The Economy and Living Standards

Debate between Jack Straw and Robert Flello

Thursday 12th June 2014 Commons Chamber

[Mr Jack Straw (Blackburn) (Lab)]

We heard a vigorous defence of the Queen’s Speech from the Chancellor of the Exchequer, so it is surprising that so many Conservative Members have voted with their feet and emptied their side of the Chamber, obviously lacking the confidence to speak up in favour of their own Chancellor.

A central part of the Government’s defence of their economic policies is the challenge they make to the competence of and decisions taken by Labour Governments between 1997 and 2010. I was privileged to be a senior member of the Labour Government throughout the term and I am proud of their achievements. As John Major once shrewdly observed, the only people who never make mistakes are those who never make decisions. No more than any Government, did we get all our judgments right, but overall I believe we made the correct judgments, including on the economy. The criticism the current Government make of us is not just wide of the mark; it fails to take account of the contradictory policy positions they were adopting at the time.

The first charge the Chancellor has often made is that the Labour Government did not fix the roof when the sun was shining, but we did—we had to. As my right hon. Friend the Member for Stirling (Mrs McGuire) mentioned, one of the scandals of the Thatcher and Major Governments was their palpable neglect of public services. There were hospitals and schools with leaking roofs and buckets everywhere. There were schools where the sun could literally be seen through the open roof. There is not a Conservative constituency in the country where the roofs of its schools and hospitals were not fixed by the last Labour Government, and no Conservative MP complained about that spending at the time.

That brings me to my second point. I have been through what Conservative shadow Chancellors were saying in response to the Budgets and spending reviews between 2000 and 2010. Yes, there are plenty of passages of criticism, in small print, about the levels of borrowing and taxation to which the Conservatives could, and do, point, but if we look at what they were saying about the spending plans that were leading to all those improvements in their constituencies, we find that a very different story emerges. In 2004, they published a medium-term economic strategy, setting out their plans for the years to 2011-12. The Institute for Fiscal Studies published its own commentary on that, saying that if the Conservatives were to win the forthcoming general election, spending would

“still be higher”

under the Conservative plans

“than it was in every year of Labour’s first term”.

At the 2005 general election, the Conservatives’ main pitch, in the face of Labour criticism, was to reassure voters that no significant cuts would take place if they were elected. The Economist newspaper for 14 April 2005 published a major article under the heading “Much ado about nothing: The Conservatives’ spending plans are strikingly similar to Labour’s”. After the 2005 election, the reassurance that the Conservatives would not be cutting public spending continued, but in even more categorical terms. On 3 September 2007, the “ConservativeHome” website proclaimed:

“Tories will match Labour’s spending plans for the next three years”.

It highlighted an article in The Times of the same date, written by the then shadow Chancellor, which stated:

“I can confirm for the first time”—

he solemnly intoned—

“that a Conservative Government will adopt”

the Labour Government’s spending totals for the years 2008-09 to 2010-11.

[Robert Flello]

Does my right hon. Friend also recall that at the same time the Conservatives, to a person, were calling on the then Labour Government to weaken the oversight and weaken the regulation of the banks to allow them greater freedom?

[Mr Straw]

I absolutely confirm that. As we have accepted, we did not regulate the banks and other financial institutes sufficiently, but the Conservatives at the time were demanding, in this Chamber and outside it, not more regulation but less. Just in case readers did not get the point of the then shadow Chancellor’s article in The Times in September 2007, its headline was “Tories cutting services? That’s a pack of lies”. All the plans for the economy—those of the Conservatives, as much as those of Labour—were knocked badly off course by the global financial crisis. But for all the insinuations we now hear about how Labour ignored the warning signs, there is not a line—not a word—of such predictions in that article, nor anywhere else in what Conservatives were saying at the time.

The Chancellor talks today of Britain’s recovery, and I am delighted that output, after the longest recession in modern history, is now close to where it was six years ago. But although he will not do this, future economic historians will, I believe, judge that part of the reason for the recovery was the wise decisions made by my right hon. Friend the Member for Edinburgh South West (Mr Darling) when he was Chancellor of the Exchequer. Let it also be remembered that, for all the Conservative efforts to rewrite history now, the average level of debt to GDP under Labour was below that of the preceding Conservative Governments and below international averages, not only for the 11 years before the recession took hold, but even when our last two years in power are included. We fixed the roofs, for both sun and storms. By contrast, the Conservatives then were calling simultaneously for lower taxation and lower borrowing but the same spending. How on earth did they think those sums would ever add up?

Fixed-term Parliaments Bill

Debate between Jack Straw and Robert Flello

Monday 13th September 2010 Commons Chamber

[Mr Straw]

I note the hon. Gentleman’s comments from a sedentary position, and he is often right about these matters. I am quite certain that the process had absolutely nothing whatever to do with horse trading about a deal.

[Robert Flello (Stoke-on-Trent South) (Lab)]

Of course not.

--- Later in debate ---

[Mr Straw]

If I may say so, the “and” is disjunctive, not conjunctive—and I know that because I drafted that piece of the manifesto.

I simply do not understand why—and we have heard no serious explanation as to why—the Government are bolting it. This morning, the Leader of the House gave us a further example when he announced a decision—not a proposal; it had been decided, and that was the word he used—that this Session should last for two years. He then tried to excuse that, having run into something of a squall in the House, by saying—we can check this against the record—that it was a “proposition” that could be further considered in this Bill. I hope that the Deputy Prime Minister will examine closely what the Leader of the House said about commitments for debate on that aspect of a consequence of this Bill.

[Robert Flello]

Does my right hon. Friend agree that not having an opportunity in Committee to discuss that matter should also be a potential trigger for voting against the Bill on Third Reading?

[Mr Straw]

Yes, I accept that. It will not be a pre-emptive decision for me to take, but one that will be taken in the usual way by the shadow Cabinet as a whole and the parliamentary party.

I am sure that my hon. Friend the Member for Nottingham North (Mr Allen) will make his own point about this next matter when he addresses the House. He chairs the Select Committee on Political and Constitutional Reform, which is an all-party Committee with, I believe, a Conservative majority. It has been very clear about what he has described as:

“The severe lack of time which the Committee has had to scrutinise this…Bill”.

He continued by saying that this

“is not only frustrating but very disappointing.”