Jobs and Growth
Debate between Ed Balls and Robert Flello(12 years, 7 months ago)
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Ed Balls
I know the details of that campaign, although I do not know all 49 members. I know that it argues for a widening of our proposal.
One business organisation, the Federation of Small Businesses, has said:
“the Government’s growth strategy is just not working…We must see a cut in VAT to five per cent in the construction and tourism sectors to boost consumer demand.”
The business demand for a change of course is growing.
Robert Flello (Stoke-on-Trent South) (Lab)
My constituents, my right hon. Friend’s constituents and constituents across this country are seeing growth—growth in their gas and electricity bills and in their food bills. That double whammy is hitting our constituents on top of the mess that the Chancellor is making.
Ed Balls
Our constituents are seeing growth in VAT and in unemployment as well. The only thing that they are not seeing is growth in growth.
The markets are not the real reason why the Chancellor is determined to cling on to his failing economic policy. There are two obstacles in his way. The first is the coalition agreement. We know how desperate the Chief Secretary and the Deputy Prime Minister are for the Chancellor to stick to the deficit reduction plan, because they steamrollered their colleagues into signing up to a manifesto that explicitly rejected it. The Liberal Democrats’ manifesto stated:
“If spending is cut too soon, it would undermine the much-needed recovery and cost jobs.”
They were right, which is why there are so few of them here for this debate. They all know that their leaders graphically predicted before the election the very calamity that has happened after the election. The fact is, any successful coalition has to have the flexibility to change course when things go wrong.
“When the facts change, I change my mind. What do you do?”
Wise words from Lord Keynes, and he was a Liberal. He must listen to the current incoherent, confused and contradictory ramblings of the Business Secretary and turn in his grave.