Oral Answers to Questions

Lord Hanson of Flint Excerpts

Tuesday 21st June 2011 Commons Chamber

[Mr Osborne]

I think the CBI’s view reflects those of almost the entire business community in Britain and almost all international commentators on the United Kingdom economy. When the CBI was asked explicitly what it thought of the Labour party’s plans, its chief economic adviser said:

“The economy would be weaker because of the impact of a loss of confidence in the markets.”

[Mr David Hanson (Delyn) (Lab)]

Since the Government came to power, the growth forecast for this year has been downgraded by 1%. The IMF has also said that the speed of Government cuts poses a risk of higher inflation, lower growth and rising unemployment. Does the Chancellor agree with the IMF, which he is keen to support, that if

“a prolonged period of weak growth”

—which we have at present—

is in prospect, “temporary tax cuts” should be considered?

[Mr Osborne]

First, the right hon. Gentleman has misquoted the IMF. Perhaps he will give the House the full quotation. The IMF did not say “at present”, which the right hon. Gentleman slipped into the quotation. [Interruption.] Perhaps he will take the opportunity to correct the record later. Secondly, the IMF said:

“Strong fiscal consolidation is underway and remains essential”.

The managing director of the IMF could not have been stronger in his endorsement through article IV.

I note that three Opposition Front Benchers have asked questions, and that not one has mentioned the new policy of the shadow Chancellor.