Oral Answers to Questions Debate

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Department: Scotland Office

Oral Answers to Questions

Gordon Banks Excerpts
Wednesday 26th January 2011

(13 years, 3 months ago)

Commons Chamber
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Michael Moore Portrait Michael Moore
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We certainly do not lack ambition for Scotland. We have a set of proposals that are being thoroughly scrutinised in the Scottish Parliament, and from tomorrow, they will be scrutinised in the House as well. As far as the specifics are concerned, the hon. Gentleman will be aware that, in respect of the aggregates levy, we have said that given the current court case, it is inappropriate to devolve that just now, but we will do so in future. I recommend that he goes back to the Command Paper and studies it carefully.

Gordon Banks Portrait Gordon Banks (Ochil and South Perthshire) (Lab)
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3. What recent discussions he has had with the Chancellor of the Exchequer on the effect in Scotland of the increase in the basic rate of value added tax.

David Mundell Portrait The Parliamentary Under-Secretary of State for Scotland (David Mundell)
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May I associate myself with the Secretary of State’s comments on Phil Gallie? Phil was a true, great Conservative in Scotland.

I have regular discussions with the Chancellor of the Exchequer on a range of issues. The VAT rise is a tough but necessary step towards Britain’s economic recovery. Income tax and national insurance increases would have had a more damaging impact on poorer people in our society.

Gordon Banks Portrait Gordon Banks
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Almost half the respondents to a recent survey by the Federation of Small Businesses said that they would increase prices because of the VAT rise, and 45% of those respondents said that the rise would decrease turnover and have an obvious impact in hindering job creation and growth. How can the Secretary of State and the Minister continue to sell out the people of Scotland and support this abysmal tax rise?

David Mundell Portrait David Mundell
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How can the hon. Gentleman continue to fail to take responsibility for his Government’s record, which took our country to the brink of bankruptcy and required the VAT rise to fill the black hole? If anyone is responsible for the issues that Scottish business currently faces, it is his Government.