Budget Resolutions — House of Commons, 2017-11-27
Topic: Macroeconomics
Robert Andrew Raymond Syms (Conservative, Centre-right): Well, you were the people who regulated the banks and you were the people in charge for 13 years. Before we hit the crisis, you had a 3% deficit and you were too reliant on bankers’ bonuses and the City to provide money. The problem with that was that the deficit spiralled up to £160 billion. The then Labour Chief Secretary to the Treasury left a note saying that there was no money—and there was no money. When I look at the Red Book today, I see that the deficit for the foreseeable future is less than £50 billion. That means we have reduced it by well over £100 billion, which is a remarkable achievement. While doing that we have upped the income tax allowances from £6,000 to £11,500; increased the minimum wage and the living wage; kept up our commitments to the third world with the 0.7% foreign aid commitment; kept the economy growing; taken 4 million people out of tax; and created more than 3 million jobs. What’s not to like about this Government’s progress over the past seven or eight years In 2009, Eddie George, the then Governor of the Bank of England, said that whoever takes over this country’s economy will be ruined for a generation, yet my party has won two general elections—I admit that the 2017 one was on penalties. The reality is that this Government have been elected in 2010, 2015 and 2017, and I think that if there was a general election today, we would win, because we are more realistic and optimistic about the nation’s prospects. The country has made a decision. History will tell whether it is the right or the wrong one, but the country wants optimistic politicians who are going to go out and make a success of the decision the people have made. There is a big wide world out there. We need to have a decent relationship with our European partners, and I hope and believe we will have a decent negotiation. But it is right and proper that the Government make preparations so that if things do not work out properly, we can continue to manage our affairs The OBR has come up with some forecasts that are not as optimistic as they were, but throughout the time the OBR has done this, its forecasts have gone up and down and have never been right. That is because they are forecasts, and events come in. My view of life in the world over the next four or five years is a rather more optimistic one. We have relatively full employment, business is going to have to invest if it is to increase productivity, and I believe it will, and I think we are going to do well as the years go by. Clearly, there are uncertainties, and changing our relationships will cause short-term problems, but over five, 10 or 15 years, I think Britain is going to be a great success story. And I believe the United Kingdom is going to be a great success story, because the Union that is the great success for our nation is that of England, Scotland, Wales and Northern Ireland. I am therefore optimistic because the Government produced a good and balanced Budget, which has given a little bit of a tax cut and a little bit of increased spending, but which, broadly speaking, sticks to the financial plan. At the end of the day, sound finance is the only way of being a caring Government.