Oral Answers to Questions

Ed Balls Excerpts

Tuesday 14th May 2013 Commons Chamber

[Danny Alexander]

The employment allowance will reduce the cost of employment and will therefore support small businesses aspiring to grow by hiring their first employee or expanding the work force. In total, up to 1.25 million employers will benefit from the allowance, with over 90% of that benefit going to small firms with fewer than 50 employees.

[Ed Balls (Morley and Outwood) (Lab/Co-op)]

This is now the slowest economic recovery for 100 years, and the International Monetary Fund is in town and openly questioning the Treasury’s economic plan. May I remind the Chief Secretary of what he said in October 2009? He does not need to worry, as this is not the one where he reconfirmed the Liberal Democrat commitment to an EU referendum; it is a different article. He said:

“Cutting spending now would plunge us back into recession…The Tories claim…they can fix the country’s finances, but their plans are economically illiterate.”

He was right then, was he not?

[Danny Alexander]

The right hon. Gentleman mentions the fact that the IMF is in town; there are, of course, discussions going on, and we look forward to seeing the outcome of the proposals. I have to tell him, however, that given the situation that this coalition Government inherited in May 2010—the catastrophic mess that he and his colleagues made of the British economy—the measures we are taking are absolutely right. If we compare the progress this country has made with the forecast for our major European competitors, we see that on employment, for example, this Government are delivering the right policies for this country.

[Ed Balls]

The right hon. Gentleman also said in that article that

“at a time of crisis”,

the Tories

“have the wrong solutions and the wrong priorities…They claim to care about the poorest, but will only slash taxes for millionaires.”

He was right about that as well. Is it not the truth that the economy has flatlined, deficit reduction has stalled, living standards are falling and the IMF is saying that the Treasury is playing with fire? In January, the Prime Minister said that we should listen to the IMF, so why is the Treasury telling newspapers that if the IMF tells him to act to kick-start the recovery, the Chancellor intends to ignore it and plough on regardless with a failing plan?

[Danny Alexander]

The right hon. Gentleman talks of having the wrong solutions and the wrong priorities. That appears to be the verdict of many of his colleagues on his own approach as shadow Chancellor. I note that the former science Minister Lord Sainsbury has said:

“In retrospect the Labour government should have used the opportunity of a strongly growing economy to reduce the deficit.”

That would have reduced pressure on the Labour Government, but we are reducing the deficit now. I also note that The Sun quotes an anonymous shadow Cabinet Member as saying:

“Balls is a busted flush when it comes to economic competence because of his legacy with Gordon.”

I could not have put it better myself.