Spring Statement

Neil O'Brien Excerpts

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

I shall look forward to it.

Today is not a fiscal event, and the opportunity to look at spending priorities in the round will happen at the spending review. What I have described today is a world where improving public finances mean that, if we can lift the Brexit cloud from our economy and get that certainty restored, we will have choices. Frankly, that is something we have not enjoyed in this country for a decade now, because of the consequences of the crisis under the previous Labour Government.

If the hon. Lady wants to talk to me about schools, I am happy to talk about our record on schools, with the attainment gap narrowing, record rates of disadvantaged 18-year-olds going to university, and 84% of children being taught in good or outstanding schools compared with 66% in 2010. Those are outcomes of which we are proud.

[Neil O’Brien (Harborough) (Con)]

May I ask the Chancellor’s view on the question of poverty? Under the previous Labour Government, we saw 1 million men and women thrown on the dole. Under this Government, unemployment is down to its lowest rate for 40 years. Yet we hear the argument from the Opposition that work is not the way out of poverty; only spending ever more on benefits is the answer. Am I correct in noting that, in reality, when a workless couple move from being out of work into full-time work, their chances of being in poverty drop from 38% to a negligible less than 1%, so work is the way out of poverty? What assessment has the Chancellor made of the combined effects of cutting taxes for the lowest-paid, reducing unemployment to the lowest level for 40 years and the new national living wage, and what assessment has he made of his intention to go further today in boosting the proud achievement of the national living wage of reducing poverty further?

[Mr Hammond]

We have seen the proportion of people on low pay falling to its lowest level in 20 years. I have already mentioned the statistics on the number of people in work, and I agree with him that being in work is the only sustainable way out of poverty. He is right: the previous Labour Government left 1.4 million people languishing on out-of-work benefits, and anyone who thinks that that is a good outcome—[Interruption.] Absolutely true: they should be ashamed of themselves. I can assure my hon. Friends that this issue is high on our agenda, and that we are looking at ways of maintaining the record we have built up, which is exactly the one I want to deliver.