Future Government Spending
Debate between Tom Greatrex and Andrew Bridgen(9 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Tom Greatrex
My hon. Friend makes a different point from the one I was making, but an important one. The reduction in the price of a barrel of oil has had a significant impact on revenues. If Scotland had become a separate country or was in the process of becoming a separate country, the impact on revenues would have amounted to the equivalent of the entire education budget. That much would have been wiped out in the course of the last few months, highlighting the dangers of an economy being over-reliant on what the record shows to be such a volatile commodity, and indeed, by definition, a declining one, given the amount of oil still left in the ground. This is an important point for Scotland.
The tenure in office of the current Chief Secretary to the Treasury has been slightly longer, and 1,591 days ago, the Prime Minister said:
“In five years’ time, we will have balanced the books.”
He has 63 days left in his job, and I suspect that he is not going to meet that promise.
Tom Greatrex
No, I am going to make some progress, and I have a relatively short time.
The Office for Budget Responsibility has said that borrowing for 2015-16 is set to be £75 billion and that the Government are borrowing over £200 billion more than they planned in 2010—hardly an exemplar of a functioning economic policy.
The last five years, then, have indeed seemed long term—and they felt long term to many of my constituents, who have suffered from declining incomes and struggling to find work. During that long-term five years, they have certainly suffered real economic pain. Such economic pain might well not be appreciated by the Government Members who have chosen to turn up this afternoon, but it is real and long-term economic pain to my constituents. If Government Members were to pay some attention to the entirety of their constituencies, they would find that it is exactly the same for them.
I believe that the Government have failed their own test on the economy because they have failed the test set for them by people’s expectations. Over the last five years, they have failed to create an economy that works for the majority of people. Working people are, on average, £1,600 a year worse off than they were at the start of the Parliament. Wages are stagnant for many people, and I know that all too many of my constituents who have been able to get back into work are in low-paid, insecure work. They are regularly on contracts that make them wait for a text message at the start of the week to be told how many hours’ work they are going to get for that week. [Interruption.]
I note the hon. Member for Macclesfield (David Rutley) shaking his head in disdain, so I invite him to come to my constituency to meet people in my surgeries each week who are suffering as a result of what has been allowed to happen and because of the failure of his party to take action to tackle these types of exploitative contracts. If he thinks that that is a fair basis for our economic growth, I suggest that he is not speaking even for his own constituents, let alone the majority of people in this country.
Tom Greatrex
Indeed. My hon. Friend makes a very important point—that many of the people accessing and using food banks are the same people who are increasingly reliant on in-work benefits. They are not out of work or seeking to be in work, but the hourly wages they receive are not enough to heat their homes or put food on the table for their families. That is a notable feature of the economy at present.
Tom Greatrex
No, I will not. I have already given way three times, and I am running out of time.
As a result of low and stagnant pay, tax receipts are more than £68 billion lower, and receipts from national insurance contributions are £27.3 billion lower, than they were expected to be five years ago. Chronic low pay only drives up the costs of welfare, and the welfare bill is £25 billion higher than it was planned to be in 2010. The problems have been exacerbated over the last five years, not solved, and that has skewed the economy towards the interests of the few rather than the many. We need a fundamental change of approach: we need an economy that is focused on ensuring that people can earn decent wages and survive. That would enable us to increase the tax take, and to reduce the benefits bill. The choice that we shall all have to make at the general election will be crucial to the future of many of our constituents.
My own constituency badly needs that change of approach. Youth unemployment is 5.7%, well above the United Kingdom average of 3.2%, and median wages last year were 10% lower than the United Kingdom average. Every week I hear from people who are concerned about the contracts under which they are employed and about their prospects, and who fear that their children will be unable to find work. To those people, the last five years have meant a Government who have failed them.
As I have said, there will be a choice to be made at the general election. The Government have demonstrated that their plan is failing. They boast of economic success, but they have created the early signs of a recovery that works only for a handful at the top. There is an alternative to a failing plan, and that is a much better plan. The economy must succeed for working families throughout Britain: it must succeed for everyone in the country. I think that, in 63 days’ time, the people of this country will succeed where the Prime Minister has failed, and will hold him to his pledge. He has failed on the economy, so they will kick him out, and it will be good riddance to a failed Government.