Public expenditure review and banking reform

18 June 2010

The Commercial Secretary to the Treasury, Lord Sassoon, repeated government statements on the review of public expenditure commitments and banking reform in the House of Lords on 17 June

The statement on 'Public Expenditure: Review of Commitments' set out the findings of the Government’s review of the public spending commitments made by the previous government.

Among the issues raised in the questions and responses that followed were:

  • the impact of these cuts on economic output and employment
  • the suspension of the Ministry of Defence search and rescue helicopter programme, the Stonehenge Visitor Centre and Sheffield Forgemasters
  • the costs of cancellation and the liabilities incurred as a result of cuts
  • the implication of impact assessments for the construction industry and small firms
  • the implications for existing voluntary sector projects joint-funded with government money and voluntary contributions
  • private investment in projects.

Statement on banking reform

Lord Sassoon also repeated a statement on plans for the reform of the institutional framework for financial regulation.

Issues raised in the discussion that followed included the:

  • creation and roles of the Financial Policy Committee, Consumer Protection and Markets Authority, Financial Policy Committee and Prudential Regulation Authority
  • start-up costs of the new institutions
  • experience and backgrounds of the members of the recently announced Independent Commission for Banking
  • pre-legislative scrutiny of the laws needed to create the new institutions.

Members of the House of Lords who responded to the statements included Lord Eatwell, Lord Howarth of Newport, Lord Newby, Baroness Noakes, Bishop of Ripon and Leeds, Lord Higgins, Lord Christopher, Baroness Sharp of Guildford, The Earl of Caithness, Lord Harrison,  Lord Higgins, Baroness Farrington of Ribbleton, Viscount Trenchard, Lord Haskel and Lord Cobett of Castle Vale.

Further information

The Government uses statements to make announcements about matters of policy, government actions, and national or international emergencies. Statements are usually read out by a minister but can also be made in writing. A statement can be made in either or both Houses.

Members can respond or question the minister for a limited period following a statement.

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