---

Budget Resolutions and Economic Situation

Mr Speaker, can you believe it? I do not mean the fact that the price of my petrol is going up and the price of my pasty is going up. No, I am asking whether you can believe how many or how few are here. Of course, SNP Members are not here yet again. We have a Budget only once a year and there are two Tory Back Benchers and two Liberal Back Benchers. They have probably come in a taxi. Looking at them, you might see Tories and Liberals, but I see Lincoln, Burnley, Redcar and Stafford—I see four Labour gains. Those four hon. Members are enjoying their last days on those green Benches. Why are the rest of them hidden away? I will tell you. It is because there are only two things that resonate in this Budget, and the first is growth. Last year the Chief Secretary and the Chancellor told us that growth this year would be 2.5%, but they have reduced it to 0.8% in a year. Something tells me, therefore, that the policies are not working. They said last year that the national debt would come down—all the cuts were to bring the national debt down—but this year they say the national debt will go up next year, the year after and the year after that. That is the policy that they have put forward. It does not need any more complication. Growth is virtually not happening. But there is something far worse for our communities. The cuts that we have heard about, the cuts that we have fought against, have hardly begun. The real cuts come next year. This is the Government's Achilles heel, but it is also ours because it will hurt people across the country, including in my constituency. It will be the market towns, the traditional Tory areas, that take the brunt of the cuts because what that lot are doing, like most Governments, is make cuts and centralise. They are removing jobs from towns such as Retford in my constituency. For the first time those small market towns are taking a disproportionate number of the cuts, with jobs going and the relocation of people in order, allegedly, to save money by putting them in one office. Who is going to spend to support the small businesses that are trying to make a living, or for the potential new small businesses, in those market towns? That is one Achilles heel, but the Government have another that they have hidden and that has not been exposed: draw-down pensions. Most of the 300,000 pensioners who will be affected do not realised that, because of quantitative easing and the failure to put a counterbalance in the Budget, and because gilts are at an all-time low, draw-down pensions are being hugely cut. Let me give an example from my constituency. A fairly well-to-do couple who have worked hard over the years have been retired for 14 years on a good pension. Their private pension of £30,000 a year between them has been cut overnight in the past month to £13,000 by the Government Actuary's Department. That is a 60% cut in their pension. That is what the Government have done, but they have failed to address the problem in the Budget. It is a nightmare for pensioners such as those. Most of the 300,000 draw-down pensioners do not know that this reduction is coming because they are informed of changes on a three-year cycle. I challenge the Chief Secretary to the Treasury on this point. What are you going to do about it? Are you going to sort it out, or are those people going to lose 60% of their pension because of your being in power this year?