Government Spending

Lord Lea of Crondall Excerpts

Wednesday 26th May 2010 Lords Chamber

[Lord Anderson of Swansea]

My Lords—

[Lord Lea of Crondall]

My Lords—

[Lord Strathclyde]

My Lords, there are 20 minutes for Back-Benchers to speak, so we have plenty of time. I invite the noble Lord to speak first, and then we will hear from one of my noble colleagues.

[Lord Lea of Crondall]

My Lords, I thank the noble Lord. I think that is the protocol. I have two further questions for the Minister. First, is he aware that, as an annualised rate, the deficit—all this is premised on the huge increase in the deficit—was 2.5 per cent 18 months ago and is now 11.1 per cent? That has created a hole in the economic output against trend of about £50 million. Does he not find it totally incredible to say that that is the fault of public sector workers? Is it more likely to be the fault of the top 0.1 per cent of the population whose average wage is over £2 million? The benefit is going to those people, but the cost is because public expenditure has got to go up to pay for unemployment benefit and tax revenues will go down because of lower income tax and lower corporation tax.

[Lord De Mauley]

My Lords, I thank the noble Lord, Lord Lea of Crondall, for his question. He quite rightly points to the huge size of the deficit. He suggests that the Government somehow imply that it is the fault of public sector workers. There is no question that that is the suggestion. We are all in this together. I take his point, but there is no suggestion that public sector workers should bear more than their fair share of the burden.