imports increased by £0.5bn - more than service exports and imports which both increased by less than £0.1bn.

Monthly trade data are often volatile and usually subject to revisions in later months. On a less volatile basis, in 2013 the total trade deficit decreased by £4.9bn to £28.5bn from £33.4bn in 2012. This was driven by a £10.4bn increase in total exports while imports rose by only £5.4bn over the same period.

Between April and May 2014, the ONS have reported that the total UK trade deficit widened from £2.1bn in April to £2.4bn in May. This £0.4bn¹ increase was driven by a £0.2bn increase in total exports while imports increased more, by £0.6bn. Goods exports increased by £0.1bn while goods imports increased by £0.5bn - more than service exports and imports which both increased by less than £0.1bn.

Monthly trade data are often volatile and usually subject to revisions in later months. On a less volatile basis, in 2013 the total trade deficit decreased by £4.9bn to £28.5bn from £33.4bn in 2012. This was driven by a £10.4bn increase in total exports while imports rose by only £5.4bn over the same period.

1 The £0.4bn increase is higher than the difference between the two deficits due to rounding.

The Government considered the impact of late payment on Small and Medium Enterprises in our discussion paper Building a Responsible Payment Culture. As a result we are working with industry to create greater transparency of payment practices and a more responsible payment culture. This will include a statutory requirement, via the Small Business Enterprise and Employment Bill, for large firms to publish their payment practices. In addition, we are committed to working with the Institute for Credit Management and businesses to strengthen the Prompt Payment Code.

Data on public expenditure per head in Scotland and England since 2008-09 can be found in the following table.

The information can be found in Table 9.2 in the Public Expenditure Statistical Analyses 2014 document[1].

[1] https://www.gov.uk/government/statistics/public-expenditure-statistical-analyses-2014

The Government response to the consultation “Freedom and Choice in Pensions”, which was published in July, sets out how the new pension freedoms will be enacted. The Government estimates that up to 18 million people will be able to benefit from the reforms.

The government currently offers a range of tax reliefs to encourage investment. These form an important part of the government’s growth strategy and its commitment to make the UK one of the best places to start, finance and grow a business in Europe.

To ensure the tax reliefs remain well-targeted, the reliefs are only available where certain conditions are met. The government keeps all these schemes under review to ensure that the reliefs continue to encourage investment in a well-targeted and effective manner.

The Government is committed to maximising value for money in all areas of public spending, and has introduced a programme to drive efficiencies and reduce wasteful expenditure. By 2014-15, departments working with HM Treasury and the Efficiency and Reform Group in the Cabinet Office will be saving £20 billion a year compared to 2009-10. Spending Round 2013 identified over £5 billion additional efficiency savings in 2015-16.

The Government sets clear principles and guidance for the management of public resources, including achieving value for money, in Managing Public Money. Ensuring value for money is the personal responsibility of each Accounting Officer. The methods by which civil servants determine the long run value for money of programmes are set out in The Green Book: Appraisal and Evaluation in Central Government.

The UK does not have an exchange rate target. The UK’s monetary policy framework, set out in the Bank of England Act 1998, gives operational responsibility for monetary policy to the independent Monetary Policy Committee (MPC). The MPC has the primary objective of maintaining price stability, defined as an inflation target of 2 per cent as measured by the twelve month increase in the Consumer Prices Index. Under the Government’s macroeconomic framework, the exchange rate is allowed to adjust flexibly, and movements in sterling are determined by market forces.