Future Government Spending

Debate between Anne Main and Brooks Newmark

Wednesday 4th March 2015 Commons Chamber

[Mr Newmark]

It is interesting that the hon. Gentleman should talk about our welfare policies as his side wants to increase spending, whereas we are trying to cap it at a reasonable state—£26,000, which is £35,000 pre-tax, which is higher than the average wage of most people.

Labour was financially reckless in government and, it seems, is even more financially reckless in opposition. Already it has £20.7 billion of unfunded spending commitments for 2015-16, which is £1,200 per household. HM Treasury estimates Labour now has £32 billion of borrowing for 2020-21 and £166 billion over the next Parliament—the next five years—or £10,000 extra per household. I hope voters are listening to that. That is £10,000 extra per household; they should remember that before they go into the ballot box. We have learned today that Labour’s new great tax policy is to increase the cost of a gun licence. So Labour’s policy going forward is, as always, tax more and borrow more.

[Mrs Anne Main (St Albans) (Con)]

This motion refers to

“sensible reductions in public spending”.

Does my hon. Friend know what these reductions are and how much they might raise, because there is no mention of that whatever? They are just a blank canvas.

[Mr Newmark]

I know, and I suspect Labour will be going into the election with a blank canvas, and no doubt voters will make their judgment on that.

Going forward, the Government are committed to raising the personal allowance once again—up from £10,500 to £12,500. That is a tax cut for 30 million people and removes 1 million of the lowest paid out of tax altogether. The Conservative Government are committed to balancing the books by the end of the Parliament, which the Opposition party is not, and a Conservative Government are committed to reducing Government spending to 35.2% by 2020, as the hon. Member for Nottingham East (Chris Leslie) pointed out. I remind him that when the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) was Chancellor he had borrowing at 35.9%, so we are not talking about a huge difference between the 35.2%, which is apparently an absolute crisis, and the 35.9% in 2000.

To conclude, the Government have a track record to be proud of: reducing spending; reducing the deficit; reducing taxes; and reducing unemployment. Here are the words of Christine Lagarde of the International Monetary Fund—although I will not say this in a French accent. She said:

“Certainly from a global perspective this is exactly the sort of result that we would like to see…More growth, less unemployment, a growth that is more”—

wait for it—

“inclusive, that is better shared, and a growth that is also sustainable and more balanced.”

These are the words of Christine Lagarde this year, on 15 January 2015, at an IMF round-table discussion in Washington.

The Government’s long-term economic plan is working, and hopefully on 7 May the British people will not give the keys back to the guys who crashed the car.