Economic Affairs and Work and Pensions

Huw Irranca-Davies Excerpts

Tuesday 8th June 2010 Commons Chamber

[Mr Osborne]

At least the hon. Gentleman acknowledges—it is the first time, either in this debate or in Treasury questions, that we have heard this from those on the Opposition Benches—that cuts have to come. [Hon. Members: “The shadow Chancellor said that.”] I am sorry, but we have just listened to a speech by the shadow Chancellor in which he explained why we should not be trying to accelerate the reduction in our structural deficit, despite the advice of the Governor of the Bank of England, the European Commission, the OECD, the G20, virtually every international investor in the UK economy and virtually every business organisation that represents businesses in this economy. The hon. Gentleman acknowledges at least that there have to be cuts. The offer that I make to him—he may take this up; I am not sure that his colleagues will—is to engage in a proper conversation in the Chamber over the next three or four months about the decisions that will obviously have an important impact on the way the Government function over many years to come.

[Huw Irranca-Davies (Ogmore) (Lab)]

rose—

[Mr Osborne]

I will give way on one more occasion and then make some progress.

[Huw Irranca-Davies]

I want to extend to the right hon. Gentleman the courtesy of asking the question that I asked previously, because he did not do me or my constituents the courtesy of answering it. If his judgment is wrong and the cuts are either too soon or too deep so that there is not sufficient economic growth to deal with the cuts that will be imposed, will that not mean that my constituents will suffer all the pain of the cuts and have none of the gain of the growth?

[Mr Osborne]

If the hon. Gentleman is not prepared to trust my judgment, let me read out what the Governor of the Bank of England has said:

“The most important thing now is for the new government to deal with the challenge of the fiscal deficit. It is the single most pressing problem facing the United Kingdom; it will take a full parliament to deal with, and it is very important that measures are taken straight away to demonstrate the seriousness and the credibility of the commitment to dealing with that deficit.”

That is the judgment of the Bank of England Governor—appointed, by the way, by the shadow Chancellor—and the judgment that we have taken in order to protect the prosperity and the livelihoods of the people whom the hon. Gentleman represents, and the people represented by everyone else in the House of Commons.