Future Government Spending

Stephen Hammond Excerpts

Wednesday 4th March 2015 Commons Chamber

[Chris Leslie]

I seem to have hit a nerve with Government Members. I give way to the good-looking one.

[Stephen Hammond (Wimbledon) (Con)]

That is one of the few points on which I agree with the hon. Gentleman. He has been quoting selectively from various institutions. He has just quoted the IFS. The director general of the IFS has said that

“if the Conservatives win the election they will neither, despite what the opposition would have us believe, destroy the NHS nor return the welfare state . . . to 1930s level of provision.”

Does the hon. Gentleman accept that, and will he now withdraw his previous comment?

[Chris Leslie]

With the greatest respect, I do not accept that. I will come to that shortly.

When we look at the effect on public finances of the plan that the hon. Gentleman has signed up to with the Free Enterprise Group and with the Prime Minister and the Chancellor, the effect on our public services, not least the NHS, could be exceptionally difficult and potentially implausible.

Paul Johnson of the IFS asks:

“How will these cut be implemented? What will local government, the defence force, the transport system, look like in this world? Is this a fundamental reimagining of the role of the state? ... If we move in anything like this direction, whilst continuing to protect health and pensions, the role and shape of the state will have changed beyond recognition.”

Is it any wonder that UKIP has backed Conservative plans? No surprise there.

Be under no illusions—the Conservatives’ pathway for the next Parliament is a statement of intent to wage war on public services, and people need to understand the tremendous risks involved. It is a major threat to the viability of public services, which would wreak havoc especially in non-ring-fenced areas such as policing, border controls, child protection and social care. Such extreme plans would decimate skills, infrastructure, research and development and science, undermining the competitiveness of our economy. Devastation on that scale would not be tolerable, which is why we suspect that the Conservatives have secret plans to hit household finances in other ways.

--- Later in debate ---

[Mr Gauke]

My hon. Friend raises an interesting point, and the big tax cut that this Government have delivered has been the huge increase in the personal allowance that has benefited millions of hard-working people up and down the country.

[Stephen Hammond]

The Minister is right to point out those things, and, as my hon. Friend the Member for Esher and Walton (Mr Raab) pointed out, we have taken many people out of tax altogether. On Labour’s watch, if it were ever to be in government, the deputy leader of the Labour party has already said:

“Yes I think people on middle incomes should contribute more through their taxes”.

Therefore anyone earning more than £26,000 will have a tax rise under the next Labour Government. That is what the deputy leader of the Labour party has committed to.

[Mr Gauke]

As I said, the money has to come from somewhere, and middle-income earners are probably pretty high up the list. To be fair, it is not just the 50p rate, although that is the only policy mentioned in the motion. In television interviews, the shadow Chief Secretary to the Treasury has proclaimed one other policy to reduce the deficit. This is the key to deficit reduction and the policy that will restore public finances to health: a future Labour Government will put up fees for gun licences. How much will that raise? A whopping £17 million—except, to be fair, the shadow Home Secretary has already pledged to spend that money elsewhere.