Oral Answers to Questions

Ed Miliband Excerpts

Wednesday 27th June 2012 Commons Chamber

[The Prime Minister]

My hon. Friend makes a very important point. We have been discussing this issue for 100 years, and it really is time to make progress. The truth of the matter is that there are opponents of Lords reform in every party—in the Conservative party, in the Labour party and in the Liberal Democrats in the other place—but there is a majority in this House for a mainly elected House of Lords, and I believe that there is a majority for that in the country. However, if those who support Lords reform do not get out there and back it, it will not happen—that is the crucial point. It is absolutely hopeless—in life and in politics—to do what the Leader of the Opposition is doing: saying that he is in favour of it and he is also against it. It is hopeless.

[Edward Miliband (Doncaster North) (Lab)]

The Prime Minister said on 11 April:

“I will defend every part of that Budget. I worked on it very closely with the Chancellor of the Exchequer line by line.”

What went wrong?

[The Prime Minister]

The fuel duty increase was a Labour tax rise—[Hon. Members: “U-turn!”] It cannot be a U-turn to get rid of a Labour tax increase. They put in place 12 fuel duty increases in government, they left behind six increases in fuel duty, and I am proud of the fact that we are dealing with them.

[Edward Miliband]

Then it was all part of a seamless political strategy. Unfortunately, they forgot to tell the Transport Secretary, who went out and defended the increase; they forgot to tell the Cabinet in the morning, although the Chancellor briefed it on the economic situation; and they forgot to tell their own Back Benchers, and sent them out to defend the old policy. Let us call it what it is: another case of panic at the pumps. Month after month, every time Labour Members have proposed putting more money in people’s pockets to get the economy moving, the Prime Minister has denounced the policy as irresponsible, yet yesterday the Chancellor said that this was about doing precisely that. Why does not the Prime Minister admit it—plan A has failed?

[The Prime Minister]

Does the right hon. Gentleman support stopping the fuel increase? Yes? Then why not get up and congratulate the Government on being on the side of the motorist and the people who work hard and do the right thing? That is who we are helping. Ever since we came to office, we have been defusing Labour’s tax bombshell. We defused their jobs tax and their increases in council tax, and we have defused their increases in fuel tax. Labour Members should be congratulating us on being on the side of those who work hard and do the right thing.

[Edward Miliband]

I am afraid it is back to the bunker after that answer. Even on this Government’s own measure of success, borrowing went up yesterday. No wonder they want to change the exam system—the Chancellor cannot get the maths right. Can the Prime Minister confirm that the reason this Government have had to borrow £3 billion more than this time last year is that tax revenues are down and the costs of economic failure are going up? It is all the result of double-dip recession made in Downing street.

[The Prime Minister]

So on fuel tax, the right hon. Gentleman is against it, though he is in favour of it, and on borrowing, he thinks it is too high but he wants to put it up. I think it is back to school.

[Edward Miliband]

I know the Prime Minister finds the shadow Chancellor irritating, but it was the shadow Chancellor who called for the fuel duty cut before he did it. The Government are not just economically incompetent; they are unfair as well. The right hon. Gentleman has made six U-turns, but not on two particular decisions in his Budget—the tax cut for millionaires, paid for by the tax rise on pensioners. He says he has been listening to the electorate. What feedback has he had on those two particular proposals?

[The Prime Minister]

On the shadow Chancellor, he is the man who put the fuel tax increase into the Budget in the first place. What we have been doing is getting rid of Labour’s tax increases. The Leader of the Opposition asks me about the top rate of tax. I think it is wrong to have a top rate of tax that is higher than that of France, Germany or Italy. For 13 years of a Labour Government in which he served, the top rate of tax was 40p. The top rate of tax is now going to be 45p. Again, I think a “Thank you” would be in order.

[Edward Miliband]

The Prime Minister claims to be part of the way in which the decision on the fuel tax was made. The Chancellor hid away yesterday, refusing to defend the decision. No wonder—[Interruption.] The Chancellor yesterday sent out the Economic Secretary to do all the interviews on the issue. It is no wonder the hon. Member for Mid Bedfordshire (Nadine Dorries) said this:

“I…didn’t see Newsnight, however, if Osborne sent Chloe on…he is a coward as well as arrogant.”

So there is no change on the tax cut for millionaires. Does not the Prime Minister realise that what people hate about this Government is the double standards when they say that tax avoidance is immoral but it is okay, when so many people are struggling to get by, to give a tax cut to millionaires, including the millionaires in the Cabinet?

[The Prime Minister]

The Leader of the Opposition says that the Chancellor was hiding away. The Chancellor was announcing the tax reduction from the Dispatch Box. I know that the House of Commons does not always get reported, but my right hon. Friend was here making the announcement and, I have to say, completely wrong-footing the shadow Chancellor. What we have heard today from the Leader of the Opposition is a whole series of arguments about process—process about the House of Lords, where he is wrong on the substance; process about the economy, where he is wrong on the substance; process about the deficit, when he wants to put the borrowing up. Absolutely hopeless.

[Edward Miliband]

This is about an economic plan that is failing, and it is about the unfairness of this Government. The Prime Minister talks about the tax affairs of Jimmy Carr, but he is giving a tax cut to millionaires of £40,000 a year across this country, including in his own Cabinet. When it comes to tax, it is obviously one rule for the comedians on the stage and another rule for the comedians in the Cabinet. The Prime Minister has spent the past week blundering into the tax affairs of Jimmy Carr, his Budget unravelling, his economic plan failing. From the country’s point of view, it is a shambles. From his point of view, it is just another week at the office.

[The Prime Minister]

I am not surprised—