Future Government Spending

Simon Kirby Excerpts

Wednesday 4th March 2015 Commons Chamber

[Chris Leslie]

I appreciate that, Madam Deputy Speaker.

[Simon Kirby (Brighton, Kemptown) (Con)]

Will the hon. Gentleman give way?

[Chris Leslie]

I may give way to the hon. Gentleman in a moment, but not just yet.

I want to pause for a moment and reflect on the implications of taking UK public expenditure on vital public services down to the 35% level that was announced in the autumn statement. These plans would mean that we are only halfway through the cuts. These are plans for the biggest cuts to public services since the second world war. The Office for Budget Responsibility says on page 148 of its report that

“the closest equivalent in the National Accounts implies that by 2019-20 day-to-day spending on public services would be at its lowest level … since the late-1930s as a share of GDP.”

The OBR goes on to say—Government Members may not have heard this—that

“total public spending is now projected to fall to 35.2 per cent of GDP in 2019-20, taking it below the previous post-war lows reached in 1957-58 and 1999-00 to what would probably be its lowest level in 80 years.”

That recalls a time before we had an NHS, when children left school at 14, and when life expectancy was just 60. That is why Paul Johnson of the Institute for Fiscal Studies said on 4 December that we can expect

“Spending cuts on a colossal scale…taking total government spending to its lowest level as a proportion of national income since before the last war.”

--- Later in debate ---

[Mr Gauke]

That is the key to the matter. The truth is that there will be either a tax bombshell or a borrowing bombshell if the Labour party is in office. It fought the last general election campaigning for an increase in the jobs tax. I have a strong suspicion that a future Labour Government will look at precisely that to fill the gap.

[Simon Kirby]

Perhaps I can help Labour Members. Has not the shadow Chancellor outlined £3.3 billion of cuts to local councils up and down the country? Today there is total chaos, contradiction and confusion. Where is their policy? What is their plan?

[Mr Gauke]

As per usual, there is no plan; it is just chaos. We cannot get a consistent position from the Labour party. First it says that it will not borrow more, then it says that it will borrow more. There is simply no consistency.