Budget Resolutions and Economic Situation
Debate between John McDonnell and Imran Hussain(8 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
John McDonnell
The hon. Lady might describe the Chancellor as adaptable. Most of the media and most independent analysts described him today as failing—failing on virtually every target he set himself under his own fiscal rule.
Imran Hussain (Bradford East) (Lab)
Is it not the case that this Budget has failed on growth, productivity and fairness? Is this not a failed Budget that has been sugar-coated?
John McDonnell
Regrettably I do not think it has been sugar-coated for many of those who will be suffering the cuts included in this Budget.
On productivity, it is the Chancellor’s failure to boost Britain’s productivity that is at issue. The Office for Budget Responsibility is very clear on this point. British productivity, not global factors, is the reason the Chancellor is in trouble. Robert Chote, the head of the OBR, confirmed in an interview last night that “most of the downward growth revisions were not driven by global uncertainty, but by weaker than thought domestic productivity.” As a result of that, we now see drastically reduced economic forecasts and disappointing tax revenues.
The Chancellor has been in the job six years now. It is about time he took some responsibility for what has happened on his watch. It is not just on basic economic competence that the Chancellor has let this country down. Unfairness is at the very core of this Budget and of his whole approach.