Oral Answers to Questions

Nadhim Zahawi Excerpts

Tuesday 8th June 2010 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

3. What steps his Department is taking to reduce the level of the budget deficit.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

6. What recent representations he has received on the level of the budget deficit.

[Karen Lumley (Redditch) (Con)]

12. What steps his Department is taking to reduce the level of the budget deficit.

--- Later in debate ---

[Mr Osborne]

I attended the G20 in South Korea this weekend. The G20 communiqué calls on countries with significant fiscal challenges—we have the highest budget deficit in the G20, so that includes us—to accelerate the reduction in the structural deficit. It has also been part of the European Union discussions that I have taken part in, that countries with significant budget deficits need to get on and reduce them. I am afraid that the Labour party, as it continues to oppose what we are doing, finds itself outside the international mainstream.

[Nadhim Zahawi]

Has my right hon. Friend the Chancellor read yesterday’s International Monetary Fund report, which warns that the current crisis management was no alternative to fundamental economic restructuring? Does he agree that the previous Government either naively or deliberately chose to mislead the nation?

[Mr Osborne]

My hon. Friend is absolutely right. I have, of course, seen the IMF report, and the lesson we learned is that you have to fix the roof when the sun is shining. That is what the previous Government completely failed to do. They had 13 years to fix the national finances, and now it is up to us to clear up the mess that they left behind.