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European Affairs

If the hon. Gentleman will allow me to make this point, I shall give way to him afterwards. I am very sorry that the shadow Chancellor has denounced that package as a ““concerted attempt to deliver a euro-area spending splurge””. In fact, it is plain common sense that during an economic downturn it is not just we who need economic stimulus but the rest of Europe. It is common sense to kick-start the economy through fiscal stimulus while setting out clear plans to ensure fiscal sustainability over the medium term. The European Commission therefore advocates VAT reductions and the front-loading of public expenditure; extra help for the most vulnerable and low earners; and, importantly, because we need to prepare for the upturn as well as protect ourselves in the downturn, support for small businesses, enhancing access to finance, ensuring prompt payment, and improving public procurement for small and medium-sized enterprises. Those are all sensible proposals. Far from being a spending splurge, they are the right response to the economic downturn. I promised to give way to the hon. Member for Stone (Mr. Cash), and I shall do so.