Oral Answers to Questions

Ed Miliband Excerpts

Wednesday 21st January 2015 Commons Chamber

[The Prime Minister]

I think I caught some of that, although I may need to buy the album to get the rest of it, but the point is a good one. The Opposition’s policy of freezing energy prices at the top of the market would be denying the price cuts that are now coming through to customers around this country. But the key to all this is to stick to our long-term economic plan, which again today is seeing unemployment fall and the number of people in work rise to record levels—something which I am sure we are going to welcome right across the House of Commons.

[Edward Miliband (Doncaster North) (Lab)]

Let me start by saying, on the Iraq inquiry, that it was set up six years ago and I agree with the Prime Minister that it should be published as soon as possible.

On the economy, as the election approaches, can the Prime Minister confirm that we now know this will be the first Government since the 1920s to leave office with living standards lower at the end of the Parliament than they were at the beginning?

[The Prime Minister]

First of all, let me agree with the Leader of the Opposition that we want to see this Iraq inquiry published promptly, but let me make this point. If everyone in this House, including Opposition Members, had voted to set up the Iraq inquiry when we proposed, it would have been published years ago. So perhaps he could start by recognising his own regret at voting against the establishment of the inquiry.

[Edward Miliband]

The inquiry was established six years ago, after our combat operations had ended, and frankly, my views on the Iraq war are well known and I want this inquiry to be published.

I notice that the Prime Minister did not answer on the economy. Families are £1,600 a year worse off. He said in his 2010 manifesto that living standards would rise. Can we therefore agree that Tory manifesto promises on living standards are not worth the paper they are written on?

[The Prime Minister]

First of all, let us be clear: the right hon. Gentleman voted again and again and again against establishing the inquiry—but, as ever, absolutely no apology.

Let me deal very directly with living standards and what is happening in the economy of our country. The news out today shows a record number of people in work and a record number of women in work. We are seeing wages growing ahead of inflation, and we are also seeing disposable income now higher than in any year under the previous Labour Government. As for the right hon. Gentleman’s figure of £1,600, it does not include any of the tax reductions that we have put in place again and again under this Government. That is the truth. The fact of the matter is that he told us there would be no growth, and we have had growth; he told us there would be no jobs, and we have had jobs; he told us there would be a cost of living crisis, and we have got inflation at 0.5%. He is wrong about everything.

[Edward Miliband]

The Prime Minister has raised taxes on ordinary families, he has raised VAT, and he has cut tax credits. The reality is that people are worse off on wages and they are worse off on taxes under this Prime Minister.

The Prime Minister thinks everything is hunky-dory. Did he even notice this week the report that came out that said that half of all families where one person is in full-time work cannot make ends meet at the end of the month? You can work hard and play by the rules, but in Cameron’s Britain you still cannot pay the bills—that is the reality.

[The Prime Minister]

I study every report that comes out. The right hon. Gentleman is referring, of course, to the Rowntree report, which says that

“the risk of falling below a socially acceptable living standard decreases as the amount of work in a household increases.”

Under this Government, we have got over 30 million people in work, we have got the lowest rate of young people claiming unemployment benefit since the 1970s, long-term unemployment is down, and women’s unemployment is down. We are getting the country back to work. In terms of living standards, we have raised to £10,000 the amount of money people can earn before they start paying taxes, and people who are in work are seeing their pay go up by 4%. If we had listened to the right hon. Gentleman, none of these things would have happened. If we had listened to Labour, it would be more borrowing, more spending, more debt: all the things that got us into a mess in the first place.

[Edward Miliband]

The Prime Minister is the person who has failed on the deficit. This Prime Minister says—[Interruption.]

[Mr Speaker]

Order.

[Edward Miliband]

This Prime Minister says that we have never had it so good, and he is totally wrong. He does not notice what is going on because life is good for those at the top. Can he confirm that while every day people are worse off, executive earnings have gone up by 21% in the last year alone?

[The Prime Minister]

The right hon. Gentleman criticises me on the deficit—he is the man who could not even remember the deficit. Also, he has now had four questions and not a single word of welcome for the unemployment figures out today. Behind every single one of those statistics is a family with someone who can go out to work, who can earn a wage, and who can help give that family security. We are the party that is putting the country back to work; Labour is the party that would put it all at risk.

[Edward Miliband]

That is total complacency about one month’s figures when the Prime Minister has had five years of failure under this Government. Under this Prime Minister we are a country of food banks and bank bonuses; a country of tax cuts for millionaires while millions are paying more. Is not his biggest broken promise of all that we are all in it together?

[The Prime Minister]

Oh dearie me—you can see the problem that Labour Members have got. They cannot talk about the deficit because it is coming down. They cannot talk about employment because it is going up. They cannot talk about the economy because the International Monetary Fund and the President of the United States all say the British economy is performing well. So what are they left with? I will tell you, Mr Speaker. They have got an energy policy to keep prices high, they have got a minimum wage policy that would cut the minimum wage, and they have got a homes tax that has done the impossible and united the hon. Member for Hackney North and Stoke Newington (Ms Abbott) with Peter Mandelson. To be fair to the right hon. Gentleman, we learned at the weekend what he can achieve in one week in Doncaster, where he could not open the door, he was bullied by small children, and he set the carpet on fire—just imagine what a shambles he would make of running the country.

[Edward Miliband]

This is a Prime Minister—[Interruption.]

[Mr Speaker]

Order. It may well be that this session will take a bit longer, but questions and answers—[Interruption.] That is fine by me, but however long it takes, the questions and the answers will be heard.

[Edward Miliband]

I have to say to the Prime Minister: if he is so confident about leadership, why is he chickening out of the TV election debates?

This is the Prime Minister who will go down in history as the worst on living standards for working people. He tells people they are better off; they know they are worse off. Working families know they cannot afford another five years of this Government.

[The Prime Minister]

Why don’t we leave the last word to the head of the International Monetary Fund? She is often quoted by the shadow Chancellor, who today seems to be having a quiet day: I can see why—because our economy is growing, and people are getting back to work. She said that the UK is

“where clearly growth is improving, the deficit has been reduced, and where…unemployment is going down. Certainly from a global perspective this is exactly the sort of result that we would like to see: more growth, less unemployment, a growth that is more inclusive, that is better shared, and a growth that is…sustainable and…balanced.”

That is the truth. Every day this country is getting stronger and more secure, and every day we see a Labour party weaker, more divided and more unfit for office.