Multiannual Financial Framework

Debate between Gavin Shuker and Chris Leslie

Wednesday 31st October 2012 Commons Chamber

[Chris Leslie]

I have a lot of respect for the hon. Lady and she made a calm and persuasive point. The difficulty is that the Prime Minister has not been calm in these negotiations; indeed, he has deployed the veto almost three weeks before negotiations have even started. It is important to have a consistent and calm strategy, and the window of opportunity must surely be to persuade nations across the EU that their taxpayers also want a spending reduction in real terms. If the Prime Minister ends up at the November summit writing a cheque for hundreds of millions of pounds more, he will surely send an unpalatable message to millions of hard-pressed taxpayers across the country.

[Gavin Shuker (Luton South) (Lab/Co-op)]

Despite his youthful appearance, my hon. Friend has been in this House for many years longer I have. Perhaps he will explain to me why, although the Minister said that the stated ambition of his Government is to reduce the EU budget, Government Members who vote for that lose their positions.

[Chris Leslie]

The new Chief Whip will have his own strategy for twisting arms and using his powers of persuasion. The amendment is straightforward and similar to the position the Opposition took in July—[Interruption.] I hear what the junior Whip, the hon. Member for Chelsea and Fulham (Greg Hands), says about our position. It would be perverse for Government Members to walk through the Lobby to vote against the position the Minister proclaims he holds—but strange things happen in the House.

Section 5 of the European Communities (Amendment) Act 1993

Debate between Gavin Shuker and Chris Leslie

Tuesday 24th April 2012 Commons Chamber

[Chris Leslie]

Of course, that is because of the Government’s record of high unemployment, with statistics showing not much improvement, an increase in welfare costs and so forth. All those things are a drag on public expenditure; they are making things no better. That is the result of the Government’s misguided strategy. On the wider issue of employment and unemployment, I challenge hon. Members to find much in the Red Book that provides an assessment of what is going to happen to them. We know that we have the highest unemployment in 17 years, with 2.67 million people on the dole. We know the story that long-term unemployment doubled in the last year and that youth unemployment is at a record high. My hon. Friends do not need me to repeat these figures.

On inflation, the Red Book says that

“inflationary pressures, which the OBR considers to have been the main drag on UK growth over the past 18 months, have started to abate, easing the pressures on household incomes and improving the outlook for consumers.”

Well, consumer prices index inflation rose, I think, in the last month. We are at around 3.25%. We should not forget that the Chancellor’s target for the Governor of the Bank of England is 2% inflation. Indeed, Paul Tucker, the deputy governor of the Bank of England, warned this week that inflation is likely to stay above 3% for much of 2012. Again, even on inflation, the Government’s assessment of the economy is just not correct. There is no mention of consumer confidence in the analysis. Although there is a section on “Investment and confidence” on page 14, it does not mention consumer confidence at all. The consumer confidence indices have been down and are worsening at minus 31%.

[Gavin Shuker (Luton South) (Lab/Co-op)]

My hon. Friend talks about confidence. Did he see the comments of Barney Frank, a leading US congressman, when he talked yesterday about this Government’s obsession with austerity measures, which went right to the heart of the credibility of whether or not they could reduce the deficit? Coming from Washington as he did, he was clear that this Government’s key measure for reducing the deficit in their period of office was counter-productive.

[Chris Leslie]

Indeed. All across the globe, developed countries are realising that a strategy focused singularly on austerity alone will not be the solution. We must have a greater focus on growth and job creation as a way of generating revenues.

I have spoken for too long. Labour Members believe that this motion is flawed because the Government’s assessment of the economy is poor. Others will have their own reasons for voting against it. I want to hear the Minister’s justification for the motion and to find out why it would be cataclysmic if it did not go through. The consequences of that are a key point. As I see it, the Government misunderstand the economy, they are misreading the growth prospects of the UK and they are misconstruing what is happening in the employment markets and business investment. I therefore urge the House to reject this mistaken assessment of the prospects for our economy.