Spending Review

Baroness Hodge of Barking Excerpts

Wednesday 26th June 2013 Commons Chamber

[Margaret Hodge (Barking) (Lab)]

The Chancellor said that one of the objectives of his statement today was to stimulate growth, and he announced £50 billion of investment in 2015-16. In 2009-10, this country spent £48.4 billion in cash terms. Will he now accept that that 2015-16 figure represents a real-terms cut in investment?

[Mr Osborne]

I inherited from the last Chancellor a plan greatly to reduce capital spending—to cut it by 50%. In the 2010 review, we increased it from the plans we inherited. We increased it in the years since, and now we are maintaining it in the years going forward and setting it out for the rest of the decade. So the big reduction in capital spending that the right hon. Lady refers to is one I guess she must have supported, because she was a Minister of that Government.