Charter for Budget Responsibility

Debate between John McDonnell and Lord Jackson of Peterborough

Wednesday 20th July 2016 Commons Chamber

[John McDonnell]

Can I just press on a bit further before I give way again? I am sure there will be plenty of time, Madam Deputy Speaker.

As I was saying, the former Chancellor missed every target in his first charter, so he brought in a second. He was on course to miss the targets in that second one, so he then brought in a third. In September last year, he presented his 2015 update. The current charter for budget responsibility sets targets for an overall balance on Government spending inside five years, with debt falling in each year of the Parliament. However, the Government knew last summer that the vast majority of economists who were asked had criticised the approach, as had the Treasury Committee. Almost without exception, the Labour party agreed with the macroeconomic profession that the approach was likely to prove misguided. We were defeated in the Lobbies that day, but our warnings have been proved prescient.

[Mr Stewart Jackson (Peterborough) (Con)]

The shadow Chancellor will know that any critique of the Government should be accompanied by a coherent alternative strategy. On that basis, is he embarrassed that the Leader of the Opposition’s economic adviser Richard Murphy described the Labour party’s approach as having

“no policy direction, no messaging, no direction, no co-ordination, no nothing”?

[John McDonnell]

He is not the economic adviser and never has been, because we doubted his judgment, unfortunately. He is a tax accountant, not an adviser. He is actually excellent on tax evasion and tax avoidance, but he leaves a lot to be desired on macroeconomic policy.

Turning to the Government’s performance, their charter for budget responsibility lacked credibility from the moment it passed into law and has now lost what shreds it retained this year. Since last September’s debate, every target in the charter that could have been missed has been missed. By the time of the March Budget, the OBR announced that the Government were on track to miss their target for the welfare cap for every year of this Parliament. The charter also insisted that the debt to GDP ratio would fall in each year of this Parliament, but the OBR said in March:

“We now expect the debt-to-GDP ratio to rise between 2014-15 and 2015-16”.

The Government managed to stay on target for its 2020 surplus only through some accountancy that might best be described as imaginative. The writing was already on the wall and then in June the then Chancellor used the backdrop of his fiscal charter as the pretext for threatening British people with a further austerity Budget should they vote to leave the EU.

European Union Referendum Bill

Debate between John McDonnell and Lord Jackson of Peterborough

Thursday 18th June 2015 Commons Chamber

[John McDonnell]

Thank goodness, we are not disagreeing. That is the point that I tried to make earlier, but in a more complicated fashion. The issue about turnout is how people are incentivised to vote, but the minimum we can do is increase the access to voting procedures. We have done that through postal voting, as my hon. Friend says, and we have just introduced electronic registration, to assist in the registration process. It was argued that once we had introduced electronic registration we would revisit online voting, but unfortunately that is not the case in this legislation. I hope that the tabling of the amendment will make the Government go back to the Electoral Commission and ask it to make detailed proposals. Even if we have to pilot electronic voting in some areas in this referendum, we may be able to overcome some of the problems that have been identified.

[Mr Stewart Jackson (Peterborough) (Con)]

Not for the first time, the hon. Member for Luton North (Kelvin Hopkins) speaks good sense, but I fear that the hon. Gentleman has neglected to answer his point, which is that since the advent of postal votes on demand, there has been no demonstrable increase in voter turnout. Indeed, voter turnout since 1997 generally has gone down. Will he address that point?

[John McDonnell]

There was a slight increase at the last general election. The hon. Gentleman is right, because I can remember turnouts at around 77%. In some areas we went down to 56%, but this time round we went from 60% up to about 65%, so there was a slight increase—a significant increase in some areas—from the introduction of postal voting. If he looks, he will see that where the pilots that were undertaken throughout the 2000s were implemented effectively, turnout was increased significantly. I recommend examination and exploration of the Shrewsbury pilot, which took place in 2005.

I will not delay the Committee any further, but I refer Members not just to the findings of the Electoral Commission, but to the statement by Jenny Watson, chair of the Electoral Commission, that it would return to this issue as its main feature of work in the coming period and report in due course. Again, the Electoral Commission’s argument is simply about bringing our electoral system into line with practices in the rest of society, which is now largely online, and facilitating democracy by the use of online voting in that way. I also refer Members to the executive summary of the report undertaken by WebRoots Democracy—I will circulate it rather than delay the debate—which identifies the ability of online voting not only to increase turnout, but to reduce the cost of balloting procedures.

I raise this issue briefly on an amendment because it is something we need to return to rather than neglect; it has been neglected over the last few years. It is something that many Members will want to explore in a way that facilitates the improvement of democratic processes in our society, but I also give this warning: I will be raising this matter time and again. I mentioned the trade union Bill. We will be tabling amendments to such Bills to ensure that we establish the principle that this House will facilitate access to democracy on every occasion we can. Electronic voting is one mechanism through which we can enhance our society’s democratic processes.