Budget Resolutions and Economic Situation

My understanding is that the recession has been deeper in Germany and Japan, for example. In fact, Germany may now be going back into recession. Of course the recession has been big in this country; I believe our GDP shrunk by about 6.2 per cent. last year. It is big, but when it comes to unemployment, although the recession has had an awful effect in this country, it is not nearly as bad as it is in some of our competitor countries—I think I am right in saying in every other G7 country, including Canada, which on just about every other statistic has been much better placed than the UK. Let us look at the broad approach of what a Government should be doing. Again, the Leader of the Opposition is very honest. He says, "If you want to see what we would do if the Conservative party were in government, look at what councils are doing". His approach to the economy and the Budget was openly enunciated in his speech to the Conservative party conference last autumn when he berated "big government". There is a big ideological divide there: I think there is a lot to be said for a Government protecting people, which my Government—I am proud to say—have tried to do with some success during the recession. If we look at the economic policies of Wolverhampton city council, we see that the Opposition approach to the economy is to use the state of public finances as a cover for shrinking the state. That is what they wish to do. I do not wish, as a Labour MP, to shrink the state. There is a big ideological divide. [Interruption.] The hon. Member for Stone (Mr. Cash) shouts out "Shame" from a sedentary position. He is open and honest as ever—we are both west midlands MPs—as he thinks, broadly, that less government, not necessarily minimal government, is a good way to go. I disagree. The ideological approach can be seen in Wolverhampton city council, controlled by a joint administration of Conservatives and Liberal Democrats, which is making cuts. My hon. Friend the Economic Secretary is a west midlands MP, too—our constituencies share a local newspaper—so he will know all about the big cuts going on. Five community centres have closed and the price of meals on wheels has almost doubled. Sheltered accommodation in my constituency has been closed to save money. A care home was closed in the Wolverhampton, North-East constituency to save money and a 106-year-old woman was evicted in the snow. The Minister might have seen the picture in the newspaper, while other Members might be aware of it because it was on national television. It would be understandable if it were part of a necessary cuts programme, but it is not; it is totally ideologically driven. I do not have a problem with that as long as people are honest about it. Why do I say this is ideologically driven? The Conservative-Liberal Democrat administration has controlled Wolverhampton city council for nearly two years, so what have we seen over that time in respect of moneys from central Government, which make up three quarters of funding for any council in England? There has been an above-inflation increase from central Government in their subvention to Wolverhampton city council, yet it still goes on saying—frankly, I think it is a lie—"We have to cut £40 million from the council budget". Well, it does not; it chooses to make that cut—which is fine, but let us have an open, honest debate about it.