Oral Answers to Questions

Chris Leslie Excerpts

Tuesday 9th December 2014 Commons Chamber

[The Exchequer Secretary to the Treasury (Priti Patel)]

I thank my hon. Friend for his question. The reductions in air passenger duty announced last week are to be welcomed not just by his constituents and by Thomas Cook but by hard-working families across the country. As with all other taxes, air passenger duty will be kept under review, taking into account our commitment to creating sustainable public finances alongside helping households and, of course, the tourism industry.

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

Will the Chief Secretary confirm that table 2.3 on page 67 of the autumn statement shows that total managed expenditure will fall to 35% of GDP by 2020? According to the Office for Budget Responsibility, that is a level not seen since the late 1930s. Does he stand by the autumn statement or not?

[Danny Alexander]

The way in which the autumn statement is constructed is that the OBR is given an assumption about the path of the public finances over the course of the whole of the next Parliament. As I explained yesterday to readers of The Daily Telegraph—perhaps the hon. Gentleman does not count himself as one of them—a neutral assumption is built into the public finances post 2017-18 which assumes that spending will stay flat in real terms. That enables the OBR to construct its forecast. In my view, when we have finished dealing with the structural deficit post 2017-18, public expenditure will be able to grow faster than that.

[Chris Leslie]

It does not sound as though the right hon. Gentleman stands by the autumn statement much, Mr Speaker. On Wednesday, the chairman of the Office for Budget Responsibility wrote to the Business Secretary confirming that the autumn statement and all the policy assumptions leading to this figure of 35% were

“signed off by the ‘quad’”.

Is the Chief Secretary still a member of the “quad”, and is that actually true? Why is he now pretending to distance himself from his consistent record of Tory collaboration when he has been as thick as thieves with them in vote after vote, year after year, time and time again?

[Danny Alexander]

I guess it is a tough job being shadow Chief Secretary: he has to deal with the shadow Chancellor. I saw a quote from the previous Chancellor just this weekend, in Alan Cochrane’s diaries. It said, “I don’t think Miliband gets much of a look-in on the economy now. He’s a difficult man, is Balls.” I guess that is what they mean by a zero-zero economy: one Ed has zero influence; the other has zero credibility. Let me say this to the Labour party and to the Conservative party: both of them, in different ways, are advocating relentless austerity for the whole of the next Parliament, and it is only the Liberal Democrats turning around the public finances after 2017-18 who offer any hope of a change in the future.