Oral Answers to Questions

Graeme Morrice Excerpts

Wednesday 22nd June 2011 Commons Chamber

The Secretary of State was asked—

[Graeme Morrice (Livingston) (Lab)]

1. What recent discussions he has had with the Chancellor of the Exchequer on the effects on Scotland of the rate of inflation.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

I have regular discussions with my right hon. Friend the Chancellor of the Exchequer on a wide range of issues, including the state of the economy. Inflation is being pushed higher by rising global commodity prices. This is a global problem that requires global solutions.

[Graeme Morrice]

I thank the Minister for his answer. It is now clear that the Government’s VAT hike in January helped to drive up inflation, which is squeezing family incomes, hitting consumer spending and holding back strong growth. Will the Minister now speak up for families and businesses in Scotland and urge the Chancellor to reverse the VAT rise to help to boost consumer confidence and bring down inflation?

[David Mundell]

As the hon. Gentleman knows, the former Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), said that he would have done exactly the same in relation to VAT, and a cut in VAT would do nothing to reverse global commodity price rises. It would, however, do a lot to reverse the Government’s hard-won credibility for getting the deficit down. Of course, credibility on economic matters does not seem to be important to the Opposition.