Alison McGovern
Main Page: Alison McGovern (Labour - Wirral South)Department Debates - View all Alison McGovern's debates with the HM Treasury
(10 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Osborne
My hon. Friend is right. It is not just that they got the predictions wrong: it is what that says about their governing philosophy—that they could go on spending and borrowing and running up the deficit with no consequences whatever. Unfortunately they were let near the door of No. 11 in the last decade and that is one of the reasons we are all clearing up this mess at the moment.
Alison McGovern (Wirral South) (Lab)
The Chancellor told us in 2010 that he would close the deficit gap by 2015 and he has told us today that it will be 2018-19. What happened?
Mr Osborne
As we have now discovered, the recession was even deeper than we knew at the time, with a 7% fall in national income. The financial crisis had an even bigger effect on our economy and its recovery and, at the same time and as is obvious to everyone, our nearest neighbours in the eurozone almost had their currency fall apart and remain in recession. During this period, we were also told repeatedly that if we stuck with our plan and went on trying to reduce the deficit, there would be no economic recovery. We have still had no explanation from a Labour Member as to why we now have a recovery.