Treasury and Work and Pensions

I am glad that the hon. Gentleman has confirmed that productivity growth has been disappointing. I was merely quoting the Chancellor of the Exchequer, who said in 1998 that productivity growth was a"““fundamental yardstick of economic performance””." I was pointing out that it had fallen. The hon. Gentleman is not the only member of the Labour party who is queuing up to criticise the Chancellor’s performance. The hon. Member for Birmingham, Edgbaston (Ms Stuart) said recently:"““We have excessive public spending, rising taxes and excessive micro-management.””" Derek Scott, the Prime Minister’s former chief economic adviser and great friend of the Chancellor, has said that there has been a"““furring up of economic arteries””—" I suppose that he is one Scot who will not be making it into the Chancellor’s Cabinet. Now the country is living with the consequences. Unemployment is rising in Britain, when it is falling in most of our competitor countries, and real living standards throughout the country are falling. According to figures that the Government sneaked out this month, average earnings are not rising as fast as the current rate of inflation, and this is not a one-off. The Chartered Institute of Personnel and Development said last week that"““the squeeze on living standards will continue into next year.””" Falling living standards, rising unemployment, excessive micro-management and a less competitive economy—what an epitaph to the Chancellor’s decade at the Treasury.