Angela Eagle
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Comprehensive Spending Review
Angela Eagle Excerpts(13 years, 6 months ago)
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Danny Alexander
My hon. Friend makes a very important point. The NAO has indeed criticised the effectiveness of the previous Government’s so-called efficiency programme. Many of those criticisms are well founded, and we will proceed on a very different basis. To give an example, the single indicator that they set out for local authorities to report on their own efficiencies had 66 pages of guidance for them to follow, thereby creating a huge industry in local authorities just to meet the reporting requirements.
Ms Angela Eagle (Wallasey) (Lab)
The right hon. Gentleman has been talking about detail, and there is one detail that I am interested in. There was a leak from the Ministry of Justice demonstrating that it has set aside £230 million to pay for the redundancies that it has announced in its front-line staff. Can he tell the House, because he must have this figure, how much he has set aside to pay the redundancy bills for the job cuts that he has announced?
Danny Alexander
I welcome the hon. Lady to her place. I think that it is the first time we have had an exchange over the Dispatch Box, and I congratulate her on her appointment. Departments will set out their work force plans in due course. They are working on those things, and there are many things that they can do to avoid excessive redundancies. [Interruption.] I am not going to go into individual departmental figures.
Danny Alexander
I am not going to give way again. These figures will be for Departments to set out.
Danny Alexander
I am going to press on with this section of my speech, and then I will give way in a moment.
In June’s emergency Budget, we set out the road map to recovery and took the country out of the danger zone. The independent Office for Budget Responsibility examined our plans in June and forecast the economy growing and unemployment falling in every year. It also assessed that we were on course to eliminate the structural current deficit and see debt fall by the end of this Parliament, one year ahead of our mandate. The recovery will be choppy, but we are confident that our plan will see us through.
Danny Alexander
My hon. Friend asks a very good question. Over the course of the spending review period, our plans will save £5 billion in debt interest, which the Labour party was very happy to pay.
Ms Eagle
I thank the right hon. Gentleman. We know that he will know the answer to this question. He has set out a plan that will lead directly to 490,000 people losing their jobs in the public sector. We know that the Ministry of Justice has already made an allowance of £230 million to cover the cost of redundancies. He must have a figure for the rest of Whitehall put together, and he should now give it to us.
Danny Alexander
The hon. Lady is the shadow Chief Secretary, and we read in a memo directed to the Leader of the Opposition that the Opposition had a plan for £44 billion of cuts, but she has not set out a single piece of detail on that. As I said, Departments will set out their work force plans in due course.
The previous Government’s plan was not a serious plan to deal with the deficit and support growth. It was not a fair approach. It would have led to more, not fewer, cuts in the end, because of higher debt and higher interest payments—more interest on the debt, and more interest on the interest. Compared with the plans that we inherited, we will save £5 billion in debt interest payments over the course of this Parliament.
The emergency Budget set out our plan to balance the books, and now we have shown how we will find £81 billion of savings by 2014-15. Let me put that in some context. Even at the end of that period, public spending as a share of gross domestic product will be 41%.
Danny Alexander
I shall give way at the end of the section on welfare because I know it is of interest to many hon. Members, but let me explain our position.
The welfare budget accounts for nearly £1 in every £3 spent by the Government. The cost of the welfare system has increased by 45% in the past decade. In some cases, those increases were necessary—it is right that the Government should help those who need it most—but in many cases the previous Administration’s over-complicated bureaucracy trapped people in a system in which it does not pay to work. Worse still, many were simply dumped on benefits by previous Administrations and left there. That is not fair on them or the taxpayer. No one can deny that reform is essential, but the question is how the right balance should be struck.
Our approach is to move to a universal credit system over the course of two Parliaments to do away with the complexity of the current system so that it always pays to work. We will introduce a new work programme to provide personalised support to those who need the greatest help with getting back into employment, with private and third-sector providers being paid for the additional benefit savings they secure. We will fund significant above-indexation increases for the child tax credit to ensure that the spending review has no measurable impact on child poverty over the next two years. Through the welfare reforms in the spending review, we will find £7 billion of net savings on top of those identified in the Budget. Some £2.5 billion comes from removing child benefit from households with a higher-rate taxpayer. That is the largest welfare measure in the spending review and the most progressive, but it is the one that the Opposition have most vocally opposed.
Ms Angela Eagle
I thank the right hon. Gentleman for giving way on that point. There are press reports out on the wires that a source in Her Majesty’s Treasury is saying that the child benefit cut is “unenforceable” and will be dropped. The press report says that it is
“panic stations in the Treasury.”
Is that true?
Danny Alexander
I think it is panic stations on the Opposition Front Bench if they do not have a single answer to a single question about the action that they would take to reduce the deficit. The story that the measure is unenforceable is nonsense; it will be introduced as planned. The savings were signed off by the Office for Budget Responsibility, which considered the compliance risk involved as well. Higher-rate taxpayers are of course required to disclose all relevant information.
Ms Angela Eagle (Wallasey) (Lab)
Last week’s comprehensive spending review statement has taken a huge and risky gamble with the jobs and future prosperity of millions of people in this country. This wholly unnecessary risk has been taken because this Conservative-led Government is in ideological thrall to the discredited economic mantra that shrinking the state is always the right answer. They do not state it as provocatively as Mrs Thatcher once did in the 1980s, but they believe it just as firmly. The Orange Book Liberal Democrats, led by the Deputy Prime Minister with the Chief Secretary in tow, believe it too.
Of course, the deficit has to be brought down—[Hon. Members: “Ah!”] We said that before the election and we set out a plan to do so. We also said it at the election and we have said it since. The difference between us is how the deficit is brought down. My right hon. Friend the shadow Chancellor has made it clear that we favour a different balance between spending cuts and tax rises that brings the deficit down but also protects the recovery and boosts growth. None of us should forget the backdrop to this spending review, which is families up and down the country worried about their jobs and homes. That is why the cheers and mass waving of Order Papers on the Government Benches as the Chancellor announced the largest job cuts for generations demonstrate just how out of touch they are. At that very moment at the end of his speech, the masks slipped and we saw what really motivates them. As these cuts begin to bite, the British public will not forget.
Mr Redwood
Given that between 250,000 and 500,000 people leave the public service every year voluntarily, for retirement or other reasons, will the hon. Lady now withdraw her statement that half a million people will lose their jobs under this Government? It can be done by natural wastage.
Ms Eagle
That is not my statement: it is a statement by the Office for Budget Responsibility. It is also the figure that was revealed accidentally the day before the Chancellor’s statement by the Chief Secretary when he was filmed in the back of his car with open documents. It is not my figure. The right hon. Member for Wokingham (Mr Redwood) should remember that the Ministry of Justice is already planning 14,000 redundancies, as we know from a leak, and has set aside—
Ms Eagle
No, I shall finish answering the question. The hon. Gentleman can sit down and be patient, and we will see whether I give way to him a little later.
The Ministry of Justice is already planning cuts of 14,000 in front-line staffing. It has also set aside £230 million to pay for the costs of those redundancies. I asked the Chief Secretary what the figure was for the rest of Whitehall. He will know what that figure is, because he will have signed it off. Twice I asked him for that figure, and twice he avoided the question. It does him no credit if, knowing what that figure is, he comes to this House for a debate on the comprehensive spending review but avoids the question of the costs to the public purse of the redundancies that will be directly caused by the statement made by the Chancellor last week. He knows that figure and he should stand up now and give it to the House. Silence is sometimes far more revealing than an answer.
Ian Swales
The hon. Lady referred to the number of job losses mentioned in the comprehensive spending review. Can she tell us how many job losses were involved in her alternative plans?
Ms Eagle
The key point about our approach to the difficulties in the world economy was that we spent and invested money to keep people in work. We know that the cost of every 100,000 people on the dole is half a billion pounds. The difference between us and the Government is that we were keeping people in work whereas they are taking people out of work. We know from PricewaterhouseCoopers that half a million jobs in the private sector that are directly connected to public sector contracts will also be lost as a result of the Chancellor’s statement last week.
Angela Smith
Is it not the case that the stimulus put into the economy by the Labour Government saved more than 200,000 jobs?
Ms Eagle
Yes, according to the OBR. We saw the undisguised glee of Members opposite as they celebrated the hardship and misery that the Chancellor proposes to inflict on so many people in our society. These are not just numbers; they are police constables, care workers, teaching assistants and dinner ladies. In the private sector, they work in small businesses which rely on public sector contracts at a time when order books are empty. All those people are being asked by this Conservative-led Government to shoulder the burden of a crisis made in the banks and the dealing rooms.
Tom Brake (Carshalton and Wallington) (LD)
Will we hear anything concrete from the Opposition today about their alternative proposals?
Ms Eagle
Well, the hon. Gentleman could take a look at the March Budget, which was presented to the House before the general election, and the Red Book that was published subsequently. We went into the election with far more detail about what we would do had we been re-elected than either party opposite, and at least we did not flip-flop immediately afterwards so that we could get into government.
These are not just numbers; they are the people being asked by this Conservative-led Government to shoulder the burden of a crisis that was made in the banks. It is not those who caused the crisis who will now suffer as a result of the Chancellor’s reckless gamble with jobs and growth. It is the 490,000 ordinary men and women serving in the public sector whose jobs will go, and it is the 500,000 jobs in the private sector that PricewaterhouseCoopers has calculated will also be lost as a direct result of the spending review. Redundancies on the scale now threatened are not inevitable, but are the result of the Government’s choice to cut further and faster.
Richard Harrington (Watford) (Con)
Does the hon. Lady agree that it is a basic principle that spending money we do not have does not create long-term jobs? It creates nothing but debt, which has to be paid back. That is what the Government are doing now. That is what we need to do.
Ms Eagle
Perhaps the hon. Gentleman will agree that in an advanced economy with a social security system, if there is a recession, deficits will rise. That is why the deficit rose. What he suggests, if taken to its logical extreme, means that he would not be in favour of paying unemployment benefit to those made unemployed. They tried that in the 1930s and it did not work.
Kwasi Kwarteng (Spelthorne) (Con)
What does the hon. Lady think was the reason behind our deficit being worse than that of every other country in the G20?
Ms Eagle
We entered the crisis with the second-lowest deficit in the G7. We were affected by the credit crunch because we have a very large financial services sector, which is why both sides in the House are talking about how we can rebalance our economy. We are too exposed to the kind of risks that crystallised when the credit crunch struck. [Interruption.] The Chancellor, from a sedentary position, asks whose fault that was. If we are going to be sensible and have a proper, nuanced, balanced and grown-up debate on this issue, all of us—as members of political parties that are, or have been, in government and in charge of running the country over the past few years—need to take our fair share of responsibility for how the banking sector came to dominate too much. Both sides of the House have to learn those lessons. I hope that we all will.
Stephen Lloyd (Eastbourne) (LD)
Does the hon. Lady agree that it has been down to this Government to introduce the bank levy of £2.5 billion, and that the Labour party, when in government, failed to do so? Why did they fail to do so?
Mrs Moon
Does my hon. Friend agree that it is depressing to see the huge ranks of men opposite talking about cuts that will affect—[Interruption.] Yet again, there are very few Conservative women. The one or two ladies opposite waving and shaking their papers at me do not help. The majority of Conservative Members, as always, are men, but the majority of people to be affected by the cuts will be women. It is women who will lose their child benefit and the tax credits that help them get into work, and it is women, largely, who work in the public sector and rely on its excellent flexible working conditions. Is it women who will find it harder to get into work, thanks to the Government’s policies?
Ms Eagle
I do not suppose it is their fault they are men. I can blame them for some things, but not that. My hon. Friend makes a perfectly fair point though. It is clear that 65% of those who work in public services are women, that 75% of those who work in local government are women and that there are even higher levels working in the health service and social care. Clearly, they are on the front line, and the Government have a legal duty, which it is not clear that they have fulfilled, to take reasonable account of that fact.
Dr Sarah Wollaston (Totnes) (Con)
Has the hon. Lady met people trapped on benefits, many of whom, incidentally, are women? The failure to address the perverse incentives operating in our benefits system was utterly spineless and ignored the real misery affecting those who live trapped in our benefits system.
Ms Eagle
The hon. Lady’s intervention was extremely helpful. Of course I have. We have all done a great deal of work on social security reform, and I hope she will be the first to acknowledge some of the progress we made, particularly in helping lone parents into work. Tax credits and all the support we gave on child care were among the measures that were crucial in ensuring that we managed to increase significantly the number of lone parents in work when we were in office. I hope she will be the first to recognise our success in those areas. She should take a close look at the increasing rates of marginal tax that came about because of some of the changes, particularly for lone parents, and the savings made in tax credits, and she should also have a word with her party’s Front-Bench team about their priorities for cuts, given that they are taking away benefits that particularly help women go out to work.
In softening up the country for this age of austerity, Ministers have been anxious to establish some myths, the first of which is that the deficit was a Labour spending choice. We heard a lot of that today from the Chief Secretary to the Treasury. The second myth is that the cuts announced are unavoidable. We need to start with some facts. When the credit crunch struck in 2008, Britain had the second-lowest debt in the G7. We had low interest rates, low inflation and low unemployment. There is nothing reckless about that. Now, however, the Conservative party and the Liberal Democrats are trying to rewrite history.
Ms Eagle
I said no.
When families have to work shorter hours, they pay less tax. We took a conscious decision to spend money to keep people in their jobs and homes, and I am proud that we did that. As a result of our action, unemployment was half what it had been in previous recessions and repossession levels were also half what they were in the Tory recession of the 1990s. Some of this help has been cut away in the CSR and, as a result, it is more likely that more people will lose their homes, as unemployment and the cuts begin to bite.
Sajid Javid
The hon. Lady is fond of saying, “Let’s have a grown-up, sensible debate”, so it would be useful if she followed her own rules. Why is she refusing to give way to my hon. Friend the Member for West Suffolk (Matthew Hancock)?
Matthew Hancock
I am very grateful to the hon. Lady for plucking up the courage to give way. She said that Britain went into the crisis with the second lowest deficit in the world, but she has now revised that to point out that, actually, it was the second lowest debt in the world. Does not the fact that she and her colleagues muddle up the debt and the deficit show just why we are in this mess?
Ms Eagle
Whatever happened to old-fashioned courtesy? The hon. Gentleman should ask himself why I do not want to give way to him when he is so generous and lovely to me when I do.
Money spent on infrastructure investment kept the construction sector going. As we saw from the GDP figures on Wednesday, that is still having a positive effect. The deficit was unavoidable. It was vital to support people and businesses through tough times, but let us be clear about Labour’s spending before the crisis hit. Far from being too high, it was, as the Prime Minister said—I am quoting him directly—“really quite tough”, while the Chancellor was urging us to spend more.
The second myth is that the scale of the cuts is unavoidable. As my right hon. Friend the shadow Chancellor has pointed out, Government propaganda has got it precisely the wrong way round. The fact is that the deficit was unavoidable; it is the June Budget and the Chancellor’s spending review that are a political choice. They are not only avoidable, they are downright dangerous. That is why there was no mention of these supposedly unavoidable cuts in the manifestos of either of the parties now in government when they went to the country. That is why they have no mandate for the cuts policy that they have embarked on since the general election.
Since the election, we have seen the contortions of the Deputy Prime Minister, along with his accomplice in what we now have to call the “quad”, to justify his volte-face. First he told us that he took a call from the Governor of the Bank of England as he stepped into the ministerial Jag, but the Governor begged to differ. Then the Deputy Prime Minister said that Britain was about to become Greece. That is about as close to a myth as you can get, Mr Deputy Speaker. The Government have made their choice, and we on the Opposition Benches will hold them responsible for the social and economic consequences of those choices.
Mr Chuka Umunna (Streatham) (Lab)
Has my hon. Friend noticed the tendency of those on the Government Benches, and in particular the Chief Secretary and the Chancellor, when referring to the history of the economy this year, to say that we were on the brink of bankruptcy as a country? Did she, like me, notice Lord Turnbull’s appearance before the Treasury Committee this morning, when he clearly said that this country was not on the brink of bankruptcy and that there was no risk of a sovereign debt crisis?
Ms Eagle
It is quite extraordinary that we have a Chancellor who is prepared to make such alarmist statements from the Treasury. He does it for political, not economic, reasons, and it is a disgrace that he continues to do it.
Julian Smith (Skipton and Ripon) (Con): Will the hon. Lady take this opportunity to pay tribute to British business, which has created hundreds of thousands of jobs since this Government started taking the tough decisions that she flunked?
Ms Eagle
I am certainly more than happy to pay tribute to British business, but I do not connect the first part of the hon. Gentleman’s question with the second.
Last week two more myths were added to the Chancellor’s own special edition of Grimm’s fairy tales. He now claims that the measures in the spending review are fair, and even that the scale of the cuts would have been greater under Labour. Let us start with fairness. Last Wednesday, the Chancellor told us that fairness was
“one of the guiding principles of this spending review”.—[Official Report, 20 October 2010; Vol. 516, c. 955.]
Not for the first time, this spin lasted barely 24 hours, before the Institute for Fiscal Studies comprehensively rejected it, proving that, far from the poorest being protected, it is the poorest who will bear the brunt of the cuts. It is families with children who will pay the most. We should not be surprised at that, because the Institute for Fiscal Studies was scathing of the Treasury’s analysis of who loses what.
Stephen Gilbert (St Austell and Newquay) (LD)
How is it fair that in the time that the hon. Lady has been on her feet at the Dispatch Box, we as a country have spent almost £2 million servicing the interest on the debt that has been created? That is £5 million an hour and £120 million a day. What plans do the Opposition have to bring that under control?
Ms Eagle
I have talked about the importance of getting the deficit down, but the hon. Gentleman is falling for the idea that the coalition have perpetrated that it is somehow not viable to have a bill that needs to be paid. People who have mortgages have to pay them off over time, and they have to pay interest on them. However, it is not sensible for anyone to deal with their mortgage by paying it off so early that they cannot afford to feed their kids in the meantime.
Mr Ruffley
I am most grateful to the hon. Lady, although I am afraid that I will not be lovely and fluffy, or whatever it was she said she wished my hon. Friend the Member for West Suffolk (Matthew Hancock) was. Is she aware that on 18 October, 35 leading businessmen wrote a joint letter stating that delay would cost this country an extra £100 billion alone in the course of this Parliament? Are they all wrong?
Ms Eagle
I would not expect the hon. Gentleman to be fluffy—that is not a word that I would ever have associated with him—but it is still good to see him back, and I genuinely welcome his return.
It needs to be pointed out that that letter was organised by Lord Wolfson in the House of Lords, via Conservative central office. It is also interesting to note that some of the signatories of the letter have some kind of vested interest. First, quite a few are Conservatives. Secondly, BT, for example, has cut 20,000 jobs in the past year, which is not exactly helping us to replace public sector jobs with private sector jobs. Others are responsible for outsourcing and stand to make direct gains from the shrinking of the state. The hon. Gentleman can believe that guff if he wants; we do not.
The IFS has been scathing about the Treasury’s analysis on the fairness front, and on who loses what. It has noted that the Treasury analysis conveniently stops in 2012-13, thereby excluding £12 billion of the announced savings—by which I mean cuts to social security. For those who remain in any doubt, let me quote directly from the IFS:
“The tax and benefit changes are regressive rather than progressive across most of the income distribution.”
The Government’s immediate response to that report by the IFS was to try to shoot the messenger. The Deputy Prime Minister launched into an attack on the IFS that bordered on the hysterical. He described its analysis as “distorted” and “complete nonsense”. He neglected to mention the fact that before the election he had regularly lauded the IFS when the results of its analysis suited him. On 29 April, as he preened himself during the leaders’ debate, he told us that he was
“really delighted at the Institute of Fiscal Studies”
for its view of Liberal Democrat proposals. Now that he is in government, he does not seem to like the IFS for pointing out an inconvenient truth.
A flip-flop here, a U-turn there—it is all in a day’s work for the Liberal Democrats as they shoehorn themselves into their new and ill-fitting Tory ideology. It is now abundantly clear that, for the Deputy Prime Minister, the slight awkwardness of signing up to one of the most unfair decisions for generations will not get in his way, even if he occasionally has to struggle with his conscience on “Desert Island Discs”. I know that he has argued for a different, more convenient definition of fairness, but let me tell him that there are some things that are not fair, however we define them.
Mr David Anderson (Blaydon) (Lab)
I thank my hon. Friend for the sterling work she is doing here today. We have discussed the fact that this is not about fairness, and that women and children will be hit by these measures. Does she recognise this quote from Richard Hawkes, the chief executive of Scope? He says:
“Despite the continuing rhetoric that spending cuts will be fair, the Chancellor’s announcements today are anything but. This will hit disabled people and their families particularly hard.”
Does she believe him, or does she believe Gideon?
Ms Eagle
I think we know who to believe. There is a great deal of real worry out there about the effects of the draconian cuts in public expenditure that have been announced in the spending review.
I will tell the Deputy Prime Minister and anyone else on the Government Benches what they cannot hide about fairness. There is nothing fair about cutting 10% from housing benefit for those who are out of work for more than 12 months when there are already five people chasing every job vacancy—and that is before the Government add another million to the dole queue. There is nothing fair about expecting children to play a bigger part than the banks in getting the deficit down. There is nothing fair about failing to carry out a legally required equality assessment that would have shown that the Budget had a disproportionate impact on women, who often do the lowest paid jobs in the public sector. When it comes to the cuts under this Government, it really is women and children first. Let us have no more of these ludicrous claims of fairness from the Government.
As for the idea that the Government are cutting less than we had planned to do, there is something distasteful in a Chancellor who is prepared to skew his spending decisions, cutting an extra £7 billion from the social security budget, just to get a cheap one-liner at the end of his speech. There is nothing so cynical as a Chancellor who begins his speech by claiming that Britain has been saved from the brink of bankruptcy by his savage cuts, only to conclude it by claiming that Labour would have cut even more. He knows that he cannot have it both ways, and he knows that he has cut £30 billion more from public expenditure than we planned to do. He knows that, in doing this, he has totally failed in his pledge to protect the most essential front-line services. It is now clear that his promises are unravelling, and that there will be a major impact on our schools, our hospitals and the police.
Schools up and down the country are facing cuts in funding, thanks to a budget settlement that takes no account of rising pupil numbers; and before the Liberal Democrats start getting excited about the pupil premium, I am sorry to have to tell them that the Education Secretary has now admitted that it is simply a con. In June, the Prime Minister pledged:
“We will take money from outside the education budget to ensure that the pupil premium is well funded”.—[Official Report, 2 June 2010; Vol. 510, c. 432.]
But at the weekend, the Education Secretary finally came clean and admitted:
“Some of it comes from within the Department for Education budget, yes.”
It is not new funding after all; it is just money being moved around within the Department to disguise budget cuts.
The IFS calculates that 60% of primary school pupils and 87% of secondary school pupils will see a real-terms funding cut to their schools as a result of the new funding formula. We knew that the Liberal Democrats supported recycling, but we did not realise that this was what they meant. We were also repeatedly told that health spending was to be protected, yet £1 billion has been raided from the NHS to make up for some of the shortfall caused by the huge cuts in local government spending. With this settlement, the Prime Minister’s promise of real-terms increases in health spending will not be met.
There has been no commitment to front-line policing either. The Police Federation tells us that as many as 20,000 police will be sacked. The thin blue line has become a casualty of the thick red pen. For schools, the NHS and the police, there will be no protection for front-line services.
Ms Eagle
No. I have given way to the hon. Gentleman before.
No priority is to be given to the services that we rely on, day to day. That is the choice that the Government have made. Let us have a serious debate about the differences between us, and let us have no more nonsense from the Government about the four myths on which their entire defence of the scale of their cuts is based. Let us hear no more nonsense about the deficit being the result of the decision of one party or the fault of spending on our public services, rather than the inevitable result of a global economic crisis and the greed and recklessness of the banks.
Danny Alexander
The right hon. Lady has said that she is opposed to the welfare cuts that we have proposed, opposed to the pupil premium, opposed to the savings in the Ministry of Justice and opposed to the savings in the Home Office. Can she name one single saving that she would propose to help to tackle the deficit?
Ms Eagle
I have not said that I am opposed to all the changes in the social security budget. My right hon. Friend the shadow Chancellor supported some of the changes in welfare spending. Indeed, it was we who developed them: the Government are putting our changes into effect. Let us hear no more of this nonsense about the scale of the Government’s cuts being unavoidable, rather than the result of a decision that they made on the balance between taxes and public spending cuts.
Danny Alexander
This really is quite a simple question. Can the hon. Lady name a single cut that she supports?
Ms Eagle
If the Chief Secretary had answered my questions, I might answer his. [Hon. Members: “Incredible!”] What I find incredible is the fact that the right hon. Gentleman has the figures for redundancies and the costs of redundancies across Whitehall in his books. We know what the Ministry of Justice figure is, but he knows what the overall figure is, and he refuses to give it to the House. That is a disgrace.
Let us hear no more nonsense about how the spending cuts that the Government have announced were, as a result of some magical accounting trick, less than those that we planned when we were in government. The truth is that this country faced the gravest of economic challenges. The truth is that our party, in government, rose to meet that challenge, and averted a catastrophe for our country by making tough decisions to protect jobs and homes in our economy. The truth is that whatever party was in government, it would now be making decisions to pay down the deficit. Any party, including ours, would be having to make tough decisions.
It is also true that there is a clear choice in relation to what to cut, and the balance between cuts and measures to bring in revenue. My right hon. Friend the shadow Chancellor has set out the different approach that we would be taking, which would protect not only front-line services but jobs, growth and the recovery. The Government, for ideological reasons alone, have used the deficit as a fig leaf for an assault on our public services of a kind that they had previously only dreamt of. They can talk of fairness as much as they like; they can spread myths as much as they like; but we are not fooled, and, more important, the British public will not be fooled either.
The spending review document sets out the Government’s choices. Those choices were freely made. What the Government have presented is their vision of a future for our country. What we have seen is not the big society but the blueprint for a smaller, meaner and nastier society, and we reject it.