Amendment of the Law

Michael McCann Excerpts

Monday 26th March 2012 Commons Chamber

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

I am very grateful for this chance to speak, Mr Deputy Speaker, as I was beginning to lose the power in my legs from sitting for so long.

I get the feeling that a collective amnesia is setting in on the Government side of the Chamber. I thought that after the weekend the realisation would have sunk in that the Chancellor’s Budget took twice as much from pensioners as it did from the rich, but apparently it has not. As a result of the Budget, 4 million pensioners will face a real cut in their income. The rebuttal line I heard yesterday on television programmes from Tory central office was that there is no need to worry because a record increase in pensions is coming along. That piece of spin fails dramatically, however, when one considers that the rise is driven by high inflation. That is why the £5.30 increase will be introduced. That cancels out the benefit and leaves us with 4 million pensioners facing a cut in their income and paying for the cut in the 50p tax rate.

The most difficult part about the Budget is the Chancellor’s lack of humility and stubborn refusal to accept that his economic policy is just plain wrong. The Chief Secretary to the Treasury is here, so I hope that he can take this message back. If we look back at the figures in the March 2011 Budget, we see that the Chancellor said he was going to borrow £146 billion that year and forecast borrowing levels for the next six years. In this Budget he revealed that he is going to borrow £126 billion this year and again put forward his forecast for how much would be needed. All those forecasts were upgraded, which leads us to a situation in which this Government are going to borrow a further £150 billion-plus to feed their economic policies. If that is the Tories’ idea of clearing up a mess, I would not like to see them mucking things up. I must tell hon. Members that in the first draft of this speech the language was slightly different.

The situation brings to mind Winston Churchill’s words, which are particularly appropriate. He said that a politician needs

“the ability to foretell what is going to happen tomorrow, next week, next month and next year. And to have the ability afterwards to explain why it didn’t happen.”

Our Chancellor cannot even do that. Last week, he had the brass neck—a Scottish coalfield term—to boast that this year’s borrowing would be £126 billion and would be £1 billion lower than the forecast in autumn 2011. What he failed to tell us was that on the original Budget figures it was £4 billion more than he originally thought he was going to have to borrow. The Tory Budget is a straitjacket for a flawed economic policy. Unemployment is up, borrowing is up and growth is down. We have only to look across the pond to see a different economic model working. The United States of America has taken a different approach to its economic problems and is succeeding with more than double the growth that we expect to see this year.

I am doing a lot of pruning here to keep within the four minutes, Mr Deputy Speaker, but let me finish with what will be my abiding memory of last week’s Budget—the sight of Liberal Democrats cheering wildly at the Chancellor’s tax cuts. A few weeks ago they sat with their heads bowed and then walked through the Lobby to vote through a Welfare Reform Bill that contained cuts in benefits to cancer patients. They must be very proud. In the words of the American actor, writer and comedian Albert Brooks,

“It is better to be known by six people for something you’re proud of than to be known by 60 million for something you’re not.”

For that reason, I will be voting against the Budget tonight.