Danny Alexander
Main Page: Danny Alexander (Liberal Democrat - Inverness, Nairn, Badenoch and Strathspey)Department Debates - View all Danny Alexander's debates with the HM Treasury
(12 years ago)
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Tom Brake (Carshalton and Wallington) (LD)
2. What fiscal steps he is taking to encourage investment and growth in the manufacturing sector.
The Chief Secretary to the Treasury (Danny Alexander)
The Government have taken a number of steps to support manufacturing industry, including: reducing corporation tax rates, with the main rate falling to 22% by 2014, which is the lowest in the G7; introducing a new above-the-line credit to support research and development in the UK; and introducing the patent box to reduce tax on profits from patents.
Tom Brake
Was the Chief Secretary as shocked as I was to hear the shadow Chief Secretary say on “Newsnight” that she opposed the coalition Government’s corporation tax cuts? Will he set out what particular measures could help businesses such as Monument Tools, a manufacturer of tools in my constituency that is able to compete with Chinese competitors?
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.
Mr Andrew Tyrie (Chichester) (Con)
The Budget identified a number of sectors for fiscal support. All Departments and all of us can think of deserving cases, particularly in our constituencies, but is it not the Treasury’s job to hold the line on industrial policy, remove the implicit subsidy from banking and other industries, and ensure that economic resources, through, for example, corporation tax cuts, flow to businesses that can succeed without state support?
Danny Alexander
I agree with my hon. Friend. I am sure that he would agree with me that the Vickers report on the banking sector does precisely the first thing he mentioned, and that our approach to corporation tax—reducing headline rates year by year to the lowest level in the G7 and one of the lowest levels in the G20—precisely achieves the objective that he set out.
Mr David Hanson (Delyn) (Lab)
Will the Chief Secretary tell the House whether he read the explanatory notes on his VAT on caravans proposal? If he did read them, why on earth did he support a proposal that reduces demand in manufacturing by 30% and hits tourist industries, such as those in my area, 100%? Will he now review it?
Danny Alexander
Of course I did read the explanatory notes. The right hon. Gentleman will know that we have listened to the representations in favour of extending the consultation period and have extended the deadline to 18 May to enable individuals such as him, and his constituents, to make representations as part of that consultation.
John Stevenson (Carlisle) (Con)
3. What recent representations he has received on reducing the budget deficit.
Iain Stewart (Milton Keynes South) (Con)
7. What progress the Government have made on the implementation of the national infrastructure plan.
The Chief Secretary to the Treasury (Danny Alexander)
We published an update on the national infrastructure plan alongside the Budget, showing the progress that has been made on all the priority investments. As an example, the Budget was able to confirm that the pensions infrastructure platform that we have established to enable British pension funds to invest in infrastructure in this country will be able to make its first wave of £2 billion investment by early 2013.
Iain Stewart
I very much welcome the plan and congratulate the Government on prioritising rail investment, such as the east-west line through my constituency. May I urge my right hon. Friend to continue that investment in the classic network, as well as finding the funds for High Speed 2?
Danny Alexander
My hon. Friend makes an important point. The investment in High Speed 2 will not affect the amount of investment in the traditional rail network. It will allow us to go forward—for example, with the investment in the Oxford to Bedford rail line, which I know will affect his constituency, create 12,000 jobs and give a boost of £38 million to that area’s economy.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Does the Minister realise that those of us who represent the squeezed middle in this country—the northern and midland regions—are sick to death of seeing London and the south-east getting all the infrastructure investment, all the cranes, while we are waiting patiently for investment in our part of the world, where we have been in recession for three years?
Danny Alexander
In that case, the hon. Gentleman ought also to welcome the substantial investment, for example, in the northern hub rail project. He ought to welcome the substantial investment in the electrification of the trans-Pennine railway. He ought to welcome the substantial investment in the capital infrastructure around ports to enable the north and the north-east of England to benefit, particularly from the investment in renewables that we will see over the coming years. A fair picture would represent those things too.
Graeme Morrice (Livingston) (Lab)
8. What recent assessment he has made of the rate of income tax paid by those earning over £150,000 per year.
Mr Jim Cunningham (Coventry South) (Lab)
14. By what means his Department determined which core cities would participate in the tax incremental finance scheme; and if he will make a statement.
The Chief Secretary to the Treasury (Danny Alexander)
The main tax increment financing scheme will be available to all local authorities in England from April 2013 as part of the business rates retention scheme. We will set out more details on how it will work shortly. A second pot of longer-term funding will be allocated to the core cities—the eight largest cities outside London—on a competitive basis. We will invite applications from those cities for that pot soon.
Mr Cunningham
Why was Coventry left out of the eight core cities, against the promise of the Deputy Prime Minister in 2010? Does the Chief Secretary realise that that will have a bearing on the Friargate scheme in Coventry, which will employ a lot of people when it is finished?
Danny Alexander
The eight core cities are a well-established group that have a proven role in driving economic growth in England. As I said, the main tax increment financing scheme will be available to all local authorities in England, including that of the hon. Gentleman, from 2013. We will set out the details of that shortly as part of the business rates retention scheme. Other pools of funding, such as the Growing Places fund, may be able to help with the scheme that he mentioned. The local enterprise partnership allocates those funds.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
I thank my right hon. Friend for that answer. If the city pilots are successful, will he consider extending this method of financing to all county authorities?
Danny Alexander
Tax increment financing has great potential in helping local areas to develop infrastructure projects and supporting economic growth across the country. As I said to the hon. Member for Coventry South (Mr Cunningham), the main tax increment financing scheme will be available to all local authorities in England from April 2013. That will apply to the kind of local authorities that my hon. Friend described.
Katy Clark (North Ayrshire and Arran) (Lab)
15. What assessment he has made of the effect of changes to working tax credit on couples in households where one person is retired.
Mr Mark Spencer (Sherwood) (Con)
T9. Can the Chancellor tell me how many of my constituents will benefit from the lifting of the personal tax threshold?
The Chief Secretary to the Treasury (Danny Alexander)
Information is not available at constituency level, but I can confirm that for the east midlands government region 1.7 million people will benefit in 2013-14 from the largest ever increase in the personal allowance, which was announced in the Budget. Some 152,000 people will have been taken out of tax altogether in the east midlands by the policies of this Government.
Albert Owen (Ynys Môn) (Lab)
T6. It has been reported in the papers that the Chancellor is prepared to meet with charities so that he can explain his tax hike and tell them how he can get it right in the future. For the sake of consistency, will he also meet with the purveyors of pasties, church leaders and caravan operators and manufacturers so that he can tell them how he will get it right in the future and they can tell him to drop these VAT hikes?
Gemma Doyle (West Dunbartonshire) (Lab/Co-op)
West Dunbartonshire is the most difficult local authority area in the whole of the UK in which to find a job, yet the Scottish National party Government have refused us any help and refused to meet me. Have this Government also abandoned West Dunbartonshire or can we expect help to do one thing—to create jobs?
Danny Alexander
It is disappointing to hear that members of the Scottish Government have refused to meet the hon. Lady to discuss the help they could provide to her constituents. This Government’s actions—the youth contract, in particular—will be of significant importance to many young people in her constituency. In particular, there are the additional jobs subsidies available to businesses to take on young unemployed people in her constituency. I hope she will welcome that and promote it to businesses in her area.
Jacob Rees-Mogg (North East Somerset) (Con)
Tomorrow, the European Commission will publish its proposed 2013 budget. Will Her Majesty’s Government do everything they can to ensure that there is no increase in that budget? More importantly, will they use their veto on the multi-annual framework to ensure that there is no increase?