Income tax (charge)

Debate between Jeremy Hunt and Pat McFadden

Thursday 31st October 2024 Commons Chamber

[Pat McFadden]

Let me read what the OBR has said:

“The Treasury did not share information with the OBR about the large pressures on RDEL, about the unusual extent of commitments against the reserve… had this information been made available, a materially different judgement…would have been reached.”

[Jeremy Hunt]

Perhaps the right hon. Gentleman ought to read the next paragraph, in which the OBR says that it is “not possible to judge” how much those pressures would have been offset by savings elsewhere, which demonstrates that they were within the range of the normal cost reductions that a Chief Secretary to the Treasury would make ahead of any Budget.

[Pat McFadden]

The right hon. Gentleman suggests that things got better after February. They did not; they got worse, and that is how we got to £22 billion. This is not just a verdict about what happened but an indictment of the Conservative party’s final period in office. The truth is that, under his watch, the Treasury had stopped doing the basic job of controlling expenditure.

Announcements were made with no money set aside, the asylum and hotel bill was funded by emptying the country’s reserves within the first few months of the financial year, hospital building programmes were announced without the necessary funds set aside to pay for them, a pay award sat on a Secretary of State’s desk while they looked the other way, and compensation schemes were announced without the full funds being set aside to pay for them. That was an irresponsible dereliction of duty that has led to us picking up the pieces and to the right hon. Gentleman attacking the independent watchdog that was set up by his own party. Even his predecessor, the former Member for Spelthorne, admitted this morning that Labour is clearing up the Tory mess. If Conservative Members are more out of touch with reality than the former Member for Spelthorne, let me tell them that that is not a good place to be.

The right hon. Gentleman referred to the IFS, which said this morning that the Chancellor

“is not wrong to stress that she got a hospital pass on the public finances.”