Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 8th September 2010 Commons Chamber

[Mrs Gillan]

I am sad that the hon. Gentleman has to ask such a question, but he knows that he has to because the last Government left this economy in tatters, and it has fallen to this coalition Government to put the economy back together again. As he well knows, we are providing an environment in which business can do business in the UK. We are reducing corporation tax by a penny each year, which will give us one of the lowest corporation tax regimes in the European Union, we have reduced the taxation regime for small companies, and we have incentives on national insurance for entrepreneurs setting up businesses. I can assure him that we are doing everything that we can to create a healthy environment in which businesses and private business can prosper.

[Nia Griffith (Llanelli) (Lab)]

What assessment has the Minister made of the impact on private businesses in Wales of the loss of public service contracts and purchasing power caused by redundancies, cuts to rises in benefits and the proposed new VAT regime?

[Mrs Gillan]

The hon. Lady knows that the deficit needs to be tackled immediately, and it was her Government who left us in this dire financial situation. Of course, I cannot pre-empt anything that might happen in the comprehensive spending review, but I recognise the vital role that public sector contracts play in the prosperity of businesses across Wales, and I know that the economy is heavily dependent on the public sector, so I have already made representations to the Treasury, and will continue to do so. However, I am afraid that the financial mess we are in was the responsibility of her party.