Oral Answers to Questions

Debate between Oliver Letwin and Richard Burden

Wednesday 24th November 2010 Commons Chamber

[Mr Letwin]

Lord Young has resigned. My personal view is that the longest and deepest recession since the war, and the vast fiscal deficits that the Labour party bequeathed to us, have left not only SMEs but the entire country, and, of course, the Government, with an enormous challenge that we are now trying to meet.

[Richard Burden (Birmingham, Northfield) (Lab)]

Some of the enterprises of relevance in this context are third sector or voluntary sector organisations, for which the operation of the compact is important. How will the Minister respond to the concerns expressed by a number of those organisations that the compact is not working and that the new compact’s accountability mechanisms are not robust enough? The reality is that voluntary sector organisations are first in line for cuts, and this Government are doing nothing to address that.

[Mr Letwin]

Let us be clear: the compact is not about the level of expenditure but about the extent to which, in each contract, the Government play fair by those with whom they are contracting. We absolutely accept that the operation of the compact under the previous Government was not adequate. We are introducing new measures to make it more transparent, and the entire structures of our payment by results contracts will be totally transparent and in line with the spirit, as well as the letter, of the compact.