Oral Answers to Questions

Debate between Adrian Bailey and Danny Alexander

Tuesday 24th April 2012 Commons Chamber

[Danny Alexander]

I was indeed shocked to hear the shadow Chief Secretary say on “Newsnight” that she opposed the cut in corporation tax. I would have thought that the Labour party would welcome such a measure, as it is designed to increase investment in British businesses and support economic growth—that is something that Labour Members say they want to see. The constituency firm to which my right hon. Friend refers could benefit from the national loan guarantee scheme and the credit easing scheme that the Chancellor announced at the Budget, and it could participate in the advanced manufacturing supply chain initiative, which the Department for Business, Innovation and Skills has announced, whereby £125 million is being spent to help manufacturers improve their performance.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Manufacturing businesses in the black country are adamant that what will help them improve their investment is an increase in capital allowances, rather than cuts and cuts in corporation tax. Why do the Government not do that?

[Danny Alexander]

The hon. Gentleman will know that we have put in place enhanced capital allowances in a number of enterprise zones around the country, particularly to focus investment in plant and equipment in such areas. We announced in the autumn statement improvements to the short-life capital allowances regime, which had been a major request by manufacturing and, in particular, the engineering sector. I would have thought that he would have welcomed those changes.

Oral Answers to Questions

Debate between Adrian Bailey and Danny Alexander

Tuesday 24th January 2012 Commons Chamber

[Danny Alexander]

My hon. Friend is right to point out that youth unemployment has been rising since 2004, which suggests that it is a deep-rooted structural issue in our economy, not just the subject of political knockabout at the Dispatch Box. That is why we are, as a Government, investing far more in apprenticeships. That is a very good way to give young people the skills that they need to survive and thrive in today’s labour market. That is why, in relation to youth unemployment, we will not be deflected from the path that we are on.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The Government’s national insurance holiday for new companies to employ new workers has been acknowledged by the Prime Minister to be a flop. So far just £6 million has been spent on supporting jobs and £12 million in administering them, out of a budget of £1 billion. Will the Minister consider taking the advice of the Federation of Small Businesses and extending that support to all small businesses prepared to take on new staff?

Comprehensive Spending Review

Debate between Adrian Bailey and Danny Alexander

Thursday 28th October 2010 Commons Chamber

[Danny Alexander]

The right hon. Gentleman is certainly right to say that at the end of the spending review public spending will be higher in cash terms than it is at the moment. In real terms, it will go back to the level of about 2008-09, and in terms of a share of gross domestic product to about the level of 2006-07. People need to be realistic about the scale of what is being proposed. The big gainer from the huge deficit that Labour left us with was the department of debt interest, and unfortunately it is the cost of debt interest that we have to meet.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Will the Chief Secretary give way?

[Danny Alexander]

I will give way one more time, and then move on.

[Mr Bailey]

The right hon. Gentleman has put great emphasis on the debt that he inherited and the need for the Opposition to be responsible. Given that the greater part of that debt was incurred in bailing out the banks and supporting manufacturing industry, could he be responsible and tell us what he would have cut in that position?

[Danny Alexander]

We have set out in detail what we would cut—that is the whole point of the spending review.