Budget Resolutions and Economic Situation

Alex Salmond Excerpts

Thursday 9th July 2015 Commons Chamber

[Chris Leslie]

I am astonished: a Conservative Member of Parliament reports positive feedback on the Chancellor’s Budget. I never thought I would hear that: I am aghast.

[Alex Salmond (Gordon) (SNP)]

The shadow Chancellor may remember that during the Scottish referendum debate last year I described Alistair Darling as “a Tory front-man”. Given what we have heard this morning, might there have been a grain of truth in that remark?

[Chris Leslie]

I have not read the comments by the former Chancellor, although I keep hearing about them from Members. I will have a good look at them, but it is important that we scrutinise the Government’s record on productivity. Unless we improve productivity in our economy, we will not generate the revenues to deal with the deficit and raise living standards. In 2012 and 2013, our productivity growth was negative, and last year it was just 0.2%. That compares with an average of 2.2% under the Labour Government from 1997 until the global financial crisis hit. It is, therefore, almost beyond belief that on the OBR’s analysis the Budget could lead to lower productivity growth, now estimated to be 0.4% lower than the forecast for next year, 0.2% lower in 2017, 0.1% lower in 2018 and 0.2% lower in 2019—productivity down next year, the year after, the year after that and the year after that.