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Budget Resolutions and Economic Situation

Thank you, Mr. Deputy Speaker. Today, they announce that they will not vote against the Budget measures on the climate change levy—they have changed their mind and are flip-flopping again. However, I wish to be fair. The Opposition have one economic policy that we know of, and that is their third fiscal rule. It is that over the economic cycle, and regardless of the needs of the economy or the country, public spending and investment must, as a matter of principle, always rise slower than growth. Indeed, today the hon. Member for Rutland and Melton (Mr. Duncan) described our rejection of the third fiscal rule as the dividing line between us. He is correct about that, because it would mean public spending £17 billion lower in the coming year and £16 billion lower in the year after. It would mean cutting spending in schools, cutting it in hospitals for doctors and nurses, cutting it in our transport system, and cutting our ability to invest in science and innovation. On the day after the Budget, the shadow Chancellor even said—on GMTV, no less:"““When there’s a general election we will start reducing the share of national income taken by the state.””" We know what that means—cuts.