Oral Answers to Questions

Debate between Steve McCabe and George Osborne

Tuesday 24th June 2014 Commons Chamber

[Mr Osborne]

I certainly pay tribute to the local council and local businesses who have worked with the excellent Member of Parliament, my colleague—[Interruption.] Yes, my hon. Friend has done remarkable work in bringing down the number of people claiming JSA by 60% since this Government came to office, and of course we will go on supporting businesses locally with important infrastructure, with the employment allowance and with awards. As I am sure my hon. Friend will be aware, Dennis Eagle, one of the companies in his constituency, has just been awarded a grant under our advanced manufacturing supply chain initiative, so we are backing manufacturing in the midlands, and backing his constituents all the way.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Sixty percent is a very interesting statistic. Does the Chancellor accept that the number of young people unemployed for more than 12 months has risen by 60% since he became Chancellor?

[Mr Osborne]

Youth unemployment is down 100,000 over the last year, and in the hon. Gentleman’s constituency the claimant count is down by 30%. I would have thought he would be welcoming that.

Charter for Budget Responsibility

Debate between Steve McCabe and George Osborne

Wednesday 26th March 2014 Commons Chamber

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

rose—

[Mr Osborne]

I will take a couple of interventions in a while. I have only 15 minutes for my opening remarks because we want lots of contributions later in the debate.

It was not fair that benefits were unlimited. We have introduced a cap. It was not fair that those looking for work faced marginal tax rates as high as 96%, sapping the incentives to find a job. We are addressing that through universal credit. It was not fair that benefits were rising much faster than wages; not fair that people who could never afford a place with a spare room subsidised the spare rooms of others; not fair that people who did not speak English could receive out-of-work benefits without even trying to learn it; and not fair that the long-term unemployed were cycled and recycled through the new deal. That was not fair, but it was the welfare system we inherited. It was unfair to those trapped in poverty and to the millions of people who paid for it. It was a perverse distortion of what William Beveridge had conceived. In the face of opposition to each and every measure we have introduced, we are removing those distortions, restoring the work incentives and creating a fair welfare state.

--- Later in debate ---

[Mr Osborne]

This is a huge system that will apply to millions and millions of people. Let me tell the House what we are going to do. I know that this will come as a complete shock to the Labour party, but we are going to take our time, get it right, and make sure that we do not put everyone on to a new credit with which the system cannot cope, which is exactly what the Labour party did with tax credits. All of us who were Members of Parliament at that time remember people coming to our surgeries who had been treated shockingly by a Labour Administration who had not got their administration right.

As I was saying, we will set the cash limit for the welfare cap at £119 billion. If inflation is higher than forecast, the Government cannot wash their hands of that either. Public services such as the police and transport have to absorb higher inflation, so why should welfare budgets be different? [Interruption.] I am sorry, Mr Deputy Speaker; there is a private conversation going on. My right hon. Friend the Secretary of State for Work and Pensions has done more to reform the welfare state than any of that lot.

The charter makes clear what will happen if the welfare cap is breached. The Chancellor must come to Parliament, account for the failure of public expenditure control, and set out the action that will be taken to address the breach. Then the House of Commons—the ultimate guardian of the people’s money—

[Steve McCabe]

Will the Chancellor give way?

Spending Review

Debate between Steve McCabe and George Osborne

Wednesday 26th June 2013 Commons Chamber

[Mr Osborne]

We have introduced investment. We have increased investment in renewable energy, so that a record amount is now going in. My right hon. Friend the Chief Secretary to the Treasury will set out the strike prices this week, which will give long-term investors the certainty needed to increase renewable energy investment.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Why is the Chancellor not big enough to admit that he was wrong to claim that borrowing fell last year?

[Mr Osborne]

When I became Chancellor we were borrowing £157 billion a year. We are forecast to borrow £108 billion a year, which is a reduction in borrowing.

IMF

Debate between Steve McCabe and George Osborne

Monday 23rd April 2012 Commons Chamber

[Mr Osborne]

The rate of interest would be set at the time the IMF called upon the loan, if it were to do so. It is only a contingent loan that will be available if the IMF needs it. The mechanism for setting the rate of interest for the IMF is well known. As I have said, countries do not lose money when they lend to the IMF—that is certainly Britain’s experience and that of other countries. Thanks to the actions the Government have taken, we are borrowing money at what is pretty much the lowest rate that anyone doing my job has ever borrowed money.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

If the rich EU countries that created the euro will not accept the risks associated with it, what is the moral case for saying that Britain and a host of other poorer countries should bail it out?

Banking Commission Report

Debate between Steve McCabe and George Osborne

Monday 19th December 2011 Commons Chamber

[Mr Osborne]

My hon. Friend is right, and she speaks up well for her constituents, who want greater choice on the high street. They want to be able to switch their bank accounts easily, and there are significant proposals in the report to help them do that within seven days and without having to chase up all the direct debits and the like, which will be done for them at no charge. That will be a practical benefit of the Vickers report and the Government’s implementation of it.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Will the Chancellor give the House a categorical assurance that he has now fully recovered from his dangerous flirtation with deregulation, and that he will be able to avoid any further advances from the right hon. Member for Wokingham (Mr Redwood)?

[Mr Osborne]

If the hon. Gentleman examines what the Government and I have done over the past 18 months, he will see that we want proper regulation that works, enabling consumers to make choices and market forces to operate where appropriate while protecting the British taxpayer, with the Government stepping in where necessary. The report that we commissioned from John Vickers sets out a very important point about the regulation of bank structure that the previous Government did not examine. It represents a significant advance by this Government.

Oral Answers to Questions

Debate between Steve McCabe and George Osborne

Tuesday 1st November 2011 Commons Chamber

[Mr Osborne]

Of course I do not agree with my hon. Friend on this occasion. The coalition Government have been able to get Britain out of the European Union bail-out that we found ourselves in when we came to office. We have been able to keep the budget increases down—again, in marked contrast with what we found on coming into office. We must now have some serious negotiations to make sure that Britain’s interests are protected in Europe, as the remorseless logic of monetary union—I am sure that he accepts this—leads to greater fiscal integration among eurozone countries. That is the reality of the situation facing us, and I think Britain under this Government will be able to negotiate well in our national interest.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

If the Chancellor cannot bring himself to extend the national insurance holiday to small and micro-businesses because the shadow Chancellor suggested it, will that be easier now that the CBI is also recommending it?

[Mr Osborne]

The CBI has been absolutely staunch in its defence of our deficit reduction plan, and says that it is crucial for business confidence. If the shadow Chancellor wants to make proposals to increase spending and borrowing, which he is perfectly entitled to do, why does he not also make proposals to cut Government spending and to get the budget deficit down? He talks about providing a medium-term deficit reduction plan, but we have not heard one single line item of it.

Global Economy

Debate between Steve McCabe and George Osborne

Thursday 11th August 2011 Commons Chamber

[Mr Osborne]

My hon. Friend is right to draw attention to the Doha round. The significance of this is that it is available for the countries of the world to seize—today, this month or next month—and implement. If one is looking around the world for something that could, in very short order, increase global demand, it is sitting there in the Doha trade round. I hope that we make progress at the G20. I suspect we will certainly be a leading advocate of making progress and we have some good allies, for example in China, but I have to say that there remain considerable obstacles, not least in the Democrat and Republican parties in the United States.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

If it is true that we are being used as a safe haven, why are we not seeing significant growth in the value of sterling?

[Mr Osborne]

As I say, I have a simple policy not to comment, as previous Chancellors have also decided to do, on the value of sterling. I do not propose to break that commitment today.

Bank Bonuses

Debate between Steve McCabe and George Osborne

Tuesday 11th January 2011 Commons Chamber

[Mr Osborne]

That was one of the things that Labour Cabinet Ministers said at the time—and indeed, quite a few of them have lived up to it since leaving office.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

The Deputy Prime Minister threatened very serious action against bankers who sought to pay themselves unjustifiable bonuses. Should we regard the Chancellor’s answer today as a description of the very serious action that the Deputy Prime Minister was talking about?

[Mr Osborne]

I have made it very clear that nothing is off the table unless we can agree a settlement with the banks that allows an increase in lending, an increase in community contributions and a lower bonus pool.

Financial Services Regulation

Debate between Steve McCabe and George Osborne

Wednesday 16th June 2010 Commons Chamber

[Mr Osborne]

Of course, it is important that we have the right people doing regulation. The FSA made mistakes, and it has been very candid about them. Lots of institutions made mistakes in the build-up to the crisis—including, of course, the British Government. The people at the FSA have worked incredibly hard in the past couple of years, and I should put on record my tribute to the work that they have done. As for the institutional arrangements that we will put in place, there will be a parliamentary statement tomorrow.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Will the changes that the Chancellor envisages have any impact on the bonus culture at the FSA? I understand that it cost us a record £22 million and reached 84% of its staff last year, at the very time when it was calling for curbs on bank bonuses.

[Mr Osborne]

I remember that at the time I, too, was surprised by the FSA’s decision. If the hon. Gentleman will allow me to say this, those questions are best asked once we have made clear what the new institutional arrangements are. Then we can get on to the pay and rations.