Delivery of Public Services
Debate between Stephen Kinnock and Simon Clarke(2 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Clarke
I am going to make some progress at this point.
The Chancellor has also announced his intention to cut the basic rate of income tax from 20p to 19p in the pound from 2024. This will be the first income tax cut for 16 years, and it will be a £5 billion tax cut for 30 million people. The Chancellor has also said that he will set out his support for businesses in more detail in the autumn Budget.
Crucially, everything that we have done has been done responsibly, reflecting our continued commitment to strong and sustainable public finances. In direct contrast, the Labour leadership has so far promised £99.5 billion of day-to-day spending commitments—
Mr Clarke
I can provide the hon. Gentleman with the full details if he would like a list.
However, Labour has only announced £7.5 billion in revenue to pay for those commitments, less than one tenth. That leaves a £92.5 billion fiscal black hole of unfunded public spending commitments, which would almost double our current borrowing. This year we will spend £80 billion just paying interest on our debt. That is nearly four times what we spent last year, and those numbers should concern the whole House. The Office for Budget Responsibility made it very clear at the time of the spring statement that our fiscal headroom could be
“wiped out by relatively small changes”
to the “economic outlook”. Labour’s £92.5 billion black hole would mean an extra £3,303 per household in general taxation or extra borrowing. In opposition, parties have the luxury of promising it all and not being responsible for delivering any of it.