Budget Resolutions
Debate between Caroline Lucas and Baroness Morgan of Cotes
Nicky Morgan (Loughborough) (Con)
Everybody is leaving the Chamber—it must be something I said, or perhaps something the right hon. Member for Islington North (Jeremy Corbyn) did not say. The Chancellor had a difficult job, with a conflicting economic outlook as he prepared today’s Budget, but he has offered solutions and a vision for the future, unlike the Leader of the Opposition, from whom we heard no vision, no solution and no idea what needs to be done to support growth in this country.
On the one hand, borrowing is down to its lowest levels since the beginning of the century, and although plenty of economic challenges remain—not least the need to boost growth—there are encouraging signs that pay and productivity are picking up at last, while unemployment rates remain at historic lows. As my right hon. Friend said, the OBR forecasts sustained real wage growth, and it is extremely good news—albeit undersung—that this country is no longer borrowing to fund current spending. That is the result of an enormous amount of hard work by the British people and by Ministers, including the previous Chancellor.
On the other hand, the job of bringing back down the national debt—a lasting legacy of the financial crisis—is only just beginning, and the OBR’s long-run projections make it clear that demographic pressures on the public finances will only build further from here. My right hon. Friend rightly referred to the 2019 spending review, which will be a critical moment for the future of public spending in this country.
Caroline Lucas (Brighton, Pavilion) (Green)
Barely two weeks ago, the world’s scientists issued their most stark warning yet that we have just 12 years in which to tackle climate change and avoid climate catastrophe, yet there was not a single word from the Chancellor about climate change, nothing about clean energy, nothing about green energy. Does the right hon. Lady agree—[Interruption.]
Budget Resolutions
Debate between Caroline Lucas and Baroness Morgan of Cotes(7 years ago)
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Nicky Morgan
It is also a pleasure to serve with the hon. Gentleman on the Treasury Committee. I am sure that the Chancellor will have has heard what he said. I am also sure that the Chancellor is looking forward to appearing in front of the Committee on 6 December, when we will be able to ask him such questions directly.
Caroline Lucas
Hidden in the Budget book is the really terrible news that no new money is available for renewables until 2025, but at the same time the Chancellor is giving away yet more tax breaks to oil and gas. How on earth is that compatible with a forward-looking country that is serious about climate change?
Nicky Morgan
This Government have done incredibly well in supporting the renewables industry. The renewable energy industry in the midlands is thriving. Again, however, the Committee may well want to take that up with the Chancellor.
I welcome the move on business rates—the change from RPI to CPI is very welcome—and I particularly welcome the move on the staircase tax, about which the Chancellor was asked when he appeared before the Committee recently. The approach builds on the evidence he gave, and I hope he is right about the cross-party support that the measure will be able to receive.