Comprehensive Spending Review

Lilian Greenwood Excerpts

Wednesday 20th October 2010 Commons Chamber

[Mr Osborne]

We know the answer to that because they had 13 years to address the problem and gave absolutely nothing. They then set up Sir John Chadwick’s report and, although I thank him for it, I do not agree with its conclusions. I strongly suspect that if Labour had won the election, they would have agreed with his conclusions, which would have meant just a third of the money that I have set out today for Equitable Life policyholders. We are helping policyholders across the piece, but our particular priority has been the trapped annuitants, whom we will fully compensate.

[Lilian Greenwood (Nottingham South) (Lab)]

The Chancellor has confirmed that almost half a million public sector jobs will go under his plan, and PricewaterhouseCoopers estimates that another half a million will go in the private sector. Will he explain how adding a million people to the dole so that they are paying no taxes will bring down the deficit and help our economy to grow?

[Mr Osborne]

Let me explain it to the hon. Lady. This country has the largest Budget deficit in the G20. If we do not address that, there will be economic ruin for this country, so we are addressing it. The reduction in the public sector head-count will take place over four years. This economy created 200,000 jobs in the last three months and part of the head-count reduction will happen through turnover. The last time I checked, Labour were still committed to eliminating the structural deficit—they just would have taken longer over it—so the job losses and the head-count reduction would have been prolonged. I do not think that is right for this country.