Oral Answers to Questions

David Gauke Excerpts

Tuesday 22nd March 2011 Commons Chamber

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

Consistent with the approach taken at the June Budget, the Government will publish analysis on the Budget’s overall impact on households across the income and expenditure distributions in the Red Book. The Budget is an overall statement of economic policy containing a wide range of measures, and it is not possible to make a robust assessment of its overall impact on specific groups.

[Helen Goodman]

I am surprised by that answer. Since the general election, the Government have made 17 distinct cuts to tax credits and child benefit, which are paid to women. Tomorrow, the Chancellor will announce increases in personal allowances, which will benefit millions more men than women. Does the Minister think it is fair that money should be taken from women to give it to men?

[Mr Gauke]

All I can say is that I am surprised that the hon. Lady is opposed to increases in personal allowances and I suspect that she might be somewhat lonely in the Lobby opposing it.

[Claire Perry (Devizes) (Con)]

Is the Minister aware of my freedom of information request from last September which found that the previous Government never carried out an equalities impact assessment—not in the March Budget, the December pre-Budget report or the March 2010 Budget? They never did it either.

[Mary Macleod (Brentford and Isleworth) (Con)]

Does my hon. Friend agree that raising the income tax threshold, protecting spending on the NHS and increasing spending on social care will definitely benefit women?

[Mr Gauke]

My hon. Friend is absolutely right to highlight this point. Some of us recall the difficulty in getting distributional analyses out of the previous Government and it has to be said that this Government are taking great steps forward.

[Kerry McCarthy (Bristol East) (Lab)]

The Chancellor chose to hit women three times as hard as men in his Budget last year and now, as living costs rise and the public sector is slashed, he wants to hit them yet again by changing the rules around maternity and paternity leave and flexible working in small companies. Is it really women whom the Prime Minister has in mind when he talks about taking on the enemies of enterprise, and can the Minister reassure the House that it will not be women who bear the brunt of tomorrow’s Budget?

[Mr Gauke]

This is pretty desperate stuff. It is in the interests of the entire country that we sort out the public finances, even if the Labour party will not accept that.

[Amber Rudd (Hastings and Rye) (Con)]

Does the Minister agree that the fact that we are not cutting the NHS will really support women because they are so often carers in their family and it is so important that we support them in that important role?

[Mr Gauke]

My hon. Friend is absolutely right and it is striking that the previous shadow Chancellor and the previous shadow Health Secretary said that it was madness to ring-fence the NHS. That is not the view of this Government.

[Anas Sarwar (Glasgow Central) (Lab)]

13. What assessment he has made of the effect on road fuel prices of the increase in the standard rate of value added tax.

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

How much of the rise in the standard rate of VAT is passed on to consumers is a commercial decision for retailers.

[Anas Sarwar]

I thank the Minister for that answer. Treasury Ministers are very wrong to suggest that the calls to scrap the VAT increase on fuel is illegal and unworkable. There is precedent for it: the French President recently got a derogation from EU laws for French restaurants. Will this Government stand up for UK families who have been hard hit by the rise in fuel costs and look for derogation powers on fuel duty?

[Mr Gauke]

A week ago, the shadow Chancellor was saying that we needed an immediate cut in the tax on fuel and now the Labour party is saying that we should start a process that will take about seven years. That does not strike me as being terribly helpful.

[Richard Graham (Gloucester) (Con)]

In terms of the value for money of decisions taken by the Treasury, whether on road fuel tax or other things, does the Minister agree that one of the best value creations of this Government has been the increase in apprenticeships, which is widely appreciated around the country? Does he agree that apprenticeships are critical both to our growth strategy and to the reduction of youth—

--- Later in debate ---

[Mr Speaker]

I have to say that that was not much better, but the Minister may have a go.

[Mr Gauke]

To be fair, if we wanted to reduce tax on fuel through the VAT rate that is exactly what we would have to do, so perhaps that is not the best way of doing it.

[Mark Lancaster (Milton Keynes North) (Con)]

14. What recent representations he has received on measures to reduce the budget deficit.

--- Later in debate ---

[John Pugh (Southport) (LD)]

T3. Can the Chancellor tell me when the Treasury’s detailed investigation of the feasibility of incorporating a general anti-avoidance rule in British tax law will conclude?

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

My hon. Friend is right to highlight the matter. We have asked Graham Aaronson QC to undertake a study on the matter and he will report in the autumn.

[Mrs Linda Riordan (Halifax) (Lab/Co-op)]

T6. Following the announcement last week by Lloyds of more job cuts, many of them in my constituency, to a work force who have showed total loyalty to the company, and as the Government own a large percentage of the company—a company that made more than £2 billion profit last year—will the Chancellor intervene to protect people’s jobs and livelihoods, and stop the constant drip-feed of job losses by Lloyds?

--- Later in debate ---

[Andrew Gwynne (Denton and Reddish) (Lab)]

Ministers will be aware that there is a sunset clause in the Debt Relief (Developing Countries) Act 2010, which comes into effect in June. Does the Treasury have a view about renewing this important landmark legislation, which tackles the worst abuses of vulture funds?

[Mr Gauke]

I am grateful to the hon. Gentleman for asking that question. That legislation will remain on the books and—I do not think we have announced this formally before—we will put it on a permanent footing.

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

Is my right hon. Friend aware that the Governor of the Bank of England confirmed to me recently in the Treasury Committee that without the current austerity measures, our international borrowing rates would be some 3% higher?

--- Later in debate ---

[Ian Paisley (North Antrim) (DUP)]

The Chancellor might know that my constituent, Jenifer Herald, employs 40 people in Northern Ireland in a number of Subway cafés. The chief executive officer of that company has written to the Chancellor to say that inconsistent VAT policies for toasted sandwiches are damaging the growth of that industry. Does the Minister intend to review how VAT applies to toasted sandwiches and does he, like me, want to get his toasted sandwiches at a reasonable price?

[Mr Gauke]

I am grateful to the hon. Gentleman for his question. I, too, have received many representations on this point. Of course, we keep VAT under review within the restrictions that exist.

[Mr Aidan Burley (Cannock Chase) (Con)]

Is the Minister aware that according to the Institute for Fiscal Studies, if we only halve the deficit rather than close it completely over the lifetime of this Parliament, we will spend an extra £10 billion on interest? Does he think that that is money that would be better spent on schools and hospitals in this country rather than foreign investment bankers?

--- Later in debate ---

[Jim McGovern (Dundee West) (Lab)]

I am sure the Chancellor and his Front-Bench colleagues will be aware of the recent Scottish Affairs Committee report on the computer games industry in the UK, which states that there are “compelling reasons” for introducing tax relief. Will he tell me, the House and people in my constituency, where the industry is very important, just what progress has been made?

[Mr Gauke]

That industry, like other industries, will benefit from the policies that we have introduced to ensure that we grow more strongly and have pro-business policies. On video games tax relief, we looked at it and did not feel that it achieved good value for money for the taxpayer.

[Jessica Lee (Erewash) (Con)]

May I welcome the recent visit by the entire Cabinet, including of course my right hon. Friend the Chancellor, to the city of Derby, near my constituency? Manufacturers and wealth creators have been waiting for a long time for some support in the east midlands, and I would be grateful if my right hon. Friend could set out what plans are in place to assist that important area.