Public Expenditure Reductions (Women)

Kate Green Excerpts

Monday 6th September 2010 Commons Chamber

[Lynne Featherstone]

I think that the Institute for Fiscal Studies was inaccurate in what it said. The Government have made it clear that the burden of deficit will have to be shared. At the Budget, the Government took unprecedented steps in publishing details. The Treasury welcomes the innovative approach of the IFS in its revised analysis of the Budget and is open to exploring new ways of assessing the potential impact of Budget measures. However, the IFS states that in order to include previously unmodelled reforms the report makes some strong assumptions that add uncertainty to the analysis.

[Kate Green (Stretford and Urmston) (Lab)]

Can the Minister tell us which assumptions the IFS has made that are considered unreliable or not valid?

[Lynne Featherstone]

I will come to that point later if I can.

I wanted to address the point that the hon. Member for Hackney North and Stoke Newington made about the public sector. Although there are a majority of women in the public sector, the Government have made efforts to support the most vulnerable public sector workers—those earning less than £21,000 a year, who will be exempt from the freeze. That will affect about 1.7 million public sector workers whose salary falls below the threshold—mostly women—who will see a flat pay rise of £250 in both years of the freeze. The Government are aware of the statutory obligations when assessing options for spending reductions.

I shall move on to a more general response to the hon. Lady. Fairness is a key theme, along with freedom and responsibility, and underpins our new Government programme. We see it as even more important during difficult times than in good times, not just because we believe it is the fundamental right of every individual to have the opportunity to fulfil their potential, but because we realise that fairness is the key ingredient to getting the country back on its feet. We cannot afford to continue wasting the talents and skills of women, of ethnic minorities and of disabled people—of all those who have been held back for no reason other than their background. Without fairness we will never achieve economic recovery, let alone full economic growth.

Yes, we have to take some tough decisions to tackle the unprecedented deficit we inherited, but as my hon. Friend the Member for Wirral West (Esther McVey) said, we should not forget that the cuts are Labour’s legacy. Labour doubled the national debt and left us with the biggest deficit in the G20. We have to clean up that situation to get the economy moving. Unless we address the deficit first and foremost, more women will be out of work and more women will suffer the consequences of the recession.