Chris Evans
Main Page: Chris Evans (Labour (Co-op) - Islwyn)Department Debates - View all Chris Evans's debates with the HM Treasury
(13 years, 3 months ago)
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Chris Evans (Islwyn) (Lab/Co-op)
1. What factors he has identified as underlying the fall in gross domestic product in the fourth quarter of 2010.
The Chancellor of the Exchequer (Mr George Osborne)
The Office for National Statistics attributes the actual fall in GDP to the bad weather in December, but we have been clear that even without that effect, the numbers were disappointing. In the past week, there have been more encouraging survey data showing services, construction, retail and especially manufacturing all growing more strongly—something the Opposition have been mysteriously silent about.
Chris Evans
Could the Chancellor please tell the traders on Blackwood High street whom I met this Saturday whether the rise in VAT will help or hinder them this quarter?
Mr Osborne
The VAT increase, like the other measures we are taking, helps to deal with the record Budget deficit that we inherited from the Labour party. By dealing with that, we have provided financial stability for the British economy. That has also been made clear by the previous Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), who would also have gone ahead with a VAT increase.