Charter for Budget Responsibility

Stephen Doughty Excerpts

Tuesday 13th January 2015 Commons Chamber

[Ed Balls]

I will explain the nature of the fiscal charter and how it works in a moment. I am sure that the hon. Gentleman will then see the stark difference between our position and the position of the Conservatives. He will probably find that he agrees much more with our position than with theirs.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The point that my right hon. Friend has made about low pay and tax revenues is crucial, but is it not also the case that since 2010 the Government have spent £25 billion more on social security than they originally planned to spend because of that failure on low pay and the failure to deal with the cost-of-living crisis?

[Ed Balls]

That is true. If we compare the welfare spending plans that the Chancellor set out in 2010 to the actual outturns, we see that he has overspent in this Parliament by £25 billion. He has spent £25 billion more on disability and housing benefits because of what has happened to the economy. The former Chancellor, the right hon. and learned Member for Rushcliffe (Mr Clarke), is right. We have to deal with the big issues rather than playing silly political games.