Oral Answers to Questions

Margaret Curran Excerpts

Wednesday 9th November 2011 Commons Chamber

[Michael Moore]

We have said that we want to consider any valid proposals brought forward by the Scottish Government, but they must first establish a credible, detailed position, maintain the consensus across the parties and ensure that there is no detriment to Scotland or the rest of the UK. The Scottish National party and the First Minister have so far failed to deliver the detail.

[Margaret Curran (Glasgow East) (Lab)]

I ask the Secretary of State to pay particular attention to the concerns raised this morning about the construction industry in Scotland, where 10,000 jobs have been lost this year and the number of companies facing bankruptcy has risen by 135% in the past two years. With that in mind, will he support Labour’s call, and that of the Scottish Building Federation, for a one-year cut in VAT on home improvements to 5%, a specific action to help boost the construction industry and get the Scottish economy moving again?

[Michael Moore]

I welcome the hon. Lady to her new post, without, if I may say so, wishing her too much success in it. She brings a great deal of experience to the House and I look forward to our encounters. We have heard Labour’s proposals for reducing VAT, but I have to tell her that when that was last done it did not deliver the hoped-for outcome. As we are seeing across the eurozone, countries cannot spend their way out of a debt crisis. We need a credible plan and we have to deliver on it, which is what we are doing.

[Margaret Curran]

I thank the Secretary of State for his kind opening remarks and look forward to robust debates and work in the coming years. I am sorry to say that his answer is completely inadequate, because previous VAT cuts did deliver growth. The Government’s failed policies mean that they are set to borrow £46 billion more this year, rather than reduce the deficit. In reality, Scots face a double-whammy: a Tory-led Government cutting too far and too fast, and an SNP Government presiding over stagnant growth and cuts in capital spending. Scotland is in the midst of a crisis—a jobs crisis and a growth crisis. If he will not follow Labour’s five-point plan to boost jobs and growth in Scotland, what specific action will the Government take in Scotland and for Scotland to get our economy moving again?

[Michael Moore]

The hon. Lady cannot skip so lightly away from the mess we inherited from the previous Government: the highest deficit in peacetime history and we were borrowing £1 for every £4 we spent, which was simply unsustainable. It is absolutely vital that we keep to our credible deficit reduction plan and deliver on the plan for growth by cutting corporation tax, maintaining low interest rates and reducing regulatory and national insurance burdens. As far as Scotland is concerned, I agree that the tax hike in the Scottish Government’s spending review is bad for business. They must acknowledge that we have helped with pre-payments for the replacement Forth crossing and by making land available from the Ministry of Defence. We are helping the Scottish Government in many ways.