Charter for Budget Responsibility

Debate between Ed Balls and Steve McCabe

Tuesday 13th January 2015 Commons Chamber

[Ed Balls]

We are going to put the top rate of tax back to 50% for people earning over £150,000, and if the hon. Gentleman wanted to win his seat, he would support it.

Instead this Chancellor is taking an increasingly unbalanced and extreme approach. Let us look at what he has failed to put in the charter. He has not included asking those with broader shoulders to make a greater contribution, as I just said. He has not said that we need to strengthen the underlying growth of our economy and improve living standards. Instead, he has made up for all that loss of tax revenue by imposing even bigger spending cuts in the autumn statement than he was planning.

Let me outline the facts to the House. More than 61% of planned departmental spending cuts are still to come in the next Parliament under this Chancellor. There is a further cut for unprotected Departments of 26.3% over the next four years, which is a third bigger than in the previous Parliament. There will be the biggest fall in day-to-day spending on public services in any four-year period since the second world war. That is what is in the Chancellor’s prospectus for his manifesto. We are talking about cuts that the Institute for Fiscal Studies has called “colossal” and that the OBR says will take spending on public services back to the level of the 1930s as a percentage of GDP. That is the Chancellor’s extreme and unbalanced plan, and that is what we are opposing.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

If Government Members are so dismissive of Labour’s plans, why will they not let the OBR independently audit our plans instead of using civil servants fraudulently to manufacture fictitious dossiers about Labour’s plans? Is it that they are scared?

[Steve McCabe]

I will happily withdraw the term “fraudulent”, but I do think the Government are misusing civil servants.

[Ed Balls]

On the issue of the dossier, to which my hon. Friend just referred, the Conservative peer and former head of the Conservative party think-tank, Lord Finkelstein, described the figures in the Chancellor’s document as “ridiculous”. Mr d’Ancona, the commentator from the Evening Standard, said:

“Indeed, if the Tories are to win…they cannot afford schoolboy errors of the sort that wrecked their dossier this week”.

I will not say that they are fraudulent, but there was a whole series of untruths in that document, which the Chancellor should withdraw so that we can have a proper debate. He could go further than that and agree with the proposal from Labour, the Chair of the Treasury Committee and the Chief Secretary to the Treasury and not have the Chancellor—or supposedly the Treasury—costing Opposition policies based on political assumptions and special advisers. Why not ask the OBR to do that audit? He could have done that at any time in the past 18 months. Many have called for that to happen. [Hon. Members: “Why not?”] I will tell Members why not. It is because he has made £7 billion of unfunded and uncosted commitments to cut taxes, and he cannot say where the money will come from. Rather than having an honest debate, he wants to spread smears about Labour’s plans, which he knows will not stand up to independent scrutiny. That is the reason. He could have joined the cross-party consensus, and we could have been voting today in this new fiscal charter to allow the OBR to play that role. That is what should have happened. It is what we called for and what many others supported last year, but this Chancellor has ducked it because he does not have the courage to have an honest debate. That is the reality.

The Chancellor claims that his policy is working. There is nothing competent about borrowing £200 billion more than was planned. Our plan would cut the deficit every year and balance the books. His extreme plan will take public spending back to the level of the 1930s. This Chancellor should stop spending his time playing silly political games, which time and again backfire as they have backfired on him today. He should sort out the economy and spend a bit more time making his sums add up.

Police Reform and Social Responsibility Bill

Debate between Ed Balls and Steve McCabe

Monday 13th December 2010 Commons Chamber

[Ed Balls]

I will do no such thing, and I will tell the House exactly why. We are consistently told by the Home Secretary that she has protected the counter-terrorism budget. What she means by “protected” is that it is cut by only 10%, unlike the police budget, which is cut by 20%. That is what the protection is all about.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I note that the Policing Minister’s letter says that he hopes to make savings and not to use the £600 million. Today’s Birmingham Mail points out that despite an earlier promise that the Pope’s visit would be subject to a special grant for security, that grant was never provided, and west midlands police have virtually exhausted their contingency for special events. If that happens around the country, how can the Government possibly hope to make savings on the Olympics?

[Ed Balls]

I do not know the answer to that. When I spoke to my right hon. Friend the Member for Dulwich and West Norwood (Tessa Jowell), the shadow Olympics Minister, about it this afternoon, she said that she was assured that any reduction in the £600 million budget would be briefed on in advance with the details of the savings, but she has had no such briefing. It looks to me as though the commitment to keep £600 million in principle was rushed in at the weekend.

The reality of the position is that the Home Secretary is seeking to achieve a 20% cut which will further stretch Policing around our country at a time when the largest cut in our police budgets in peacetime history over the past 100 years has just been announced. In the west midlands and Greater Manchester, 2,500 officers are already set to lose their jobs, not to be appointed, or to be removed through regulation A19 powers, with equivalent numbers among PCSOs and other public staff. Other forces around the country will be considering today’s announcement of 20% real-terms cuts. The health budget was broadly flat, although falling slightly; the schools budget was broadly flat, although falling slightly; and the defence budget was cut by 8%. People around the country are asking where the Home Secretary was and how come the police budget was cut by 20%.