Autumn Statement

Michael Connarty Excerpts

Thursday 5th December 2013 Commons Chamber

[Mr Osborne]

I agree. The school of no more boom and bust gave us the biggest boom and the biggest bust in our history—it was spectacularly unsuccessful. One would think that those who had been through that would have learned their lesson and be keen to see borrowing controlled, public finances in good order and the deficit come down, but they are not. That speaks to a broader truth, which is that in bad times the Opposition say, “Borrow more because the country needs it” and in good times they say, “Borrow more because the country cannot afford it.” What they never say is, “Let’s get a grip on the public finances.”

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

I do not know if the Chancellor does irony, but does he realise that the fundamental structure of his economic plan is similar to the strategy used by RBS, which was revealed in his own Tomlinson report? RBS looked after its big clients and attacked the financial circumstances of its small clients, driving them down into debt, poverty and eventually into bankruptcy, and then selling off their assets. That is, of course, what he is doing at the moment. The small folk in a democracy can vote out the Chancellor, unlike with the banks. One question I have raised in writing with the right hon. Gentleman relates to companies moving their assets of their pension funds to offshore funds—for example, in the Channel Islands—and declaring bankruptcy. The workers then have to go to the Pension Protection Fund. When will the Chancellor do something about that? I was told in a letter from his Department that that is legal, but those companies are clearly cheating the taxpayer and cheating their workers.

[Mr Osborne]

I am happy to look further at the hon. Gentleman’s point. The rules on pension protection and the pensions regulator are designed to prevent people from deliberately crashing their pension scheme to avoid their liabilities, and for those liabilities to fall on to the state or other companies. I am happy to look at any specific case he has. On his broader point on the economy, unemployment has come down by 11% in his constituency. The measures I announced today—abolishing the jobs tax for young people and the £1,000 discount for shops, cafés and pubs on the high street—are all designed to help small businesses, which are the engine of any recovery.