Living Standards Debate

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Department: HM Treasury
Monday 5th March 2012

(12 years, 2 months ago)

Commons Chamber
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David Gauke Portrait Mr Gauke
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The people who voted Conservative at the election, and indeed others, recognise that this Government are prepared to take difficult decisions to get the public finances on track to provide the long-term credibility that our public finances need and to ensure that our economy can grow strongly once again. By sticking its head in the sand and opposing every step taken to get the deficit under control, the Labour party does itself no favours.

Chris Williamson Portrait Chris Williamson (Derby North) (Lab)
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The Minister talks about putting the public finances in a sound state, yet are not the Government’s policies singularly failing because the Government are having to borrow an additional £158 billion? Surely that should tell the Minister that he is getting it wrong, that he needs to think again and put people back in employment to give them the opportunity to pay tax and contribute to society rather than wasting taxpayers’ money on keeping people idle on unemployment benefit.

David Gauke Portrait Mr Gauke
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For the hon. Gentleman’s information, borrowing is falling year on year, and we are not going to get borrowing down by borrowing more—however often the shadow Chancellor claims that that is the case.

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David Gauke Portrait Mr Gauke
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All the measures that will be put in place in 2012-13 are being implemented by this Government. That is the point. It is impossible to disaggregate those measures. They are all going to be put in place, and we are responsible for all of them. If we had wanted to reverse some of them, we could have done so, but we did not.

Of course, none of what we are doing ignores the fact that this will be a tough year for households across the board. We know that that is the case, and it is our reason for going even further to support families and businesses throughout the country.

Chris Williamson Portrait Chris Williamson
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Will the Minister give way?

David Gauke Portrait Mr Gauke
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I want to make some progress.

We are limiting the increase to Transport for London and regulated rail fares, funding South West Water to enable it to cut bills by £50 per year for households that currently face the highest water bills in the country, setting aside an extra £675 million for local authorities in England to freeze or reduce council tax in 2012-13, and providing real help for households that are feeling the squeeze. We are deferring the fuel duty increase that was due to take effect on 1 January to August this year, while also cancelling the further increase in August. As a result, tax on petrol will be a full 10p lower than it would have been, and families will have saved £144 on the cost of filling up the average family car by the end of next year.