Budget Resolutions and Economic Situation

Debate between James Cleverly and Iain Duncan Smith

Thursday 9th July 2015 Commons Chamber

[Mr Duncan Smith]

We have the spending review to address such issues. In my Department here in London I took on contractors about paying the London living wage, and I faced exactly the same debates and arguments about how it was not feasible and how they would face high costs. I insisted that they went away and looked at their productivity. My Department in London instituted the London living wage. Not one job was lost and productivity has improved. I would consider the matter carefully before we take those official statements as the reality.

[James Cleverly]

Is there an economic imperative and also—perhaps more importantly—a moral imperative that, in the relationship between employer and employee, the employer ensures that the employee receives a salary on which they can live? It is not right that the Government make up the shortfall between employer and employee.

[Mr Duncan Smith]

I agree that the principle behind the tax credit system has instituted a non-progression period for people locked in low incomes, and I will return to that in a moment.