14:08 Alison McGovern (Labour)

With those cuts decimating some of the poorest people in society and the need to leave at least two thirds of fossil fuels in the ground if we are to avoid dangerous climate change, does the hon. Lady agree that handing out yet more eye-watering tax breaks to multinational oil and gas companies is a deeply irresponsible use of public money?

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16:45 Barry Gardiner (Labour)

A Budget is not an exercise in economic theory; it is a practical attempt to manipulate the levers of the financial system, both fiscal and monetary, to maximise public goods and public benefit. It used to be assumed in British politics that uncertain inviolable public goods would always be defended by Government, but that assumption has fallen apart over the past five years. From the quality of our air and water to the threat of catastrophic flooding and climate change, many now see that the role of Government has been hopelessly diminished. Over the past five years, the Government have stepped back from so many of the key risks facing our country that in the eyes of many people they are no longer fit to govern.

I want to focus on climate change and resource insecurity—two issues on which the Government promised significant progress and on which the Chancellor himself once made significant promises, but which show the true face of this Government and their significant failure.

In 2013 the chief economists of the Department for Environment, Food and Rural Affairs, the Department of Energy and Climate Change, the Department for International Development and the Foreign and Commonwealth Office proposed a cross-departmental review of resource security, climate change and growth. They had been planning it for more than a year. The Chancellor, however, cancelled the review on the grounds that neither resource security nor climate change posed a threat to growth. One has to wonder whether he ever read those letters that the Governor of the Bank of England is obliged to send to him every time inflation misses its target, because all 14 of them specifically cited resource price spikes and resource insecurity as key factors in missing those economic targets.

One has to wonder whether the Chancellor ever listens to the speeches of the Governor of the Bank of England, because Mark Carney has spoken powerfully about a “tragedy of horizons”, whereby new challenges to our long-term prosperity and economic resilience, such as climate change, manifest themselves beyond the standard regulatory and market outlook, which is two to three years. Speaking only last year at the World Bank-International Monetary Fund meeting, Mr Carney highlighted the fact that the vast majority of fossil fuel reserves could become unburnable in the transition to a low-carbon economy, resulting in a problem of “stranded assets”.

One of the desperately short-sighted measures the Government took was to scrap the adaptation reporting power. That means that the companies that own and run our critical infrastructure no longer have an obligation to monitor and report but are free to ignore the risks of climate change, leaving us more exposed to the impacts of extreme weather events and flooding. Ironically, the Chancellor claims that that was done as part of reducing the burden on business of unnecessary regulation.

Another short-sighted but devastating decision that undermined the investment capacity and future productivity of UK business was the Government's decision to downgrade the UK climate change risk assessment. I say downgrade, but that is really a euphemism: the Government slashed the number of staff working on climate change impacts from 38 to six in 2012. I do not know how much those 32 officials were being paid, but I am absolutely confident that the cost to British business from the lack of capacity to make a proper future assessment of climate risks and how to adapt to them will be infinitely more.

This Chancellor has failed to understand that distinction. Under him, we have seen increasing financialisation of the economy and the increasing importance of financial markets. My point is that the local economy has abundant stocks of financial assets but insufficient flows of investment into the areas where they are required for long-term sustainable development. The World Economic Forum estimates that there is a $1 trillion gap in investment infrastructure each year, but why is that gap important and why is it so important this year? In September, Ban Ki-moon will convene the leaders of the world to agree the sustainable development goals and in December the world will look to Paris and the UN framework convention on climate change to deal definitively with the risks to all our economies posed by climate change.

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17:40 Geraint Davies (Swansea West) (Lab/Co-op)

First of all, I should welcome a couple of things in the Budget. One, of course, is the Swansea Bay lagoon. If that is going ahead—I assume that the Planning Inspectorate has suggested it supports it—it will be more than a small step for green energy and a giant leap for the Swansea economy. Secondly, I welcome the VAT withdrawal from tolls on the Severn bridge, which will loosen the noose around the neck of the south Wales economy, although I think the toll should be reduced down to the maintenance and operations level—about £1.50 a car—to encourage inward investment, tourism and trade, particularly with the south-west.

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