Construction minister says spending cuts would be 'irresponsible'

New construction minister Iain Pearson has pledged to keep investing in public sector construction projects after warning that spending cuts would be "grossly irresponsible".

In his first appearance in the House of Commons in his new role last week, Pearson was asked for assurance that the government would maintain spending on infrastructure during the economic downturn.

He said: "During these difficult economic times, it is right for the government to want to invest in major construction projects that will bring long-term benefits to the UK economy and that is what we will continue to do with programmes such as Building Schools for the Future and the new hospitals project."

He also locked horns with shadow construction minister Mark Prisk, who asked why the government was refusing to let small construction companies defer their VAT payments.

Pearson said: "The Conservative party's policy, as I understand it, is to say that it wants a 1% cut on national insurance and it wants a VAT payment holiday.

"It will pay for that by cutting tax reliefs, but those reliefs are important to businesses and to their long-term investments, so I do not think that that is a responsible strategy."