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Withdraw 'chaotic' Budget, says Labour Withdraw 'chaotic' Budget, says Labour
(35 minutes later)
George Osborne's Budget is in "absolute chaos" and should be withdrawn, shadow chancellor John McDonnell says.George Osborne's Budget is in "absolute chaos" and should be withdrawn, shadow chancellor John McDonnell says.
Mr McDonnell was asking an urgent question about changes to the Budget including the decision to shelve disability benefit cuts.Mr McDonnell was asking an urgent question about changes to the Budget including the decision to shelve disability benefit cuts.
The cuts led to the resignation of work and pensions secretary Iain Duncan Smith. The cuts led to the resignation of work and pensions secretary Iain Duncan Smith with a furious attack on the government.
Financial Secretary to the Treasury David Gauke praised the Budget, which he said had taken people out of tax. Treasury Minister David Gauke said more was being spent on disabled benefits.
The package of measures, he said, "closes the gap between rich and poor and North and South". Spending on Personal Independence Payments (PIPs) was up by £3bn since 2010, he said, adding that the Budget "closes the gap between rich and poor and North and South".
He said details of how the cash earmarked from Personal Independence Payments will be recovered would be revealed in the Autumn Statement later in the year. He said details of how the cash that had been earmarked from the benefit cuts will be recovered would be revealed in the Autumn Statement later in the year.
'Enormous hole'
Labour has called on Mr Osborne to resign following Mr Duncan Smith's resignation and the furore over the PIP cuts, but Downing Street says the chancellor has the full confidence of the prime minister.
Mr McDonnell said Mr Osborne's absence from the Commons chamber "insults this House" and that Mr Gauke had been left to "defend the indefensible".Mr McDonnell said Mr Osborne's absence from the Commons chamber "insults this House" and that Mr Gauke had been left to "defend the indefensible".
Mr Gauke said the chancellor would be in the chamber for Tuesday's Budget debate. He said he agreed with Mr Duncan Smith in his criticism of the decision to include Capital Gains Tax cuts alongside the disability benefit reforms in last week's Budget, which the former work and pensions secretary said showed "we are not all in this together" and the government has repeatedly stated.
Mr McDonnell said there was now "an enormous hole" in the Budget as a result of the cuts being shelved, calling on the government to "withdraw this Budget and start again".
Solar panels
He added: "This is no way to deliver a Budget and no way to manage an economy."
Mr Gauke said the chancellor would be in the chamber for Tuesday's Budget debate, and said Labour was not in a position comment on "black holes" in budgets.
David Cameron is expected to defend his government's record during an EU statement later.David Cameron is expected to defend his government's record during an EU statement later.
Mr Duncan Smith's replacement, Stephen Crabb, will also address MPs on the decision to shelve the PIP cuts.Mr Duncan Smith's replacement, Stephen Crabb, will also address MPs on the decision to shelve the PIP cuts.
As well as the welfare changes, Downing Street says ministers will not seek to oppose amendments to scrap the so-called "tampon tax" and an increase in VAT on solar panels.