Budget Resolutions and Economic Situation

Clive Efford Excerpts

Monday 21st March 2016 Commons Chamber

[The Secretary of State for Communities and Local Government (Greg Clark)]

No one can pretend that this has been an easy Budget for the Government, but none of them is. Every single one of them is overshadowed by the events of the previous decade, by the deepest recession since the war and by a financial and fiscal crisis in which a large part of our national wealth disappeared in a puff of debt. GDP, productivity and revenue were all decimated. That is what happens when one spends a decade using a credit bubble to inflate the size of government. One day, the income suddenly disappears, but the commitments remain. In 2010, those responsible in the Labour party left government and did so without looking back. In the six years that followed, they have retreated ever further from any sense of responsibility.

It fell to us on the Conservative Benches to put things right: to rebuild an economy on firm foundations, to wrestle down the deficit and to mend the many institutions left in disarray. Financial regulation, educational standards and the housing market—all were broken, and all are being painstakingly restored to working order by this Government. However, every decision we made has been a hard one, because when the gap between the need and the Government’s resources is so wide there are no easy answers. We have not always got them right first time—the least worst option is not always apparent—but this is a Government willing to listen and to respond, while also keeping on track to squeeze out debt, encourage growth, generate jobs and build new homes. On all these fronts, we are moving the country in the right direction, while the Opposition rush headlong to the left. They can go their way, but we will keep on moving forward.

[Clive Efford (Eltham) (Lab)]

This Government said that they would eradicate the deficit in four years. Will the right hon. Gentleman tell me when that policy changed? How long does a long-term economic policy last for?

[Greg Clark]

I do not know whether the hon. Gentleman was in the Chamber for the Budget statement. If he was, he will have seen that the Office for Budget Responsibility confirmed that we are on track to eliminate the deficit by the end of the Parliament and to have a surplus. He should spend a bit of time talking to his right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), who might provide the answer to why it has taken some time to reduce the deficit.