Government Spending

Lord Kinnock Excerpts

Wednesday 26th May 2010 Lords Chamber

[Lord De Mauley]

My Lords, I am most grateful to my noble friend Lord King for his supportive comments. Europe is indeed in a very grave situation, and it would be very dangerous if this Government did not take early action to make these cuts.

[Lord Kinnock]

May I confirm to the Minister that we on this side of the House do not favour inaction but oppose wrong action very strongly and will continue to do so through the coming months of examination? Will he answer my noble friend Lord Eatwell’s specific questions on outcomes, as the Government have been silent on this, despite opportunities? Will he for instance tell us the cost to the public purse of breaking or suspending contracts to the private sector? We have heard nothing on that.

Neither have we heard about the consequences for employment and small businesses of the action taken to make cuts this year of £6.25 billion. These issues are vital for a reason which I am sure the Minister will recognise; we are about to get 15 times £6 billion of cuts at the very least over the next few years. If the course that is now set is continued, I put it to him that we will get not a coalition for fairness but a corrosion of jobs, opportunity and growth.

[Lord De Mauley]

My Lords, the noble Lord, Lord Kinnock, is very experienced in these matters. I agree with him on opposing wrong action, and we on these Benches look forward to the debates that he promises over the next few months. The Government wholeheartedly agree with him about the effect on employment and small businesses, but we differ in that we believe that high interest rates are what will really adversely affect small businesses and employment and that it is absolutely crucial to make the cuts about which we are talking. He asks a very specific question about the cost of breaking contracts. I am not in a position to answer that now, and I will do my best to respond to him in writing.