Budget Resolutions

Debate between Edward Leigh and Alec Shelbrooke

Monday 27th November 2017 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

I wish to follow on from what my hon. Friend the Member for Poole (Sir Robert Syms) said. This has been a good week for the Government because we are focusing on the most important thing—the Budget and the economy—rather than on ourselves.

When people start to think about what is going on in the economy, they start to wonder whether the Labour party yet has the answers. If I was a Labour MP, I would be worried that the opinion polls show us level-pegging. Why? Because the No. 1 problem that faces our economy—it is infinitely greater than so many other problems, particularly Brexit—is the size of the national debt. The question the Labour party has to answer is whether adding to that debt would solve our problems.

I sat through the speech by the shadow Chancellor, the right hon. Member for Hayes and Harlington (John McDonnell), so I heard him say that he wants to invest for the future. That sounds plausible, but the trouble is that it does not matter what the money is spent on—schools, hospitals, capital or revenue—because if that increases the national debt, our interest repayments increase. The problem we face as a nation is that our interest repayments on the national debt are already more than what we spend on defence, about which we have been talking, and the police every year.

The national debt is far too large. The shadow Chancellor tells me, “You’ve added to the national debt.” That is entirely true—the national debt is still rising by £186 million a day. I am allowed to speak for four minutes, during which the national debt will rise by £200,000. But would we solve our problems by adopting the Labour party’s strategy, which would add to that national debt? We are already facing so many problems in repaying it. I said that the national debt will increase by £200,000 in the four minutes of this speech, but it was increasing by £300,000 a minute when the coalition Government took power in 2010.

[Alec Shelbrooke]

A minute?

[Sir Edward Leigh]

Yes, it was increasing by £300,000 a minute.

The central point for the Opposition is that they have to be credible, as new Labour found out in the years before it took power in 1997. The central credibility argument is whether, when the national debt is so crippling—as I said earlier, our repayments are equivalent to paying for 10 Queen Elizabeth-class aircraft carriers every year—we can solve our problems by adding to it. My contention is that that is absolutely not the case.

Well into this Parliament, the reason why the Conservative party is still level-pegging with the Opposition, who should be way ahead, is that the Labour party has no credible economic plan to try to lift us out of our national debt, except for borrowing more, spending more and raising taxes. Who would suffer in that scenario? Would it be us? No, it would be our children and grandchildren, because we would be loading that debt on to them. Of course, as the national debt increased under Labour’s plans, interest rates would rise even more and mortgages would become more expensive. Who would suffer? The young who want to get mortgages. Labour Members’ policies simply do not add up. Until they come face to face with reality, they will never become the Government of this country.