Oral Answers to Questions

Debate between Keith Vaz and Danny Alexander

Tuesday 28th January 2014 Commons Chamber

[Danny Alexander]

The figures from HMRC show that the cost of reducing the 50p rate to 45p was about £100 million. It is precisely because the tax was not raising any money that I was willing to support the decision to reduce it, on the basis that we would raise much more money from the same people in different ways. The House might like to be updated on one of those measures. The annual tax on enveloped dwellings—the mansion tax for tax dodgers—is raising five times as much as we thought it would.

[Keith Vaz (Leicester East) (Lab)]

6. What discussions he has had with the Secretary of State for Health on introducing an additional tax on drinks with a high sugar content.

Comprehensive Spending Review

Debate between Keith Vaz and Danny Alexander

Thursday 28th October 2010 Commons Chamber

[Danny Alexander]

I will not give way again to the hon. Gentleman; I shall press on.

Also in June, the OBR forecast total jobs in the economy over the next four years, which Opposition Members seem to have missed. It implies 1.6 million additional private sector jobs over the period. We will do all that we can to help those leaving the public sector to take advantage of those opportunities, and we must remember at all times that the gravest threat to jobs in our economy would be a failure to deal with the deficit. Deficit denial is the single biggest danger to employment in this country today.

Throughout the review, I have been clear on one thing: our decisions need to improve life chances. Fairness is not just the net sum of cash transfers. That is important, but there is more. Fairness is about opportunity and the chance for a better future, especially for the next generation. We know about the attainment gap between children from different backgrounds, which starts at an early age.

In these difficult times, perhaps no one would have noticed had we quietly turned a blind eye, but fairness demands more, so we have chosen to invest. That is why we have introduced a new pledge for 15 hours’ child care for disadvantaged two-year-olds, matching the 15-hour commitment for all three and four-year-olds that was previously introduced by this coalition Government. Cash spending on Sure Start services will be maintained, with a renewed focus on life chances. Although this has meant a greater challenge for other Departments, I am proud that the schools budget will not only match but outstrip inflation in each of the next four years. When we factor in reduced pressure from pay restraint and back-office savings, that amounts to a very significant boost to the classroom. A new £2.5 billion pupil premium will target additional resources on those with the most to gain.

We will be relentless in our focus on social mobility, and in extending the ladder of opportunity. Fairness runs through the heart of this spending review.

[Keith Vaz (Leicester East) (Lab)]

We all accept that those are very difficult decisions. However, the chairman of the Police Federation has suggested that 40,000 police service jobs will be lost because of cuts to the Home Office budget. Does the right hon. Gentleman accept that if that happens, crime will rise?

[Danny Alexander]

I do not accept that analysis. Of course, it will be for individual police forces in due course to make their own decisions—[Interruption]—but given the potential for police forces to become more efficient, we think that there is no reason why those savings should have any impact at all on the presence of police on the front line in communities.