Jo Swinson MP has called on the Chancellor to invest extra Government revenues into schemes that encourage growth.
During a recent statement on the economic situation in Parliament, Jo called for funds from higher than expected tax revenues, and receipts from Government asset sales to be put towards investment in infrastructure and skills, rather than cutting income tax for high earners.
Chancellor George Osborne replied that last year’s spending review outlined how revenue from asset sales would be reinvested, as is already happening on a case-by-case basis.
Commenting, Jo said:
“Given that the economy is still fragile, the Government must look at the careful investment of any extra revenues into schemes that stimulate demand, improve productivity and boost employment.
“I am pleased that the Chancellor is already looking at reinvestment of receipts from asset sales in this way. Rather than spending money to give tax cuts to the rich, the priority should be value-for-money investment in the skills and infrastructure that will sustain British industry and business into the future.”
The full text of Jo’s question to the Chancellor and his reply is as follows:
Jo Swinson (East Dunbartonshire) (LD): I support the Government’s plans for cutting the deficit, leading to lower interest rates and increased international confidence in the UK economy, but the Chancellor is well aware that our economy is still fragile, so if tax revenues are higher than expected, or if there are receipts from asset sales, will the Chancellor reinvest that in capital infrastructure projects and skills development, to give a boost to our economy and create jobs, rather than being seduced by the voodoo economics of giving tax cuts to the rich?
Mr Osborne: There are quite a lot of American references in this debate. We have used the receipts of some of the asset sales that we have proposed-and indeed undertaken-to invest in new infrastructure, or in a particular industry. Of course, we have to do that on a case-by-case basis, but the spending review set out how we were going to use the proceeds of some of the asset sales for future investment.