Oral Answers to Questions

Jeremy Lefroy Excerpts

Tuesday 10th May 2011 Commons Chamber

[Justine Greening]

My hon. Friend is absolutely right to raise that issue. In fact, it is part of the rationale behind tackling problem drinking. One way we have sought to do that is by introducing the limits on the below-cost selling of alcohol in supermarkets. That will be done by a formula of assessing duty plus VAT as the below-cost level. My hon. Friend is also right to point out that we need to do what we can to support pubs, which are the lifeblood of many local communities. They will also benefit from the various packages of measures we have brought forward to support small businesses, including reduced corporation tax, increased national insurance thresholds and, of course, the plan for growth.

[Jeremy Lefroy (Stafford) (Con)]

14. What recent discussions he has had with his international counterparts on strategies to reduce budget deficits.

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

At the G20 summit in Seoul in November, advanced countries committed to formulate and implement credible growth-friendly, medium-term fiscal consolidation plans. The Chancellor has been involved in discussions with our international and European counterparts since the Seoul summit, including in the International Monetary and Financial Committee and the International Monetary Fund spring meetings. As was the case with the previous Administration, it is not the Government’s practice to provide details of all such discussions.

[Jeremy Lefroy]

I thank the Minister for his reply. The OECD’s recent report says that the UK is striking

“the right balance between addressing fiscal sustainability…on the one hand, and preserving short-term growth on the other.”

In his contact with international colleagues, has my hon. Friend found other support for this view or, indeed, any support for the opposing view?

[Mr Gauke]

It is quite striking that on one side of the argument, saying that we must be serious about getting the deficit down, there is the OECD, the IMF, the European Commission, the CBI, the Governor of the Bank of England and the US Government, whereas on the other side we have the Labour party. We do not find the Labour party’s case terribly persuasive. On the evidence of last week, nor do the British people.