Oral Answers to Questions

Danny Alexander Excerpts

Tuesday 12th October 2010 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

3. What representations he has received on variations between the English regions and constituent parts of the UK in respect of the effects of the measures in the June 2010 Budget.

[The Chief Secretary to the Treasury (Danny Alexander)]

We received representations from many interested parties from all parts of the UK and at the time of the Budget we published details of the impact of the Budget on each English region and each devolved Administration.

[Kevin Brennan]

Does not the Government’s proposed closure of the passport office in Newport show that, far from us all being in this together, these Budget cuts will fall disproportionately on the poorest parts of the UK? Is this closure inevitable?

[Danny Alexander]

I am grateful for the question, and I understand the sensitivity in the community about that decision. The spending review will, of course, result in some difficult decisions having to be made all over the country. I can however say to the hon. Gentleman that we are looking very closely at the regional and national impact of particular decisions. One of the reasons why the Deputy Prime Minister announced a regional growth fund for England is to deal with those issues, and I hope very much that the Welsh Assembly Government might follow suit.

[Paul Blomfield]

Will the Chief Secretary acknowledge the analysis undertaken by the Institute for Fiscal Studies, whose head at that time now leads the Office for Budget Responsibility, that found that the measures in the emergency Budget will hit those on lowest incomes hardest and will have a disproportionate impact on constituencies in the north?

[Danny Alexander]

If anything demonstrates the independence of the OBR it is the appointment of the head of the IFS to be the head of the OBR, and I hope that will put an end to any such criticisms from the hon. Gentleman’s side of the House. The analysis was interesting, but the analysis we published at the time of the Budget was robust and soundly based. I have carefully studied the IFS’s additional analysis, and I think it makes some assumptions that push the boundaries. As a result it is not an analysis the Treasury would stand by. I would stand by the view that the measures we announced in the Budget were progressive and fair and hit the people on the highest incomes hardest.

[Charlie Elphicke (Dover) (Con)]

Can the Chief Secretary tell the House the benefits that the regional growth fund will have for neglected regions, in particular coastal and seaside towns?

[Danny Alexander]

I fear that the hon. Gentleman will have to wait until a week tomorrow for the spending review announcement to hear details of that sort, but I can tell him that the purpose of the regional growth fund is precisely to ensure that areas hit hardest by public spending cuts or areas most dependent on the public sector have an opportunity to put forward proposals for measures that would support their economic growth. The regional growth fund has been established to meet those proposals.

[James Morris (Halesowen and Rowley Regis) (Con)]

This builds on what the Chief Secretary has just said. Does he agree that what we need with the regional growth fund is a much more focused regional policy, rather than the waste that came from the previous Government and their one-size-fits-all regional policy?

[Danny Alexander]

I would agree with that, although I am not going to go over the litany of spending by regional development agencies. Having a regional growth fund that is able to respond to bids from communities, along with a much more devolved set of arrangements, through local enterprise partnerships, which require local authorities and local businesses to work together on what is best for their areas, is a much more dynamic approach, and it is likely better to meet the needs of those areas.

[Mr David Hanson (Delyn) (Lab)]

What account will the Chief Secretary take of last week’s joint statement by the leaders of the devolved Administrations in Wales, Scotland and Northern Ireland? They said that the proposed cuts in the comprehensive spending review are

“too fast and too deep”,

that

“Front loading the cuts into the next two years is…the wrong approach”

and that a failure to promote growth will damage the private sector? Will he now listen to those voices, which do not just argue for the public sector, but argue that the cuts that he proposes will damage private sector growth and private sector industry?

[Danny Alexander]

First, may I welcome the right hon. Gentleman to his new role, congratulate him on his appointment and wish him luck with it? The question he asks is important: what is the impact on the devolved Administrations? As he knows, the budget for devolved Administrations is set by the Barnett formula, which reflects the decisions we make for Departments within the UK, and so it falls out as a consequence of the spending review decisions. Of course our decision to protect the national health service—something that the Labour party was not willing to do—will reflect well on the devolved Administrations’ settlement. If the right hon. Gentleman wishes to enter credibly into this debate, he and his colleagues should make some credible proposals of their own as to how they would tackle the deficit.

--- Later in debate ---

[Andrew Bridgen (North West Leicestershire) (Con)]

16. What recent estimate he has made of the proportion of the central Government tax take from residents of the east midlands which is spent on that region.

[The Chief Secretary to the Treasury (Danny Alexander)]

We cannot accurately disaggregate tax revenue by individual regions, but we publish regionally disaggregated public spending tables each year. Total identifiable expenditure in the east midlands was £35.4 billion in 2009-10.

[Andrew Bridgen]

I thank the Minister for that answer, but as he is well aware, Leicestershire is historically one of the lowest-funded parts of the UK for education, the police and the fire services. Can he assure me that that historically low funding settlement will be taken into account in the comprehensive spending review?

[Danny Alexander]

The hon. Gentleman will have to wait until the statement on 20 October to hear the details of our spending decisions, but as I have made clear in answer to earlier questions, of course we consider it important to understand and manage the regional impact of spending cuts. We have established a regional growth fund, the details of which will be in the spending review statement, which will enable areas such as his to win support for projects that help economic growth in difficult times.

[Harriett Baldwin (West Worcestershire) (Con)]

17. What assessment he has made of the effect on GDP of proposals to increase the level of economic growth in the June 2010 Budget.

--- Later in debate ---

[Paul Blomfield (Sheffield Central) (Lab)]

T9. Will the Chief Secretary to the Treasury welcome the backing given by Olympic champion Jessica Ennis to the U-mix centre, which is a sports and leisure facility in Sheffield designed by Urban Mixtures, an inspiring group of young people who represent the real big society at work? Funding has been allocated for the project under the myplace programme, but has been frozen pending the comprehensive spending review. Will he share my hope that that funding will be unfrozen and allocated shortly?

[The Chief Secretary to the Treasury (Danny Alexander)]

I am grateful to the hon. Gentleman for raising that point, and as usual he puts the case for his constituency very eloquently. Decisions on spending matters, including spending that was frozen under the project re-approvals process, will be announced on or after the date of the spending review.

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[Tom Brake (Carshalton and Wallington) (LD)]

T10. When the Chancellor and the Chief Secretary consider how to address the huge budget deficit they inherited from Labour, will they not lose sight of the importance of investing in affordable housing, specifically to ensure that homes meet the decent homes standard?

[Danny Alexander]

My hon. Friend makes a very important point. We will make decisions on spending and announce them on 20 October in the spending review statement. The point he makes is important, and I very much take it to heart.

[Dr William McCrea (South Antrim) (DUP)]

During a visit by the Deputy Prime Minister to Northern Ireland last week, he stated, “I will go away with colleagues in the coalition Government to look at the possible impact of the deficit reduction plan on capital expenditure in Northern Ireland.” Can the Chancellor confirm that that has been done and what steps will be taken in response?

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[Albert Owen (Ynys Môn) (Lab)]

What representations have Treasury Ministers had from advice organisations such as citizens advice bureaux which fear that their budgets from local government will be cut at a time when they will be advising the most vulnerable people on their finances and welfare benefits? Will the Treasury team join me in paying tribute to the citizens advice bureaux for the work that they do, and commit to giving them extra funding for that purpose?

[Danny Alexander]

I join the hon. Gentleman in paying tribute to the work of the citizens advice bureaux. In constituencies across the country they play an invaluable role in advising people and helping them through difficult times. We will make spending announcements on 20 October, but I have had conversations with the citizens advice bureaux about some of the issues affecting them. Those issues will also affect other organisations in the community and voluntary sector, and the Government take that very seriously.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

Does the Chancellor share my view that an economic policy that does not engage with cutting the deficit at all, and which has £30 billion of additional spending requirements, is no economic policy?

--- Later in debate ---

[Emma Reynolds (Wolverhampton North East) (Lab)]

The Government failed to conduct an equality impact assessment on the June 2010 Budget. Can the Chief Secretary reassure me that they will not make the same mistake again, and will the Government ensure that they assess the—probably disproportionate—impact on women of the comprehensive spending review?

[Danny Alexander]

The answer is yes. Departments will be carrying out these assessments on their spending decisions, and I myself held a round-table meeting in the Treasury with a number of different organisations involved in the equalities area to ensure that we were considering all the relevant issues in the run-up to publishing the spending review.

[Mr Speaker]

Order. There is quite a lot of chuntering from sedentary positions, but I want to hear both the questions and the answers.