Oral Answers to Questions

Andrew Gwynne Excerpts

Tuesday 26th June 2012 Commons Chamber

[Andrew Gwynne (Denton and Reddish) (Lab)]

6. What assessment he has made of the performance of the economy in the last 18 months.

[The Chief Secretary to the Treasury (Danny Alexander)]

As the Office for Budget Responsibility made clear last autumn, Britain’s recovery has faced strong headwinds from the euro area, high oil prices and the impact of the financial crisis being deeper than previously thought. Our actions to reduce the deficit and rebuild the economy have secured stability and kept interest rates near record lows, benefiting families, businesses and taxpayers, although, of course, considerable external risks remain.

[Andrew Gwynne]

That just does not wash, because by May 2010 the British economy was growing, whereas since the Government’s emergency Budget of June 2010 the economy has at best flatlined and at worst dropped back into recession. Why does the right hon. Gentleman think that is?

[Danny Alexander]

By May 2010, the hon. Gentleman’s Labour Government had put in place plans to increase fuel duty by above the rate of inflation each and every year of this Parliament. He should be welcoming the fact that we are taking steps to support hard-pressed families and hard-pressed consumers across the country in the very difficult economic circumstances that we face.