Budget debate (day two). Motion that (1) That it is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision in connection with finance. (2) This Resolution does not extend to the making of any amendment with respect to value added tax so as to provide— (a) for zero-rating or exempting a supply, acquisition or importation; (b) for refunding an amount of tax; (c) for any relief, other than a relief that— (i) so far as it is applicable to goods, applies to goods of every description, and (ii) so far as it is applicable to services, applies to services of every description. Debate adjourned, to be resumed tomorrow.

Budget debate (day two). Motion that (1) That it is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision in connection with finance. (2) This Resolution does not extend to the making of any amendment with respect to value...

Budget debate (day two) and motion for Amendment of the Law. Debate adjourned, to be resumed tomorrow.

Budget debate (day two) and motion for Amendment of the Law. Debate adjourned, to be resumed tomorrow.

Urgent question on the HSBC tax evasion scandal.

Urgent question on the HSBC tax evasion scandal.

First, on a note of consensus, today is Holocaust memorial day. Following our conversation last night concerning today’s report by the cross-party Holocaust commission, on which I am proud to serve, will the Chancellor confirm the cross-party agreement to fund the commission’s recommendations, alongside ongoing funding, for the rest of the decade, for the vital work of the Holocaust Educational Trust, to ensure we have a new and permanent memorial and that future generations never forget that terrible atrocity?

Turning to today’s GDP figures, is the Chancellor, like me, concerned that economic growth is slowing? With just 100 days until the election, will working people be better off than when he became Chancellor, or will they be worse off?

First, on a note of consensus, today is Holocaust memorial day. Following our conversation last night concerning today’s report by the cross-party Holocaust commission, on which I am proud to serve, will the Chancellor confirm the cross-party agreement to fund the commission’s recommendations, alongside ongoing funding, for the rest of the decade, for the vital work of the Holocaust Educational Trust, to ensure we have a new and permanent memorial and that future generations never forget that terrible atrocity?

Turning to today’s GDP figures, is the Chancellor, like me, concerned that economic growth is slowing? With just 100 days until the election, will working people be better off than when he became Chancellor, or will they be worse off?

It is good we have cross-party agreement fully to fund the Holocaust commission’s report.

If things really were fine and if the economy really were fixed, people would be better off, but instead they are worse off, and the Chancellor would have balanced the books, as he promised, but he has not—he has completely failed to do it. It is because of that failure on the deficit that he is now planning spending cuts in the next Parliament that the IFS calls “colossal” and that

the Office for Budget Responsibility says will take us back to levels in our economy not seen since the 1930s—before the NHS existed. Every developed country with spending as low as he is aiming for has widespread charges for health care. Is that not the real Tory economic plan?

It is good we have cross-party agreement fully to fund the Holocaust commission’s report.

If things really were fine and if the economy really were fixed, people would be better off, but instead they are worse off, and the Chancellor would have balanced the books, as he promised, but he has not—he has completely failed to do it. It is because of that failure on the deficit that he is now planning spending cuts in the next Parliament that the IFS calls “colossal” and that

the Office for Budget Responsibility says will take us back to levels in our economy not seen since the 1930s—before the NHS existed. Every developed country with spending as low as he is aiming for has widespread charges for health care. Is that not the real Tory economic plan?

Urgent question on the European Union budget surcharge.

Urgent question on the European Union budget surcharge.

The whole country was shocked to learn on the night the Prime Minister arrived at the European Council that the European Union is demanding from the UK a backpayment of a staggering £1.7 billion. The Prime Minister was unclear on this last week, so may I ask the Chancellor just how long before the Council meeting did he and his Ministers and officials learn that the UK was going to be asked to pay more, and why on earth did he not tell the Prime Minister?

The whole country was shocked to learn on the night the Prime Minister arrived at the European Council that the European Union is demanding from the UK a backpayment of a staggering £1.7 billion. The Prime Minister was unclear on this last week, so may I ask the Chancellor just how long before the Council meeting did he and his Ministers and officials learn that the UK was going to be asked to pay more, and why on earth did he not tell the Prime Minister?

The revisions of the Office for National Statistics came months beforehand and the Financial Secretary knew weeks before. The Chancellor knew only two days before and he still forgot to tell the Prime Minister. Was he not just asleep on the job?

Let me ask the Chancellor another question about the way in which Europe is affecting the public finances. The Government promised to get net migration down to the tens of thousands. According to the latest figures, net migration is 243,000—up 38% on the previous year. Will the Chancellor confirm that his Budget forecast for net migration has been revised not down, but up? What is his assumption for net migration for the 2015 public finance forecasts?

The revisions of the Office for National Statistics came months beforehand and the Financial Secretary knew weeks before. The Chancellor knew only two days before and he still forgot to tell the Prime Minister. Was he not just asleep on the job?

Let me ask the Chancellor another question about the way in which Europe is affecting the public finances. The Government promised to get net migration down to the tens of thousands. According to the latest figures, net migration is 243,000—up 38% on the previous year. Will the Chancellor confirm that his Budget forecast for net migration has been revised not down, but up? What is his assumption for net migration for the 2015 public finance forecasts?

Let me start by welcoming the Exchequer Secretary to her new post on the Front Bench, and by saying to the Chancellor, “Don’t worry—I’m not going to press you on my ice bucket challenge to you today.”

Let me instead ask the Chancellor about another highly topical economic issue, particularly among his Back Benchers. Before the last election, he told the Centre for European Reform that he was a “pro-European”. This week, The Times is reporting that the new chapter in his biography says that the Chancellor has gone cold on Europe—an “unmistakable hardening”—and is now pondering exit. I suspect we may know the answer, but let me ask the Chancellor: what has changed?

Let me start by welcoming the Exchequer Secretary to her new post on the Front Bench, and by saying to the Chancellor, “Don’t worry—I’m not going to press you on my ice bucket challenge to you today.”

Let me instead ask the Chancellor about another highly topical economic issue, particularly among his Back Benchers. Before the last election, he told the Centre for European Reform that he was a “pro-European”. This week, The Times is reporting that the new chapter in his biography says that the Chancellor has gone cold on Europe—an “unmistakable hardening”—and is now pondering exit. I suspect we may know the answer, but let me ask the Chancellor: what has changed?

The Chancellor cannot even convince his own Back Benchers of his policy on Europe, let alone anybody else. Let me tell the House what the president of the CBI said last week. He said that the Government’s policy on Europe

“has already, and is increasingly, causing real concern for business regarding their future investment”.

Yet the Chancellor is flirting with exit. We know what has changed: Boris Johnson has said that he is returning to Westminster and that he is flirting with exit, and—surprise, surprise—the Chancellor is too. Let me ask the Chancellor this. I want reform in Europe but, like the CBI, I am determined to put the national economic interest first. Surely the Chancellor should put his leadership ambitions aside and put the national economic interest first too.

The Chancellor cannot even convince his own Back Benchers of his policy on Europe, let alone anybody else. Let me tell the House what the president of the CBI said last week. He said that the Government’s policy on Europe

“has already, and is increasingly, causing real concern for business regarding their future investment”.

Yet the Chancellor is flirting with exit. We know what has changed: Boris Johnson has said that he is returning to Westminster and that he is flirting with exit, and—surprise, surprise—the Chancellor is too. Let me ask the Chancellor this. I want reform in Europe but, like the CBI, I am determined to put the national economic interest first. Surely the Chancellor should put his leadership ambitions aside and put the national economic interest first too.

Second opposition day debate (part two). Main question negatived on division (218 to 289). Amendment agreed to on question (284 to 215). Main question, as amended, agreed to.

Second opposition day debate (part two). Main question negatived on division (218 to 289). Amendment agreed to on question (284 to 215). Main question, as amended, agreed to.

Under this Chancellor, we have had the lowest level of house building in peacetime since the 1920s. The Financial Times reported a few weeks ago that the Chancellor is “relaxed” about an early rise in interest rates to rein in our unbalanced housing market. Can he tell the House how much a 1% rise in interest rates would add to the average mortgage bill?

Under this Chancellor, we have had the lowest level of house building in peacetime since the 1920s. The Financial Times reported a few weeks ago that the Chancellor is “relaxed” about an early rise in interest rates to rein in our unbalanced housing market. Can he tell the House how much a 1% rise in interest rates would add to the average mortgage bill?

The Chancellor used to boast that record low mortgage rates were a sign that his policy was working. Now, with the Governor warning of an early rise in interest rates as demand outstrips supply, the Chancellor is desperately trying to claim that higher interest rates would be a sign of success as well. Is not the truth that his failure to get house building moving in the last four years is the reason our housing market is so unbalanced and early interest rate rises are on the cards? As for the question about mortgages, let me answer by quoting the Chancellor, who said in the House of Commons that

“a 1% rise on the average mortgage bill would add £1,000.”—[Official Report, 6 December 2011; Vol. 537, c. 147.]

I can tell him that homeowners up and down the country will not be relaxed about that.

The Chancellor used to boast that record low mortgage rates were a sign that his policy was working. Now, with the Governor warning of an early rise in interest rates as demand outstrips supply, the Chancellor is desperately trying to claim that higher interest rates would be a sign of success as well. Is not the truth that his failure to get house building moving in the last four years is the reason our housing market is so unbalanced and early interest rate rises are on the cards? As for the question about mortgages, let me answer by quoting the Chancellor, who said in the House of Commons that

“a 1% rise on the average mortgage bill would add £1,000.”—[Official Report, 6 December 2011; Vol. 537, c. 147.]

I can tell him that homeowners up and down the country will not be relaxed about that.

The House and the Chancellor should know that the jury has just delivered its verdict and the Government’s former director of communications, Mr Coulson, has

been found guilty of conspiracy to hack phones. Does the Chancellor now accept that it was a terrible error of judgment for—

The House and the Chancellor should know that the jury has just delivered its verdict and the Government’s former director of communications, Mr Coulson, has

been found guilty of conspiracy to hack phones. Does the Chancellor now accept that it was a terrible error of judgment for—

Queen's speech debate (sixth day) on the economy and living standards. Amendment negatived on division (232 to 269). Main question agreed to on division (270 to 231).

Queen's speech debate (sixth day) on the economy and living standards. Amendment negatived on division (232 to 269). Main question agreed to on division (270 to 231).

Back in 2010, the Chancellor promised to balance the books in 2015 and said that living standards would rise “steadily and sustainably”. Following today’s welcome news that the economy is finally growing again, will the Chancellor tell us whether he is now on track to keep either of those two promises?

Back in 2010, the Chancellor promised to balance the books in 2015 and said that living standards would rise “steadily and sustainably”. Following today’s welcome news that the economy is finally growing again, will the Chancellor tell us whether he is now on track to keep either of those two promises?

If this Chancellor wants to have a discussion about whiplash we can do that any day of the week—Mr, Mrs or Mistress. However, let us not go back to biographies of the past; let us get back to the serious issue. The fact is that the Chancellor has failed to answer my question. For all his promises, he has broken them, even on the deficit, and living standards are not rising but falling year on year on year. People are £1,600 worse off under the Tories. If the Chancellor really thinks that his economic plan is working, let him answer this one simple question: at the next election, after five years of this Chancellor, will working people be better off than they were in 2010—yes or no?

If this Chancellor wants to have a discussion about whiplash we can do that any day of the week—Mr, Mrs or Mistress. However, let us not go back to biographies of the past; let us get back to the serious issue. The fact is that the Chancellor has failed to answer my question. For all his promises, he has broken them, even on the deficit, and living standards are not rising but falling year on year on year. People are £1,600 worse off under the Tories. If the Chancellor really thinks that his economic plan is working, let him answer this one simple question: at the next election, after five years of this Chancellor, will working people be better off than they were in 2010—yes or no?

Budget debate (day two) and motion for Amendment of the Law.

Budget debate (day two) and motion for Amendment of the Law.

May I ask the Chief Secretary to the Treasury about a proposal I made last autumn to allow the Office for Budget Responsibility independently to audit the spending and tax commitments in the manifestos of the main political parties? That proposal, which will require legislation, already has the support of the Chair of the Treasury Committee. Will the Chief Secretary and his party join a cross-party consensus to make that happen ahead of the next general election?

May I ask the Chief Secretary to the Treasury about a proposal I made last autumn to allow the Office for Budget Responsibility independently to audit the spending and tax commitments in the manifestos of the main political parties? That proposal, which will require legislation, already has the support of the Chair of the Treasury Committee. Will the Chief Secretary and his party join a cross-party consensus to make that happen ahead of the next general election?

The Chief Secretary will know that that statement about the bank bonus tax is entirely out of date, which is why the Chancellor does not want the OBR to audit our policies. I understand his reluctance. After all, the party that pledged in its manifesto not to raise tuition fees and to stop the Tory VAT bombshell has something to fear from an OBR audit. On the other hand, there was some encouragement. I urge him this time, on this one issue, to try to persuade the Chancellor to take a different view, to change his mind and do the right thing by voting in the Finance Bill for this important change. It can and should be done. Let not the Liberal Democrats be a roadblock to this important reform.

The Chief Secretary will know that that statement about the bank bonus tax is entirely out of date, which is why the Chancellor does not want the OBR to audit our policies. I understand his reluctance. After all, the party that pledged in its manifesto not to raise tuition fees and to stop the Tory VAT bombshell has something to fear from an OBR audit. On the other hand, there was some encouragement. I urge him this time, on this one issue, to try to persuade the Chancellor to take a different view, to change his mind and do the right thing by voting in the Finance Bill for this important change. It can and should be done. Let not the Liberal Democrats be a roadblock to this important reform.