Oral Answers to Questions

Debate between Baroness Keeley and David Gauke

Tuesday 8th February 2011 Commons Chamber

[Mr Gauke]

My hon. Friend has a great deal of expertise in the business world. In the longer term, it is vital that we get the fundamentals right and have sustainable public finances, and the Government are pursuing policies that will favour growth. In the short term, obviously her constituents have our sympathy. Jobcentre Plus is able to provide a rapid response service in those areas, and I am sure that it will be acting closely with her constituents.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

A firm in my constituency manufactures parts for motorbikes, and it plans to move into the full production of motorbikes, so why have the Government decided to cut investment allowance, which will hit firms that are trying to make such moves? How can there be growth with policies that undermine manufacturing?

[Mr Gauke]

We announced in the June Budget corporation tax reductions that will benefit all sectors, including manufacturing. As we can see, so far manufacturing is doing well. Of course, we cannot be complacent, but the early signs are that our policies are helping.

Oral Answers to Questions

Debate between Baroness Keeley and David Gauke

Tuesday 21st December 2010 Commons Chamber

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

It is for Departments to decide how best to prioritise resources within their departmental expenditure limits. The consequences in particular locations will become apparent only once these decisions have been made. However, the Secretary of State for Communities and Local Government announced the provisional local government finance settlement on Monday, and the balance of the settlement is more heavily weighted towards councils that are more dependent on central Government grants and have greater relative needs.

[Barbara Keeley]

Salford is ranked 15th in average scores for the 50 most deprived districts in England. The front-loaded grant cuts announced in the spending review mean that next year Salford council is faced with making budget cuts of 15%, or £40 million, which will have an impact on services such as social care for frail older or disabled people. How does the Minister square that reality with the Government’s pledge in the spending review to limit the impact of spending reductions on the most vulnerable in our society?

[Mr Gauke]

Had we proceeded with the spending formula that existed under the previous Government, some of the deprived areas that are most dependent on central Government grant would have faced a greater cut than the one in the proposals announced by my right hon. Friend the Secretary of State for Communities and Local Government.