Economic Policy

David Nuttall Excerpts

Monday 25th February 2013 Commons Chamber

[Mr Osborne]

I am not sure I really understand what the right hon. Gentleman is getting at. Yes, of course we have a difficult economic situation, because we inherited a 11.5% budget deficit and were coming out of a contraction of the economy of 6%—the right hon. Gentleman talks about flatlining but there was a 6% contraction of the economy when the shadow Chancellor was in the Cabinet. That is what we are dealing with. As I say, we have reduced the deficit, created 1 million jobs, and we have low interest rates.

[Mr David Nuttall (Bury North) (Con)]

Does the Chancellor agree that the only real way for the UK to maintain its economic credibility is to continue to cut spending in real terms and to start living within its means, so that we and our British companies can start to compete more effectively in the global marketplace?

[Mr Osborne]

We have to reduce spending and, as I have said, we will have a spending round later this year. We are reducing the share of national income taken by the state. When we came to office, almost 48% of national income was taken by the state, which was a completely unsustainable position. That position was never advocated by the Labour party when it sought office, but that is how it left the country. It now apparently wants to return to that position. As far as I understand the shadow Chancellor, who shakes his head, he does not support a single cut the Government have made.