Oral Answers to Questions

Iain Wright Excerpts

Tuesday 8th February 2011 Commons Chamber

[Mr Hoban]

The commission that has been set up is independent. It is looking at the structure of banking in the UK, and its impact on the wider economy and competition, and we await the outcome of its findings later this year.

[Mr Iain Wright (Hartlepool) (Lab)]

16. What assessment he has made of the effects on consumer confidence of the recent increase in the basic rate of value added tax.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

Sustainable public finances will increase consumer confidence in the medium term. The decisive action taken by the Government in the spending review and June Budget, including the increase in VAT, will put the public finances and spending on a sustainable footing.

[Mr Wright]

Given the increase in VAT and the biggest monthly fall in consumer confidence since 1992, will the Minister update the House with his assessment of job losses in the retail sector?

[Mr Gauke]

Unless we get the public finances right, there will be no long-term consumer confidence. Can we imagine what the impact would be if the Government abandoned their approach and just started spending money, like the previous Government did, and failed to tackle the deficit? I am afraid that consumer confidence would go through the floor.