Lord Tyrie
Main Page: Lord Tyrie (Non-affiliated - Life peer)Department Debates - View all Lord Tyrie's debates with the HM Treasury
(13 years, 11 months ago)
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Mr Laws
Of course we would not, but I have to tell the right hon. Gentleman that the policy that we set has to be informed by the facts, and the facts and advice that we had from the Department for Work and Pensions about the future jobs fund suggested that it was simply not effective and that the money was wasted. We have a £156 billion deficit to deal with, and if we did not tackle the wasteful expenditure we would have to make cuts in the areas that matter. I repeat the point that I made to the right hon. Member for Don Valley (Caroline Flint) a moment ago: we are reinvesting money in apprenticeships, which will make a real difference to many of the young people about whom the right hon. Gentleman cares.
Mr Andrew Tyrie (Chichester) (Con)
The whole House will have heard the concerns expressed in all parts of the House about the need to make statements here first, and I am sure that the Chief Secretary will take that on board when formulating policy for the Budget and for the vital spending review that will come in the autumn. Will he do a little more to remind the House why such an emergency set of policies was necessary—in particular the Greek-style deficit and debt level that he has inherited?
Mr Laws
The hon. Gentleman is exactly right, and in the news even this morning and over the past few days we have seen the real risk that the lack of financial confidence could spread across the European Union and engulf even some nations that have not been affected to date. As a consequence, all countries are having to take very hard decisions. Because of the mess in the public finances created by the last Government, the amount of debt interest that we have to pay out is growing and beginning to exceed some core Government budgets. Had we not acted to maintain the credibility of our fiscal policy, there was a real risk that we could have seen a big rise in interest rates that would have gobbled up additional expenditure and helped to wreck the recovery that is now taking place.