Office for Budget Responsibility (Manifesto Audits)

Debate between Jesse Norman and Ed Balls

Wednesday 25th June 2014 Commons Chamber

[Ed Balls]

I believe that the Chief Secretary to the Treasury is on a visit to the United States. It may be that the Chancellor is engaged in rather more immediate and urgent matters that have cropped up in the past 24 hours, or it may be that he will arrive in the next few minutes to respond to this debate. I had assumed that the Chancellor would respond to this debate. I do not know whether you, Madam Deputy Speaker, have had any other guidance. Anyway, let us hope that he turns up.

In the meantime, and fully consistent with that consensus, it is our view that now is the right time to take a further step to enhance the role of the OBR. I will come on to explain our strategy and seek the views of the Chancellor, so he has about 10 minutes to get here.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

Will the right hon. Gentleman give way?

[Ed Balls]

Sure. If the hon. Gentleman is playing for time in order to facilitate the arrival of the Chancellor, I will take as many interventions as is needed for the Chancellor to wing his way over from whichever lawyer’s office he is sitting in at the moment.

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[Jesse Norman]

I think the Minister present is fully capable of discharging any function required to see off the shadow Chancellor. A statement from the Institute for Government said:

“More feasible than making any hasty change to the OBR remit at this point would be to consider this option in detail during the five-year review of the OBR’s operation due to take place in 2015.”

How does the shadow Chancellor respond to that?

[Ed Balls]

I am making a speech in an attempt to build a cross-party consensus. If the hon. Gentleman thinks that the Chancellor, or whoever is in his place, will see me off, that might say something about their approach to this important matter.

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[Ed Balls]

My hon. Friend, who regularly advises me on my speeches, can obviously see where this speech is going. I have worked hard to try to secure consensus. Despite the support of many influential figures, I have not yet managed to succeed in making it a cross-party consensus. The reason for that is that, so far, the Chancellor has not engaged. He has refused to co-operate with the discussions. He has not responded to my proposals and letters. He has not even turned up today.

The question is: why is the Chancellor so reluctant? The reason cannot be the need for primary legislation, because we will support it. It cannot be the timetable because, despite the protestations of Government Members, the head of the OBR confirms that there is time to get this done and to get it done properly. The Chancellor says that he wants to protect OBR independence, but so do we, and the head of the OBR says that this reform need not jeopardise that independence.

[Jesse Norman]

Will the right hon. Gentleman give way?

[Ed Balls]

No, the hon. Gentleman has already had one go.

What is the issue? What is going on? I am afraid that it is not hard to conclude that the Chancellor sees this as an opportunity to play political games. [Interruption.] The more that Government Front Benchers laugh, the more we see the political games they want to play.

We know from the head of the OBR that if an agreement to proceed is reached by the end of June and we can conclude its details by the end of the summer, the OBR can independently audit all our tax and spending commitments for the next general election. It is just a matter of political will. The Chancellor wants to place political traps—through his aides, he very often tells people that he is setting them here and setting them there—but he is not willing to back an important reform in the national interest. What is going on?

Why is the Chancellor so keen to prevent Labour from having its manifesto independently audited, and so reluctant to put his own party’s manifesto through the same scrutiny? Might it be that, as the head of the Institute for Fiscal Studies said at the last Budget, the Chancellor is “getting into bad habits” by making tax changes that appear to bring money into the Exchequer in the short term but have a long-term permanent cost to the public finances; or that, as the IFS said at the last autumn statement, he

“continues to make specific promises on spending increases while stating that he will keep total spending at the same level”

and that he “can’t keep doing that”? The risk for the Chancellor is that people draw the conclusion that he wants the freedom to make promises in his manifesto that he knows he cannot afford and will not deliver, while making claims about Labour’s manifesto that he knows to be false, and blocking our desire for proper independent audits.

I have to tell the Chancellor and other Ministers that we remember the Conservatives’ uncosted promise to abolish inheritance tax last time around; and as for the Liberal Democrats’ promise to end tuition fees—enough said. My advice to the Chancellor, if he had turned up, and to the Chief Secretary, if he were here, would be that if they do not want to be reminded again and again of those mistakes, they should support our proposal and help us to forge the cross-party consensus we need.

It is hugely disappointing that the Chancellor seems determined to oppose this reform. I have tried hard to persuade him to put politics aside and to do the right thing. Our proposal would be the first ever such independent audit. We believe that it is essential to restore public trust in politics and to improve the nature of our political debate. It is not too late for him to come to the House to say, or to tell his Front-Bench colleagues, that he has changed his mind. I urge the House to vote to persuade the Chancellor to do just that—to change his mind, to stop playing politics and to stop blocking this important reform. If he fails to do so, people will rightly ask: what are they so scared of?

Jobs and Growth

Debate between Jesse Norman and Ed Balls

Wednesday 12th October 2011 Commons Chamber

[Ed Balls]

My hon. Friend is a leading indicator, not a lagging indicator.

The fact is that the deficit plan is going too far and too fast. As I have said, we should stop putting party political advantage before the national interest. That is why the right thing to do to help struggling families and businesses in the constituencies of Members across the House is to adopt a plan now to get our deficit down by getting our economy moving. We should repeat the bank bonus tax; build 25,000 homes; guarantee a job for 100,000 young people; genuinely bring forward long-term investment projects in schools, transport and roads; temporarily reverse the damaging rise in VAT, which would mean £450 for a couple with children; have an immediate one-year cut in VAT to 5% on home improvement, repairs and maintenance; and introduce a one-year national insurance tax break for every small firm that takes on extra workers.

The Chancellor does not have to wait 46 days. He can bring forward emergency resolutions in this House next week and we will support them. He can call the plan what he likes. If he wants to appease The Spectator, he can call it plan A-plus. That is fine by us. Britain just needs a plan that works for jobs and growth, which is why he should adopt Labour’s five-point plan for jobs and growth.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

While we are on the topic of football, may I congratulate the right hon. Gentleman on his ample use of the substitutes’ bench, although it was of course not him who used the substitutes’ bench? What would be the cost of his temporary cut in VAT, how does he propose to finance it, and what would be the gain in GDP growth as a result?

[Ed Balls]

“Jesse is the Clark Kent of British politics.” Unfortunately, that was said by the other candidate for the leadership of the Conservative party, Boris Johnson. What an endorsement for the hon. Gentleman to have on his own website! The fact is that the deficit reduction plan is going too far—

[Jesse Norman]

rose—

[Ed Balls]

Get back in your phone box, I am answering the question. We need a slower pace of deficit reduction, not the £40 billion more that the Chancellor boasted of. An injection now to get the economy growing and unemployment coming down is the best way to get our deficit down. People do not have to take it from me; that is what the IMF and the OECD are advising the Chancellor to do. They say, “If the economy gets into sustained contraction, slow down the pace of consolidation.” I will give the hon. Gentleman another go.

[Jesse Norman]

We are all enjoying the shadow Chancellor’s vaudeville act, but he has failed to answer the question. I am interested in what would be the actual cost of the VAT cut that he proposes and how he would fund it.

[Ed Balls]

The hon. Gentleman would know the answer if he listened. I said that attempting to go £40 billion faster in deficit reduction than the plan the Chancellor inherited is not working, but pushing borrowing up. The right thing to do now is to expand demand—[Interruption.] Look, a one-year cut in VAT in its own terms would cost £12 billion. The question is what would be the impact on jobs, growth and deficit reduction. I am afraid that the Chancellor is borrowing not £12 billion more, but £46 billion more. The flatlining economy and rising unemployment mean that his deficit reduction plans are going off track. He should take the advice of the IMF and the OECD and change course.

Amendment of the Law

Debate between Jesse Norman and Ed Balls

Thursday 24th March 2011 Commons Chamber

[Ed Balls]

In a second, but I certainly will.

In Britain, we have to make some tough choices to get the deficit down. That means fair tax rises and spending cuts, but the Chancellor’s policy is going too far and too fast, and we are paying the price in lost jobs and slower growth.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

I am not sure quite which hallucinogenic substances are being ingested on the Opposition Benches, but if I may ask a question—

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[Jesse Norman]

Will the shadow Chancellor enlighten us on why WPP left this country under the last Administration, and why it has now returned, as has been announced in the news today?

[Ed Balls]

I am very pleased that WPP has returned to this country, and I am very disappointed about the 3,500 jobs lost at Pfizer in Kent. That is why we need to be careful about how we proceed.

I have to say that I have never in my life taken a hallucinogenic substance. I am happy to take any intervention from Government Front Benchers on that subject.