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Expenditure Reduction

Volume 511: debated on Wednesday 16 June 2010

2. What assessment he has made of the likely effect on economic growth in Scotland of the programme of expenditure reduction announced on 24 May 2010. (1836)

Dealing with the deficit and continuing to ensure the economic recovery is the most urgent issue we face. We must tackle the deficit to restore confidence in our economy and support the recovery.

Next week the Under-Secretary and his Liberal colleagues will be making massive cuts throughout the United Kingdom. When he has his first meeting with the First Minister of Scotland, could he explain why, when the Scottish Government have got a substantial increase in the amount of money they are receiving this year, they are overseeing thousands of cuts throughout Scotland? Will he do what I think he will do, which is to roll over whenever the First Minister wants him to?

I thank the hon. Gentleman for his, as usual, spirited question. I am sure he will be in agreement with the Scottish Parliament Finance Committee, which called on the Scottish Government to show far greater leadership by discussing in more open and realistic terms the impact that the cuts will have and the options that are available to deal with those cuts.

I warmly welcome the Minister to his new post.

It is really important for economic growth in remote and rural areas to ensure that businesses, particularly small businesses, in such areas have access to broadband. What will the Government be doing to ensure that broadband is rolled out to the whole country, including remote and rural parts of Scotland?

I thank the hon. Gentleman for his warm welcome. He will already know that the Secretary of State for Culture, Olympics, Media and Sport has set out his clear objective of turning Britain into a digital economy. The hon. Gentleman specified with clarity the needs of rural areas, for which the Secretary of State and I will continue to fight within Government.

I congratulate the new Ministers on taking office. However, I draw to the House’s attention the fact that they are huddled together in one section of the country; I hope that they will, at times, travel out to look at other parts of the country, including my own constituency.

What actions have been taken so far to ensure that any expenditure reduction does not result in a cut or a delay in the aircraft carriers upon which so much of the economy of the west of Scotland, and Scotland as a whole, depends?

I congratulate the hon. Gentleman on his elevation to the chairmanship of the Scottish Affairs Committee, on which I was pleased to serve with him. I am sure that he will bring his own distinct style to the Committee’s proceedings.

As the hon. Gentleman will know, this Government’s position on the aircraft carriers is, despite attempts to suggest otherwise, no different from that of the previous Government. There is to be a strategic defence review. The nuclear deterrent is excluded from that review, and it would be wrong to prejudge the review in any other way, other than to say that sea-borne defence is obviously very important to this country.