With a general election approaching and an economic recovery underway, this budget sharpened the dividing lines between Labour and Conservatives.
Alastair Darling appeared before the Treasury Select Committee last week for our Budget evidence session. Alastair has been an excellent Chancellor of the Exchequer, guiding us through a particularly uncertain economic climate. In what was my last Committee session as Chairman, I thanked him for his cooperation over the years.
This was a sensible budget. It did not risk the delicate economic recovery, nor were there any radical moves away from what we were told at the pre-budget report back in November. In my view there are certain key messages that we should take from this week’s statement.
Firstly, ordinary people and small and medium sized businesses remain at the heart of the government’s plans. While economic climate is still uncertain, the plans to extend the support for small businesses will invigorate communities and protect local jobs.
The government should also be commended for its efforts in tackling youth unemployment. This remains a particularly important issue as our economy recovers. Young people need to be equipped for the workplace with a sterling education and diverse skills training, which is why the plans to extend by one year the plans to guarantee work and training to the young unemployed are very welcome.
It is also clear that the Government also has a plan to cut the deficit when growth is secure. The Government will use a combination of higher taxes, cutting spending, and economic growth to reduce the deficit.
It would seem that not only are the government’s priorities well placed, but they are also fair.
Read on for
John McFall’s last speech to the House of Commons in reaction to the Budget, and a transcript of the Treasury Committee’s evidence session with Alastair Darling.