Sharing

the burden

In this Parliament two of the most highly charged occasions in the chamber have involved economic matters – the Emergency Budget and last week's Comprehensive Spending Review (or 'CSR').

The one, of course, prefigured the other — we were all familiar with the overarching numbers pursued in the CSR from the announcements made in the Emergency Budget, the cutting of a massive £81-billion of public expenditure, but here at last in the CSR is something of the breakdown of where the cuts will fall.

The background is the legacy we inherited from the last Government. We are spending £120-million a day on interest payments alone — more than on education. Failure to address our finances will see us lose our creditworthiness, face higher interest rates and a Greek-style meltdown.

One of the key challenges of the CSR has been to cut back in a way that is fair to the poorest. This is key to me and I believe the CSR delivers. The tax burden has already been shifted to the wealthiest with the 50% income tax rate staying, increases in capital gains tax and around 800,000 of the lowest paid being taken out of tax altogether.

The withdrawal of child benefit for higher rate taxpayers will raise the £2.5-billion that will provide the pupil premium to improve education for the poorest children. NHS spending will be increased — a service upon which our most vulnerable are most dependent.

Tough decisions have been taken but there will still be great challenges ahead. Not least to ensure that we protect front -line services in the face of fewer resources and that we do whatever we can to free up businesses to expand and contribute to economic growth and job creation. This Government is ready for the challenge.