(13 years, 2 months ago)
Commons ChamberThe £250 increase applies to all work forces under ministerial control, and it was introduced this year. It will be carried through again next year to ensure that people on low incomes in the public sector continue to receive a pay rise.
Will the Chief Secretary to the Treasury assure us that, in drawing up plans on public sector pay, the Treasury has not been impeded by a brutal regime in No. 10 Downing street?
(14 years, 1 month ago)
Commons ChamberOutlandish predictions by politicians were the prerogative of the previous Government. We have established an independent Office for Budget Responsibility to make forecasts. We do not make the forecasts, and I am merely quoting what the OBR had to say.
Does my right hon. Friend agree that the biggest risk to our economy is the record deficit of 10% of GDP, the highest in the G20? Had we not taken action, that would have posed a big risk and we would have lost more than 490,000 jobs. Opposition Members should think about the jobs that we would have lost had the Government not taken decisive action.
I agree wholeheartedly with my hon. Friend. If we had not tackled the deficit, the poor in this country would have suffered most.
The hon. Gentleman knows perfectly well that, in the context of renewing the deterrent, the coalition has agreed a value-for-money review. In the context of that, spending £67 million on long-lead items in advance of the value-for-money review being completed would be utterly irresponsible.
I thank the Chief Secretary for outlining Labour’s cuts. Will he take this opportunity to remind the House just why we face such a difficult spending round?
We are facing a difficult spending round for two reasons: first, we have the largest peacetime budget deficit since the war—£155 billion—with an 8% structural deficit, which is larger than had previously been estimated; and secondly, the previous Government took irresponsible spending decisions at the end of their time in office and that has added to the pressure on Departments in the spending review. I am seeking to relieve that pressure in today’s statement.