Debate on the Address

Chris Leslie Excerpts

Tuesday 25th May 2010 Commons Chamber

[The Prime Minister]

I ask the hon. Gentleman to calm down.

Some of the £6 billion in savings that we have found will be put back into the social housing that Labour promised and never delivered.

Nothing will better sum up the clean break that this Government will make with the past than our freedom Bill. We will repeal ridiculous laws that allow a never-ending list of public bodies, from local councils to quangos, to enter people’s homes without permission. We will scrap Labour’s plans for ID cards and, after the Labour Government failed to act for so many years, we will end the incarceration of children for immigration purposes once and for all.

We are going to bring the same spirit of radical change to the biggest challenge of all: sorting out the mess that Labour has made of our economy. Everything that the previous Government told us was wrong. They told us that they had abolished boom and bust, but they gave us the longest and deepest recession on record. They reassured us that we were better prepared for this recession than other countries, yet we were one of the first countries into recession and one of the last countries out of recession, and we have one of the weakest recoveries. They promised us prudence, but they left us with the largest UK budget deficit in peacetime history. They lectured us about their golden rules, but in the end the only golden rule was: “Never trust Labour with the economy of this country”.

It stops now—no more spending beyond our means; no more reckless borrowing; no more taxing of the poorest to pay for the mistakes of the few. In just two weeks, this Government have done more for our economy than Labour managed in the last two years. We have changed the way Budgets are written, by establishing a new Office for Budget Responsibility, which will stop any Chancellor fiddling the figures ever again in our history. We have launched and completed an in-year spending review to save £6 billion of waste—waste that Labour still says is vital to our recovery. What a ridiculous argument. Do Labour Members really think that the £125 million a year that we discovered the previous Government were spending on taxis, the £320 million that they spent on hotel bills or the £7 million spent by one Department on stationery are necessary? Are all these luxuries somehow essential to firing the engines of our economy? Of course they are not, and it is right that they are being reduced.

It is because we have found these savings that we can stop one of the most stupid, reckless and irresponsible tax rises ever dreamt up in the middle of a recession, which was the idea of putting up national insurance on every job in our country. With this coalition Government, that jobs tax is going. That is what we have done in the last two weeks.

[Christopher Leslie (Nottingham East) (Lab/Co-op)]

I would be grateful if the Prime Minister could confirm that his Government have no plans to raise VAT.

[The Prime Minister]

The whole point is that we are getting to grips with spending so that we do not have to put up taxes. The only people I remember with a plan to raise VAT were the last Government, who actually published it, although to be fair to the hon. Gentleman, he had lost his first seat then—and we are all looking forward to him losing his second one.

That is what we have done in two weeks; the Queen’s Speech shows what we will do in the next two years. We are going to bring some law and order to the banking system, which Labour allowed to wreck our economy. There will be more powers to the Bank of England, in our financial services regulation Bill. We will get to grips with the unacceptable bonus culture and open up credit lines for small businesses. We want to ensure that our banks serve our economy, rather than the other way round. We are going to change our whole economy, so that it is not built on debt and waste, but instead on savings and investment.

Our energy security and green economy Bill will mean more energy efficiency in our homes and our businesses. From the savings that we have already identified, we will make £50 million available for the building and refurbishment of further education colleges. One of the last acts of the previous Government was to completely bungle that building programme. One of the first acts of the new Government will be to start putting that wrong right. If we add to that high-speed rail, an interactive energy grid, corporation tax cuts and super-fast broadband, we will get a completely new economy and a Britain that is back open for business.

And one last thing: we will finally bring justice to the Equitable Life policyholders—people who were shamelessly betrayed, year after year, by the bunch of people sitting there on the Opposition Front Bench.

The Government we have just had were not just disastrous for our economy; they were bad for our society, too. This Queen’s Speech marks a decisive shift from the past, treating not just the symptoms of what is broken in our society, but its root causes. In Britain today there are families better off on benefits than in work and couples with children being paid more to live apart. We have taxpayers who go out to work, earning just £15,000 or £16,000, and are expected to carry on supporting people who refuse to work. All these things need to change. Our welfare reform Bill will begin the process of benefit reform.

The programme that we have set out in this Queen’s Speech will mean real changes straight away in our schools, too.