Charter for Budget Responsibility — House of Commons, 2015-01-13
Topic: Macroeconomics
David Mowat (Conservative, Centre-right): Like my hon. Friend the Member for Macclesfield (David Rutley), I will be supporting the charter This has been an interesting debate. We have heard principled speeches from the hon. Members for Glasgow North East (Mr Bain) and for Brent North (Barry Gardiner) and the right hon. Member for Morley and Outwood (Ed Balls) explaining the travesty of Government economic policy and saying how bad the economy will get and how the country needs a Labour Government to sort it out. The odd thing is that about half an hour from now those three Members, who spoke in so principled a way about why Government policy is wrong, will go through the Lobby on the same side as me in support of this "gimmick", this "cheap stunt", this "travesty", as it has been called. At least the SNP, the Green party and the Welsh nationalists have taken a principled position. The hon. Member for Dundee East (Stewart Hosie) made an eloquent and reasoned speech about why targets are wrong. We used to say in business: "The great thing about not knowing where you’re going is that you can’t get lost." That would be a summary of the SNP’s position Why is the Labour party going to troop through the Lobby to support the Government? I have only one explanation. I may be wrong, and it is possibly above my pay grade to get involved, but I think that Labour’s decision to support the Government tonight is the start of overtures around a grand coalition. I think Labour has realised that the polls are changing and it is not looking too good out there for it. It has few options left other than to start this dialogue. That is why the hon. Member for Brent North, who spoke so eloquently about the unprincipled Government position, is going to support the Government today. If he did not, Labour would not be signing up to our fiscal compact, and it would be difficult for them to join us in a coalition in May As I said, it is not for me to take this decision, as it is way above my pay grade. I would, however, say one thing to those on the Government Front Bench: if we decide to go into a grand coalition with the Labour party on the basis of its support today, could they please not give the right hon. Member for Morley and Outwood (Ed Balls) a job in the Treasury It is worth reminding Labour Members of the three components of the charter. First, in three years from now, the current spending round will be balanced. That is part one. Then, the supplementary target is that debt will be falling by 2017. Of course, it has not been talked about, but there is also the concept of the welfare cap, which Labour Members will be supporting when they go through the Lobby It behoves all of us to say how we are going to meet these targets. The Conservatives are talking about a mixture of continued spending, welfare reforms and tax evasion. The Liberal Democrats have their own plans. Thus far, Labour has no plans, but let us be clear that the implication of tonight’s vote is that there will be a £30 billion consolidation or the equivalent in tax rates. In the remaining 14 seconds, I reiterate the point that if there is to be a grand coalition, we should not allow the shadow Chancellor into the Treasury.