Oral Answers to Questions

Russell Brown Excerpts

Monday 28th January 2013 Commons Chamber

[Mr Duncan Smith]

It is our intention to try to ensure that under universal credit the loose access to benefits that has been enjoyed by far too many people coming into this country who have no right to them will actually be limited. I will be able to brief the House much better on that as and when we complete the rules on it.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

Obviously the Secretary of State has made mention of the benefits uprating being capped at a 1% increase. Has he had any discussions with the Chancellor of the Exchequer about what that will do to growth or about the impact that it will have on the economy over the next three years?

[Mr Duncan Smith]

I have lots of discussions with the Chancellor on a regular basis, all very amicable. Of course we have to discuss this in a wider context, but the hon. Gentleman and his party look at this in a very narrow context. They say, “Well, you withdraw this money from people on benefits and that immediately has an effect on the high street.” If that were all that we were doing, I would agree with him, but it is not. There is a major programme for investment in industry and a huge capital spending programme, not least as will be announced in a statement later today. These will have an even bigger effect, in a positive way, on spending in the high street.