Autumn Statement Debate

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Department: HM Treasury
Wednesday 3rd December 2014

(9 years, 11 months ago)

Commons Chamber
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George Osborne Portrait Mr Osborne
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Universal credit is a change to our welfare system that makes sure that it always pays to work. I pay tribute to my right hon. Friend the Work and Pensions Secretary because he is pioneering what I think are important far-reaching changes to the incentives in our country that encourage work and support people in work. We have introduced a welfare cap. That is a brand new mechanism for controlling welfare spending, including identifying pressures such as rising housing benefit bills that were completely ignored in the past by the Labour Government. If a Government are not prepared to address increases in one benefit with reductions or measures on other benefits, they are required to come before the House and ask for a vote because they have reached the cap. We have not done that because we are within the cap, as the OBR report confirms.

Ben Gummer Portrait Ben Gummer (Ipswich) (Con)
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Last October, youth unemployment in Ipswich fell to the lowest point since records began—a fall directly attributable to the Chancellor’s policies. The future of young people in Ipswich is now much brighter because of his commitment to the Great Eastern main line and I thank him for that. Will he comment on the fact that the only way that scheme will not happen is if the Labour party stops the franchising process, which is precisely what it has promised to do?

George Osborne Portrait Mr Osborne
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I pay tribute to my hon. Friend. I have been to Ipswich and seen what he has done to attract businesses and jobs, and to champion big infrastructure improvements, such as in relation to the A14 and the Ipswich in 60 campaign. Those things would be under threat under a Labour Government. The Labour party’s rail franchising policy would prevent the improvement in train services to East Anglia. Big infrastructure projects that never happened under a previous Labour Government would almost certainly never happen under a future Labour Government.