Government Spending Cuts Debate

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Department: HM Treasury

Government Spending Cuts

Edward Leigh Excerpts
Wednesday 26th May 2010

(14 years, 5 months ago)

Commons Chamber
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David Laws Portrait Mr Laws
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The right hon. Gentleman is simply wrong if he thinks local government is incapable of making efficiency savings. All the people I know in local government believe that significant efficiency savings can be made. He does not allow for the significant change that the Government have announced, which will mean that by ending ring-fencing, there is more freedom for local government to decide where those cuts fall, and to make sure that they fall in the areas that are not priorities. I should have thought that as a former Education Secretary, he could have brought himself to congratulate the Government on the way that they have managed to ring-fence the schools budget and the Sure Start budget.

Edward Leigh Portrait Mr Edward Leigh (Gainsborough) (Con)
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I welcome the return to the Treasury of stern, unbending Gladstonian Liberalism. Will the Chief Secretary confirm that if we are to restore the nation’s finances, all Departments, including Health, Education, International Development and Defence, must play their part? For instance, such has been the catastrophic decline in productivity in health over the past 10 years that we can make significant efficiency savings without endangering front-line services.

David Laws Portrait Mr Laws
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I am grateful to my hon. Friend for his kind comments about Gladstonian Liberalism. I hope that this is not only Gladstonian Liberalism, but liberalism tinged with the social liberalism about which my party is so passionate.

In the savings that we make, we are seeking to ensure that we cut with care. We have demonstrated this week that we can find efficiency savings and also put money into the areas that many of us in the House are passionate about—protecting education and putting more money than the previous Government did into social housing. We have shown that we can deliver both of those, but I agree with my hon. Friend that we must make sure that even those areas where the overall budgets are protected are driving out efficiency savings. There are considerable efficiency savings that can be made in the Ministry of Defence, in health and in education, and we must make sure that even as we protect the totality of those budgets, we shift money to the front-line services that matter most.