Cost of Living

Debate between Graham P Jones and Ian Swales

Wednesday 27th November 2013 Commons Chamber

[Ian Swales (Redcar) (LD)]

The Opposition do not have a monopoly on understanding the pressures on people or on wanting to do something about the cost of living. I represent the fourth poorest ward in the country, and I am well aware of the pressures that my constituents face. They know that they will not cut their cost of living by borrowing money and running up interest costs. They also know that shutting their eyes, going into denial and spending £4 for every £3 of their income will lead to tears. Sadly, the Labour Government did not understand those things, and everything did end in tears. This Government are now having to clear up the mess.

As we have heard, the way to deal with the cost of living crisis is to get the economy moving and to get manufacturing going again, and I welcome all the steps that the Government are taking in that direction after the catastrophic halving of our manufacturing industries under Labour. The Government can do two things about the cost of living: they can take tax and spend measures and they can interfere in industry and business. On tax and spend, I am proud of the Government’s action to scrap Labour’s fuel duty escalator, saving £7 on a tank of fuel, to scrap Labour’s beer duty escalator and to give free child care to 260,000 two-year-olds and, from next year, to three and four-year-olds.

[Graham Jones]

The hon. Gentleman mentioned the fuel duty escalator, but I wonder why he omitted to mention the rise in VAT from 17.5% to 20%, which also affected the price of fuel.

[Ian Swales]

The £7 that I mentioned is net of the £1.50 VAT increase.

Interest rates are being kept down, and council tax has been frozen for three years in many areas. Sadly, my Labour council has preferred to take money out of people’s pockets rather than taking Government money to keep the council tax down.