Economic Policy

John Bercow Excerpts

Monday 25th February 2013 Commons Chamber

[Mr Osborne]

The shadow Chancellor finds himself in the contradictory position of seeking an urgent question on a rating decision which he says we should ignore, about a debt burden that he admits he would add to, in order to attack a Government who are sorting out the mess that he created. What exactly is his policy? Six times on the radio he was asked this weekend whether the answer to too much borrowing is to borrow even more, and he would not answer the question. It is an economic policy that dare not speak its name, from a shadow Chancellor who refuses to be straight with the British people. Finally, he was confronted on the radio by the simple statement:

“I, Ed Balls…would borrow more”

and he admitted,

“Yes, that is what I would do.”

Does not that admission completely undermine his entire argument today? A deliberate decision to borrow more—[Interruption.]

[Mr Speaker]

Order. Government Back Benchers, whatever their intentions, are in danger of shouting down their own Chancellor. Mrs Perry, calm yourself. There is always another day.

[Mr Osborne]

Government Back Benchers are as baffled as I am by the shadow Chancellor’s economic policy, which he has just had a few minutes to explain and still there is no explanation. His answer to a debt crisis is to borrow more. His answer to too much borrowing is to add to it. That is the problem he has, ultimately—that he is responsible for the mistakes that got Britain into this economic mess. This is the verdict from the leading Citi economist, Michael Saunders, today:

“In our view, the underlying causes of the UK economy’s weakness—and hence the rating downgrade—stem from the surge in private credit and public spending during 2000-2007.”

Who was in charge of economic policy during that period? The right hon. Gentleman is the architect of the mistakes that gave Britain its debt problem. He ignores the solution to that debt problem. He is condemned to repeat those mistakes and, as a result, his party is condemned never to be trusted with the public finances again.

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[Gordon Birtwistle (Burnley) (LD)]

Does my right hon. Friend agree that the shadow Chancellor would himself get a triple A rating for his skill in running this country down? Does he also agree that the hard-working people of this country are getting—[Interruption.]

[Mr Speaker]

Order. The hon. Member for Burnley (Mr Birtwistle) should resume his seat. I must say to Members that I am trying to ascertain whether the question is in order; it might or might not be, but it is very difficult to hear. I can make a judgment only if I can hear it, and that means Members need to stop shrieking. Let us hear the hon. Member for Burnley and see whether he is in order.

[Gordon Birtwistle]

Thank you, Mr Speaker. I am sure that you will find that it is totally in order. Does my right hon. Friend agree with the rest of the people that they are getting sick and tired of the shadow Chancellor’s politically motivated antics?

[Mr Speaker]

I am bound to tell the hon. Member for Burnley that I am always very grateful to him for his advice, but I think that on the whole I can probably get by without it, and only by a very generous interpretation—I am in a generous mood—could that be considered to be in order, but I will happily have the Chancellor briefly respond.

[Mr Osborne]

My hon. Friend is right that what is completely extraordinary is that we have constant criticism from the shadow Chancellor of our fiscal policy but not a clue from him about what he would do except add to borrowing. He has made it very clear that he would add to borrowing, although he has not said by how much, and he has not said which of the cuts he would stick with and which he would oppose, so until we have a credible alternative, we will not have a credible shadow Chancellor.

--- Later in debate ---

[Mr Osborne]

We inherited an incredibly difficult situation. The economy had contracted by 6%; we were experiencing the deepest recession in the country’s modern history, and arguably the worst financial crisis in its entire history. Since then we have made difficult decisions, but they have seen interest rates stay low, they have seen the deficit come down, and they have seen the creation of a million jobs. The hon. Gentleman should be welcoming that.

[Mr Speaker]

I call Mr Flello. Is Mr Flello still with us to give us his views?

[Robert Flello (Stoke-on-Trent South) (Lab)]

I am most grateful, Mr. Speaker. This is definitely worth waiting for. I have handwritten notes.

If one of the Chancellor’s pals in one of the banks had lost that bank’s triple A credit rating, he would have gone. Will the part-time Chancellor now either become full-time and change his plan, or go?

--- Later in debate ---

[Mr Osborne]

He asks where it is; it is being built at the moment. For 13 years people wanted that road and it was not produced, but it is now being produced under this Government.

[Mr Speaker]

I thank the Chancellor of the Exchequer and, for that matter, the 69 Back-Bench Members who contributed in 57 minutes of exclusively Back-Bench time for their notable succinctness.