Oral Answers to Questions

Chris Evans Excerpts

Tuesday 11th September 2012 Commons Chamber

[Mr Osborne]

We have toughened up the regulation of consumer credit, and next year there will be a tough new consumer agency, the financial conduct authority, which we are creating in order to deal with the bad advice that is sometimes provided to families. Indeed, Martin Wheatley, its chief executive, gave an interesting speech about that last week, and about the impact of sales commissions and the like on the provision of bad advice and bad products to families. We are taking action to do that, but as I said, the worst possible thing for all those families, and everyone else in the country, would be a sharp rise in interest rates, which a loss of confidence in the Government’s fiscal policies would bring about.

[Chris Evans (Islwyn) (Lab/Co-op)]

10. What estimate he has made of the effect of the level of VAT on the retail sector in the last 12 months.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

The Government aim to provide a climate of economic stability that will benefit all businesses. That would not be possible without a credible plan to deal with Government debt, and a VAT increase is an important component of that plan.

[Chris Evans]

Since January this year, 42 retail businesses in Wales have gone to the wall. What message does the Minister have for Welsh business leaders who have called for a reduction in VAT to breath new life into the high street?

[Mr Gauke]

Retail sales growth has generally been positive over the past year. Let me underline this point: if the biggest problem faced by the economy at the moment is that we are not borrowing enough, that is, I am afraid, a very strange diagnosis.