Oral Answers to Questions

David Lammy Excerpts

Tuesday 21st June 2011 Commons Chamber

[Angela Smith (Penistone and Stocksbridge) (Lab)]

4. What recent assessment he has made of the effect on the economy of trends in the rate of inflation.

[Mr David Lammy (Tottenham) (Lab)]

8. What recent assessment he has made of the effect on the economy of trends in the rate of inflation.

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

The Government consider a range of factors when making their assessment of the United Kingdom economy. The Office for Budget Responsibility is responsible for producing independent economic and fiscal forecasts. The OBR published a full analysis of recent developments and the prospects for growth and inflation in its forecast at the time of the Budget.

[Mr Gauke]

First, the former Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), said that he would have done the same. Secondly, a cut in VAT would do nothing to reverse the rise in global commodity prices, but would do a lot to reverse the Government’s hard-won credibility for getting the deficit down.

[Mr Lammy]

In the light of what the Minister has said, may I invite him to Tesco’s in Tottenham high road, where he will meet some of my constituents who must deal with higher food prices, rising electricity and gas prices and, now, redundancy and the loss of most of the services on which they rely?

[Mr Gauke]

I should be delighted to accept the right hon. Gentleman’s invitation. However, he will be aware that VAT is not chargeable on food, and that we have not raised fuel duty as the last Government did. You do not have to be a mastermind to know that.