11 Lord Blunkett debates involving HM Treasury

Wed 26th May 2010

Government Spending Cuts

Lord Blunkett Excerpts
Wednesday 26th May 2010

(14 years, 6 months ago)

Commons Chamber
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David Laws Portrait Mr Laws
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I agree with both my hon. Friend’s points. First, he is right that we will seek, wherever we can, Mr Speaker, to make sure that these statements are made in the House, and we welcome the scrutiny from Members on both sides.

Secondly, I agree with my hon. Friend about the importance of cutting quangos. No serious economist believes that the actions we have taken this week will jeopardise the recovery. If the shadow Chancellor were being straightforward with us, he would acknowledge that the previous Government were already taking action to seek to deal with the deficit by tightening policy—for example by putting the rate of value added tax back up to 17.5%.

Lord Blunkett Portrait Mr David Blunkett (Sheffield, Brightside and Hillsborough) (Lab)
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By definition, ring-fenced and specific funding to local government, whether from the Department for Communities and Local Government, the Department for Education or others, is directed specifically at the most disadvantaged and deprived. Will the Chief Secretary tell us precisely what he believes he is doing in cutting more than £1 billion of that specific funding and by unring-fencing the rest, allowing those specific priorities to be eroded?

David Laws Portrait Mr Laws
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The right hon. Gentleman is simply wrong if he thinks local government is incapable of making efficiency savings. All the people I know in local government believe that significant efficiency savings can be made. He does not allow for the significant change that the Government have announced, which will mean that by ending ring-fencing, there is more freedom for local government to decide where those cuts fall, and to make sure that they fall in the areas that are not priorities. I should have thought that as a former Education Secretary, he could have brought himself to congratulate the Government on the way that they have managed to ring-fence the schools budget and the Sure Start budget.