Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Patrick Grady Excerpts
Tuesday 24th October 2017

(6 years, 6 months ago)

Commons Chamber
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Lord Hammond of Runnymede Portrait Mr Philip Hammond
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Yes. As I said earlier, the UK economy is fundamentally strong. We have the world’s second largest services export sector at a time when emerging economies across the globe are sucking in new demand for services, and we have a global lead in various areas of emerging technology that will drive the fourth industrial revolution. This country has a bright long-term future. Of course we must deal with short-term uncertainty, and of course we must tackle our productivity challenge, but we are fundamentally in good shape.

Patrick Grady Portrait Patrick Grady (Glasgow North) (SNP)
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Given that support for a single Scottish police force was in the 2011 Scottish Tory manifesto, can we assume that the Government think that the £280 million VAT fee is a price worth paying, or will they finally see sense and scrap the VAT on Scotland’s fire and police services?

Mel Stride Portrait Mel Stride
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The hon. Gentleman’s colleague, the hon. and learned Member for Edinburgh South West (Joanna Cherry), asked exactly the same question, and I shall give exactly the same answer. When the Scottish Parliament and Government made that decision, they knew that structuring the police and fire services in the way that they chose would lead to the VAT outcome that they should have expected all along.