Autumn Statement

Part of the debate – in the House of Commons at 4:44 pm on 22 January 1992.

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Photo of Mr John Smith Mr John Smith , Monklands East 4:44, 22 January 1992

The hon. Gentleman might at least listen to what the CBI said. The CBI's economic situation report of November 1991 noted that under the Conservatives underlying spending rises in election periods—this pattern is being repeated". How right the CBI is.

Let us look back to the period before the 1987 general election. Then, the Conservatives promised increased expenditure over three years of £11.2 billion above and beyond the amount needed to make up for inflation. In fact, during the three years that followed the election, there was no real increase, but a cumulative cut of £12.7 billion.

When the autumn statement was first presented to the House in November, Opposition Members said that it was a gigantic confidence trick, in terms of both its economic assessment and its public expenditure promises. Nothing that has happened in the ensuing months makes us wish to change that verdict.