Pre-Budget Report

Is it not remarkable that the shadow Chancellor cannot bring himself to acknowledge the longest period of economic growth, with the lowest inflation, interest rates and unemployment, that we have ever had? Why does he not say to his Back Benchers the same things that he says when he goes to the City? There, he talks of Labour’s ““macroeconomic success”” and ““economic credibility””. He speaks of Labour’s ““ability to manage”” the economy, and says that Labour is the ““party of economic competence””. I remind the shadow Chancellor that there were 3 million unemployed under the Conservative Government. Unemployment is below 1 million under Labour and—as he wants international comparisons—that is half that in France, half that in Germany, and below the EU average. He said that Britain’s economic growth is down. In fact, growth here is higher than in the euro area, so how can he say that it is lower than in Europe? Then the hon. Gentleman says that there is a structural deficit. I have just explained to him that we are meeting our fiscal rules. He says that productivity is lower. Productivity has risen, on average, by 2.4 per cent., compared to 1.9 per cent. under the Conservatives. The only two years when productivity fell were Conservative years; and in 30 years the only two years when manufacturing productivity fell were under a Conservative Government. As for greenhouse gases and emissions, our economy has grown by 28 per cent. and greenhouse gases have fallen by 9 per cent. We are the country that is meeting the Kyoto targets—no thanks to what happened under a Conservative Government. The hon. Gentleman’s party is promising to spend more, with every spending Minister offering more spending. Today, he promises that he wants to cut taxes. Then he says that borrowing is too high so he wants to cut borrowing. When will he wake up to the fact that to cut taxes, raise spending, cut borrowing and have a fiscal rule that requires him to cut spending of £28 billion is exactly the position that the right hon. Member for Witney (Mr. Cameron) was in when he was economic adviser to Lord Lamont? That is exactly what led to the tragedy of 1992 when we ended up with 22 tax rises, £100 billion of borrowing, 15 per cent. interest rates, mortgage repossessions and negative equity. We will never return to that.