Autumn Statement

Lord Wigley Excerpts

Wednesday 5th December 2012 Lords Chamber

[Lord Sassoon]

Again, I am grateful to my noble friend for her kind words. It is also important that the House recognises that the damage done by the fall in GDP as a consequence of the structural position and the mess left behind by the previous Government, combined with the financial crisis, continues to be assessed as worse and worse. As my noble friend said, it is now estimated to be a fall in GDP of an extraordinary 6.3%.

I also agree with my noble friend that it is important that the banks are realistic about the state of their balance sheets. Linking back to the debate on the Financial Services Bill that we had earlier this afternoon, it is important that the new Financial Policy Committee—up and running now for a period in shadow form—is beginning to get to grips with these issues. These sorts of things were never debated and put on the table by the authorities in the past, when the punchbowl should have been taken away. So my noble friend is completely right.

[Lord Wigley]

My Lords, I also wish the Minister well for the future and add my concern to that expressed already about whether this mini-Budget will trigger the necessary growth. Specifically, with regard to the commitment in the Autumn Statement of £5.5 billion in additional infrastructure investment and the consequential £227 million additional capital funding available to the Welsh Government, will he confirm that that spending can be allocated as desired by the Welsh Government and does not need to follow the pattern of the £5.5 billion that has generated it? Will he also confirm that in the discussions that have taken place between the Treasury and the Welsh Government over recent weeks with regard to the enhanced capital allowance in enterprise zones, that is not assumed to be coming out of that money?

[Lord Sassoon]

I believe that I can confirm both points. The allocation will be for the Welsh Administration in the normal way. I believe that the noble Lord’s understanding on the second point is correct. If it is not, I will correct that understanding.