The Economy

Oliver Colvile Excerpts

Thursday 4th June 2015 Commons Chamber

[Chris Leslie]

The civil service used to have a phrase for things like this. It was a brave decision of the right hon. Gentleman to defend his Government’s record on infrastructure. Many projects that were started under the previous Government have still not been completed. Would it not be better if we rose above party political picking out of which infrastructure project should proceed and tried to have a more mature debate about how we plan infrastructure in this country?

The Chancellor knows that Sir John Armitt’s report on infrastructure was widely received across the business community and that all sorts of parties wanted to find an independent approach to infrastructure planning. I still believe that that would be a better, more grown up way to plan for infrastructure.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

Why did the Labour party announce in its manifesto that it would put on hold the dualling of the A359, which is very important to delivering good transport links to the west country and my constituency?

[Chris Leslie]

Of course individual choices have to be made, but it would be better if they were made on the basis of need and evidence, not simply on whether the hon. Gentleman has the ear of a particular Minister at a particular point in time. That is the old way to plan infrastructure, and he knows in his heart that we should reform it.

The choices that the Chancellor makes in the emergency Budget in July will be crucial for productivity and therefore crucial to the health of the economy and public finances. I want to know whether the Chancellor will set out a sensible approach to deficit reduction by prioritising the areas of public spending that raise productivity. Why do we not ask the OBR to report on how the options for the spending review might impact on productivity and living standards and to set out the impact of the different choices that the Chancellor could make? He will have our support if he wants it to do that work. As the OECD suggested yesterday, the uneven profile of his planned fiscal pathway poses real risks, and higher productivity would give greater scope to protect working families, while still balancing the books. So these are the choices that he must confront. Is he still planning to double the pace of cuts, regardless of the impact on productivity, or is he now planning to moderate that pathway? The Chancellor has wiggle room here, even within his own fiscal rules.