Budget Resolutions and Economic Situation

Lindsay Hoyle Excerpts

Thursday 21st March 2013 Commons Chamber

[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I remind the House that we will have a seven-minute limit on Back-Bench speeches.

--- Later in debate ---

[Mr Ellwood]

Before I reply to that, Mr Deputy Speaker, may I point out that the clock did not stop? I hope you will give me some injury time.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

The hon. Gentleman will get no injury time, because he has given way twice before.

[Mr Ellwood]

I stand corrected. I understood that I got an extra minute for the first two interventions and that after that, if someone intervened, the clock stopped.

It is disappointing that we have not heard any answers from Labour. It has offered nothing constructive; in fact, it is in a state of denial. Its strategy seems to be to employ a little inaccuracy and a spot of amnesia, and to avoid a ton of explanation. It is now apparent that under Labour, government was too big, too costly and too inefficient. Labour allowed banks to lend money to people who could not afford it, using financial instruments they did not understand. When the history books are written, it will become apparent just how much damage the former Labour Chancellor and Prime Minister did. He will probably go down as one of the most disastrous Chancellors in history.

The former Chancellor not only doubled national debt, but killed off British competitiveness and introduced the “something for nothing” culture that this Government are now undoing. Labour squandered their 13 years in office, and it is now left to this Government not only to solve the economic mess and make Britain more competitive again, but to simplify the tax system, curb immigration, modernise the benefits system and restore respectability to our pensions system. Labour has proven the adage that occasionally applies in this Chamber: the democratic right to be heard here does not include the right to be taken seriously.

In conclusion, this is a constructive and progressive Budget that will provide a further stimulus to the economy and help hard-hit families and individuals seeking to get on. From my days as a young officer, my philosophy in life has been not to complain about the weather, but to march with determination out of the rain. That analogy holds today, as this Conservative-led Government lead Britain out of the economic storm, while Labour, which created the mess, offers no helpful solutions whatsoever, other than to repeat past mistakes such as encouraging the spending of money we do not have. We will not stop reminding the public of the last Government’s mismanagement of the economy. Whatever speculation there might be about opinion polls, small parties or even possible Lib-Lab pacts, the bottom line is clear: either a Miliband or a Cameron will occupy No. 10. I know whom I would prefer to lead the country, and it is not the former adviser to one of the worst Chancellors in history.

[Several hon. Members]

rose—

[Mr Deputy Speaker]

I remind hon. Members that they get two hits with two minutes, but no extra time for interventions after that. Hon. Members should also be aware that every intervention could knock someone off the bottom of the list. If someone is desperate to intervene, therefore, they should understand if they do not get called in the end.

--- Later in debate ---

[Jim Sheridan]

As I have said, this industry employs people in areas where few alternative jobs exist. The Chancellor threatens jobs in such areas, as the Chief Secretary presumably told him. [Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Mr Griffiths, you have already spoken. The Member does not want to give way and we do not need a running commentary from the Back Benches.

[Jim Sheridan]

Thank you, Mr Deputy Speaker. I have been heckled by better.

Perhaps the Chancellor will explain to pensioners enjoying a dram why they should have to pay 48% more duty for the alcohol they enjoy than their neighbours who prefer a beer. Only three countries in the EU penalise Scotch whisky more than the UK does. It is time to halt the duty escalator for all and to start backing, not penalising, our successful industries.

Let me deal briefly with pensions. Like many of my colleagues here, I have a large number of pensioners in my constituency, and I am concerned that this Budget will do nothing to reduce pensioner poverty, currently standing at 1.7 million people nationally. There are no proposals to help pensioners who are struggling with rising living costs.

Moving on to growth, in a written answer I received on 17 January, the Economic Secretary told me:

“The OBR forecast that real household disposable income will grow in each year from 2013 to 2017.”—[Official Report, 17 January 2013; Vol. 556, c. 866W.]

In December 2010, the Chancellor was equally confident, telling CNBC:

“Britain is on the mend. We got pretty steady and sustainable economic growth forecasts, pretty sustainable increases in employment, a steady decline in the deficit.”

Well, how wrong could this Government be? Real wages are set to fall by 2.4% over this Parliament. The OBR has also halved the growth forecast for this year and downgraded it for next year, too. I ask the Chancellor to see some sense and stop relying on the private sector to provide the boost to the economy that is needed. Millions will be squeezed by another year of capping public sector pay, while the private sector has simply not managed to perform as well as was needed at a time when growth has stalled.

A sensible Budget would have seen an intervention to legislate for a living wage, rather than giving the tax break to millionaires that is coming up in a few days’ time. That would not only be fair on working people, but could help inject the economy with consumer spending power. The most ironic part of this plan is that the Chancellor has not even succeeded in reducing the deficit—the golden goal that we have been suffering these tax cuts in order to achieve. Borrowing is now forecast to be £245 billion more than was planned at the time of the spending review. We will not have balanced books, but we will have low-income families paying the price, while millionaires continue to count their money.

I concur with the views of the TUC, which welcomes the British business bank but is calling for more resources to support businesses on a larger scale and for the bank to be able to raise funds in the capital markets as comparable banks do.

I and, I am sure, my constituents do not see this as an aspirational Budget, but as a desperation Budget.