Oral Answers to Questions

Albert Owen Excerpts

Wednesday 12th October 2011 Commons Chamber

[Mrs Gillan]

May I extend a warm welcome to the hon. Lady, who is now on the Front Bench? She and I have had many conversations, and I wish her well. I am sure that she will complement the right hon. Member for Neath (Mr Hain) in her new role, and the Under-Secretary and I would like to extend our good wishes to her.

I take no joy from the figures this morning, but I do take joy from the fact that we have announced sector-based work academies. I hope that the hon. Lady will use her good offices with her party, and explain why the Labour party and the Welsh Government are cutting the enterprise budget, rather than using the money to freeze council tax in Wales, as it is being frozen in England.

[Albert Owen (Ynys Môn) (Lab)]

5. What assessment she has made of the effects of the Government’s economic policy on employment levels in Wales.

[The Parliamentary Under-Secretary of State for Wales (Mr David Jones)]

Through our economic policies, we are committed to delivering strong and sustainable growth balanced across the whole UK, including Wales, rather than concentrated in London and the south-east, as it was under the previous Government. We have made it clear that our top priority remains tackling the deficit while creating the right conditions for the private sector to expand in Wales and create jobs.

[Albert Owen]

I welcome measures taken by the Welsh Government to stimulate the economy in Wales, but the UK Government, at a time of high unemployment, high inflation and rising borrowing, have taken money out of the economy by putting up VAT. Does the Minister agree with the Federation of Small Businesses that it is time to consider a temporary reduction in VAT to stimulate the economy, particularly in sectors such as construction and tourism, to increase employment in Wales?