Public Spending

Sajid Javid Excerpts

Thursday 17th June 2010 Commons Chamber

[Danny Alexander]

The hon. Gentleman knows perfectly well that, in the context of renewing the deterrent, the coalition has agreed a value-for-money review. In the context of that, spending £67 million on long-lead items in advance of the value-for-money review being completed would be utterly irresponsible.

[Sajid Javid (Bromsgrove) (Con)]

I thank the Chief Secretary for outlining Labour’s cuts. Will he take this opportunity to remind the House just why we face such a difficult spending round?

[Danny Alexander]

We are facing a difficult spending round for two reasons: first, we have the largest peacetime budget deficit since the war—£155 billion—with an 8% structural deficit, which is larger than had previously been estimated; and secondly, the previous Government took irresponsible spending decisions at the end of their time in office and that has added to the pressure on Departments in the spending review. I am seeking to relieve that pressure in today’s statement.