Oral Answers to Questions
Debate between George Osborne and Ian Mearns(9 years ago)
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Mr Osborne
I know that my hon. Friend is a strong champion of his community and of the hospice he mentions. We have taken steps to help the hospice movement, not least by removing the VAT it paid in the previous Parliament. We want to get the right balance. It is good that our hospices are funded in part by local charities and supported so strongly by the local community, but they also need the backing of the NHS. Of course, as we have a strong economy, we are now putting that money into the NHS so that it can help the hospice movement.
Ian Mearns (Gateshead) (Lab)
Q13. If business rates are localised without equalisation, my own authority of Gateshead will lose £9.4 million a year on top of the proposed severe cuts to the revenue support grant. The seven north-east local enterprise partnership authorities will lose £186 million a year and the combined 12 authorities in the north-east £223 million a year. Meanwhile, the City of London will gain £222 million and Westminster £440 million. How does that help the Chancellor’s vision of the northern powerhouse?
Mr Osborne
The top-up and tariff system will apply as we devolve business rates to reflect the discrepancies the hon. Gentleman identifies. I would have thought that the Labour party supported the devolution of business rates. It is a massive opportunity for local areas to grow and to see the benefits of that growth. When it comes to the northern powerhouse, we have the fantastic announcement today of the new train franchises, which mean more than £1 billion going into new trains, faster journeys, and better journey experiences for people in the north of England. He should get behind it.
Oral Answers to Questions
Debate between George Osborne and Ian Mearns(13 years, 7 months ago)
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Mr Osborne
I join my hon. Friend in celebrating the good news about the successful bid for the renovation of the pier. She is right to point out that there are specific issues associated with seaside towns across the country which are well known to the Members who represent them and well known also to the Government. We intend to come forward with proposals later this year to help those seaside towns.
Ian Mearns (Gateshead) (Lab)
T8. Household debt has been revised upwards by £300 billion, and my constituency, Gateshead, has one of the highest rates of personal insolvency in the country. What is the point of cutting the national debt, only to transfer the burden on to the personal finances of ordinary families? It is blindingly obvious that we are not all in this together—some of us are in this up to our necks.
Mr Osborne
I am afraid the hon. Gentleman misses two important facts. First, the most recent figures—within the past week—for personal insolvencies showed a welcome fall. Secondly, household debt reached a record level under the previous Government. As I said in response to the first question today, we are introducing a Financial Policy Committee to assess overall levels of private debt, including business debt, in the economy so that we do not allow dangerous unsustainable levels to grow. That will now be a judgment for the Financial Policy Committee and it will have the tools to do something about it.