Oral Answers to Questions

Debate between Philip Davies and Danny Alexander

Tuesday 2nd September 2014 Commons Chamber

[Danny Alexander]

The hon. Lady deliberately ignores the fact that many people faced marginal deduction rates of more than 100% under the previous Labour Government. It is precisely because we want every single person in this country to know that they will be better off in work than on benefits that we are introducing universal credit, and she should support it as strongly as I do.

[Philip Davies (Shipley) (Con)]

The National Institute of Economic and Social Research has shown that a 3p cut in fuel duty would generate 70,000 new jobs, stimulate GDP by 0.2% and help to reduce inflation. The Centre for Economics and Business Research says that a cut would be even more beneficial to the economy and would be self-financing. Do the Government accept that a cut in fuel duty would be self-financing and provide a boost to the economy?

[Danny Alexander]

I am grateful to my hon. Friend for drawing attention to that study, which I have discussed with the FairFuelUK campaign, although I was slightly discomforted when it said it thought that the only two politicians it had met who understood the issue were myself and Nigel Farage—that was probably a surprise to both of us. The Treasury has published its own analysis on fuel duty reductions, which shows the economic benefits that they can bring.

Oral Answers to Questions

Debate between Philip Davies and Danny Alexander

Tuesday 16th November 2010 Commons Chamber

[Philip Davies (Shipley) (Con)]

9. What recent assessment he has made of the effectiveness of the outcome of the comprehensive spending review in reducing the budget deficit.

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

The Office for Budget Responsibility will update its forecast of the deficit on 29 November, taking into account the spending review. Other assessments have backed the Government’s plans, with the International Monetary Fund, for example, stating that our consolidation plan

“greatly reduces the risk of a costly loss of confidence in fiscal sustainability and will help rebalance the economy”.

That backs our view that the spending review was fair and supports growth.

[Philip Davies]

One of the big winners from the comprehensive spending review was, of course, the European Union. The EU has not had its accounts signed off by auditors for 16 years running, so if the Government are looking for a popular way to reduce the deficit, may I suggest that they go to the EU and say that it will not get another penny-piece out of the UK until it has had its accounts signed off?

[Danny Alexander]

Of course, the European Court of Auditors report, which fails to qualify the accounts for the 16th year in succession, is disappointing, as my hon. Friend observes. We will continue to champion reform through engagement with European institutions and other member states. It is worth him bearing in mind that the Government’s most important priority for the forthcoming budget negotiations is to reduce and to keep under control the EU budget, not just next year, but in subsequent years, in recognition of the fact that many EU countries are facing tough financial circumstances, as we are.