Budget Resolutions and Economic Situation

Rishi Sunak Excerpts

Thursday 9th July 2015 Commons Chamber

[Chris Leslie]

Is the hon. Gentleman talking about the imminent leadership elections in the Conservative party or the Labour party? I do not know what is going to happen in the Conservative party leadership contest. There were of course a few little jokes about the hon. Member for Uxbridge and South Ruislip (Boris Johnson), and we will see how that pans out. I know that other Cabinet Ministers are a little concerned about the way that the Budget panned out for them; it is going to be difficult for them over the next few years.

This was the Chancellor’s second Budget in four months. He said in March that that was his Budget for the longer term, yet four months on he has delivered a different plan to a different agenda. He has been chopping and changing, with three different sets of figures in the past nine months alone—so much for his consistency. We learned more about the Chancellor and the nature of this Government in one hour of his Budget speech than we learned in the months of the election campaign. In March, when the Work and Pensions Secretary was pressed about where their £12 billion of welfare cuts would fall, he said:

“As and when the time is right, we will make it very clear what our position is.”

Is it any coincidence that the time is right for these Conservatives two months after an election rather than two months before it?

Before the election, the Conservative manifesto assured us that there would be only a two-year freeze in working benefits, but yesterday the Chancellor doubled that to a four-year freeze in most working-age benefits which will take £4 billion from households by 2020-21. That is one of the fastest-broken promises in political history. [Interruption.] There is an awful lot of noise from Conservative Members. I shall give way to the hon. Member for Richmond (Yorks) (Rishi Sunak) because he has been trying to intervene.

[Rishi Sunak (Richmond (Yorks)) (Con)]

The shadow Chancellor mentioned the election campaign. In that campaign, the Opposition suggested that they would raise the rate of corporation tax—a move that would damage jobs and growth. Will he confirm that that is still Labour’s policy, or will he start backing British businesses?

[Chris Leslie]

I think the hon. Gentleman will find that we said in the election that we wanted to focus in particular on business rates. He will know from talking to small firms in his constituency that companies are concerned about the pressures on business rates, but where did the Chancellor mention business rates in yesterday’s Budget? We felt—[Interruption.]

--- Later in debate ---

[Mr Duncan Smith]

We have presented today a package for working people that will incentivise those who can work to go back to work and work the hours they need to improve themselves and their families. My hon. Friend is absolutely correct. This is exactly the drive the Government are making.

[Rishi Sunak]

Will the Secretary of State confirm that when he first entered office, we were spending more on working-age welfare than on education? If so, is that not evidence that our welfare system is unsustainable and needs sensible and fair reform?