Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 27th February 2013 Commons Chamber

[The Prime Minister]

I absolutely agree with my hon. Friend. Frankly, it is absolutely staggering that someone is standing for public office who has said this:

“In October 1984, when the Brighton bomb went off, I felt a surge of excitement at the nearness of Margaret Thatcher’s demise. And yet disappointment that such a chance had been missed.”

Those are the words of the Labour candidate in the Eastleigh by-election. They are a complete disgrace and I hope that the Leader of the Labour party will get up and condemn them right now.

[Edward Miliband (Doncaster North) (Lab)]

Three years ago, the Prime Minister said that

“the first priority of any government has got to be keeping UK plc’s credit rating. That’s got to come first. It’s the only responsible thing to do.”

How is that going?

[The Prime Minister]

Is it not amazing that the Leader of the Opposition will not condemn someone who apparently speaks up for terrorists? Is that not absolutely disgraceful? He will have a second chance when he gets up again. The decision by the ratings agency is a reminder of the debt and the deficit problem that this country faces and, frankly, it is a warning to anyone who thinks we can walk away from it. It is absolutely vital that we continue with the work of this Government, who have cut the deficit by a quarter, with a million extra private sector jobs and interest rates at record low levels. I note that it is still his policy to address excessive borrowing by borrowing more.

[Edward Miliband]

I was asking about the country’s credit rating. The right hon. Gentleman used to say that our credit rating was

“the mark of trust in our economy”,

and that it was

“right up front and centre”

in

“our new economic model”.

His manifesto that he published at the general election said that safeguarding Britain’s credit rating was the very first of his “Benchmarks for Britain”, against which

“the British people…can judge the economic success or failure of the next government.”

So does the Prime Minister accept that, by the first test he set himself, he has failed?

[The Prime Minister]

If there is a problem of excessive borrowing, why is it the right hon. Gentleman’s policy to borrow more? That is the question that he simply has to answer. If he wants to listen to the credit rating agency, I will tell him that Moody’s said:

“Moody’s could also downgrade the UK’s government debt rating further in the event of…reduced political commitment to fiscal consolidation.”

On this side of the House, we know that that is the vital work we have to do. Will he finally now admit that he is in favour of more borrowing? Admit it!

[Edward Miliband]

You, Mr Speaker, always know when the right hon. Gentleman starts asking me questions that he cannot answer questions about his own record. The part-time Chancellor said that it would be a “humiliation” for Britain to lose its triple A credit rating. I know that the Prime Minister is not big on humility, but his manifesto did promise that he would be “accountable and open”, so let us give him another go. A simple question—yes or no: has not he failed the first economic test that he set out in his manifesto?

[The Prime Minister]

I am not arguing for one moment that the rating agency does not matter—that is the right hon. Gentleman’s argument. His argument is that the rating agency does not matter and that the answer to debt is to borrow more and not to take any responsibility for the mess they left. It is this Government who have cut the deficit by a quarter, who have a million extra private sector jobs and who have low interest rates that are vital for the future of the economy. Economies that maintain their triple A rating are those of countries such as Canada and Germany that fixed the roof when the sun was shining. Let me ask him again: why does he not admit that his answer to extra borrowing is to borrow more? Have another go: admit it!

[Edward Miliband]

Any time the right hon. Gentleman wants to swap places, I will happily answer the questions. He talks about borrowing. I do not know when he last checked, but the deficit is rising, not falling, this year—and, because of his failure to grow the economy, he is borrowing £212 billion more than he planned. Now, let us turn to the reasons for the downgrade. May we take it from his answers so far that he really believes that this loss of the country’s triple A status, which he set as the test, has nothing to do with him?

[The Prime Minister]

I am the one saying that this credit rating does matter. It demonstrates that we have to go further and faster on reducing the deficit. The very fact that the right hon. Gentleman will not answer the question about wanting to borrow more, which the country needs to know, means that he will never sit on this side of the House. If he wants to look at what is happening in our economy, is it not interesting that he does not mention the other economic news from last week, which was 154,000 extra people in work and more people in employment than at any time in our history? Youth unemployment is down since the election; unemployment is down since the election—that is what is happening in our economy, but the right hon. Gentleman cannot recognise it. When is he going to admit that we should never listen to someone who sold the gold, bust the banks, racked up the deficit and cannot say sorry for any of it?

[Edward Miliband]

I think we can take it from that answer that the Prime Minister cannot accept the simple fact that he has failed on the first test he set himself, and it is his fault—it happened on his watch. Borrowing is rising, even after all the pain of the tax rises and all the spending cuts because the part-time Chancellor’s plan is failing. The truth is that they are the last people left who think that their plan is working and that the failure has nothing to do with them. We have 1 million—[Interruption.] The Education Secretary calls out, “That’s not true”, so perhaps he believes it, too, but behind the scenes he is briefing against the Chancellor. Perhaps they should swap places. We have 1 million young people out of work, the deficit is rising not falling and the economy is flatlining. What further evidence does he need that his plan is just not working?

[The Prime Minister]

Let us examine the points the right hon. Gentleman has just made. He says the deficit is up, but it is down by a quarter since the election. He says that we do not have support for our plan, but the CBI—the biggest business organisation in the country—says we have the right plan for growth. He complains about the level of unemployment, but it is down since the election and we have a record number of people in work. Those are the facts. Now let us look at the right hon. Gentleman’s policy. Let us examine the fact that the New Statesman, the in-house magazine of the Labour party, says that his

“critique of the government’s…strategy may never win back public trust”,

his

“proposals for the economy will never convince”,

and his

“credibility problem will only become magnified as the general election approaches”.

That is not Conservative central office saying it, but the New Statesman.

[Edward Miliband]

With the greatest respect to the New Statesman, the Prime Minister is scraping the barrel by quoting that. All we have heard today—[Interruption.]

[Mr Speaker]

Order. Mr Zahawi, you are an excitable fellow; this is not very statesmanlike. Calm yourself; you will get better over time.

[Edward Miliband]

All we have heard today is a Prime Minister who refuses to accept that he has failed on the central test he set himself. He has failed to meet that first test. It is not just our credit rating that has been downgraded. We have a downgraded Government, a downgraded Chancellor and a downgraded Prime Minister.

[The Prime Minister]

The right hon. Gentleman says that the New Statesman is scraping the barrel, but it was the only newspaper that endorsed his leadership. In this Oscar week, perhaps the best we can say is that Daniel Day-Lewis was utterly convincing as Abraham Lincoln, and the right hon. Gentleman is utterly convincing as Gordon Brown: more borrowing, more spending, more debt.