Budget Resolutions and Economic Situation — House of Commons, 2015-03-18
Topic: Macroeconomics
Jeremy Richard Browne (Liberal Democrats, Centre to centre-left): I have heard it said that I was the only Minister in history to have been sacked for being too supportive of the Government. Although the decision to determine my future may or may not have been wise—others can judge that—I remain unequivocally enthusiastic about this Government, as I am about the Budget statement made by the Chancellor today. That is what I want to speak about in what will be my final speech as a Member of Parliament. The reason I am an enthusiast for this Government and their record over the past five years is that we came into office in 2010 in remarkably difficult circumstances. Our country was in a catastrophic position. At our worst point this Government were borrowing £420 million every day. It is straightforwardly delusional of Labour Members of Parliament to think that if only we had borrowed even more, we would not have the problem of a deficit today. We saved the country—the Conservative party and the Liberal Democrat party, working together in the national interest, pulled our country back from the brink when our deficit was more than 10% of GDP. Far from going too far and too fast, as has been charged by the shadow Chancellor and others, if I am critical at all, I think we have done the minimum of what was required, rather than over-extending ourselves, and we can do even more in the future. But it is a good record Interest rates are extremely low. We could easily have had a position where houses were being repossessed right across the country. Inflation is extremely low. Unemployment, including youth unemployment, has fallen dramatically during this Parliament, and the deficit is falling as well. In my view, if this coalition Government put themselves forward for election—they will not, but if they were on the ballot paper on 7 May—they would win emphatically and they would deserve to win because they have an impressive record of taking a country from ruin to relative prosperity, with the prospect of further progress The best coalitions are those that are more than the sum of their parts. The worst coalitions are those that operate at the level of the lowest common denominator. This Government have not always functioned as effectively as they might have done, and that is true of all Governments, but more often than not the Government have had the characteristics of the best coalitions rather than those of the worst, and the United Kingdom has benefited from that It has also been of benefit that we have had two parties in government. This has been a hugely difficult process, wrestling with the massive deficit and many of the other structural problems that our country faces. Two parties coming together, representing about 60% of the votes cast at the last general election, gave a wider mandate for this Chancellor and this Government. If I am honest about our coalition partners, there would have been greater anxiety about the Conservatives adopting a programme of reducing state spending, had it not been done in partnership with the Liberal Democrats. While I am briefly being mildly critical of our coalition partners, I remember sitting on the Opposition Benches—it seems hard to believe that the Liberal Democrats once sat on the Opposition Benches—and hearing speeches from the now Chancellor promising that the Conservatives would match Labour’s spending commitments, even when we were running a deficit and the economy was growing. So I am pleased that this Government have shown a sober awareness of the predicament that we find ourselves in, and that my party has contributed some of the biggest and most enduring economic policies of this Government, not least the dramatic rise in the point at which people start paying income tax. The Chancellor, I am pleased to say, announced further increases in that threshold today There is still a long way to go. Many people in Parliament, the media and elsewhere talk as if this huge task was almost over. Even today the British Government are still borrowing £10 million an hour. Our debt interest is about £1 billion a week. Every week £1 billion of the taxes of our constituents goes not on schools, hospitals or the police, but on paying the legacy of overspending in the past, and that figure will rise because we still have a debt that is increasing. However, huge progress has been made Where now? Where do we go next? We have huge strengths as a country. Our top level education is among the best in the world, second only to that of the United States of America. Our labour markets are flexible. We attract inward investment. We are a country with a genuine global disposition and we are admired for our innovation and creativity. Britain can be a success; we have reasons to be highly optimistic However, we will be successful only if we address some of our serious weaknesses as a country—and we do have serious weaknesses. Our overall education performance, not at the elite level but the general level, is still not sufficiently good for us to be globally competitive. Our infrastructure, particularly our transport infrastructure but also our energy-generating infrastructure, needs to improve. Our welfare costs and welfare dependency are a problem. Angela Merkel has said—I repeat this from memory without the exact numbers in front of me—that Europe has 7% of the world’s population and 23% of the world’s economy but 50% of the world’s welfare spending. That is a very precarious position. The 7% is falling and the 23% is falling, but the 50% is not falling—or at least, not nearly as quickly as the other two numbers. We still have a very high level of Government debt and a high deficit. This Government, whether on educational shortfalls, excessive welfare costs and dependency, infrastructure or debt, have worked systematically to address the weaknesses that will otherwise hold our country back. We have enduring strengths, but in the past five years we have also had a Government with the wherewithal, talent and vision to address our weaknesses as well I want us to have a sense of purpose in politics. I want us to think about how we can become the biggest economy in Europe within a generation, as the Chancellor mentioned in his Budget speech. I want us to be able to think about how we, as a country, with less than 1% of the world’s population, can be relevant in an era of much more intense global competition—how we can be world leaders in innovation, skills, and job creation. All these are possible—they are prizes within our grasp—but we must have the level of optimism and vision necessary to realise those outcomes It has been a great privilege for me to represent the constituency of Taunton Deane in Somerset—Taunton for five years, and then latterly Taunton Deane—and to serve 10 years in the House of Commons, and also to support a radical and important Government in the history of our country. I want to make my final comments about politics generally and the role of Members of Parliament I was listening to the "Today" programme last week when a person was being interviewed—he was French or perhaps a Swiss French speaker—who was seeking to be the first person ever to fly around the world in an entirely solar-panelled plane. It is an extraordinary plane, because it has a wingspan of a 747 but weighs about the same as a family car, so it sounds like an absolutely terrifying undertaking. The interviewer said that he did not doubt his courage and his sense of adventure but questioned what possible application this feat of adventure would have, given that Boeing, Airbus and the airliners were not interested in the technology and did not think it would have any great future use. The interviewee said, with, I imagine, a shrug—it was on the radio, but it sounded like he was shrugging his shoulders in the way that only French-speaking people can—"That is to be expected. The inventors of the candlestick did not invent the light bulb." It was a rather Eric Cantona-esque moment. However, he was making an important point, which is that we cannot, in our politics, always be risk-averse and always in the business of preserving the past rather than trying to seize the opportunities of the future. If we allow politics, in all parts of this House, in all parties, to be about how we can frustrate, regulate and tax light bulb inventors, and subsidise and prop up candlestick manufacturers, we will find that world events—in a globalised economy with very rapid technological, demographic and economic change—leave the House of Commons behind and trust in politics subsides further. That would be hugely regrettable We have made enormous progress under this Government in this Parliament, but, whichever Government are in office after the general election, I urge the people in that Parliament and the leader of that Government to be visionary and ambitious for our country, because we can have a great future ahead.