The Economy

Alex Chalk Excerpts

Wednesday 18th November 2015 Commons Chamber

[Alex Chalk (Cheltenham) (Con)]

The core message in the motion is that the Government have somehow failed to stand up for working people. I must tell the Opposition, with respect, that that message is misconceived.

Let us look at the context. The position in 2010, as we recall it, was that this country was staring into the abyss. Make no mistake: borrowing was over £150 billion a year. What does that mean, in concrete terms? We were bringing in about £600 billion, but we were spending £750 billion. It is perfectly true to say, as was said by the hon. Member for Hayes and Harlington (John McDonnell), that the crisis came and therefore the deficit became larger, but it should not be forgotten that on the eve of the crisis—as was pointed out by the Institute for Fiscal Studies—this country had one of the largest structural deficits in the developed world. That made us vulnerable, and it meant that when the crisis hit, the cupboard was bare. The point has been made—and it bears re-emphasis—that there can be no economic security, no national security and no opportunity when a country loses control of its public finances, and this country did that spectacularly in 2010.

The hon. Gentleman may not be interested in those figures, but the truth is that unemployment was up—unemployment, which has an impact on working people’s lives—and youth unemployment was up. What has happened since then, during the period in which the hon. Gentleman would have us believe the economy has gone to hell in a handcart? Well, last year more jobs were created in Yorkshire alone than were created in the whole of France, more jobs were created for young people in this country than in the rest of the European Union put together, and there were more women in jobs than ever before. Since 2010, 2,000 jobs have been created each day. That matters, because jobs bring dignity, self-worth and fulfilment. But if the hon. Gentleman is not interested even in jobs, what about living standards? Well, living standards are up as well: we are better off by £900 per household than we were in 2010.

There is also a suggestion that our growth is anaemic by comparison with that of other countries. How can that possibly be the case, when it is recognised that ours has been the fastest-growing major developed economy in the world, together with that of the United States? That is an achievement of which—I hope—Members on both sides of the House can be proud, because it is by securing that stability, that growth and that prosperity that we assist the most vulnerable in our society.

We recognise, of course, that there is more to do, but when the hon. Gentleman makes the point that the deficit is not closed—which he is perfectly entitled to do—the response should not be, “Let us widen it and make it bigger.” Instead, we should ask what we can do, in a constructive, sensible and, dare I say it, patriotic way, to close that deficit and thus secure our resilience. If we do not have a resilient economy and put money aside for a rainy day, we shall not be in a good position to weather the storm when it hits, as hit it will. The time will come when there is a global downturn, because that is the nature of events, but we must be prepared to weather it. I am sorry to say that the policies of the hon. Gentleman—if, indeed, there are any—seem to take us nowhere towards achieving that resilience.

Today we have a deficit of some £70 billion, which is not an inconsiderable figure: it is about double the defence budget. [Interruption.] I hear noises off from Opposition Members. On the one hand they say that the deficit is too large, and on the other hand they say, “Let us make it larger still.”

[Suella Fernandes]

I echo the point that my hon. Friend is making. The only way we can get to grips with debt is by tackling the deficit, and, thanks to the difficult decisions made by this Government, we have already cut it by more than half. As my hon. Friend says, there is more to do, but that is why we must carry on with the plan and finish the job.

[Alex Chalk]

I entirely agree. We must carry on in a way that is proportionate—of course—and fair—of course—but which focuses, ultimately, on the prize that is living within our means. I am sorry to say that Labour Members do not seem to be ready to adopt that approach, not least because they opposed the cap on welfare. In an article published in New Statesman in March, the hon. Member for Hayes and Harlington said that he would avoid any cuts whatsoever, and that—as we have heard again today—he thought that running a surplus was “barmy”.

I believe that there is an issue not just for our times, but for future times. There is an issue of generational justice, because we owe it to the next generation to bequeath to them an economy that can pay its way. Make no mistake: someone born this week—a young lady, say—will knock on the door of the state in 30 years’ time, having been turfed out of her home by an abusive husband, and will ask for help. It is up to this generation to ensure that we have not left the cupboard bare; otherwise, what will that young lady say to us in 30 years’ time? “She will ask, “Why didn’t you deal with the problem then?”, and if we answer, “Well, it was all too difficult”, that will be no answer at all.

Let me say again, respectfully, that the motion is misconceived, and lacks credibility. It is our duty to our country and the future to have a stable economy, and the motion should be roundly rejected.