Budget Resolutions and Economic Situation

Debate between Jeremy Quin and Jon Trickett

Monday 21st March 2016 Commons Chamber

[Jon Trickett (Hemsworth) (Lab)]

How time flies. It was only late last year that the Secretary of State was buoyed up by the Chancellor’s announcement that he had found a few extra billion quid down the back of his settee. The Secretary of State came to the House and offered no less than a guaranteed budget for every council. Sadly, as the Financial Times put it recently, the good times lasted only about a month. By February, the Chancellor was thousands of miles away in Shanghai. From there, he announced to the British people that there would have to be more cuts. Did no one remind him of the ancient Chinese curse, “May you live in interesting times”? Yes, it is a curse. As we now know, the Budget is a mega-shambles, but in China the Chancellor was blaming foreigners for his problems. He said that the EU was flatlining, the Chinese economy was failing to grow and petrol prices were collapsing everywhere.

Today’s retreat means that there is a financial hole of a further £4 billion in the Government’s accounts. No explanation has been given as to how that hole will be filled. More importantly, we have been reminded this weekend by the resigning Secretary of State for Work and Pensions that there is an ethical hole, a moral vacuum, at the Government’s core.

[Jeremy Quin (Horsham) (Con)]

The hon. Gentleman seems completely oblivious to what is going on elsewhere in the world. The fact is that trends are happening in the world economy that will be reflected here in the UK. The Chancellor has cut the deficit by two thirds. Surely the hon. Gentleman would welcome that.

[Jon Trickett]

The hon. Gentleman will not get away with that. The truth is that this Chancellor has been in charge of the nation’s finances for six years and he now wants to wash his hands of the mess he is making of the economy.

I was talking about an ethical hole at the Government’s core. We still remember Conservative Members cheering last Wednesday. They thought it was okay to rob the benefits of the most vulnerable for the purpose of cutting taxes for the better-off. It is not only the cuts to the welfare budget that illustrate the Government’s willingness to attack the poor; it is also the cuts to local government. Furthermore, the way in which the cuts are being distributed across local government equally illustrates the ethical hole that I have described. Those councils that face the greatest social needs are now suffering the greatest grant reductions.