Surplus Target and Corporation Tax

Debate between George Osborne and Andrew Bridgen

Monday 4th July 2016 Commons Chamber

[Mr Osborne]

First of all, the problems in the financial markets eight years ago hit this country more severely than almost any other country in the world, and the Government at the time take some responsibility for that. Secondly, the challenge we face is one that was delivered by our democracy. It is a democratic outcome that we accept and respect and we have to make it work for our country. I am determined to make that happen.

As the hon. Lady well knows, productivity growth is a challenge in every western democracy at the moment. Indeed, the US is now predicted to have negative productivity growth. Productivity is still growing in the UK, but we need to do more to improve it. Education reform, welfare reform and transport investment are good places to start.

[Andrew Bridgen (North West Leicestershire) (Con)]

From the moment the result of the EU referendum was announced and the British people said that they wanted to leave the European Union, prominent commentators in most areas of the media have revelled in running down the British economy and its future prospects. With employment at a record high and unemployment at a 10-year low, does my right hon. Friend agree that the British economy is well placed to face the future?

[Mr Osborne]

I completely agree with my hon. Friend. We are well placed because we have got behind Britain’s businesses, large and small. The essential decision that we—he and I and our colleagues—took collectively six years ago was to push for a private sector recovery, rather than to continually pump in Government money to try to sustain the economy. That approach has been vindicated by the record numbers of jobs and businesses created and our record growth compared with other advanced economies.

Oral Answers to Questions

Debate between George Osborne and Andrew Bridgen

Tuesday 1st March 2016 Commons Chamber

[Mr Osborne]

The former shadow Chancellor is right to point to both the immediate economic shock, which I think is generally accepted—even those who, for perfectly honourable reasons, advocate withdrawal, accept that there would be an immediate economic dislocation—and the longer-term costs. If we tell Britain to make this leap in the dark, we have to be able to answer the question: what is the alternative? How do we reassure the car manufacturer in north-east England that tariffs will not be imposed on its cars, as a result of which it will not be so competitive and there will not be so many jobs in its factory? Those are the questions for this big national debate.

[Andrew Bridgen (North West Leicestershire) (Con)]

Those who wish us to stay in the European Union say on the one hand that we are an insignificant economy and too small to stand on our own, but on the other hand that if we leave the European Union it will cause an economic meltdown around the world. They cannot both be true, Chancellor.

[Mr Osborne]

Our argument is that we will be stronger and better off inside the European Union. That is the positive choice that we face as a country. I, personally, do not think that we should leave the EU, but even those who contemplate doing so should think about this. With the economic situation that the world faces at the moment, and with the geopolitical situation that we face in Europe with Putin on our doorstep and the crisis in the middle east, is this the right moment to leave? My strong advice, the advice of the British Cabinet and the advice of the British Government is that we remain in this reformed EU.

Charter for Budget Responsibility

Debate between George Osborne and Andrew Bridgen

Tuesday 13th January 2015 Commons Chamber

[Mr Osborne]

We have delivered exactly the spending plans that I set out and which the shadow Chancellor opposed. If he is complaining about those spending plans, and if he would like to spend more, he should be honest with the British people and say that a Labour Government would like to borrow more. Why does he not have the courage to tell the truth? The truth is that he does not tell the British people the truth because he knows that when they discover he wants to borrow £170 billion more, they will not let him near Downing street again.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does the Chancellor recall, when the Government outlined their deficit reduction plan, that Opposition Members, including the shadow Chancellor, said we were going “too far, too fast”? Now the right hon. Gentleman criticises us for not cutting the deficit enough. Will he make his mind up?

[Mr Osborne]

It is a totally chaotic and farcical position from the Labour party. It has spent the first two weeks of this year complaining that the Conservative party is cutting too much and promising that it would not cut as much, but now Labour Members are going to troop through the Division Lobby with us in support of a charter that requires £30 billion of fiscal consolidation over the next couple of years. To be fair to the Scottish National party, I think its Members are going to vote against us, as too is the Green party, but Labour Members are sitting there in total silence. They are going to go through the Division Lobby with us to support £30 billion of spending cuts. [Interruption.] Cheer up, it is what the Labour Front-Bench team has asked you to do. It is going to lead the party through the Division Lobby because it does not want to admit to the British people that its plans involve spending more money.

EU Budget (Surcharge)

Debate between George Osborne and Andrew Bridgen

Monday 10th November 2014 Commons Chamber

[Mr Osborne]

My hon. Friend makes a good point that the hon. Lady would have paid the whole lot. We are paying £850 million because of the application of the rebate.

[Andrew Bridgen (North West Leicestershire) (Con)]

I congratulate the Chancellor on halving the recent EU demand in record time. I wish he had just continued a little longer, because with his skills he might have got us a net refund. Does he agree that for those for whom this result is not enough, nothing would ever have been enough? Does he also agree that, however distasteful we might find it, while we are in a club we have to abide by the rules, and that only a future Conservative Government will give the people a say—and a chance to leave the club—in a referendum in 2017?

[Mr Osborne]

My hon. Friend is right. Part of the reform we seek in Europe is reform to make sure that the money that British taxpayers pay is well spent. Indeed, we want to make sure that the money of all European citizens is well spent in Europe. He is absolutely right that the only way to get that reform is with a Conservative Government, and then the British people can decide in a referendum.

Autumn Statement

Debate between George Osborne and Andrew Bridgen

Wednesday 5th December 2012 Commons Chamber

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my right hon. Friend agree that the Opposition’s plans for £200 billion of extra spending, extra borrowing and extra debt would damage this country’s economic credibility, and ultimately lead to interest rates rising for families and businesses in my constituency and across the whole country?

[Mr Osborne]

My hon. Friend is absolutely right. That is precisely what the Labour party offers: more borrowing, more debt, and a return to the mess it left this country in. People are not going to trust Labour with the public finances again, and they are particularly not going to trust the shadow Chancellor again.

Professional Standards in the Banking Industry

Debate between George Osborne and Andrew Bridgen

Thursday 5th July 2012 Commons Chamber

[Mr Osborne]

We heard from the Attorney-General that a judge-led inquiry may, in his words, not even get off the ground. The idea that we cannot have a parliamentary inquiry is obvious nonsense, because yesterday the Treasury Committee questioned Bob Diamond on the LIBOR scandal. Of course it is entirely possible for a parliamentary inquiry to take place. Our motion will enable us to get an inquiry under way and assuage the anger of the people of Northern Ireland and the rest of the country.

[Andrew Bridgen]

I am very pleased that the shadow Chancellor has agreed to give evidence to the parliamentary Committee, where he can be held to account for his role in the LIBOR scandal. Does my right hon. Friend the Chancellor agree that others who were involved should be compelled to give evidence, including those who are currently absentee Members of the House?

[Mr Osborne]

Of course, all involved need to answer questions. The first thing that we are doing to address the immediate issues with the LIBOR—[Interruption.] There are very serious issues of financial stability that we in the House have to address—[Interruption.] When is the shadow Chancellor going to take some responsibility for his time in office? He takes none whatever.

We have asked Martin Wheatley, the chief executive-designate of the Financial Conduct Authority, to review urgently what reforms are required to the framework for the setting and governing of LIBOR and other price-setting mechanisms in the financial markets.

Jobs and Growth

Debate between George Osborne and Andrew Bridgen

Thursday 17th May 2012 Commons Chamber

[Mr Osborne]

My hon. Friend is absolutely right. That is precisely what businesses need—a stable economic environment in which we are not exposed to some of the financial problems that some eurozone countries face at the moment. The low interest rates and the credibility that our policy bring help every business, not only in Bedford but around the country.

[Andrew Bridgen]

Does my right hon. Friend agree that just as we need to rebalance our economy away from over-reliance on the public sector, we also need to rebalance our exports away from over-reliance on the eurozone at the moment? The latest figures suggest that this is already happening, with UK exports to non-EU countries up by 12% while those to the EU remain flat.

[Mr Osborne]

I agree with my hon. Friend that we need to diversify where our exports go, not just because of the problems in the eurozone but because this country should be taking greater advantage of the extraordinary growth in the Asian economies. It remains a staggering fact that we were exporting more to Ireland than we were to Brazil, Russia, India and China put together.

Financial Services Bill

Debate between George Osborne and Andrew Bridgen

Monday 6th February 2012 Commons Chamber

[Mr Osborne]

Maybe we should just exchange our notes; then we could spare the House.

[Andrew Bridgen (North West Leicestershire) (Con)]

To take the Chancellor back to my experiences in 1997, I was in business, and my bankers at the time were at the Royal Bank of Scotland. Shortly after the general election in which the Labour Government were elected, I had a meeting with my bankers. I expressed my disappointment at the election result, but they were extremely upbeat. I asked them why, and they said, “Labour Governments are never any good at regulating the financial services industry. We’re going to make a lot of money in the banking industry.” Were not those words prophetic?

[Mr Osborne]

For a while, they did make an awful lot of money. Unfortunately, they then lost an awful lot of money, which is one reason why we are here talking about the legislation.

Before any Minister comes to the House of Commons to ask for an existing regulatory regime to be replaced, it is incumbent on him or her to explain why it is felt to be necessary, so let me explain. Another flaw of the current system is that when the crisis hit in 2007 and 2008, no one knew who was actually in charge. The Treasury Committee of the last Parliament, led by John McFall, said in its report:

“The biggest failings of the Tripartite’s handling of Northern Rock were that it was not clear who was in charge, and, because the Tripartite took a minimalist view of their respective responsibilities, necessary actions fell between three stools.”

The House of Lords Committee, which also did some excellent work on the matter during the last Parliament, said that

“the tripartite authorities in the United Kingdom…failed to maintain financial stability and were found wanting in dealing with the crisis, in part because the roles of the three parties were not well enough defined and it was not clear who was in charge”.

In other words, a whole system of financial regulation had been created by the previous Government, yet no one knew who was in charge.

That led to the third fatal flaw that became apparent. The Government of the day, accountable to Parliament and the public for the use of taxpayers’ money, simply did not have the powers to do what they felt necessary when the crisis hit. My predecessor as Chancellor said in his recent memoir:

“The whole system depended on the chairman of the FSA, the Governor of the Bank and the Chancellor seeing things in exactly the same way. The problem was that in September 2007, we simply did not see things in the same way.”

That, of course, led to the confusion in the autumn of 2007. As he said,

“I could not in practice order the Bank to do what I wanted”,

even when taxpayers’ money was at stake.

On top of all those flaws in the tripartite system, it is not as though customers were being better protected from the mis-selling scandals that have beset the industry for the past 30 years. The payment protection insurance saga happened on its watch. In 2001 alone, firms were forced to pay more than £1 billion-worth of redress to consumers who were mis-sold products.

Those are the flaws of the tripartite system—flaws that cost this country in output more than 10% of our entire gross domestic product, flaws that have led to hundreds of thousands of people losing their jobs, flaws that wiped out the savings of millions of small shareholders, and flaws that saddled an entire country with more than £1 trillion of debt. The British people need to be confident that mistakes have been acknowledged and that lessons have been learned. The legislation that we have put before the House today shows that they have been learned.

Autumn Statement

Debate between George Osborne and Andrew Bridgen

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

Of course I am happy for the hon. Gentleman to be part of those discussions on enterprise zones. Many areas of the country put in bids for enterprise zones. We were able to give the go-ahead to only the 22 that we announced previously and the two now for Humber and Lancashire, which I have confirmed today. There is also the expansion of the north-eastern one to the Port of Blyth, which is warmly welcomed on the Opposition Benches. I am happy to meet the hon. Gentleman to discuss the problem. On the national loan guarantee scheme, he is right to say that we have to get the audit trail right. We are looking very closely and seeking to model a lot of what we are doing on the European Investment Bank’s scheme, which already delivers lower rates to small businesses in Britain. It is a small scheme but the procedures are already in place. I can confirm that the credit risk of the small business loan sits with the banks.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does the Chancellor agree that the Government must continue to oppose the calls from the Labour party to adopt its plan B? When in government, it took our country to the brink of bankruptcy, and adopting its plan B would risk pushing it over the edge. The B in Labour’s plan B stands for bankruptcy.

[Mr Osborne]

It is indeed a plan B for bankruptcy. It is striking that no mainstream or centre-left party in Europe, other than the Labour party, currently advocates more spending. I can reach only one conclusion: the Labour party does so only because the man that it has chosen to be its shadow Chancellor is the man more identified than almost anyone else apart from the previous Prime Minister with the financial and economic mess that this country got into.

Eurozone

Debate between George Osborne and Andrew Bridgen

Monday 10th October 2011 Commons Chamber

[Mr Osborne]

We have not done that calculation, but my hon. Friend has given me a very good idea for Wednesday’s debate. We know, because we have all experienced it, what Labour policies lead to: a completely uncontrollable budget deficit; a negative outlook for our nation’s credit rating; and interest rates that were tracking Spain’s. We have been there under the Labour party, and it is remarkable that when it cleared out the shadow Treasury team, it did not clear out the man most responsible in this Parliament for getting Britain into this economic mess.

[Andrew Bridgen (North West Leicestershire) (Con)]

In his statement, the Chancellor quoted the sage remarks of the former Minister, Lord Jones. Perhaps it is the Chancellor’s modesty that prevented him from quoting these remarks that Lord Jones made about the fact that we are sticking with plan A:

“The markets of the world will say, ‘well done George’. That will mean that interest rates are low”,

that we keep our triple A rating, and that we do not become Greece.

[Mr Osborne]

We should certainly listen to the sage words of the former Labour Trade Minister.

Bank Bonuses

Debate between George Osborne and Andrew Bridgen

Tuesday 11th January 2011 Commons Chamber

[Mr Osborne]

I do remember exactly that story of the Labour Government; indeed, I was reminded of it recently when I saw Tony Blair, that well-known consultant for J. P. Morgan. We are trying to sort out the situation that we inherited—a complete mess with no plans to put it right. Now, seven months in, the Opposition still have no serious economic policy to put forward.

[Andrew Bridgen (North West Leicestershire) (Con)]

Is the Chancellor of the Exchequer as appalled as I am by the mock anger of those on the Opposition Benches, which is a blatant attempt to mask the fact that they completely failed to regulate the banking industry that amounts to no more than blatant opportunism, and smacks of canting hypocrisy?

[Mr Osborne]

It is blatant opportunism, and it is a substitute for a serious economic policy. People will have long memories about what happened when Labour was in charge of our economy.

Comprehensive Spending Review

Debate between George Osborne and Andrew Bridgen

Wednesday 20th October 2010 Commons Chamber

[Mr Osborne]

There is a very substantial increase, of about 37%, in DFID’s budget. There are parts of international development work that the Foreign and Commonwealth Office carries out too—conflict stabilisation and the like. It is, of course, perfectly within the rules set on the UN commitment, which are internationally policed and so we cannot fudge them, and perfectly reasonable to count that expenditure towards the 0.7% target. However, the large bulk will be delivered through DFID, whose budget has a substantial increase. I suggest that it is a task for this House—all parties—to ensure that that development aid is well spent on the poorest people and on conflict prevention.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my right hon. Friend agree that the reason why the previous Labour Government failed to hold a spending review was because they bottled their responsibilities? Does he also agree that Labour Members are still running away from those now and that the cuts that we are seeing are no more than the butcher’s bill for 13 years of Labour profligacy and waste?

[Mr Osborne]

I completely agree with my hon. Friend. It is striking that in all the responses and everything that we have heard today from Labour Front Benchers and Back Benchers there has not been a single positive proposal as to how to reduce the deficit that they all sat there and allowed to grow.

Oral Answers to Questions

Debate between George Osborne and Andrew Bridgen

Tuesday 12th October 2010 Commons Chamber

[Mr Osborne]

The Government have introduced a triple lock on the basic state pension, which means that it rises by earnings, or by CPI or RPI—whichever is higher. The previous Government had 13 years to do that, and they did not.

[Andrew Bridgen (North West Leicestershire) (Con)]

T5. In my constituency, more than 7,000 jobs are directly linked to east midlands airport. I believe that it has been shown that there would be no environmental or fiscal gain from the introduction of a per plane tax, as flights would simply divert to other European hubs. Is the Economic Secretary willing to reconsider any plans for a per plane tax, and will she meet me as a matter of urgency to discuss that?