Oral Answers to Questions

Neil Carmichael Excerpts

Tuesday 8th June 2010 Commons Chamber

[Justine Greening]

The hon. Gentleman seems to have missed the fact that this Government are having to tidy up a huge financial mess left to us by the previous one. We have made it clear that, despite that mess, we want, first, to protect key pensioner benefits—the benefits that Labour Members claimed we would take away—such as free bus passes, free prescriptions, free eye tests and the winter fuel allowance. That is a range of benefits that the Labour party said we would remove, but we are going to keep them. I can assure him on that, so he can go back to the pensioners in his constituency and explain why he was telling them mistruths during the last election.

[Neil Carmichael (Stroud) (Con)]

3. What steps his Department is taking to reduce the level of the budget deficit.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

6. What recent representations he has received on the level of the budget deficit.

--- Later in debate ---

[The Chancellor of the Exchequer (Mr George Osborne)]

In the past month, we have created an independent Office for Budget Responsibility to bring credibility to the Government’s forecasts, undertaken and completed in-year budget reductions of £6.2 billion and, today, laid before the House the process for the spending review that will take place this summer. In two weeks’ time, the Budget will set out a credible plan to accelerate the reduction of the budget deficit so that investors are reassured, interest rates can be kept lower for longer, and the recovery can be put on a stable footing.

[Neil Carmichael]

I note those excellent plans. Will the Chancellor of the Exchequer tell the House how many conversations he has had with colleague Ministers of Finance, and how much support and encouragement he has had from them to deal with our deficit?

[Mr Osborne]

I attended the G20 in South Korea this weekend. The G20 communiqué calls on countries with significant fiscal challenges—we have the highest budget deficit in the G20, so that includes us—to accelerate the reduction in the structural deficit. It has also been part of the European Union discussions that I have taken part in, that countries with significant budget deficits need to get on and reduce them. I am afraid that the Labour party, as it continues to oppose what we are doing, finds itself outside the international mainstream.