Orders of the Day — Budget Resolutions and Economic Situation

Part of the debate – in the House of Commons at 5:20 pm on 7th July 1997.

Alert me about debates like this

Photo of Mr Ian Bruce Mr Ian Bruce Conservative, South Dorset 5:20 pm, 7th July 1997

Whether I accept it is beside the point: it is what the Chancellor has determined is at the heart of his Budget. The former Treasury Select Committee, of which I was a member, expressed some scepticism about the previous Government's forecasts, but the commentators said that a judgment could be made. The current Chancellor has made a revised judgment and has determined that inflationary pressures are greater, but he has not made any compensating provision to help the public services and the spending Departments to cover that. We are entitled to an explanation, especially as the Government are pursuing progress on the Finance Bill with indecent haste.

The extra moneys announced in the Budget for the NHS and education, about which the Secretary of State for Health boasted, are largely fictional as they merely offset the effects of higher inflation.