Oral Answers to Questions

Harriet Harman Excerpts

Tuesday 22nd May 2012 Commons Chamber

[The Deputy Prime Minister]

I think it is significant that in one week we have seen the release of official statistics showing that both unemployment and inflation are down, and today we have heard from the IMF that the policy prescription that we are pursuing is exactly the right one to repair the mess left by the Labour party. There are many reforms that we need to introduce, but one that I would highlight is a simpler, fairer tax system. Because of the tax reforms that we have introduced, as of next April more than 2 million people with low earnings will be paying no income tax whatsoever.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

It has been a bad week for the Germans. First they are beaten by Chelsea, and then they get an economics lecture from the Deputy Prime Minister. Can he tell us why he is qualified to lecture anyone about economic policy when his Government have left us with a double-dip recession and 1 million young people looking for work?

[The Deputy Prime Minister]

The right hon. and learned Lady must be suffering from amnesia. Does she not remember how her Government sucked up to the City of London, went on a prawn cocktail offensive which let the banks off the hook and presided over increases in youth unemployment year after year after 2004, the biggest peacetime deficit ever seen in this country, and the largest decline in manufacturing—even larger than the decline in the 1980s? That is Labour’s record, and I am proud of the fact that we are trying to fix the mess that she left behind.

[Ms Harman]

When we left office, the economy was growing and unemployment was falling. Today the Deputy Prime Minister has been prancing around preaching about social mobility, which is frankly ludicrous when he is cutting tax credits for low-income families, providing a tax cut for millionaires, and scrapping an important measure designed to narrow the gap between rich and poor, namely clause 1 of the Equality Act 2010. It is always the same with this Deputy Prime Minister: he says one thing and does another. For all the difference that he makes in Government, he might as well be chillaxing or beating his own record at Fruit Ninja.

[The Deputy Prime Minister]

That was laboured even by the standards of the right hon. and learned Lady. She referred to the upper rate of income tax, and she is ranting and railing against the new 45p rate that we will introduce next April. Perhaps she can answer a simple question. Why did the Labour party maintain a lower tax rate of 40p in the pound for upper-rate earners for the 12 years and 11 months for which they were in office? I know that the right hon. and learned Lady does not like the 45p rate; perhaps she wants to advocate the rate that she maintained for most of her time in office.

Just today, Christine Lagarde of the International Monetary Fund that

“when I think back myself to May 2010, when the UK deficit was at 11%”

—that was Labour’s gift to us—

“and I try to imagine what the situation would be like today if no such fiscal consolidation programme had been decided…I shiver”.

That is a judgment on the legacy of the right hon. and learned Lady.