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Budget Resolutions and Economic Situation

In fact, our debt as a proportion of GDP is still lower than those of many of our European competitors. Moreover, we have presented a serious set of proposals to bring borrowing down once the economy is growing and also, critically, to support the economy and support growth now. The Conservatives have got it wrong on the recession at every turn—wrong on Northern Rock, wrong on the banks, wrong on help for the economy, wrong on supporting the unemployed. As for their policy of cuts this year, that would send the recovery on to the rocks at just the time when it matters most. Conservative Members simply do not seem to understand the seriousness of the challenges we face, and the importance of helping those people who need our support in order to get into jobs and pursue a prosperous economic future. We have just come through the toughest world recession for many generations, and without Government action we would have seen millions of people lose their savings when the banks crashed, hundreds of thousands more people lose their jobs and struggle to find work, thousands more businesses go bust and thousands more people lose their homes. Yet despite the world recession being so much deeper than in the '80s and '90s, the level of business failures has been half that of the '90s, unemployment has been half that of the '80s and '90s, and the rate of repossessions has been half the rate it would have been if the '90s experience had been repeated. That is because of the action this Government took, but which the Conservatives opposed. Time and again they wanted to repeat their approach of the '80s and '90s, when the Government turned their back and shrugged their shoulders, and left people to face long-term unemployment, and business failure too.