Oral Answers to Questions

Geraint Davies Excerpts

Wednesday 6th February 2013 Commons Chamber

[The Prime Minister]

It does remain my view, but I am afraid to say that, as far as I can see, I am the only party leader who believes that, in the years beyond this Parliament, we should increase defence spending in the way described by my right hon. Friend. The good news for all those who care about this issue is that it is agreed Government policy that the defence equipment programme needs real-terms increases up to after 2015. It is very important for us to be able to plan our exceptional equipment programme, which will give us some of the best-equipped armed forces anywhere in the world.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Q2. The Office for Budget Responsibility tells us that the bankers will pay £500 million less for the bankers tax than the Prime Minister promised last year, yet in April he will inflict a £500 million cut on the poorest through the second empty bedroom tax. How can he justify taking from the poor and giving to the rich?

[The Prime Minister]

I say to the hon. Gentleman—this is an important point—that we have introduced the bank levy. We think that that is a better answer than a one-off bonus tax. The bank levy will, of course, be paid every year, so it will raise considerably more than a one-off bonus tax. What my right hon. Friend the Chancellor has done when the bank levy has not come up to the figures that we require is increase the bank levy to make sure that they do.