Oral Answers to Questions

Angela Smith Excerpts

Tuesday 21st June 2011 Commons Chamber

[Mr Osborne]

First, the right hon. Gentleman has misquoted the IMF. Perhaps he will give the House the full quotation. The IMF did not say “at present”, which the right hon. Gentleman slipped into the quotation. [Interruption.] Perhaps he will take the opportunity to correct the record later. Secondly, the IMF said:

“Strong fiscal consolidation is underway and remains essential”.

The managing director of the IMF could not have been stronger in his endorsement through article IV.

I note that three Opposition Front Benchers have asked questions, and that not one has mentioned the new policy of the shadow Chancellor.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

4. What recent assessment he has made of the effect on the economy of trends in the rate of inflation.

[Mr David Lammy (Tottenham) (Lab)]

8. What recent assessment he has made of the effect on the economy of trends in the rate of inflation.

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

The Government consider a range of factors when making their assessment of the United Kingdom economy. The Office for Budget Responsibility is responsible for producing independent economic and fiscal forecasts. The OBR published a full analysis of recent developments and the prospects for growth and inflation in its forecast at the time of the Budget.

[Angela Smith]

Do the Minister and the rest of the Front-Bench team now regret raising VAT at a time of rising commodity prices, which has helped to push inflation up to double the Government’s target rate and has added to the squeeze on pensioners and families?

[Mr Gauke]

First, the former Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), said that he would have done the same. Secondly, a cut in VAT would do nothing to reverse the rise in global commodity prices, but would do a lot to reverse the Government’s hard-won credibility for getting the deficit down.