HC Deb 25 November 1987 vol 123 cc249-50
8. Mr. Douglas

To ask the Chancellor of the Duchy of Lancaster if he will make a statement on the main priorities for his Department's budget for 1987–88.

Mr. Kenneth Clarke

The main priorities for my Departmenfs budget in 1987–88 were set out in the last public expenditure White Paper and were reflected in the Supply Estimates and Supplementary Estimates for 1987–88. All of these have been presented to Parliament.

Mr. Douglas

May we have some assurance from the Minister that these priorities are set against the real needs of the United Kingdom as a whole? May we have an assurance that there will be a review of regional policy, because, while we might expect work to be done in the inner cities, there is a great deal of work needed to correct the imbalance between the north and the south of the United Kingdom? Aid needs to be given to mining areas, such as my own area in Fife, that have been in decline for a long time because of pit closures and because of other aspects of the recession.

Mr. Clarke

I can certainly give the assurance that our increased budget will be devoted to the priorities of the United Kingdom as a whole and to all its industry and commerce. We are reviewing the objectives and policies of our Department and will give a detailed statement on that in due course. I can assure the hon. Gentleman that it is not our intention to reduce the expenditure that we incur in the assisted areas either north or south of the border.

Mr. William Powell

Does my right hon. and learned Friend accept that the administration of regional funds in the assisted area of Corby has been an outstanding success, and that the lessons to be learnt from that could be applied to other assisted areas in which aid should be concentrated in future?

Mr. Clarke

We take great encouragement from what has occurred in Corby, where the local community has taken advantage of what is on offer and of the state of the British economy to establish a great deal of new employment and a new economic base for the town. To a certain extent the same thing has happened in Consett, Scunthorpe and other places hit by steel closures. Obviously, that is the kind of thing that we all want to see in all parts of the country that have been most adversely affected in the last 10 years by rapid industrial change.

Mr. Radice

Can the Minister tell the House when the Government will publish their review of regional policy?

Mr. Clarke

As I said, we are reviewing the policies of our entire Department. I have no doubt that some time next year we shall come forward with our conclusions.

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