Comprehensive Spending Review

Richard Graham Excerpts

Thursday 28th October 2010 Commons Chamber

[Lilian Greenwood]

I thank my hon. Friend for that interjection. In fact, the latest figures for both consumer and business confidence are going through the floor.

Never mind the extra 1 million who will be out of work, the extra £700 million that we will have to spend on jobseeker’s allowance or the loss of tax revenues; the Government’s attitude is, “Cut deep and keep your fingers crossed.” But did the Prime Minister say that when he was in Nottingham? Did he tell those children about his gamble? Of course not, just like he did not tell them that their families, many of whom are in the poorest 10%, would be hit harder than anyone else. He did not mention that for all the talk of fairness, families with children will have to pay more than twice as much as the banks towards reducing the deficit. He did not mention that although his friend the Chancellor talked about continuing the decent homes programme, the funds have actually been cut.

[Richard Graham (Gloucester) (Con)]

I am sure that the hon. Lady and all hon. Members present agree that future jobs are vital. Will she therefore join me in welcoming last quarter’s figures, which show the greatest increase in new jobs for more than 20 years?

[Lilian Greenwood]

I am absolutely delighted that new jobs are being created. My concern is that when the cuts start to feed through that will no longer be the case.

Although some of the children whom the Prime Minister and Deputy Prime Minister were talking to will have had improvements to their homes—new windows and doors to make them secure, or new boilers or better insulation to make them warm—their classmates will not all get the same opportunity. The Prime Minister did not tell them what will be happening to some of the schools that they will go to when they leave Welbeck primary, or to the schools that their brothers and sisters might go to. The projects to rebuild Trinity and Fernwood secondary schools in my constituency have been scrapped altogether. As for the projects to rebuild Nethergate, Farnborough and Bluecoat, a few months ago, the Secretary of State for Education said that they were unaffected, but they are now being told that there is a cut of 40% in the funding available. I am sure that if the Prime Minister had asked the kids at Welbeck they could have told him that “unaffected” means not affected. Sadly, that is another broken promise and it is not fair.

Finally, let us nail the myth that this is all Labour’s fault. When he spoke in the Chamber last week, the Chancellor did not mention the word “recession” once. We have just come through the biggest economic crisis in generations—a global recession. If he does not understand why the deficit is high how can he possibly understand how to fix it? The deficit went up because we had a huge fall in output and tax receipts plummeted. Spending went up so that we could protect people’s homes and jobs, protect businesses and prevent the recession from becoming a depression. Labour took the right decisions and the Conservatives would have made the wrong choice every time. They are gambling with people’s jobs and homes and they have no plan for growth.

--- Later in debate ---

[Mr Raab]

I thank the hon. Lady for her intervention, but the problem is that the university budget as it was configured under the previous Government was simply unsustainable. That is but one of the many examples of where they ducked the problem of reform and we have addressed it.

[Richard Graham]

Would my hon. Friend like to ask the House which party introduced charges on university education?

[Mr Raab]

I will resist the temptation, but I thank my hon. Friend for his question.

Finally, the comprehensive spending review promotes the economic growth that we need—growth driven by the private sector. That is what creates jobs and pays for public services. The July Budget restored confidence, cutting corporation tax and reversing the jobs tax. Employment was up by 178,000 in the last quarter. Economic growth in the last two quarters was the highest that it had been for 10 years. We must build on that—nothing can be taken for granted—and that is why I welcome the investment in infrastructure and science. I support the plan for tax breaks in national insurance for start-up companies in their first year. However, that measure will be confined to certain regions. Will Ministers say what assessment has been made of the net effect on tax revenue of extending that important measure across the country?

I know that time is short, and I want to allow others the time to have their say. It is right that every measure in the CSR should be robustly debated and scrutinised, but without an alternative, overarching deficit plan, criticism of those measures fails the test of credibility and relevance.