Ben Gummer
Main Page: Ben Gummer (Conservative - Ipswich)Department Debates - View all Ben Gummer's debates with the HM Treasury
Charter for Budget Responsibility
Ben Gummer Excerpts(10 years, 1 month ago)
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Ben Gummer
I thank the right hon. Gentleman for giving way. He chooses his words carefully, but he should know that youth unemployment is lower than it was in 2010, and not only that: it is lower than it was before the crisis partly caused by his Government.
Ed Balls
In the constituency of Ipswich there has been a 140% rise in long-term youth unemployment over 12 months, and long-term youth unemployment is a real problem. I am glad the hon. Gentleman intervened because I was reading his Hansard remarks from 2012 when he said that asking the Office for Budget Responsibility to audit the parties’ manifestos at the next election was the right thing to do. He said there was no reason why that could not be done. I will come back to him in a moment on that one.
We support the welfare cap. We will make different and fairer choices to keep the social security bill down and tackle the root causes of higher welfare spending. Let me explain—
Ben Gummer (Ipswich) (Con)
This is an important moment in the way that we run Budgets in this country, it is an important moment for the accountability of politics and it is an important moment for the way we deal with the welfare crisis we were left by the previous Government. It is an important moment in the way we run the Budget in this country because most people would be astounded by the notion that we do not already have a managed expenditure limit on welfare. What most people, even in this Chamber, will not be aware of is that last year, for the first time in the history of setting Budgets in this country, unmanaged expenditure rose above managed expenditure—51% of Government spending came within annually managed expenditure, or AME, and not within departmental limits. So for the first time we are, in effect, writing a larger portion of the Budget on a blank cheque, rather than on the basis of the limits set by the Chancellor at his Budget every year. That, in itself, is astounding, but in five and 10 years’ time people will look back and wonder why on earth we had not come to this point earlier.
The reason, as we have heard so often from Opposition Members—they prefer to pretend that it is not their position now, because the shadow Work and Pensions Secretary said in private a few days ago that they would prefer all the Government’s reforms on welfare to have been reversed—[Interruption.] It is down there in the transcript. She would prefer all the Government’s reforms to be reversed—not only that, she would prefer all existing benefits to be made universal. She is very welcome to intervene on me to deny in the House that she made those comments. I am open to have that discussion with her. She has been given that opportunity before, she is not doing it and the House will draw its own conclusions. The fact is that what the Opposition say in private is very different from what they say in public.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Mr Burrowes, you have nothing to hide, and I certainly do not want to hear you shout again—I want to hear Mr Gummer. You may not. If you do, you know where to go. Mr Gummer, you have the Floor.
Ben Gummer
Thank you, Mr Deputy Speaker. To return to the core of the matter, this is important because it will hold both Governments and Oppositions to account. The shadow Chancellor might have wished to misconstrue the purpose of my private Member’s Bill. It is a pity he does that when he claims he is trying to forge a cross-party consensus, because it is wrong—
Ben Gummer
I will give way, but does the right hon. Gentleman want to let me finish my point before he intervenes? [Interruption.] I will say merely that I was proposing a fiscal rule on the Swedish model in which, as the Swedes have, there would be an opportunity for all parties’ budgets to be judged. That clearly is not possible under the existing settlement, not least because the head of the OBR said it would not be.
Ed Balls
I most certainly would not want to misrepresent the hon. Gentleman, so let me read out the quote from Hansard. He said:
“I…further suggest that the Office for Budget Responsibility be required to assess the major parties’ manifestos at election time, at the request of those parties…A similar role is performed by the Congressional Budget Office in the United States, and there is no reason why it cannot be so here.”—[Official Report, 25 January 2012; Vol. 539, c. 305.]
I agree, and so does the head of the OBR, and this can be done before the next election. In no way have I misrepresented the hon. Gentleman—the problem is that he disagrees with the Chancellor.
Ben Gummer
Actually, I do not. If the shadow Chancellor reads further, he will find the key point. There is an entire portion beforehand suggesting something, which his colleague, the hon. Member for Leeds West (Rachel Reeves), said that the Opposition disagreed with. Here we come to the crux of the matter. The fact is that people will not believe the Chancellor when he talks about sticking to a cap—[Interruption.] I mean the shadow Chancellor—[Interruption.] Yes, it is as close as he will get. He was the author of the golden rule, which claimed that there would be no excess debt over the economic cycle of his Government. None the less from 2002, the Government were running a deficit—[Interruption.] Will he deny that the Government were running a deficit from 2002?
Ed Balls
We said that we would balance the current Budget over the cycle, which is exactly what is in the mandate before us. It says that there will be
“a forward-looking target to achieve cyclically-adjusted current balance by the end of the rolling, five-year forecast period.”
That is the golden rule. If the hon. Gentleman is attacking the golden rule, it is the second thing on which he is attacking the Chancellor today.
Ben Gummer
The shadow Chancellor is again digging himself into a hole. He wrote a golden rule that claimed that there were would be no deficit over the cycle. He ran a deficit and he is now proposing that there should be a cap on welfare spending. I wish to pin him precisely on the terms of his agreement with the Government. What he has told his Back Benchers in private seems to be rather different from what he is saying in public. [Hon. Members: “Ah.”] Let me list what we have within the frame of the welfare cap proposed by my right hon. Friend. If the shadow Chancellor disagrees with any one of these items, he should stand up and intervene, and his own Back Benchers can draw their own inferences. We have the attendance allowance, bereavement benefits, carer’s allowance, Christmas bonus, disability living allowance, employment and support allowance, financial assistance scheme, housing benefit, incapacity benefit, income support, industrial injuries benefit, in-work credit, maternity allowance, pension credit, personal independence payment, return to work credit, severe disablement allowance, social fund, cold weather payments, statutory adoption pay and statutory maternity pay, statutory paternity pay, universal credit, winter fuel payments, personal tax credits, child benefit and tax-free child care. Is there any single element of that that he would change in the next five years?
Ben Gummer
Not at all. Now his Back Benchers may wish to draw their own inference from that. In private, the shadow Chancellor has been going round saying that he would change it. He would put one in and take one out. [Hon. Members: “Ah.”] Even in the House, he will say that he will supplement one benefit—withdrawing the winter fuel allowance from richer pensioners will raise £100 million and he would use it to pay for the reversal of the under-occupancy charge, which will cost £500 million. How does he make up that £400 million difference? He has been forced to come to this House to explain his maths. That is precisely why this cap is important. It forces a degree of accountability on the shadow Chancellor in making him explain to the British public how his sums add up, when it is clear that they do not. How does he account for the £400 million difference between the two? [Interruption.] I wish to know the answer as does the British public. [Interruption.]
Mr Deputy Speaker
Order. The hon. Gentleman has only 30 seconds remaining. Stop shouting him down. I want to hear him.
Ben Gummer
The cap is good for Government finances and it is good for accountability because it forces the Opposition to be honest, even though they are seemingly unwilling to be so. It is also important in terms of how we deal with this welfare crisis. It will force Governments to deal with the underlying causes of welfare dependency rather than just jacking up the bill every time they are faced with a difficult problem.