Oral Answers to Questions

Debate between George Osborne and Jo Swinson

Tuesday 1st November 2011 Commons Chamber

[Mr Osborne]

As the hon. Gentleman well knows, we are consulting on the possibility of introducing a different corporation tax rate in Northern Ireland, reflecting the fact that the Irish Republic has a much lower corporation tax rate. The consultation is ongoing, and we are of course in discussions with the Northern Ireland Executive. We are clear that Northern Ireland would have to bear the cost of that in forgone revenues, and an important part of the discussions will be working out what exactly those forgone revenues would be.

[Jo Swinson (East Dunbartonshire) (LD)]

I am concerned by reports that the Government are considering breaking with the 20-year convention of uprating pensions and benefits by the September inflation figure, now that the CPI has come in at 5.2%. Does the Chancellor recognise that it would be unfair to change the rules of the game suddenly, hurting vulnerable pensioners and disabled people in the process?

Oral Answers to Questions

Debate between George Osborne and Jo Swinson

Tuesday 6th September 2011 Commons Chamber

[Mr Osborne]

I am very aware of the issue relating to the continental flight from Belfast to the eastern seaboard of the United States, and I have spoken to Northern Ireland’s First Minister and Deputy First Minister about it. I can see that there is a particular challenge because of the proximity of the airport in Dublin, and the British embassy in Washington has also been very active in dealing with the company in the United States. I can assure the hon. Lady that we are on the case.

[Jo Swinson (East Dunbartonshire) (LD)]

There is still huge public anger that taxpayers have had to bail out the very banks whose cavalier and risky behaviour led to the global economic meltdown. Further to the eloquent question from the Father of the House, the right hon. Member for Louth and Horncastle (Sir Peter Tapsell), when Vickers reports next week will the Chancellor ensure that he acts promptly to introduce any necessary legislation to implement the recommendations, in order to avoid a repeat of the financial crisis, and that he does not listen to the vested interests arguing for delay?

[Mr Osborne]

It was this coalition Government who established the Vickers report. Those questions were simply not asked by the previous Government—we are asking those questions. However, I am afraid that the hon. Lady will have to wait until Monday to hear the Government response to the Vickers report.

Global Economy

Debate between George Osborne and Jo Swinson

Thursday 11th August 2011 Commons Chamber

[Mr Osborne]

As I have already explained, we have an independent Office for Budget Responsibility—[Interruption.] I am pretty tempted to say that the answer is that the previous Chancellor did not want to have to downgrade his borrowing forecast four weeks before the general election, so he kitchen-sinked the borrowing forecast a year before, to make sure that he was able to show a reduction just before the general election.

[Jo Swinson (East Dunbartonshire) (LD)]

I support the Government’s plans for cutting the deficit, leading to lower interest rates and increased international confidence in the UK economy, but the Chancellor is well aware that our economy is still fragile, so if tax revenues are higher than expected, or if there are receipts from asset sales, will the Chancellor reinvest that in capital infrastructure projects and skills development, to give a boost to our economy and create jobs, rather than being seduced by the voodoo economics of giving tax cuts to the rich?

[Mr Osborne]

There are quite a lot of American references in this debate. We have used the receipts of some of the asset sales that we have proposed—and indeed undertaken—to invest in new infrastructure, or in a particular industry. Of course, we have to do that on a case-by-case basis, but the spending review set out how we were going to use the proceeds of some of the asset sales for future investment.

Bank Bonuses

Debate between George Osborne and Jo Swinson

Tuesday 11th January 2011 Commons Chamber

[Mr Osborne]

It is precisely the real-world situation—where businesses need more lending, communities need support and we need more investment in our regional economies—that I am seeking to address. As the hon. Gentleman well knows, as a Member from Scotland, we need a successful, properly regulated financial services sector that employs tens of thousands of people in Scotland and, indeed, hundreds of thousands of people across the United Kingdom. That is what we are seeking to agree with the banking system. The fantasy world is the one that the Labour party occupies, where it bears no responsibility for the mess in which it has left this country.

[Jo Swinson (East Dunbartonshire) (LD)]

The Chancellor must understand the level of public anger about huge bank bonuses and recognise that obscene rewards for short-term gain without regard to the long-term consequences were part of the problem that led to the banking collapse in the first place. Surely it is to avoid a repeat of that that bank bonuses should be restrained and, importantly, weighted towards sustainable long-term performance, rather than short-term speculation.

[Mr Osborne]

I agree with all of that. We want to see bonus restraint; we want to see bonuses lower this year—[Interruption.] Lower this year than they were under the Labour Government. That is one objective. Secondly, we want to see bonuses deferred. Thirdly, we want to make sure that they do not reward risk-taking that goes badly wrong—that is why we want the ability to claw back. We also want to get away from the system—again, this thrived under the previous Government—of guaranteed bonuses, which people got regardless of what happened to their financial institution. That is precisely what the code of practice addresses, it is precisely why we are looking at greater transparency and greater shareholder involvement, and it is precisely why I want this new settlement with the banks.

Oral Answers to Questions

Debate between George Osborne and Jo Swinson

Tuesday 16th November 2010 Commons Chamber

[Jo Swinson (East Dunbartonshire) (LD)]

As my right hon. Friend says, it is right that in reducing the deficit, those with the broadest shoulders should bear the greatest burden, but do the Government understand the genuine anger that the public feel when it seems as though wealthy individuals and large companies can get away without paying their tax bills? What reassurance can the Minister give my constituents that the richest in society will pay their fair share?

[Mr Osborne]

We have taken a number of decisions to make sure that the burden is fairly shared. We have introduced the bank levy, and we are taking child benefit away from higher rate taxpayers, although that is clearly opposed by Labour. We are also seeking to conclude a number of deals with countries that have a reputation for attracting tax avoidance and tax evasion, such as the deal that we are negotiating with Switzerland. That will ensure that there are further revenues coming into the Exchequer from those who can afford it.

Proposed Public Expenditure Cuts

Debate between George Osborne and Jo Swinson

Monday 13th September 2010 Commons Chamber

[Mr Osborne]

Of course I take responsibility for the tax credit system that I have inherited. We know that there are real problems with the way in which it operates, and we are trying to establish how we can reform things in general. I will, however, look urgently at the case that the right hon. Gentleman has brought to the House’s attention: if he will give me the details this afternoon, I will get on to it straight away.

[Jo Swinson (East Dunbartonshire) (LD)]

Like many Members of Parliament—although, perhaps, not as much as the hon. Member for Wellingborough (Mr Bone) —I want to see cuts in our public services. I accept that they are, sadly, necessary to deal with the huge deficit that is Labour’s legacy. Does the Chancellor agree that if any party is to have credibility in criticising specific cuts, it must present a realistic alternative that does not just saddle the next generation with thousands of pounds of debt?

[Mr Osborne]

I entirely agree with my hon. Friend. The plethora of memoirs and interviews from people who were at the top of the Labour party until a few months ago have consistently made clear that it is not credible for the Labour party not to issue its own proposals and come up with its own ideas. As I have said, £44 billion of the cuts with which we are proceeding were pencilled in by the last Government, and they have between now and 20 October to tell us where those £44 billion of cuts would have fallen.