George Osborne
Main Page: George Osborne (Conservative - Tatton)Department Debates - View all George Osborne's debates with the HM Treasury
(10 years, 3 months ago)
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Graham Evans (Weaver Vale) (Con)
14. What progress he has made on his long-term economic plan.
The Chancellor of the Exchequer (Mr George Osborne)
The Government’s long-term economic plan is working, and the International Monetary Fund expects the United Kingdom to grow faster than any other G7 country this year. But the job is not yet done; there are growing risks abroad from a disappointingly weak eurozone and persistent risks at home from Opposition Members who would abandon the long-term plan and return Britain to the economic mess they left it in.
Fiona Bruce
I welcome the statistics out today on the Government’s flagship Help to Buy scheme. It is helping those families it was designed for: those buying a house worth less than the national average—overwhelmingly, these are people outside London and the south-east. The policy is boosting aspiration and helping hard-working families on to the housing ladder. So will my right hon. Friend confirm that he will not listen to the Labour party, which has opposed the policy, and will instead continue with Help to Buy as part of our long-term economic plan to deliver greater economic security and a brighter future for our country?
Mr Osborne
My hon. Friend is absolutely right about that. We heard lots of scare stories from the Opposition about how this scheme would be used only in central London and the like. The fact is that today’s figures show that almost 50,000 people have been helped by Help to Buy, and that 80% of those have been helped outside London and the south-east of England. In her own council area, more than 300 families have been helped. Members of Parliament from west Yorkshire would like to note that Leeds is the No.1 location for people using Help to Buy. The scheme is working, it is about backing aspiration and it is about helping people get on in life.
Graham Evans
Businesses and families across my constituency will all benefit from recent investments in the Halton curve railway, the Mersey gateway bridge and the Hartree centre for supercomputing in Daresbury. I urge my right hon. Friend the Chancellor to continue the important work he is doing as part of the long-term economic plan to build the northern powerhouse, which will continue to create jobs and economic security in Weaver Vale and across the north of England.
Mr Osborne
Of course, I want Weaver Vale and Cheshire to be part of that northern powerhouse, and may I commend my hon. Friend for the campaigns he has fought to get the second Mersey crossing, the Halton curve and the investment in Daresbury? Those are things that Labour MPs, including the one who used to represent his seat, campaigned for for years and got nothing from a Labour Government. We now have a Conservative MP delivering for his constituents under a Conservative Chancellor.
Ian Lucas (Wrexham) (Lab)
In 2010, the Chancellor said that he would eliminate the deficit by 2015. Why has he failed?
Mr Osborne
For the reasons that I have set out before—with the slower growth in Europe. This is extraordinary: all we get at Treasury questions and generally from the Labour party are requests for more spending and more borrowing, but now Labour Members seem to be complaining that we have not cut enough. Over the summer, we did our sums, we added up their summer spending spree and we found there had been £21 billion of Labour spending commitments in the past five or six weeks alone. That is another reminder of why it cannot be trusted with the British economy again.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
New research by the Inequality Briefing highlights the fact that nine of the 10 poorest regions in northern Europe are in the UK—these include the ones I represent in west Wales. The UK is also home to the richest region in northern Europe: inner London. What has happened to the long-term plan to geographically rebalance the UK economy?
Mr Osborne
The first thing I would say to the hon. Gentleman is that of course we need to tackle long-standing regional disparities in our country, and we are putting investment into Wales, including transport and infrastructure investment, to try to lift the economic performance of Wales. The broader point I make is that we need to bring the economic geography of our country closer together. That is an argument I have made about the north of England. The gap between the regions grew under the last Labour Government. By making the long-term investment under our long-term plan we hope to reduce the disparities under this Government.
Mr Andrew Tyrie (Chichester) (Con)
The crucial task now is to develop a long-term supply side reform agenda. Does the Chancellor agree that at the heart of that must be policies to release the energies of millions of small businesses and sole traders up and down the country? With that in mind, will he examine the policies of both the Institute for Fiscal Studies and the Mirrlees review, which in different ways have proposed to reduce the burden of national insurance contributions when that is affordable? Is that not an essential part of Britain’s long-term recovery?
Mr Osborne
I agree with the sentiment that my hon. Friend expresses that we want to make it easier to employ people. I would argue that the reductions that we have already made in national insurance on coming into office and the provision of an employment allowance, which has been enormously popular among smaller businesses, and next year’s move to remove under 21-year-olds from the jobs tax are all steps we are taking to support the creation of jobs in the economy. Of course, the Labour party would like to put up the jobs tax, but that would be deeply counter-productive and put people out of work.
Chris Leslie (Nottingham East) (Lab/Co-op)
Does the Chancellor find it a cause for concern that the Bank of England has halved its forecast for wage growth for the rest of this year?
Mr Osborne
Of course one of the challenges across the western world has been wage growth. The shadow Chancellor put it very well in an interview he gave last week. He said:
“I think that the fact that you had the massive…financial crisis which happened on our watch meant people saw their living standards hit.”
There is an admission of where the source of the problem is, and the solution is to grow our economy, create jobs and help people get on in life, and that is what we are doing.
Chris Leslie
I am not sure whether I detected any concern from the Chancellor. But if he is concerned about this issue, why is it that under his plans it is always those with the lowest incomes, those in the poorest areas and those who are most vulnerable in society who end up being hit hardest by these measures? Will he now prioritise action to ensure that we have proper enforcement of a decent minimum wage, end those exploitative zero-hours contracts and promote some incentives to have a living wage?
Mr Osborne
We are introducing new measures to strengthen enforcement of the minimum wage and to ensure that there is not an abuse of zero-hours contracts. Might I add that for 13 years the Labour party had the opportunity to introduce those measures and it did not? The record under this Government, despite the incredibly difficult economic inheritance, is that child poverty is down by 300,000 and inequality is lower than it was on average under the previous Labour Government, so we are proceeding to deal with the enormous problems that we inherited in a way that is consistent and fair.
Stuart Andrew (Pudsey) (Con)
6. What recent estimate he has made of the level of employment.
The Chancellor of the Exchequer (Mr George Osborne)
There are a record number of people in work, and 1.8 million jobs have been created since 2010. We are also seeing the largest fall in youth unemployment on record. But too many people remain without a job, which is why we are determined to achieve full employment by helping businesses to take on new staff, and reforming welfare so that it always pays to work.
Stuart Andrew
Unemployment continues to fall across Leeds, and in my constituency it has fallen by 39% to 1.8%. That is providing families with the stability and security of a regular pay packet. But is my right hon. Friend aware that of the 2 million jobs created, more than three quarters have been in full-time employment, and does not that show that the long-term economic plan of this Government is building a healthier and stronger economy?
Mr Osborne
My hon. Friend is absolutely right. I remember visiting with him Hainsworth & Sons, a textile company in his constituency, which is now exporting to China. In his constituency, as in others, we have seen a dramatic fall in unemployment. Unemployment is down 31% in the last year; youth unemployment has fallen too. Many of those jobs are in full-time employment, as he says, but of course we are also supporting those in self-employment.
Mr Andrew Love (Edmonton) (Lab/Co-op)
Of all those jobs created, many are part time, and part-time jobs for people who are looking for full-time employment—over a quarter of a million people are involved there. What is the Chancellor doing to increase the opportunities for full-time employment in this country?
Mr Osborne
What the hon. Gentleman says is not a clear statement of the facts, because actually, full-time employment accounts for three quarters of all the new jobs created since 2010. Of course there are those who want part-time employment, but for those in part-time employment who want full-time employment, the answer is to continue to support the economy, to do the difficult things necessary on the public finances to inspire confidence in that economy, and not to have disastrous things like a jobs tax rise, which would make it more difficult for those people to get full-time work.
Greg Mulholland (Leeds North West) (LD)
Key to a long-term employment plan is the wonderful apprenticeship scheme. The new scheme was launched by the Business Secretary in Leeds. We have seen the creation of 2,000 apprenticeships since 2010. Will my right hon. Friend also welcome the fact that now, finally, Leeds city council is talking about a university technical college? Considering that there is a spare Leeds city council site, does he not think it is time that Leeds city council got on and built one?
Mr Osborne
I very much agree with my hon. Friend. The university technical colleges have been a real boost to technical education in our education system, and I know that there are ambitious proposals in Leeds. Indeed, I think, from memory, that one has just been given the go-ahead in Leeds. But I would also say that the apprenticeship scheme has been very successful. Working with myself and the Business Secretary, more than 2 million apprenticeships have been provided. We want to see more of those provided, so that young people have the skills to take the opportunities that the economy is now providing them.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Does the Chancellor regret that under his watch the number of young people staying on jobseeker’s allowance for more than 12 months has risen by more than 46%? Is it not now time for Labour’s compulsory jobs guarantee to ensure that young people are not left behind?
Mr Osborne
Interestingly, a lot of Labour MPs have regularly asked about long-term youth unemployment during Treasury questions over the past couple of years. I bring that up because the hon. Lady asks about this, but long-term youth unemployment is now lower than it was when this Government came to office. We heard a lot of complaints about long-term youth unemployment over the past two years, so let us have some Labour Members congratulating the Government now.
Steve Brine (Winchester) (Con)
7. What measures he has introduced to reduce the level of tax paid by households.
Guy Opperman (Hexham) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Chancellor of the Exchequer (Mr George Osborne)
The core purpose of the Treasury is to ensure the stability and prosperity of the economy. That is delivered by our long-term plan. I can tell the House that the plan will be further expanded in the autumn statement, which I will deliver on Wednesday 3 December.
Guy Opperman
I thank the Chancellor for that answer. This summer, the Labour party set out a summer spending plan of some £21 billion of extra spending a year. I suggest this further debt will make our constituents wonder whether it has actually learned anything from bankrupting this country under Blair and his successors. Has my right hon. Friend assessed the impact on the public finances of such a disastrous decision?
Mr Osborne
My hon. Friend is right, of course. The Treasury’s own independent analysis of the Labour party’s approach to public spending shows that it could borrow over £166 billion more in the next Parliament. Labour Members have started to contribute to that with a £21 billion shopping list this summer. Perhaps the shadow Chancellor can get up and explain how he is going to pay for it.
Ed Balls (Morley and Outwood) (Lab/Co-op)
Let me start by welcoming the Exchequer Secretary to her new post on the Front Bench, and by saying to the Chancellor, “Don’t worry—I’m not going to press you on my ice bucket challenge to you today.”
Let me instead ask the Chancellor about another highly topical economic issue, particularly among his Back Benchers. Before the last election, he told the Centre for European Reform that he was a “pro-European”. This week, The Times is reporting that the new chapter in his biography says that the Chancellor has gone cold on Europe—an “unmistakable hardening”—and is now pondering exit. I suspect we may know the answer, but let me ask the Chancellor: what has changed?
Mr Osborne
First, I thank the right hon. Gentleman for nominating me for the ice bucket challenge. I would rather make the extra donation to charity and pour the cold water over his economic policies. When it comes to reading biographies, we do not need a biography to know his life story: he was put in charge of the British economy, and he wrecked it.
On Europe, our position is the one that I think is shared by the majority of the British people, which is that we seek a renegotiation of Britain’s terms of membership of the European Union, and that we will then put that to the British people in a referendum. Why does the right hon. Gentleman not get up and commit the Labour party to letting the people have a say?
Ed Balls
The Chancellor cannot even convince his own Back Benchers of his policy on Europe, let alone anybody else. Let me tell the House what the president of the CBI said last week. He said that the Government’s policy on Europe
“has already, and is increasingly, causing real concern for business regarding their future investment”.
Yet the Chancellor is flirting with exit. We know what has changed: Boris Johnson has said that he is returning to Westminster and that he is flirting with exit, and—surprise, surprise—the Chancellor is too. Let me ask the Chancellor this. I want reform in Europe but, like the CBI, I am determined to put the national economic interest first. Surely the Chancellor should put his leadership ambitions aside and put the national economic interest first too.
Mr Osborne
We put the national economic interest first by fixing the mess that the shadow Chancellor left the British economy in. I have been doing some research on what he has been up to over the summer. I read an article in the Express & Star called, “Out and about with Labour’s Ed Balls”, about when he went canvassing last week. It says:
“as we walk down Essex Drive to another house (there’s no-one in), a group of boys on their bikes look over”.
They say, “Oh look, it’s Gordon Brown.” Even they can spot more borrowing and more debt—it is Gordon Brown all over again.
Mr Marcus Jones (Nuneaton) (Con)
T2. Some Members of the House predicted that the Government’s deficit reduction strategy would result in the number of jobs lost in the public sector far outweighing the number of jobs created in the private sector. Will my right hon. Friend tell us who was right and whether that prediction was accurate?
Mr Osborne
That prediction, like all the Opposition’s predictions, was completely wrong. For every job that has been lost in the public sector because of the necessary and difficult decisions that we have had to take to reduce the 11% budget deficit, more than five jobs have been created in the private sector. That is testimony not only to the strength of the Government’s economic plan, but to the ingenuity of British business in creating such opportunities.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
T4. The Chief Secretary has been keen to trumpet free school meals for six, seven and eight-year-olds. However, this week in Hackney, many of the 47% of children who are living in poverty will turn up at school not having had a square meal for six weeks. They will be fed by the free breakfast clubs that are supported by head teachers and charities. Is it not time that the Government woke up to the reality of poverty? The parents of those children can get only low-paid, part-time work if they are lucky. Is it not time that the Government took action to tackle child poverty?
Nicola Blackwood (Oxford West and Abingdon) (Con)
T3. The appalling congestion in Abingdon makes life miserable for families and commuters and inhibits local economic growth. With 600 new and needed houses planned on Dunmore road, will the Chancellor meet met to discuss why investing in a diamond junction on Lodge hill on the A34 is the answer not only to making that development sustainable, but to unlocking growth in the wider region?
Mr Osborne
Of course, I would be happy to meet my hon. Friend to discuss improvements on the A34. We are making an enormous number of improvements to the UK road system and spending more on transport and road improvement than the previous Government. We are also investing in science, and I remember making a useful visit with my hon. Friend to her constituency to see the results of the money that we have contributed to Begbroke science park. I will certainly have a meeting with her about the A34.
Grahame M. Morris (Easington) (Lab)
T6. We know from survey evidence that more than half of the licensees who are tied to large pub companies earn less than £10,000 a year. Does the Chancellor support the save the pub group’s call for a market rent-only option to ensure that tied licensees can earn a fair living and play their part in contributing to the local and national economy?
Mr Osborne
I am perfectly willing to consider representations, but the Government have set out legislation to deliver a fairer deal for pub tenants—something for which Members have been calling for many, many years. I hope that it commands his support.
Mr Henry Bellingham (North West Norfolk) (Con)
T7. Is the Chancellor aware that unemployment in my constituency has fallen by nearly 700 since July last year, thus giving new hope to many families? Will he tell the House how the UK’s job creation record compares with other G20 countries?
Mr Osborne
The answer is that it compares very well. There has been a much faster rate of job creation in the United Kingdom than in the rest of Europe, for example, which I suggest is because we have instilled confidence in our ability to pay our way in the world through our difficult but necessary deficit reduction plan. We have helped businesses to employ extra people through the employment allowance and other tax changes, and we have created a more entrepreneurial economy, so that people who were out of work when this Government came to office got a chance of being in work, with all the security and opportunity that brings.
Stephen Timms (East Ham) (Lab)
May I press the Chancellor on the deficit? The central objective of his plan when he launched it was to eradicate the deficit in this Parliament, but he now estimates that he will only halve it. Why has the plan fallen so far short of that central objective?
Mr Osborne
This has been the subject of much discussion across the Dispatch Box, and I have pointed out that while this Government have been in office we have had the near collapse of the eurozone economy on our doorstep—[Interruption.] The shadow Chancellor chuckles. Perhaps he should chuckle at the fact that the British economy is performing more strongly than any other major advanced economy in the world. He predicted that the deficit would go up, but it has come down; he predicted that millions of people would be unemployed, yet millions of jobs have been created. This summer, Labour Members set out £21 billion of more spending commitments, so the deficit would go up if they ever got the chance of office again.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
I thank my right hon. Friend for reminding the House that the autumn statement will be on 3 December. May I urge him to ensure that there will be investment in our roads and railways in the south-west, so that we have trains that get into Plymouth before 9 o’clock in the morning, and more three-hour train journeys to and from London?
Mr Osborne
The autumn statement will be an opportunity to set out further improvements to infrastructure in the south-west, and the services, roads and railways that support Plymouth. My hon. Friend has been a doughty champion for that city and delivered huge investment to it, which was never forthcoming before. I assure him that we are looking at specific transport improvements to connect better the whole of the south-west with the rest of the United Kingdom.
Mr Jim Cunningham (Coventry South) (Lab)
Many local authorities are struggling to implement the Government’s policy on free school meals—for example, Coventry has to find something like an additional £1 million. What are the Government going to do about that?
Kelvin Hopkins (Luton North) (Lab)
Britain has an enormous trade deficit, especially with the EU, which is clear evidence of a misaligned exchange rate, and UK manufacturing is again suffering as the euro has depreciated relative to sterling. When is the Chancellor going to take the exchange rate seriously?
Mr Osborne
I follow the practice that previous holders of this job have followed over the past 20 years, which is not to comment on the exchange rate, but as I said in my response to the first question in this session, the weakness in the eurozone is an emerging risk to the UK economy and something to which we need to be alert.
Nigel Adams (Selby and Ainsty) (Con)
Constituents of mine have been targeted by phone fraudsters calling them at home pretending to be from their bank, and several have had their bank accounts emptied, leaving them devastated. Will the Minister meet me and other hon. Members whose constituents might have been affected to discuss a way forward to ensure that banks have in place proper, robust security measures to prevent that from happening again?
Julie Hilling (Bolton West) (Lab)
We now know that the Chancellor has had a letter from the head of the UK Statistics Authority, so when will he correct the record and apologise for giving the House—obviously inadvertently—incorrect information which inflated the success of his tax avoidance programme?
Mr Osborne
The Government, including me, did inadvertently give the wrong information, but the explanation provided by the permanent secretary at the HMRC was accepted by the Chair of the Public Accounts Committee, the right hon. Member for Barking (Margaret Hodge), as a fair explanation of what happened.
Duncan Hames (Chippenham) (LD)
The Treasury’s infrastructure fund is paying for increased transport capacity in enterprise zones, through roads and rail services, unlocking large new housing developments. Is the Chief Secretary prepared to use the fund also to pay for the internet and communications infrastructure that those homes and businesses will desperately need?