Debate on the Address

Charlie Elphicke Excerpts

Wednesday 8th May 2013 Commons Chamber

[Edward Miliband]

This Government are borrowing more. Of course a temporary cut in VAT has a cost and would lead to a temporary rise in borrowing—[Interruption.] Let me say this: that would get growth moving in this country and would be much more likely to get the deficit down. That is the difference. The International Monetary Fund is in town, and what is it telling the Chancellor? It is saying, “Change course. Your plan is not working.” That is the reality.

I am glad that the hon. Member for North East Somerset (Jacob Rees-Mogg) intervened because I will come to his point later in my speech. He advocates not just a pact with UKIP but a coalition—Deputy Prime Minister Farage in place of the Liberal Democrat leader.

[Charlie Elphicke (Dover) (Con)]

rose—

[Edward Miliband]

I will make a bit more progress.

Let us consider small businesses in this country. We all hear the same story as we go around the country—that banks make life harder for them, not easier. The Prime Minister promised change but things have got worse, not better. Small businesses do not need to be told that lending to business is falling month on month—they know it. It fell again by £4.8 billion in the three months to February, and no one listening today will be given hope that anything will be different now.

The cross-party Banking Commission called for a clear ultimatum to Britain’s banking system. It said, “Change the culture”—[Interruption.] The Chancellor is intervening from a sedentary position; just be patient. The Commission said, “Change the culture: deliver for business, or we will break high street from casino banking across the board.” It called for a clear answer, but what have we got? Another fudge from the Chancellor. The Government said that the all-party Banking Commission was the answer, but they have not even introduced its recommendations.

What did the Conservative chair of the Banking Commission say on 11 March? He said:

“the Government rejected a number of important recommendations. The commission has examined these again, alongside the Government’s explanations for rejecting them…We have concluded that the Government’s arguments are insubstantial.”

That is the Chancellor all over, and he is wrong on the banks. The Banking Bill also fails to deliver a regional banking system that will deliver for British businesses, not rip them off.

On living standards, we all met many people in this campaign who are struggling to get by. At least the Government now acknowledge that there is a living standards crisis in the country, but there is no real action to tackle that in the speech today. The Prime Minister promised change, but things have got worse, not better. The Government spent the local election campaign, and before, trying to tell people that they are better off. However, people are not better off; they are worse off and they know the reality—wages are down £1,700 since the election. One group, of course, is better off—the people sitting opposite on the Government Front Bench, owing to the millionaires’ tax cut. No wonder the right hon. Member for Haltemprice and Howden (Mr Davis) says that this Government—not my words, but his—look

“privileged and out of touch”.

He also says:

“Please, please no more old Etonian advisers.”

I think he is right; it is time for some diversity. Let us have someone from Harrow in the Cabinet as well.

When it comes to living standards, the Work and Pensions Secretary said that wealthy pensioners are meant to be handing back their winter fuel payments. I have a suggestion for the Prime Minister: why does he not set an example and hand back the tax cut he has given himself? It would be the big society in action. For everyone else, however, the speech has no answers—no action on train fares, no action on payday loans, and no action on private pension charges. People are worse off under the Tories.