Future Government Spending

Debate between Tom Greatrex and Brian H. Donohoe

Wednesday 4th March 2015 Commons Chamber

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

For some reason, my mind is drawn increasingly to the time that people are in particular positions, and I note this afternoon a conspicuous absence on the Liberal Democrat Benches. I think back to the early part of this Parliament, when the right hon. Member for Yeovil (Mr Laws) held the post of Chief Secretary to the Treasury for a total of 17 days, and I recall being in the Chamber when, with barely disguised glee and in a remarkable contribution that has continued in the approach of the coalition, he began the process of cutting back on investments, some of which have since been re-announced. This was at a time when the economy was beginning to grow after a long global banking crisis out of which we are only just starting to emerge. Since then, for the past five years, for the vast majority of constituents in all parts of the UK, things have been getting worse, not better. The coalition justified it on the basis of shoddy analysis of how our economy and situation was the same as that in Greece.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

I notice that there are no Scottish nats in the Chamber at present, which is not unusual. Will my hon. Friend touch on the effect of the price of North sea oil on the economy of today?

[Tom Greatrex]

My hon. Friend makes a different point from the one I was making, but an important one. The reduction in the price of a barrel of oil has had a significant impact on revenues. If Scotland had become a separate country or was in the process of becoming a separate country, the impact on revenues would have amounted to the equivalent of the entire education budget. That much would have been wiped out in the course of the last few months, highlighting the dangers of an economy being over-reliant on what the record shows to be such a volatile commodity, and indeed, by definition, a declining one, given the amount of oil still left in the ground. This is an important point for Scotland.

The tenure in office of the current Chief Secretary to the Treasury has been slightly longer, and 1,591 days ago, the Prime Minister said:

“In five years’ time, we will have balanced the books.”

He has 63 days left in his job, and I suspect that he is not going to meet that promise.