Ed Miliband
Main Page: Ed Miliband (Labour - Doncaster North)Budget Resolutions and Economic Situation
Ed Miliband Excerpts(11 years, 8 months ago)
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Edward Miliband (Doncaster North) (Lab)
This is the Chancellor’s fourth Budget, but one thing unites them all: every Budget, when he comes to this House, things are worse, not better, for this country. Compared to last year’s Budget, growth last year is down, growth this year is down, growth next year is down and growth in 2015 is down. And all he offers is more of the same: higher borrowing, lower growth and more—[Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I expected the Chancellor to be heard and I expect the Leader of the Opposition to be given the same courtesy.
Edward Miliband
Government Members do not think that growth matters, but people in this country do.
All the Chancellor offers is more of the same. It is a more-of-the-same Budget from a downgraded Chancellor. Britain deserves better than this.
The Chancellor almost need not have bothered coming to the House, because the whole Budget, including the market-sensitive fiscal forecasts, was in the Standard before he rose to his feet.
Hon. Members
Mr Deputy Speaker
Order. I cannot understand an Opposition who do not want to hear their own leader. [Interruption.] Order. Just as when the Opposition did not want to hear the Chancellor, the one thing that I can guarantee is that people in this country want to hear what the right hon. Gentleman has to say.
Edward Miliband
To be fair to the Chancellor of the Exchequer, I am sure that he did not intend the whole of the Budget to be in the Standard before he rose to his feet. I hope that he will investigate and report back to the House.
What did the Prime Minister declare late last year? He said
“the good news will keep coming.”—[Official Report, 24 October 2012; Vol. 551, c. 917.]
What did the Chancellor tell us today? Under this Government, the bad news just does not stop. Back in June 2010, he promised in his Budget a “steady and sustained” recovery. He was wrong. We have had the slowest recovery for 100 years. Last year, he said in the Budget that there would be no double-dip recession. He was wrong; there was. He told us a year ago that growth would be 2%. He was wrong; now he says that it will be just 0.6%. He told us that next year, growth will be 2.7%. Wrong again; it will be just 1.8%.
“Wait for tomorrow,” the Chancellor says, “and I will be vindicated.” But with this Chancellor, tomorrow never comes. He is the wrong man in the wrong place at the worst possible time for the country. It is a downgraded Budget from a downgraded Chancellor. He has secured one upgrade this year: travelling first class on a second-class ticket from Crewe to London. [Interruption.]
Mr Deputy Speaker
Order. I do not want to keep repeating myself. I expect, and the public expect, to hear the Leader of the Opposition. Government Members must also listen to the Leader of the Opposition.
Edward Miliband
The only time when the country has felt all in it together is when the Chancellor was booed by 80,000 people at the Paralympic games. I have some advice for the Chancellor: stay away from the cup final, even if Chelsea get there.
Who is paying the price for the Chancellor’s failure? Britain’s families. In his first Budget, he predicted that living standards would rise over the Parliament, but wages are flat, prices are rising and Britain’s families are squeezed. What the Chancellor did not tell us is that the Office for Budget Responsibility has already confirmed that the British people will be worse off in 2015 than they were in 2010. It’s official: you’re worse off under the Tories. Worse off, year after year after year.
Was there not an extraordinary omission from the Chancellor’s speech? There was no mention of the triple A rating. The Prime Minister called it the “mark of trust” and told us that it had been “secured”. The Chancellor said that it would be a humiliation for Britain to be downgraded. So he is not just a downgraded Chancellor, but a humiliated Chancellor too.
What about borrowing? The Chancellor made the extraordinary claim in his Budget speech that he was “on course”. Even he cannot believe this nonsense. Debt will be higher in every year of this Parliament than he forecast at the last Budget. He is going to borrow £200 billion more than he planned.
What did the Chancellor say in his June 2010 Budget? He set two very clear benchmarks:
“we are on track to have debt falling and a balanced structural current budget by”
2014-15.—[Official Report, 22 June 2010; Vol. 512, c. 168.] He called that “our four-year plan”. This was the deal that he offered the British people. These were the terms: four years of pain, tax rises—[Interruption.] The Prime Minister says from a sedentary position, “Borrow more.” He is borrowing more. He just needs to look down the Bench, because his own Business Secretary said that they are borrowing more. I would keep quiet if I was him.
These were the terms: four years of pain, tax rises and spending cuts, and the public finances would be sorted. So today, the Chancellor should have been telling us, “Just one more year of sacrifice. In 12 months the good times will roll. Job done. Mission accomplished. Election plan under way.” But three years on, what does he say? Exactly what he said three years ago. We still need four more years of pain, tax rises and spending cuts. In other words, after all the misery, all the harsh medicine and all the suffering by the British people—three years, no progress, deal broken, same old Tories. And all the Chancellor offers is more of the same.
It is as if the Government really do believe their own propaganda that the failure is nothing to do with them. We have heard all the excuses: the snow, the royal wedding, the jubilee, the eurozone. Now, they are turning on each other. The Prime Minister said last weekend:
“Let the message go out from this hall and this party: we are here to fight.”
They are certainly doing that. The Business Secretary has turned on the Chancellor, the Home Secretary has turned on the Prime Minister and the Education Secretary has turned on her. The whole country can see what is going on: the blame game has begun in the Cabinet.
The truth is that the Chancellor is lashed to the mast. Not because of his judgment, but because of pride; not because of the facts, but because of ideology. Why does he stay in his job? Not because the country wants him, not because his party wants him, but because he is the Prime Minister’s last line of defence. The Bullingdon boys really are both in it together. They do not understand that we need a recovery made by the many, not just a few at the top.
It is a year now since the omnishambles Budget. We have had U-turns on charities, churches, caravans and, yes, on pasties. But what is the one policy that the Government are absolutely committed to? The top rate tax cut. John the banker—remember him?—has had a tough year earning £1 million. What does he get? He gets a tax cut of £42,500 next year—double the average wage. His colleague—let us call him George—has done a little better and brings home £5 million a year. What does he get as a tax cut? I know that the Prime Minister does not like to hear what he agreed to. He gets a tax cut of nearly £250,000.
At the same time, everyone else is paying the price. The Chancellor is giving with one hand and taking far more away with the other. Hard-working families are hit by the strivers tax. Pensioners are hit by the granny tax. Disabled people are hit by the bedroom tax. Millions pay more so that millionaires can pay less.
The Chancellor mentioned child care in his speech. He wants a round of applause for cutting £7 billion in help for families in this Parliament and offering £700 million of help in the next. What are the families who are waiting for that child care help told? They have to wait more than two years for the help to arrive, but the richest in society need to wait only two weeks for the millionaires’ tax cut to kick in. That is David Cameron’s Britain.
Of course, the Prime Minister still refuses to tell us, despite repeated questions, whether he is getting the 50p tax cut. He is getting embarrassed now, we can see. He has had a year to think about it and he must have done the maths. Even he should have worked it out by now, so come on. Nod your head if you are getting the 50p tax rate—[Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The House must come to order. Let us hear the Leader of the Opposition.
Edward Miliband
I am not getting the 50p tax rate; I am asking whether the Prime Minister is. He should answer—after all, he is the person who said that sunlight is the best disinfectant. Let transparency win the day.
Let us try something else. What about the rest of the Cabinet? Are they getting the 50p rate? Okay, hands up if you’re not getting the 50p tax cut. Come on—[Interruption.]
Mr Deputy Speaker
Order. We are all right; as some hon. Members want to take a cup of tea, we might be a little more silent.
Edward Miliband
I was just asking those in the Cabinet to put their hands up if they are not getting the 50p tax cut. They do not like it, do they? At last, the Cabinet are united with a simple message: “Thanks, George.” He is cutting taxes for them while raising them for everyone else.
The Chancellor announced some measures today that he said would boost growth, just like he does every year—and every year, they fail. I could mention the national loan guarantee scheme that he trumpeted last year—
Mr Deputy Speaker
Order. Mr Mosley, I think your voice might be better saved for Chester FC this weekend. As they are top of the league, I think you would be better off cheering them on.
Edward Miliband
The Chancellor trumpeted the loan guarantee scheme, then he abolished it just four months later. There was the funding for lending scheme, which he said would transform the prospects for small businesses, and the Work programme, which is worse than doing nothing.
Today, the Chancellor talked a lot about housing. When the Prime Minister launched his so-called housing strategy in 2011, in his own understated way he labelled it
“a radical and unashamedly ambitious strategy”.
He said it would give the housing industry a “shot in the arm” and help 100,000 people to buy their own homes. Eighteen months later, how many families have been helped? Not 100,000. Not even 10,000. Just 1,500 out of the promised 100,000. That is 98,500 broken promises. For all the launches, strategies and plans, housing completions are now at their lowest level since the 1920s and 130,000 jobs have been lost in construction. It is a failing economic plan from a failing Chancellor.
The Chancellor has failed the tests of the British people—growth, living standards and hope—but he has not just failed their tests. He has failed his own as well. All he has to offer is this more-of-the-same Budget. Today, the Chancellor joined Twitter. He could have got it all into 140 characters: “Growth down. Borrowing up. Families hit. And millionaires laughing all the way to the bank. #downgradedChancellor.”
More of the same is not the answer to the problems of the last three years. More of the same is the answer of a downgraded Chancellor in a downgraded Government. Britain deserves better than this.