Office for Budget Responsibility (Manifesto Audits)

Ian Swales Excerpts

Wednesday 25th June 2014 Commons Chamber

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

We have had what could best be described as a very interesting debate. Let me begin by picking up a point made by the hon. Member for Wyre Forest (Mark Garnier), who said that the sums done by the Scottish National party and the Scottish Government did not add up. The Scottish Government’s child care proposals provide a good example of that. The Scottish Parliament Information Centre has studied the figures, and has demonstrated that the SNP’s sums do not add up and its policies do not make sense. However, that is not the subject of today’s debate.

I think that the debate has been useful, although, like others, I was a bit disappointed that the Chancellor had not seen fit to come to the House and defend the Government’s position. As for the Financial Secretary, I know from previous debates that she generally seeks to build consensus. Perhaps she was simply given a script and told to make the best of a bad job, but I was nevertheless surprised that she did not adopt her usual tone. It seemed to me that her heart was not in the argument that she was presenting, and that, given the opportunity and a slightly different setting, she might have adopted another approach.

We heard a number of thoughtful and considered contributions, not least from my hon. Friends the Members for Coventry North West (Mr Robinson), for Eltham (Clive Efford), for Edinburgh East (Sheila Gilmore), for Leeds East (Mr Mudie), for Oldham East and Saddleworth (Debbie Abrahams) and for Derby North (Chris Williamson). I have already mentioned the hon. Member for Wyre Forest. He too made a thoughtful speech, although I did not agree with everything that he said. We made one interesting discovery, namely that the hon. Member for North East Somerset (Jacob Rees-Mogg) has not ruled out standing for the leadership of any political party. I look forward to observing his progress in the coming weeks and months.

My right hon. Friend the Member for Morley and Outwood (Ed Balls) explained our proposal very well, in his usual careful, considered and consensual style. I found it difficult to understand why Government Members took such exception to the way in which he set out what I thought was a very good case. The OBR already scrutinises the Government’s spending and tax policies and assesses whether they are reasonable, and we are merely asking for what is, essentially, a logical extension of that. We are suggesting that the OBR should perform the role that we propose not just for the current Government, but for prospective Governments.

As a number of my hon. Friends have pointed out, it would be sensible to require the OBR to audit only the manifestos of parties with 5% of the seats in the House. We need not involve it in every party manifesto. Ultimately, what the public want to know is that someone has looked at the sums of the parties that are likely to be in government to ensure that they add up.

Some Members on the Government Benches spoke as if the OBR would suddenly have to have a raft of civil servants and new people to do costings all over the place, every day of the week, for months and months. Let me again put on the record what my right hon. Friend the shadow Chancellor said in his letter in September to the head of the OBR:

“The reform I am proposing would mean the Opposition would submit costings for proposed manifesto commitments on spending and tax—obtained from, for example, the House of Commons Library, Parliamentary Questions or the Institute for Fiscal Studies”—

it was interesting to note the number of times that Government Members referred to that; I hope that they will take account of the findings of that august body as the debate continues—

“and the OBR would ‘provide independent scrutiny and certification’ of those costings.”

Therefore, it is not the case, as seemed to be suggested, that the OBR is being expected to do all the costings. It is being expected to certify those.

[Ian Swales (Redcar) (LD)]

The hon. Lady mentioned the Institute for Fiscal Studies. A look at its remit shows that this kind of work falls squarely under its banner. It also receives more than half its funding from the public purse, directly or indirectly. Does she not think that it could fulfil the role that the motion describes?

[Cathy Jamieson]

The IFS’s role is slightly different from the one that has been proposed. This is about scrutinising and certifying the policies and plans for government. One hon. Member mentioned the difference between costings and audit. We are saying that the costings should be looked at. That role is slightly different from the one that the IFS fulfils.

We are confident that our policies will stand up to that scrutiny. We are confident enough to say that we want the OBR to run the rule over all the spending commitments in our manifesto. As Members have rightly said, we recognise the need to restore trust in politics. The public want assurances that our policies add up. They want the OBR, having done the work, to be in a position to give them the quality assurance that they seek. We strongly believe that the other major parties should be prepared to do the same thing. That will enable the electorate to make an informed decision based on facts. That is important.