Autumn Statement

William Bain Excerpts

Wednesday 3rd December 2014 Commons Chamber

[Mr Osborne]

Of course, Labour economic policy would increase unemployment, reduce GDP and potentially put Britain back into recession. We know that its feeble commitments on borrowing would allow at least £26 billion of extra borrowing every single year, and as has been demonstrated over the past hour or so, every Labour MP actually wants to spend more money and increase welfare bills. That is the real Labour party, and of course it would bankrupt the country again.

[Mr William Bain (Glasgow North East) (Lab)]

The Chancellor made just one passing reference to wages in his statement, some 42 minutes in, and small wonder. Will he confirm that the OBR has this afternoon revised down its forecast for income tax and national insurance contribution receipts through to 2018-19 by a further £11.8 billion, with £9 billion of that down to lower than forecast growth in wages? How can the worst Chancellor on wages for 140 years ever be the answer to higher living standards in the next Parliament?

[Mr Osborne]

I actually talked about tax receipts and earnings early on in the statement. I pointed out that although tax receipts were lower, crucially they were offset by lower debt interest payments, which is why we have not seen the big deterioration in the public finances that was forecast. Borrowing was lower towards the end of the period than was forecast at the last Budget; the surplus is higher than predicted; and the structural deficit is on course for the reductions we set out. That is because although tax receipts were lower, debt interest payments were also lower.