Budget 2009

Part of Oral Answers to Questions — Scotland – in the House of Commons am 11:30 am ar 6 Mai 2009.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Jim Murphy Jim Murphy The Secretary of State for Scotland 11:30, 6 Mai 2009

The hon. Gentleman is just wrong; the economic experts say very clearly that the VAT cut is working. A philosophical disagreement is involved here. Of course the Scottish Government are getting more money and their budget continues to increase, but the UK Government's view is that money should also be in the pockets and purses of Scottish consumers, so that they can spend and thus ensure that the Scottish economy is bolstered and that the recession is shallower and shorter than it would otherwise be. The VAT cut is, of course, one of a range of measures, another of which is the scrappage scheme for cars, which has been welcomed by the industry in Scotland. That is another important measure of a Labour Government who are taking decisive action to do what we can throughout this international recession.