Opposition Day — [3rd Allotted Day] — Government Capital Expenditure — 2 Feb 2009 at 18:22

The majority of MPs (with no member of the Conservative Party voting at all) voted against the motion:^[1]

• This House
• notes that the International Monetary Fund believes that the UK will suffer the worst economic contraction among advanced countries;
• notes with alarm that the Pre-Budget Report 2008 announced an effective 16.5 per cent. decrease in public sector net investment from 2012-13;
• further notes with concern that the Learning and Skills Council has decided to halt funding decisions for college rebuilding;
• expresses concern that there are currently 1.77 million people on the social housing waiting list, an increase of 100,000 on last year;
• further notes that only £400 million has been brought forward out of £8 billion to spend on social housing;
• notes how little investment the Government has made to ensure that homes are energy efficient and well-insulated; *
• believes that the Government has neglected the current opportunity to invest in expanding the rail network; and
• calls on the Government to immediately bring forward funding for capital projects, particularly for schools, colleges, social housing, public transport and environmental works, all of which will create assets for the taxpayer and generate future income as well as countering recession in the short run.

In its place the Government proposed the motion:^[2]

• This House
• notes the substantial investment over the last decade in frontline public services in every region of the country;
• notes that the Government paid down debt over the last 10 years, reducing it from 42.5 per cent. to 36 per cent. of GDP over the last economic cycle, before the global credit crunch hit Britain;
• further notes that public sector net investment was only 0.6 per cent. of GDP in 1997-98 but was 2.1 per cent. of GDP by 2007-08, supporting sustained increases in investment in schools, hospitals and other key public services;
• welcomes the action the Government has taken in response to the international financial crisis both to support financial stability and to provide help for people and businesses at the time when they need it most;
• notes that to support the economy in the short term the Government's fiscal stimulus includes public sector net investment rising to 2.7 per cent. of GDP by 2009-10 and a value added tax cut putting over £12 billion into the economy throughout 2009;
• further notes the Pre-Budget Report 2008 measures to bring forward £3 billion of capital investment from 2010-11 to 2008-09 and 2009-10 which will support a number of different industries and jobs and directly improve key public services including schools, transport projects and social housing;
• welcomes the Government's commitment to ensuring that the overall level of capital spending is sustainable and protects investment in public services; and
• believes that action now to support the economy will enable Britain to take advantage of Opportunities arising as global growth resumes.

which passed automatically.

• [1] Vincent Cable MP, House of Commons, 2 February 2009
• [2] Stephen Timms MP, House of Commons, 2 February 2009

Debate in Parliament | Source |