Royston Smith
Main Page: Royston Smith (Conservative - Southampton, Itchen)Department Debates - View all Royston Smith's debates with the HM Treasury
Balancing the Public Finances
Royston Smith Excerpts(6 years, 9 months ago)
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Kirsty Blackman
I was literally about to come to that. There are three ways for the Government to increase spending on public services: higher taxes, higher borrowing or higher growth. Those are not my words but those of the Chancellor, yet whenever an Opposition hon. Member suggests increasing public spending or simply not reducing it, Conservative Members say, “Oh, you will have to put up taxes.” As the Chancellor said, there are three ways to increase public spending.
Some of the things that Conservative Members said are a concern. My hon. Friend the Member for Glasgow East (David Linden) said that, according to the Resolution Foundation, 2011-21 will be the worst decade for pay growth for 210 years. That is quite some statistic.
It is interesting that the Government talk about how wonderfully they are doing for young people. The Institute for Fiscal Studies said that those born in the 1980s have by their early 30s accumulated half as much wealth as those who were born in the 1970s. The right hon. Member for Forest of Dean mentioned the IFS as a respected think-tank, and it won an award last night. If we are talking about mortgaging our future and concerns for the future, the lack of wealth accumulation compared with previous generations is a real problem, including for millennials. The way the Government are dealing with it is not working.
Kirsty Blackman
Not just now; I am conscious of time.
The Government are increasing spending on infrastructure. A recent report from the Institute for Government said that
“weak processes are leading to the wrong projects and contested decisions, wasting both government time and taxpayer money.”
We agree that infrastructure spending is a good thing, but we believe that the processes in place and the Government’s choices are poor and could be much better directed to infrastructure projects that will increase economic growth and create, as the Chancellor said, better spending on public services by growing the economy rather than simply cutting things or increasing taxes.
Peter Dowd
The hon. Gentleman will appreciate that I am not going to get into hypotheticals or “what ifs” in this debate. We are looking to the future. That was promised. [Interruption.] I am sorry; I did not hear what was said. That was promised, but the Conservatives failed to deliver. I do not think that there is a case in modern political history of a British Government so regularly failing to meet their own economic targets.
Peter Dowd
In a moment, if I may.
A Government can balance the books in many ways, and very many difficult decisions have had to be taken during the past seven years. No one doubts that. However, this Government chose the path of austerity over the long-term prosperity of everyone in the country. Some hon. Members have said that that was not a choice, but it was. The Government chose to cap public sector wages and to cut local council budgets by 40% and in certain cases by as much as 60%, with more on the way.