Cost of Living

Alan Campbell Excerpts

Wednesday 16th May 2012 Commons Chamber

[Justine Greening]

The hon. Gentleman will be pleased to know that we have done that. He knows that we introduced it in the Budget last year and that it was partly funded by the tax rise for oil companies. I know that he welcomed the rural fuel duty discount pilot and I was pleased to get that from him. It is an important pilot and we will see how it progresses over the coming months and years.

Let us make a comparison with what would have happened under Labour’s fuel duty plans. Labour would have had motorists paying £144 more and the average haulier would have been £4,400 worse off if we had not taken the action we have taken. When it comes to prices at the pumps, no one will forget Labour’s record: 12 increases in fuel duty while they were in office and a further six fuel duty hikes planned for after the election.

Let me address the very important issue of buses. I listened intently to the speech by the hon. Member for Darlington (Mrs Chapman) and I am happy to meet her to talk about her local issues. She asked whether we could have a Transport for London-type approach in the rest of the country, but local transport authorities have had the power to impose such a model locally since 2000 and the flexibility to do so should they want to do that. The Government think it is up to local authorities, rather than Whitehall, to take that decision, but I am very happy to talk to her about her particular local issues.

We have protected capital spending on transport but have also had to take difficult decisions regarding the bus service operators grant. Nevertheless, I am delighted that we continue to make improvements in bus services, not least through the £70 million for the better bus area fund, the £31 million for green bus funding to cut carbon emissions and support British jobs and, of course, the £560 million of local sustainable transport fund money that funded 35 successful bids in part, including for improvements to bus services. Some £200 million has been spent on local major bus schemes. There is £20 million going to community bus services and £15 million supporting the roll-out of smart ticketing technology across England’s bus fleets. There are lots of good things going on in buses and we are still taking the steps needed to tackle the fiscal deficit left by Labour.

To conclude, whether we are talking about an income tax cut for 24 million people, taking 2 million of the lowest-paid out of income tax altogether, freezing council tax, helping home owners with their energy bills or limiting increases in rail fares, the Government recognise the pressures on the cost of living. Wherever we can we will continue to take action to help further, but there is no getting away from the fact that we are operating in a financial straitjacket as a result of the deficit. As my hon. Friend the Member for Worcester (Mr Walker) pointed out, there is no magic wand we can wave; we have to work hard to sort out our public finances and get our economy back on track.

Perhaps the greatest tragedy of the Labour years in office was what we got for all the money that was wasted and all the debt that was racked up. Nothing. In addition, there was an infrastructure deficit that was as bad as the financial deficit. Long-term security of energy supplies? Nothing. Low-cost railway? No. Reform of the welfare system? Nothing. Sustainable pensions? Nothing.

The reality is that tackling the financial deficit is one of the problems the Government need to solve, but we will make sure that we help out on the cost of living wherever we can as we rebuild our country. It would be fundamentally wrong to continue with Labour’s failed policy—to spend more, borrow more and pass the buck for our debts to our children and the next generation.

[Mr Alan Campbell (Tynemouth) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the question be now put.

Question agreed to.

Question put accordingly (Standing Order No. 31(2)), That the amendment be made.