UK Economy

Mims Davies Excerpts

Wednesday 29th June 2016 Commons Chamber

[Mr Osborne]

The shadow Chancellor raised questions about monetary policy. Obviously the Bank of England is independent. The MPC set out the challenging trade- off it might face between a fall in output and a rise in inflation. We will have to wait and see how MPC responds to the judgment it has to make.

The central bank has not been undertaking quantitative easing, but the arrangements put in place by my predecessor Alistair Darling—essentially, the authorisation arrangements —remain in place. In other words, the MPC will be able to use any of the monetary policy instruments in its toolkit, but that is entirely a judgment for it. We will wait to see how it responds to the challenges it faces.

[Mims Davies (Eastleigh) (Con)]

This June, sadly, the sun is not shining, and like many MPs I have been contacted by constituents who may wish to delve into a second referendum. Democracy gives us a say, not necessarily our way. Does the Chancellor believe that even looking at a second referendum would do massive damage to our improved finances and delay and disrupt further infrastructure projects which are so vital to our communities?

[Mr Osborne]

I fought passionately to remain in the European Union, not because I was a massive fan of the EU with all its problems but because I thought it was better for Britain to be in the EU than outside it, but I absolutely accept the result of the referendum. I do not think it is credible, in the days after the result, to say, “The people got it wrong. We need to elect a new people.” In our democracy, we need to respect the result that the British people have given us and, as representatives of the population in this Parliament, our obligation is now to get on and deliver what they have asked us to deliver, to the best of our ability.