Oral Answers to Questions

Paul Blomfield Excerpts

Tuesday 12th October 2010 Commons Chamber

[Kevin Brennan (Cardiff West) (Lab)]

2. What representations he has received on variations between the English regions and constituent parts of the UK in respect of the effects of the measures in the June 2010 Budget.

[Paul Blomfield (Sheffield Central) (Lab)]

3. What representations he has received on variations between the English regions and constituent parts of the UK in respect of the effects of the measures in the June 2010 Budget.

[The Chief Secretary to the Treasury (Danny Alexander)]

We received representations from many interested parties from all parts of the UK and at the time of the Budget we published details of the impact of the Budget on each English region and each devolved Administration.

[Danny Alexander]

I am grateful for the question, and I understand the sensitivity in the community about that decision. The spending review will, of course, result in some difficult decisions having to be made all over the country. I can however say to the hon. Gentleman that we are looking very closely at the regional and national impact of particular decisions. One of the reasons why the Deputy Prime Minister announced a regional growth fund for England is to deal with those issues, and I hope very much that the Welsh Assembly Government might follow suit.

[Paul Blomfield]

Will the Chief Secretary acknowledge the analysis undertaken by the Institute for Fiscal Studies, whose head at that time now leads the Office for Budget Responsibility, that found that the measures in the emergency Budget will hit those on lowest incomes hardest and will have a disproportionate impact on constituencies in the north?

[Danny Alexander]

If anything demonstrates the independence of the OBR it is the appointment of the head of the IFS to be the head of the OBR, and I hope that will put an end to any such criticisms from the hon. Gentleman’s side of the House. The analysis was interesting, but the analysis we published at the time of the Budget was robust and soundly based. I have carefully studied the IFS’s additional analysis, and I think it makes some assumptions that push the boundaries. As a result it is not an analysis the Treasury would stand by. I would stand by the view that the measures we announced in the Budget were progressive and fair and hit the people on the highest incomes hardest.

--- Later in debate ---

[Mr Gauke]

We do have to take tough decisions. The full implementation proposals will be announced next week, but this is one of those occasions when we must make tough decisions, because we must face up to the enormous deficit. The Government are prepared to deal with it.

[Paul Blomfield (Sheffield Central) (Lab)]

T9. Will the Chief Secretary to the Treasury welcome the backing given by Olympic champion Jessica Ennis to the U-mix centre, which is a sports and leisure facility in Sheffield designed by Urban Mixtures, an inspiring group of young people who represent the real big society at work? Funding has been allocated for the project under the myplace programme, but has been frozen pending the comprehensive spending review. Will he share my hope that that funding will be unfrozen and allocated shortly?

[The Chief Secretary to the Treasury (Danny Alexander)]

I am grateful to the hon. Gentleman for raising that point, and as usual he puts the case for his constituency very eloquently. Decisions on spending matters, including spending that was frozen under the project re-approvals process, will be announced on or after the date of the spending review.