Alicia Kearns
Main Page: Alicia Kearns (Conservative - Rutland and Stamford)Department Debates - View all Alicia Kearns's debates with the Cabinet Office
(4 days, 18 hours ago)
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The Chancellor of the Duchy of Lancaster (Pat McFadden)
The right hon. Member for Godalming and Ash (Jeremy Hunt) has confirmed that this is his last appearance at the Dispatch Box, at least in his current guise, so I begin by thanking him for his service to government and to the country. He and I have something in common: we both inherited an awful mess from our predecessors. He was appointed Chancellor of the Exchequer as the repair man—the adult in the room—and was meant to sort things out after the disaster left by his predecessor. He was supposed to be the antidote to Liz Truss, but in recent days, he has become an ally of Liz Truss, united with her in attacking the OBR. He was brought in to praise the economic institutions, but he has ended up condemning them. However, he cannot hide from the verdict: the OBR has confirmed that the previous Government hid billions of pounds of pressures that they knew about, and the Treasury has given us a full picture of precisely what those pressures added up to.
Alicia Kearns (Rutland and Stamford) (Con)
The right hon. Gentleman states that a full breakdown was provided by the Treasury yesterday, but that is just not true. In fact, the chair of the OBR said on “Sky News” last night:
“Nothing in our review was a legitimisation of that £22 billion”
claim. That was him making it very clear that the OBR does not support and has not endorsed the claim in the Treasury report. Will the right hon. Gentleman now confirm, with a simple yes or no, that the OBR does not legitimise that claim?
Pat McFadden
Let me read what the OBR has said:
“The Treasury did not share information with the OBR about the large pressures on RDEL, about the unusual extent of commitments against the reserve… had this information been made available, a materially different judgement…would have been reached.”
Pat McFadden
The right hon. Gentleman suggests that things got better after February. They did not; they got worse, and that is how we got to £22 billion. This is not just a verdict about what happened but an indictment of the Conservative party’s final period in office. The truth is that, under his watch, the Treasury had stopped doing the basic job of controlling expenditure.
Announcements were made with no money set aside, the asylum and hotel bill was funded by emptying the country’s reserves within the first few months of the financial year, hospital building programmes were announced without the necessary funds set aside to pay for them, a pay award sat on a Secretary of State’s desk while they looked the other way, and compensation schemes were announced without the full funds being set aside to pay for them. That was an irresponsible dereliction of duty that has led to us picking up the pieces and to the right hon. Gentleman attacking the independent watchdog that was set up by his own party. Even his predecessor, the former Member for Spelthorne, admitted this morning that Labour is clearing up the Tory mess. If Conservative Members are more out of touch with reality than the former Member for Spelthorne, let me tell them that that is not a good place to be.
The right hon. Gentleman referred to the IFS, which said this morning that the Chancellor
“is not wrong to stress that she got a hospital pass on the public finances.”
Pat McFadden
No, I am not giving way.
The Conservatives talk about their golden legacy, and we heard the former Chancellor read out some of his greatest hits. Who are they kidding? The last Parliament was the worst on record for living standards, with British families worse off than their French and German counterparts. His Government had the second lowest growth in the G7 since the pandemic and the highest inflation in the G7 since the pandemic. They left a prison system overflowing and just days away from collapse, and rather than take responsibility for it, they cut and ran and called an early election.
I have to give the previous Government credit: some things did grow on their watch, such as hospital waiting lists, housing waiting lists, shoplifting, insecure work and the decline of our high streets. That is their record, and it falls to us to fix it and start to rebuild Britain, so there is no point in coming to this Chamber and pretending that people are making it all up.
The former Chancellor talks about business. His party stuffed business—his colleague, the former Prime Minister, said “eff business”, and then the Conservatives carried out the policy. Under them, we had the lowest business investment in the G7. Why? Because of constant chaos in their Governments, meaning that business did not know who would be leading them from one year to the next; because they caved in to their Back Benchers and blocked anything substantial from being built; and because businesses could not hire the workers they needed with so many people on the sick.
This could have been a Budget where we just muddled through—patched up some mistakes made by the Conservative party and hoped something would turn up—but that is not good enough. We have had that time and again. In fact, we have had 14 years of it—long enough to show that that approach is not going to work. The country voted for change, and this was a Budget to deliver change. It is not a time for more of the same; it is a time to choose. We did not duck the challenge or look the other way; we confronted the challenge, because that is what the country needs. This is the moment when the country turns a corner and sets out a proper plan for the years to come.
We did make tax changes in this Budget, which is never an easy thing to do. That was because the first thing we had to do was fix the foundations and put the public finances on a sound footing. With this Budget, we say how we will pay for what we will do. The first fiscal rule announced by the Chancellor is to fund day-to-day spending from the revenue that we raise, a rule that the OBR judges will be met two years early.
The IMF, to which the right hon. Member for Godalming and Ash referred, has today welcomed
“the Budget’s focus on boosting growth through a needed increase in public investment while addressing urgent pressures on public services”,
so let me turn to those public services. Secondly, there will be more NHS appointments to get waiting lists and times down; more technology to improve productivity; more prevention to stop people falling ill in the first place; new surgical hubs and diagnostic centres; a hospital-building programme brought from fiction to reality, this time founded on more than hot air; new schools to help children learn; more teachers to bring out the best in every child; and more investment in further education to give people the skills they need. It is investment and reform together—not just more money into the same system, but changing the system for a new age, with productivity targets alongside the extra money.
The right hon. Gentleman also talked about welfare spending, but the Conservatives had plenty of time to sort out welfare spending. Their legacy is almost 3 million people out of work because of long-term sickness. The truth is that they did not have a plan, but they do have a record, and again, it falls to us to sort that record out. We will take tough action on welfare fraud, and we will not give up on those who can work and make a contribution, because we understand that when the sick can get treated and when every child of every background has the best chance to learn, that is not just good for them and their families but for the economy as a whole.
Thirdly, this Budget put in place help with the cost of living for millions: a rising minimum wage with extra help for young workers, fuel duty frozen, carers allowed to earn more, the triple lock protected, the household support fund extended to help the poorest, and lower deductions from universal credit. Those are the choices that we made—real help for millions of people.
Finally, we reject the path of decline for investment that the Conservatives were planning. They wanted to cut public investment by a third. That was the right hon. Gentleman’s plan—to once again cut back on the house building, schools, hospitals and transport projects that the country needs. That is a path of decline that has been chosen too often in the past. The Tories do not yet have a leader, and the only policy to come out of their leadership contest so far is to cut maternity pay, but on the question of investment, they do have a position. Budgets are about choices, and yesterday they chose: the former Prime Minister, the right hon. Member for Richmond and Northallerton (Rishi Sunak) railed against our new investment rule, and more Conservative Members have spoken out since. What does that mean their position is? New money for housing—opposed. New money for schools—opposed. New money for potholes—opposed. New money for research—opposed. Investment in the future itself—opposed by the Conservative party. I understand the perils of opposition. We have had long enough experience of it, but if the Conservatives really want to run around the country opposing every new investment over the coming four or five years, be our guests.
Yes, this Budget was a big choice, and in opposing the investments within it, the Conservatives have made a big choice too. We will remind them of it, project after project, year after year. They wanted to lock us into the world that voters rejected just four short months ago.