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The Economy

As the hon. Gentleman knows, the Chancellor will set out his forecast in the pre-Budget report in the normal way. The Bank of England has forecast growth in the economy next year, and the Chancellor will update the House as part of the pre-Budget report. We have already set out a series of extensive measures to support the economy, including action to help pensioners, families, businesses and households right across the board, and it is true that there is more to come. We have made it clear that we will do more. We have new programmes that are about to be implemented, which will give people extra support. We will go even further, because we believe in doing so, and the Conservative party does not. It is not prepared to fund such measures. Time and again, it has said that it would not be prepared to make the investment that is needed to support the economy. In April, an increase in tax allowances, worth £145, is to come in. There is to be an increase in pensions of £4.55 a week, a new health in pregnancy grant, and £1.2 billion extra for jobcentres, to help to get people back to work. That £1.2 billion was opposed by the Conservatives. There are to be new recruitment subsidies for those who have lost their jobs; that was opposed by the Conservatives. There are to be new apprenticeships for school leavers; that was opposed by the Conservatives. There is to be £3 billion of extra capital investment to support thousands of jobs. There are to be repairs to primary schools, new roads and new homes; that was opposed by the Conservatives. Extra help for mortgage holders to prevent repossessions, and extra help for businesses through the new schemes, were all opposed by the Conservatives. All that help is being introduced in a mere matter of months, but it was opposed by the Conservatives. They call for more, but they want to spend less. Let us look for a second at the only measure that the Conservatives have proposed: a national loan guarantee scheme, which completely collapses under scrutiny. They are confused; they have not said whether they are guaranteeing new loans or existing loans. They will not price on risk, yet they claim that no losses will be made. That is simply not credible. They claim that the scheme can be introduced straight away, yet they have given no proper detail. Most important of all, they have not been prepared to put any money behind it. The shadow Chancellor claimed that the scheme""does not add to public expenditure."—[Official Report, 18 December 2008; Vol. 485, c. 1228.]" However, last week, the shadow shadow Chancellor said that if anything goes wrong with the guarantee, the taxpayer will take some of the hit. The truth is that the scheme would cost money if carried out in the way proposed by the Conservatives, but they are not prepared to put any cash behind it. Time and again, they refuse to do what is right for Britain because they are ideologically opposed to Government action and Government investment.