Angela Eagle
Main Page: Angela Eagle (Labour - Wallasey)Department Debates - View all Angela Eagle's debates with the HM Treasury
(5 years, 2 months ago)
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Mr Hammond
I can confirm that we want to move ahead as quickly as possible with agreeing the individual projects and getting disbursement under way. I would be delighted to visit Carlisle, to see not only the effects of the borderlands growth deal but the £100 million housing infrastructure fund investment that we are making to facilitate a major expansion of new build housing in the area.
Ms Angela Eagle (Wallasey) (Lab)
Many Members on both sides of the House have expressed worry about the slowdown in growth forecast, but all of us see that there is some growth. Given that the economy is growing, albeit too modestly, will the Chancellor look at the £1.4 billion of cuts that will be made to benefits through the benefit freeze in three weeks’ time, which means that he is taking money away from those who are least able to afford it? All economic theory shows that those who are on very low or modest incomes spend money that is given to them, which will stimulate our economy some more. Will he get up at the Dispatch Box and tell us that he is going to end the benefit freeze, which is due to hit all those people in three weeks’ time?
Mr Hammond
The hon. Lady talks about reductions in economic forecasts. It is actually one year—[Interruption.] I will answer the question in my own way, if the hon. Member for Kingston upon Hull West and Hessle (Emma Hardy) does not mind. It is only one year for which the OBR has downgraded the forecast. In two further years, it remains unchanged, and in the fourth year, it increases.
The hon. Lady asked about the benefit freeze. That has been one of the many difficult decisions we have had to take. Under the last Labour Government and Gordon Brown’s stewardship, the welfare budget increased by 65% in real terms, getting it completely out of kilter with wages and making it unsustainable. That, combined with the fiscal pressure we faced in 2010, made it inevitable that we had to take action, but we have made it clear that we have no intention of repeating the current freeze. When it is over, increases in benefits will resume in line with CPI in the normal way.