Oral Answers to Questions

Ed Miliband Excerpts

Wednesday 17th December 2014 Commons Chamber

[The Prime Minister]

My hon. Friend has campaigned over and over again for the important improvements in these rail links, and he knows what is being done to help the south-west in that regard. I received a presentation from the taskforce, and we are going to take forward each of the three points in its plan in the work we do in future, to make sure that there is real resilience and that there are better services for people in the south-west. On the issue of unemployment, the figures in the west country are welcome. In his constituency the claimant count has now fallen by 42% since the election. What these figures show nationally is employment up; unemployment down; and the claimant count falling for the 25th consecutive month. What is an important moment for our country is that unemployment is now below 2 million and wages are rising faster than inflation—something I am sure will be welcomed across the House.

[Edward Miliband (Doncaster North) (Lab)]

I want to join the Prime Minister in paying tribute to those murdered in the appalling massacre in Pakistan. Even as we have become accustomed to tragic events, this slaughter of innocent children in their classrooms has shocked the world. We stand in solidarity with the grieving families and the people of Pakistan, and in the fight against terrorism. I also join the Prime Minister in condemning the sickening terrorist attack in Sydney, and our condolences go to the families of those who died and to the Australian people. I also, like, the Prime Minister, pay tribute this Christmas to all our troops serving around the world; they do our country proud and they show the utmost courage and bravery.

The independent Office for Budget Responsibility, established by the Chancellor to give independent expert advice, claims that his plans take

“total public spending to its lowest share of”—

national income—

“in 80 years.”

Why does he believe the OBR has joined the BBC in a conspiracy against the Conservative party?

[The Prime Minister]

First, I welcome what the Leader of the Opposition said about the atrocities that have taken place. Can I also welcome his welcome for the Office of Budget Responsibility? We still remember the days of the fiddled forecasts, the fake figures and all that we had to put up with. If he is going to quote the OBR he might want to read the complete quote. Let me do that for the benefit of the House. It says about our spending plans that the closest equivalent of the national accounts implies that by 2019-20 day-to-day spending on public services

“would be at its lowest level since 2002-3 in real terms.”

Now, 2002-03, in my memory, was after five years of a Labour Government, when the right hon. Gentleman was an adviser in the Treasury. Presumably he is now going to tell us that it was a time of appalling poverty and deprivation, but I do not seem to remember that that was the message at the time.

[Edward Miliband]

The right hon. Gentleman has spent four years saying that we spent too much; now he is saying that we spent too little. The OBR says—and this is the full quote— that it takes total public spending

“to its lowest share of national income”

in 80 years. Is he really saying that it is wrong about the proportion of national income?

[The Prime Minister]

The percentage of national income will be roughly the same as it was in 1999 after two years of Labour government. The fact is, after seven years of economic growth we should have a surplus; we should fix the roof when the sun is shining. Is the Labour leader really saying that he does not think that we should run a surplus ever?

[Edward Miliband]

If the right hon. Gentleman is just a little bit patient, in four months’ time he will get to ask the questions and I will get to answer them. He knows what has happened—the mask slipped in the autumn statement. He has been revealed for who he really is. Let us talk about the scale of the cuts to get to the 1930s vision: they are over £50 billion—more than the entire amount that we spend on schools, half of what we spend on the NHS, and significantly more than in this Parliament. Is he really pretending that cuts on this scale will not do massive damage to front-line services?

[The Prime Minister]

Of course we have to make difficult decisions. We have done so every day since taking over from the shambles that we inherited. Everyone can now see that the right hon. Gentleman’s pretence, which lasted for about one week, of caring about the deficit is over. This is what the Institute for Fiscal Studies says about his policy, “Under a Labour Government…there would be much more borrowing, and therefore” more “government debt”. Labour has not learned a single thing from the last four years: more borrowing, more debt, more taxes—all the things that got us into this mess in the first place.

[Edward Miliband]

The right hon. Gentleman is borrowing £207 billion more than he planned, and he has broken his promise. The difference is that we will cut the deficit every year—he wants to go back to the 1930s. If that was not bad enough, he has £7 billion of unfunded tax cuts on top. Before the last election, he said that

“you can’t talk about tax reduction unless you can show how it is paid for, the public aren’t stupid”.

What is it going to be: further cuts in public services or a rise in VAT?

[The Prime Minister]

What this Government have shown is that if you get on top of the national finances and if you grow the economy you can cut taxes for 26 million people. It is interesting that, on this of all days, not a word from the right hon. Gentleman about the fall in unemployment. That is the truth. Remember the predictions: the Opposition told us that there would be no growth, then there was growth. They told us that there would be no jobs, then there were jobs. They told us that the jobs would not have pay ahead of inflation; now the jobs have pay ahead of inflation. They told us the deficit would go up; the deficit has come down. They have got absolutely nothing to say about the economy because they have been wrong on every single count.

[Edward Miliband]

The right hon. Gentleman is crowing that everything is fixed. It may be fixed for his Christmas card list, but it is not fixed for far too many people in this country.

The right hon. Gentleman did not really answer the question on VAT, did he? This is what he said before the last election on 5 April 2010: “We have…no plans” to put up VAT. Barely two months later he put up VAT from 17.5% to 20%. He has £7 billion of unfunded tax cuts, a deficit plan that he cannot meet, and we know that he has got form. Will he now categorically rule out a rise in VAT?

[The Prime Minister]

We do not need to raise taxes because we have a plan for efficiencies in spending. It is the Labour party that does not have a plan. The right hon. Gentleman asks what has changed for real people over the past year, and I will tell him: 588,000 people who did not have a job last year have one this year. Long-term unemployment has fallen. Youth unemployment has fallen. You might have thought that the Labour party would welcome those things. It is Christmas, so we should all enter into the Christmas spirit. I have had my Christmas present a little early, because I have here the document being sent to every Labour MP. In case they have not had time to read it, let me advise them that if they go to page 17—[Interruption.] Be patient. It is there in black and white: on managing the economy, the Conservatives have a 17-point lead. Thank you.

[Edward Miliband]

I hope that over Christmas the Prime Minister will get to reflect on his year. He has lost two Members of Parliament to UKIP, he lost 26-2 in Europe, and he brought a whole new meaning to the phrase “conviction politician” when Andy Coulson went to jail. The truth is that he has given up on compassionate conservatism. They have been exposed for who they really are. His plan for the 2020s is to go back to the 1930s. It is not about balancing the books; it is about slashing the state. In just four months’ time that will be the election choice.

[The Prime Minister]

What this has shown is that on a day when it has been shown that unemployment has fallen, inflation is down and our economy is growing faster than any other major economy in the western world, the right hon. Gentleman has absolutely nothing to say. I almost feel sorry for Labour MPs. They cannot talk about the deficit, because it has fallen. They cannot talk about growth, because it is rising. They cannot talk about jobs, because we are increasing them. They cannot talk about immigration, because they have been told not to. They cannot talk about their leader, because he is a complete waste of space. No wonder for Labour MPs this year it is a silent night.