Autumn Budget Forecast

Debate between Lord Wills and Lord Sassoon

Tuesday 29th November 2011 Lords Chamber

[Lord Sassoon]

My Lords, on the first of the questions which my noble friend raises, money will indeed flow through the banks as a result of the guarantee scheme to micro-businesses, although I appreciate that it will always be tougher for them. It is worth noting that there will be banks coming into the credit easing framework that were not there previously—some of the new entrants into the market—so we are maximising the footprint through the banks. I draw attention to one of the other schemes that will be directly relevant to micro-businesses. The seed enterprise investment scheme and the related one-year CGT holiday are to encourage investment in new, early-stage companies. That will commence from April 2012, with a kick-starter of offering a CGT holiday.

On my noble friend’s second question, I well take the point about the importance of locally driven infrastructure schemes, which is why my right honourable friend the Chief Secretary announced the initial £500 million fund specifically for that purpose earlier in the autumn. Beyond that, the use of the CIL is being considered, but I would just caution that we need to think about the fiscal impact of widening that scheme.

[Lord Wills]

My Lords, since I came into this House some 18 months ago, one of the most notable features week after week has been the presence on the Bench to the right of the Minister of former Ministers who served with great distinction in previous Conservative Administrations, including three former Chancellors who served in the Treasury during the 1980s. Can the Minister shed any light on why not a single one of them is in their place today to support him in this most depressing Statement?

[Lord Sassoon]

My Lords, I take it as a sign of great confidence in the direction of policy of my right honourable friend the Chancellor of the Exchequer because former Chancellors are never shy of giving their advice. If they are not giving it today, I assume that they are satisfied.