The Economy — 29 Jun 1998

I beg to move,

That this House notes that the last Government left a golden economic legacy of low inflation, steady and sustainable growth and falling unemployment; that, since the General Election, there have been 17 tax rises and 6 increases in interest rates, leaving the typical family £1,000 a year worse off; that the economy is becoming dangerously unbalanced, with manufacturing in recession, the claimant count rising and the savings ratio falling to its lowest level since 1990 as a result of the Government's attack on pensions and savings; further notes that, at the same time, inflation has risen to its highest level for six years and believes that the Chancellor's decision to abandon control of public spending and to reverse his plans to repay national debt risks adding further inflationary pressure; concludes that the Government has created boom and bust at the same time; and deplores the Government's mishandling of the economy.

I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:

"notes that the Government inherited an economy in which the current Budget was in deficit by £21 billion, inflation was set to rise because of the failure of the previous Government to take the necessary action on interest rates and nearly one in five households of working age had nobody working; recalls that the previous Government presided over a boom and bust economy with interest rates peaking at 15 per cent. and the two worst recessions since the war, doubled the national debt in the 1990s, doubled unemployment during its time in office, worsened inequality and failed to tackle the weaknesses in the British economy; commends the actions of the Government in its first year, which has established a credible framework for monetary policy that has led to the lowest long-term interest rates in 33 years, set two clear fiscal rules which provide for both prudent public finance and strong public services in the years ahead, taken action to reduce government borrowing such that the current Budget was in surplus by £1 billion in 1997-98, supported British business through cuts in corporation tax and small

Question put, That the original words stand part of the Question:--

The House divided: Ayes 139, Noes 310.

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