Future Government Spending — House of Commons, 2015-03-04
Topic: Macroeconomics
Andrea Jacqueline Leadsom (Conservative, Centre-right): I am sure that there is no need for me to give way to the hon. Lady again so that she can congratulate us on the fact that, on average, 75% of those new jobs are full-time employment. There are some other facts that Opposition Members might like to celebrate. I am talking about the fact that the UK was the fastest growing major economy in 2014; that more than 760,000 private sector businesses have been created over the past four years; and that employment is up by 1.85 million since the last general election—that is 1.85 million more people with the security of bringing home a regular pay packet. She might like to celebrate the fact that wages are rising significantly faster than inflation, and that total pay was up 2.1% in the three months to 2014 The hon. Lady might like to hear the views of international commentators. Mark Carney, the Governor of the Bank of England, said: "The sweet spot you want is low, stable predictable inflation. You’re going to get that"— in 2015. Is the hon. Lady interested in the view of President Obama? He said: "I would note that Great Britain and the United States are two economies that are standing out at a time when a lot of other countries are having problems. So we must be doing something right." Perhaps she would like to hear the views of Christine Lagarde who runs the IMF. She says: "A few countries, only a few, are driving growth." The hon. Lady needs to listen to this. Christine Lagarde is talking about America and the UK. She goes on to say: "And the UK, where clearly growth is improving, the deficit has been reduced, and where the unemployment is going down…Certainly from a global perspective this is exactly the sort of result that we would like to see." There is a word of warning from the OECD. It says: "Well done so far, Chancellor. But finish the job. Britain has a long term economic plan, but it needs to stick with it." That is vital and it is what we intend to do Let me turn now to some of the very interesting comments made by colleagues across the House. In particular, my hon. Friend the Member for Braintree (Mr Newmark) gave an excellent talk about the reality of our determination to sort out Labour’s mess. My hon. Friend the Member for Morecambe and Lunesdale (David Morris) told us why the Government have been so good for his constituency and my hon. Friend the Member for Wolverhampton South West (Paul Uppal) spoke about the importance of competition for economic growth. It is absolutely vital My hon. Friend the Member for Peterborough (Mr Jackson) contrasted Labour now with Labour in 1997, when the party at least had a vision. He also talked about Labour’s spiteful prejudice against success, and that is right, Mr Deputy Speaker. My hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile) pointed out the vital need to invest in infrastructure in his constituency and his fears that Labour would prioritise Scottish over English interests. My hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) pointed out the nonsense of Labour’s motion and the need to ensure that we in this generation do not leave our debts to our children and our grandchildren Let me point out to Opposition Members what the IFS recently said about Labour: higher Government borrowing acts to support household incomes in the short run, but the resulting higher levels of Government debt mean that a greater proportion of public spending must be allocated to financing debt interest payments in the long run and potentially leave the UK more vulnerable to large negative shocks in future. Simply borrowing more is just not an option The hon. Members for Corby (Andy Sawford) and for Preston (Mark Hendrick) both accused this Government of having done nothing for the NHS, but perhaps they would like to celebrate with me the fact that the health budget has increased in real terms every year during this Parliament, that total health spending has increased by £12.7 billion during this Parliament and that on top of that in the autumn statement the Chancellor announced an additional £2 billion for front-line NHS services in England in 2015-16. The vital point about the NHS is that we cannot have a strong NHS without a strong economy Since today we have had a very interesting living standards report from the IFS, I want to give hon. Members some other things to celebrate. The IFS has assessed that average household incomes are now restored to around pre-crisis levels. That is something to celebrate. Wages are up 4.1% in real terms for those in continuous employment. That is fantastic. Inflation is at 0.3%, helping family budgets to stretch further. Let us look at inequality, which is lower than when this Government came to power with, as the IFS has said, pensioner poverty at near record low levels. That is vital in our economy. This Government support fairness and have also ensured, as the IFS has today confirmed, that the richest households have paid the most, with "larger proportional falls in income for higher-income households." That is absolutely vital. Inequality has fallen and the biggest burden has been borne by those with the broadest shoulders It is vital that members of the public who have to choose very soon who they want to run the Government for the next five years know that they have the choice between a Government who have been determined to ensure fairness and an Opposition who are completely incoherent and whose lack of facts and plans lead them simply to resort to scaremongering in the hope they can persuade people to accept a non-coherent plan from their Front-Benchers. This Government believe in a fairer society and a fairer society is created by helping the weak get stronger, not by making the strong weaker. We can only have a fair society on the back of a healthy, well-functioning economy and we can only have a healthy, well-functioning economy on the back of sustainable public finances The Government’s long-term economic plan is making public finances sustainable for the first time in a great many years. It is delivering economic growth and as the IFS confirmed today it is raising the standards of living across the country. That is vital. We are finally on the right track and now would be the worst time to change direction. Let us keep going, let us finish the job and let us give the people of this country the fair, strong, healthy and vibrant economy that they deserve Question put.