The Economy

Baroness Winterton of Doncaster Excerpts

Thursday 24th October 2019 Commons Chamber

[Sajid Javid]

The hon. Gentleman says we caused it. That was what was in place when Labour were in office —£5,000 every second. Let us address that point. [Interruption.]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order.

[Sajid Javid]

I think what the hon. Gentleman wants to hear is the point I am going to make next, because I think he wants to be reminded that the whole economy was scarred by Labour’s great recession. It gave us the biggest banking crash, not just in British history, but in global history. [Interruption.] The shadow Minister, the hon. Member for Oxford East (Anneliese Dodds), from a sedentary position, asks why; let me tell her why. The shadow Chancellor—[Interruption.] Let me explain. The shadow Chancellor referred to the work of Gordon Brown as though Gordon Brown did some good things. Gordon Brown was the Labour Chancellor that deregulated the banking and financial sector, and—[Interruption.]

[Madam Deputy Speaker]

Order. It is a very important debate, but I do not want the Chancellor of the Exchequer to be shouted down.

[Sajid Javid]

As I was saying, Gordon Brown, as Chancellor in 1997, boasted about deregulating the banks and the financial sector. At the time, he was warned by the then shadow Chancellor—the Conservative shadow Chancellor—Peter Lilley, that deregulation would

“cause regulators to take their eye off the ball”—[Official Report, 1 November 1997; Vol. 300, c. 731-2]—

and that it would be a field day for spivs and crooks everywhere. That is what he said, in this House, and during Labour’s term in office, bank leverage rocketed from an average of 20 before they came to office to an average of 50 times during their entire time in office. Labour was responsible for the biggest banking crash in global history, and they had better get used to it.

--- Later in debate ---

[Catherine McKinnell]

On a point of order, Madam Deputy Speaker.

[Madam Deputy Speaker (Dame Rosie Winterton)]

It had better be good.

[Catherine McKinnell]

Out of respect I did not want to interrupt the Chancellor’s speech, but is it in order for him to impugn the motives of my hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali) in raising concerns on behalf of her constituents? Is it not unparliamentary for somebody holding his high office to do that, especially when he refuses to appear before the Treasury Committee to answer directly for his plans?

[Madam Deputy Speaker]

I sort of thank the hon. Lady for her point of order. I really do not want to see the debate interrupted by points of order that are, frankly, matters of debate. It is a matter of debate whether people think what the Chancellor said is appropriate. I want to get on with the debate.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. It is obvious that this debate is very well subscribed, so after the next speaker I shall impose a five-minute time limit. It may then have to come down, but after the next speaker it will be five minutes.