Charter for Budget Responsibility

Jacob Rees-Mogg Excerpts

Tuesday 13th January 2015 Commons Chamber

[Ed Balls]

In a second; not in the middle of a sentence. That 0.2% a year improvement in the underlying growth of the economy would, by the end of the period, bring in £15 billion a year more in tax revenues. So the trend of growth has gone in the wrong direction under this Chancellor and the key for the next Parliament, as well as spending cuts and tax rises, is to improve the underlying growth of the economy. If we can do that, we can bring in the revenues. If, on the other hand, we fall short in the next Parliament under the same Chancellor in the same way as we have in this Parliament, that would lead to over £110 billion in extra borrowing. If we are going in the wrong direction on growth and wages, the revenues do not come in and the deficit does not come down. We have got to improve the underlying growth potential of the economy. The right hon. and learned Member for Rushcliffe and I agree on that, but I do not think that this Chancellor understands the point.

[Jacob Rees-Mogg (North East Somerset) (Con)]

Is not the shadow Chancellor making the Chancellor’s case for him: that the first thing to do is get fiscal stability, and then we get a growing economy and tax revenues come through? Tax revenues are always a lagging indication of economic performance, and they will come through because of what this Chancellor has been doing.