Oral Answers to Questions

Baroness Harman Excerpts

Wednesday 30th June 2010 Commons Chamber

[The Prime Minister]

My hon. Friend is right to raise this, and it is right that decisions should be made locally. We want to make sure that all the latest technology for alternatives to incineration is considered, so that we can make sure that we are using the best ways to achieve a green approach.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

We were very concerned this morning to read reports that as a result of the right hon. Gentleman’s Budget, 1.3 million jobs will be lost. Can he confirm that this was an estimate produced by Treasury officials?

[The Prime Minister]

The right hon. and learned Lady should know—[Interruption.] I will give a surprisingly full answer if Opposition Members just sit patiently. This morning the Office for Budget Responsibility produced the full tables for the Budget for employment in the public and the private sector. That never happened under a Labour Government, right? As shown in the Budget, unemployment is forecast to fall every year under this Government, but the tables also show public sector employment. It is interesting that from the tables we can see the effect of Labour’s policy before the Budget and the effect of our policy after the Budget. What the figures show is that under Labour’s plans, next year there would be 70,000 fewer public sector jobs, and the year after that, there would be 150,000 fewer public sector jobs. We have had the courage to have a two-year pay freeze. I know we have all been watching the football, but that was a spectacular own goal.

[Ms Harman]

I know that the right hon. Gentleman has published some new figures today, but it is the figures that he has not published that I am asking about—the figures that show that 1.3 million jobs will be lost. Why will the Prime Minister not publish those Treasury documents? Why is he keeping them hidden?

[The Prime Minister]

The forecasts that are published now are independent from the Government. That is the whole point. [Interruption.] It is no good Opposition Members chuntering about that. They now support the Office for Budget Responsibility, completely independent of Government. The right hon. and learned Lady’s approach is extraordinary. Before the election the shadow Chancellor, the then Chancellor, was asked on BBC radio on 23 April 2010, and the transcript says:

“‘Will you acknowledge that public sector jobs will be cut?’ Darling: ‘It’s inevitable.’”

[Ms Harman]

But even the OBR says that under the Prime Minister’s Budget, unemployment will be higher than it would otherwise have been. It says that on today’s figures and it said that on last week’s figures. Can the right hon. Gentleman confirm that the secret Treasury analysis shows that under his Budget, 500,000 jobs will be lost in the public sector, but even more will be lost in the private sector?

[The Prime Minister]

The figures published today show 2 million more private sector jobs. They show 1.4 million more people in work at the end of this Parliament. They show unemployment falling every year. It is not really any surprise that the former Labour Minister, Digby Jones, after the Budget said—[Interruption.] Why not listen?

[The Prime Minister]

The Opposition gave him a peerage. They might as well listen to what he had to say. He said:

“I think that sign has gone up around the world saying Britain is serious about sorting out its economic mess”.

He is right. It is a pity he did not say it when he was in office.

[Ms Harman]

The right hon. Gentleman has not answered the question about the 1.3 million. He has not agreed to publish those documents. He should know what abject misery this unemployment will cause to individuals, to families and to communities. Can he tell us now how much extra it will cost in unemployment benefits?

[The Prime Minister]

The right hon. and learned Lady does not seem to understand. Unemployment will be falling during this Parliament. We have published the full figures, but it is not now us publishing the figures, it is the Office for Budget Responsibility. She must understand that this is something the Labour party now supports. Let me repeat: the figures show that unemployment in the public sector would be higher under Labour’s plans next year and the year after. When she gets to her feet perhaps she will tell us whether she now supports the pay freeze to keep unemployment down?

[Ms Harman]

Mr. Speaker, you can always tell when the right hon. Gentleman does not want to answer a question, because he asks me a question. He should recognise that under the OBR figures published today, unemployment is higher than it would have been because of his Budget. The same is shown in the OBR report last week. He will not tell us how much more the Treasury will have to pay out in benefits to people without work as a result of his Budget. Will he tell us how much less will be coming in in taxes as a result of fewer people in work because of his Budget?

[The Prime Minister]

There will be more people in work. Like every Labour Government, the Opposition left us with unemployment rising and at the end of this Parliament unemployment will be falling. That is the difference. My advice would be to look at the figures before standing up and asking the question. If one looks at the figures one sees higher public sector unemployment next year and the year after under Labour. The right hon. and learned Lady has slotted the ball straight into the back of her own net.

[Ms Harman]

We will look at the figures if the right hon. Gentleman will publish them. We know that because this Budget hits jobs, the Treasury will have less money coming in and more money going out. Does not that make reducing the deficit even harder and more painful, with bigger tax rises or even deeper cuts in public services? Why are the Lib Dems just sitting there letting this happen? No one who voted Lib Dem voted for this.

[The Prime Minister]

The right hon. Lady talks about reducing the Budget deficit, but we have not heard one single proposal for cutting the deficit. We all know that the Opposition left us the biggest Budget deficit in the G20—the biggest Budget deficit in our history. We have been having a good trawl for the stupidest piece of spending that they undertook, and I think we have found it. It was in her own Department, which spent £2.4 million doing up the Department, including £72,000 each on two-storey meeting pods known as peace pods. This is what they were for—[Interruption.] It is true. I am reading from her own Department’s staff magazine. Taxpayers have a right to hear where their money went. This is where it went. It was

“a 21st century…space of quality, air and light, where we can…relax and refuel in a natural ebb and flow.”

That is what has happened. They have gone from peaceniks to peace pods, and bankrupted the country in the process.