Economic Growth

Debate between Ed Balls and Bob Russell

Wednesday 15th May 2013 Commons Chamber

[Ed Balls]

I am not going to write our Budget for 2015 two years ahead. That would be the wrong thing to do. Right now, if the Chancellor had done what I recommended a year ago, borrowing would be coming down. At the moment, however, it is absolutely flat.

What have we learnt in the last seven days? What have we learnt from today’s Tory amendment about the priority of the Conservative party? What are Conservative Members demanding in their amendment? What are they rebelling on? Accelerated bank reform? Energy market reform? Housing investment? Infrastructure investment? Tough welfare reform through a compulsory jobs guarantee? If they want all that, they can vote for our amendment today. But no, according to the Tory amendment, the No. 1 priority that is so vital that Conservative Members are planning to vote against their own Government’s Queen’s Speech involves enabling legislation to allow Eurosceptic Conservative MPs to try to take Britain out of the European Union.

The Tory amendment states that those Members

“regret that an EU referendum bill was not included in the Gracious Speech.”

Let me tell the House what they should be regretting. They should regret the fact that, after three years of pursuing a failing economic plan, the Chancellor is still ploughing on regardless, even when the IMF is telling him to change course. They should regret the fact that, when calculations based on Institute for Fiscal Studies figures show that families are, on average, £891 worse off this year, the Government have cut taxes for the highest earners, giving a £100,000 tax cut to 13,000 millionaires. They should regret the fact that the Government have refused to use the Queen’s Speech to put in place the long-term reforms necessary for our economic future—reforms that I fear will not be in the spending review, either. The Chancellor and the House should regret, too, the fact that the Conservative party seems to have been hijacked by those within its ranks, including within the Cabinet, who are determined to lead Britain out of the EU regardless of the impact on investment and jobs.

[Sir Bob Russell (Colchester) (LD)]

Will the shadow Chancellor confirm that the number of Labour Members who have signed this Tory amendment on the EU referendum is now in double figures?

[Ed Balls]

I have not seen the figures, but I would be happy to study them—it is when it spreads to the Cabinet that there is a real problem. The hon. Gentleman should regret the 15% rise in long-term youth unemployment in his constituency, which was confirmed today. I have to say that this coalition was really not worth his support.

Education and Health

Debate between Ed Balls and Bob Russell

Wednesday 2nd June 2010 Commons Chamber

[Ed Balls]

But I asked whether the funding for schools, Sure Start and 16-to-19 education would be guaranteed to match our rising spending above inflation in 2010-11, 2011-12 and 2012-13. What we discovered from the right hon. Gentleman was that he does not have those assurances for the next two years—this year maybe, thanks to the right hon. Member for Yeovil, but for the next two years he said we would have to wait and see.

I shall come to the issue of funding. Given that the Secretary of State spoke for 50 minutes and rather a lot of hon. Members want to make their maiden speeches, I will be briefer, but I will take a couple of interventions and try to resist promising a meeting with the former Schools Minister.

[Bob Russell]

The shadow Secretary of State mentioned all the good things that new Labour had done for children, but does he agree that after 13 years of a new Labour Government, levels of child poverty in this country were among the worst in Europe, worse even than those to be found in Latvia, Lithuania and Estonia?

[Ed Balls]

I am happy to get into robust debates and look forward to seeing the hon. Gentleman defend his coalition, but between 1979 and 1997 the party that he is now propping up in government saw child poverty double. From 1997, we had one of the fastest falls in child poverty of any country in the developed world because we prioritised money going to tax credits, which the Conservative party is now putting into question, and his party as well. We will wait and see what the record shows when his party has had a chance to make a few decisions, but I am a bit of a sceptic about what it will do for child poverty.

Let me come back to money, because, as I said, without the promise of extra and rising resources, not just this year but next year and the year after, I do not see, on the basis of my experience, how it is possible for the new Government to fund free schools and more academies without cutting deep into the budgets of existing schools to pay for it. Even with the settlement that I negotiated, which had within it £1 billion of efficiency savings passed to the front line, it was tough for us to be sure that we would protect front-line staff, and that was before the new schools, the new academies and the thousands of extra places that the Secretary of State wants to finance, and even before the pupil premium, which I understood was to be paid for by abolishing the child trust fund, but that has now been used to cut the deficit, so that is one source of money that has been taken away from the right hon. Gentleman.

My first question therefore is where will the money come from? We have already seen parents, teachers and head teachers throughout the country planning for long-awaited new school buildings. I have lost count in the last two weeks of the number of Members, not just from my side of the House, asking what will happen to the Building Schools for the Future programme and the months of work, the thousands of pounds spent and the raised expectations in 700-plus schools that thought they were getting their new school and now find that it is at risk. We had no reassurance today from the right hon. Gentleman or in Prime Minister’s questions from the Prime Minister about the future of those new school building plans. All we have heard so far from the Secretary of State is a promise of £670 million of cuts from his Department this year to help reduce the deficit in 2010-11. Even then, he provided almost no details.

When I set out efficiency savings in March, I specified the £300 million I had found and said that I needed to find more. So far there has been no statement to the House and no details have been set out. There are hints of cuts to school transport through the local government line and to one-to-one tuition, but there is no detail at all. This is not good enough. The right hon. Gentleman is in government. It is he who must answer the questions now when he is making these big policy announcements. In passing, we would also like to know—we will ask this at Question Time next Monday—how the £1.2 billion of in-year cuts to local government services this year will impact upon vital children’s services such as child social work, libraries and looked-after children.