Oral Answers to Questions

Danny Alexander Excerpts

Tuesday 5th November 2013 Commons Chamber

[Jason McCartney (Colne Valley) (Con)]

8. What recent steps he has taken to increase investment in infrastructure.

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

Investment in infrastructure is a key priority for this Government. In June, I set out a pipeline of investment in specific projects, worth over £100 billion out to 2020, including the largest investment in our railways since the Victorian era and the biggest investment in roads since the 1970s.

[Jason McCartney]

I welcome the support of my local Labour leader of Kirklees council for the new north-south railway, but does my right hon. Friend agree with the leader of Manchester council, who said that politicians need to stop taking cheap shots at HS2

“unless we want an increasingly disconnected North…slowly grinding to a halt”?

[Danny Alexander]

I wholeheartedly agree with those sentiments. My hon. Friend could have added to that list the leader of Nottingham city council, who said that the Labour Front Bench should get off the fence on HS2. The project is needed to promote growth, and connectivity outside London. I agree with that, and so should they.

[Robert Flello (Stoke-on-Trent South) (Lab)]

22. When the Chancellor talks about increased investment, is that what he meant to cover the £10 billion increase in the HS2 costs, which have gone up on his watch?

[Danny Alexander]

We set out in June the budget for HS2. We will absolutely stick to that budget. Using the excellent leadership we have brought in, with Sir David Higgins and others, we will make sure that the project is delivered under budget. The hon. Gentleman should be committed to the project because it will support growth all over the United Kingdom. It is the most significant investment in our railways for 100 years, and his party should support it.

[Andrew Griffiths (Burton) (Con)]

17. I refer the House to my entry in the Register of Members’ Financial Interests.I congratulate the Chancellor and his Government on their investment in infrastructure in the west midlands, which helped to deliver the Jaguar Land Rover plant, and thousands of manufacturing jobs in the process. I also draw the Minister’s attention to the A50, a key corridor in my constituency, connecting Stoke to Derby, which involves a number of manufacturing businesses that could hugely benefit from road improvements and infrastructure spending.

[Danny Alexander]

The hon. Gentleman is right that targeted infrastructure investment can unlock job creation in enterprise zones, including at JLR and in various places around the country. I am well aware of the particular scheme that he is promoting and I look forward to discussing it further with him to see how we can take it forward.

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

The Chief Secretary will be aware that several conflicting and not very encouraging cost-benefit analyses for HS2 are currently in circulation. Could he not clear the air by commissioning and publishing a genuinely independent internal Treasury cost-benefit analysis of the project?

[Danny Alexander]

The Government have set out various cost-benefit analyses of the project. With respect to the hon. Gentleman, what is needed in this project is not more procrastination, delay and extra reports, but a commitment in all parts of the House to get on with this north-south railway and allow economic growth in every part of the United Kingdom.

[John Howell (Henley) (Con)]

9. What recent fiscal steps he has taken to support small businesses.

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[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

12. What recent assessment he has made of the effect of fiscal policy on the level of youth unemployment.

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

The UK labour market is showing some signs of recovery. Youth unemployment, excluding those in full-time education, fell over the last quarter and the number of young people claiming jobseeker’s allowance is lower now than it was in 2010. The Government are committed to supporting long-term unemployed young people, which is why we launched the Youth Contract in 2012 and why we have increased the number of apprenticeships, with over 1 million starts so far.

[Bridget Phillipson]

The Chief Secretary refers to the Youth Contract, but does he not accept the assessment of the Government’s own social mobility adviser that it is having a limited impact on the

“appallingly high levels of youth unemployment”?

[Danny Alexander]

I certainly accept that there is a great deal more that we have to do to get people off benefit and into work, but if the hon. Lady looks at the work experience programme within the Youth Contract, she will see that it is having a significant effect on the number of young people getting off benefit and into work, and at one 20th of the cost of the future jobs fund, which I think is good value for money.

[George Freeman (Mid Norfolk) (Con)]

Is not the single most important measure we can take to tackle youth unemployment the creation of jobs? I therefore welcome the creation of over 1.5 million new jobs and 600,000 new apprenticeships and the news that last year this country had more small businesses than ever before. Does that not show that we have a Government who are seriously tackling youth unemployment, after it rose for 13 years?

[Danny Alexander]

My hon. Friend is right. In fact, there are now more people in work, including more women, than ever before in our country’s history, and there are now more households in which someone works than in any year under the previous Government. There is a lot more to do, but that is a record to be proud of.

[David Mowat (Warrington South) (Con)]

13. What representations he has received on Yorkshire bank and lending to small and medium-sized businesses.

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[Ms Margaret Ritchie (South Down) (SDLP)]

What progress has been made on the extension to the fuel duty rebate scheme, which is due for further implementation via a submission to the European Commission?

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

We have completed a call for evidence on that subject and have put forward an initial list of locations that meet the strict criteria that are required to make a successful application at the European level. Further work is needed to ensure that we have all the information that is necessary to submit the application. That will be the subject of a supplementary piece of work and we will submit the application early in the new year.

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[Ian Swales (Redcar) (LD)]

Companies up and down the country have been investing in manufacturing capacity for the green infrastructure of tomorrow. Those in the north-east Energi Coast consortium have already invested £400 million. Will the Chancellor confirm the Government’s commitment to support the renewable energy industry?

[Danny Alexander]

I am grateful to my hon. Friend for the question, and I congratulate him on his new appointment in this House. I can reassure him on his point. We are, of course, looking at the range of support that exists in terms of people’s energy bills, but we will not compromise on our commitment to renewable energy and green infrastructure investment. That means we remain absolutely committed to the renewables obligations and the contracts for difference, and that will not change as part of this process.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

The Institute for Fiscal Studies estimates that more than 1 million more children will be living in poverty in 2020, which absolutely wipes out the number of those lifted out of poverty under the previous Labour Government.

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[Sir Malcolm Bruce (Gordon) (LD)]

If Scotland chooses to vote for independence next September, how will handing over control of the Scottish economy to a foreign bank, namely the Bank of England, benefit Scotland’s economy?

[Danny Alexander]

My right hon. Friend makes an important point. It would be very foolish indeed for anyone to vote for independence on the basis that Scotland will keep the pound. It is highly unlikely that a currency union would be workable, and therefore highly unlikely that any euro-style arrangement for the UK would be in the best interests of either Scotland or the rest of the UK. The only way to be sure of keeping the pound is to keep the UK together.

[Several hon. Members]

rose—