Autumn Statement

Debate between John Denham and George Osborne

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

My hon. Friend is absolutely right: jobs are being created. Of course the economic situation is tough—it is tough in every western economy at the moment—but we are rebalancing our economy. One of the things I have sought to do in today’s statement—it is not the bit that will attract all the newspaper headlines—is expand our export promotion effort and ensure that UK Trade & Investment is better at encouraging exports and investment and ensuring that British overseas chambers of commerce are better equipped in the emerging economies. All these things are so important, because one of the big strategic mistakes we made as a country over the last 15 years was not to expand our market share—in the way that Germany did, for example—in those emerging economies, which have become so important.

[Mr John Denham (Southampton, Itchen) (Lab)]

I have heard the Chancellor make a number of statements to this House. Is it a fair summary to say that every time he has done so, he has told us that the economy has not grown since the last time he was here, that he is planning to borrow more than the last time he was here, that spending on public services will be cut more than the last time he was here, and that future growth will be less than the last time he was here? In view of that record, should he be looking quite so pleased with himself?

[Mr Osborne]

This Government came in in May 2010, picking up the pieces of an incredibly difficult economic inheritance. We were recovering from the deepest recession since the second world war—which, as I pointed out in my statement, was a contraction of over 6% in the economy, which puts today’s numbers into some context—and we were dealing with the problems in the banking system, and we have been hit with the problems in the eurozone. Despite all that, we have made progress. We have got credibility in the bond markets, as my hon. Friend the Member for Lichfield (Michael Fabricant) said, the deficit has come down, and jobs are being created. It is a difficult situation, but we are on the right track. Going back, as the right hon. Gentleman would suggest, would be a complete disaster.