Autumn Statement

Debate between George Osborne and Elfyn Llwyd

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

Because we have earned credibility for this country. That is what this Government have done. That has not been an easy thing to do, but it has brought our borrowing costs down while other countries’ borrowing costs have gone up. When this Government came to office, the interest rates in Italy were lower than the interest rates in Britain. They have gone up in Italy and come down in Britain. Of course, we now have the new Labour party policy, which is that it wants to see higher interest rates. I am not sure that the Labour Back Benchers have fully realised what a completely stupid policy that really is.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

With regard to the capital infrastructure investment, will the Chancellor confirm that the whole figure of £30 billion will be spent proportionately in Wales and the other devolved nations, and that in the case of Wales that will amount to £1.5 billion?

[Mr Osborne]

We absolutely will apply the Barnett formula to the infrastructure spending. I can confirm that. We specifically want to work with the devolved Administration on the M4 corridor in south Wales and, if possible, to do a deal on the future of the Severn bridge and its tolls. We are holding open the opportunity for discussion on that matter.