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George Osborne tribute to Duncan Smith as he defends Budget | George Osborne tribute to Duncan Smith as he defends Budget |
(35 minutes later) | |
George Osborne told MPs he was "sorry" Iain Duncan Smith had resigned and said he was "proud" of their work together. | George Osborne told MPs he was "sorry" Iain Duncan Smith had resigned and said he was "proud" of their work together. |
Defending his handling of the economy ahead of a vote to approve his Budget, the chancellor said Treasury talks with departments had often been "robust". | Defending his handling of the economy ahead of a vote to approve his Budget, the chancellor said Treasury talks with departments had often been "robust". |
But where mistakes were made he was ready "to listen and learn", he added | But where mistakes were made he was ready "to listen and learn", he added |
Mr Osborne's performance comes after Mr Duncan Smith's post-Budget decision to quit, with a blast at "indefensible" changes to disability benefits. | Mr Osborne's performance comes after Mr Duncan Smith's post-Budget decision to quit, with a blast at "indefensible" changes to disability benefits. |
In his Commons statement, Mr Osborne confirmed he had dropped those planned cuts to disability benefits, but came under sustained pressure from Labour to explain how he will cover the £4.4bn gap in the Budget left by the rethink. | |
Shadow chancellor John McDonnell attacked what he called "the grubby, incompetent manipulations of a political chancellor" while Lib Dem leader Tim Farron said Mr Osborne's reputation was tarnished and his continued presence in the role risked damaging the campaign to keep the UK in the EU. | |
'Proud of record' | |
Reforms to the Personal Independence Payment (PIP) had been due to save a total of £4.4bn from the welfare budget by 2020 as part of Mr Osborne's commitment to reducing benefits spending by £12bn a year. | Reforms to the Personal Independence Payment (PIP) had been due to save a total of £4.4bn from the welfare budget by 2020 as part of Mr Osborne's commitment to reducing benefits spending by £12bn a year. |
But critics said the changes could have affected up to 640,000 people, making them as much as £100 a week worse off. | But critics said the changes could have affected up to 640,000 people, making them as much as £100 a week worse off. |
The chancellor told MPs that the plans did not "command support" and had been withdrawn but insisted that spending on disability benefits would still be higher in 2020 than it was now and higher than under the last Labour government. | |
He said he was "proud" of the government's record on social policy, saying there were a million fewer people on in-work benefits than in 2010 and 300,000 people with disabilities had found work during that time. | |
Praising Mr Duncan Smith, with whom he is reported to have had a history of disagreements, he said: "I'm sorry that my right honourable friend chose to leave the government and let me here in this House recognise his achievements in helping to make work pay, protecting the vulnerable and breaking the decades old cycle of welfare dependency." | |
But he rejected his former colleague's charge that the chancellor's aim of balancing the books by 2020 risked dividing society and working-age benefit claimants were being unduly penalised by a "desperate search" for savings. | |
"There is not some inherent conflict between delivering social justice and the savings required to deliver sound public finances," he said. "There are one and same thing. Without some public finances there is no social justice." | |
He also rejected calls for free pensioner benefits and the "triple lock" on pensions to be reconsidered, saying pensioners who had worked hard all their lives deserved a "decent, generous basic state pension and I am not going to take that away from people". | |
Welfare savings | |
Mr Duncan Smith resigned on Friday over the cuts to disability payments, which came at the same time as tax cuts for higher earners. He said this flew in the face of the prime minister's and Mr Osborne's oft-repeated claim that "we are all in this together". | |
Former Conservative minister John Redwood told BBC Radio 4's Today programme it was "nonsense" to suggest Mr Duncan Smith - a prominent Eurosceptic - was really motivated by a desire to wound the government ahead of the EU referendum. | Former Conservative minister John Redwood told BBC Radio 4's Today programme it was "nonsense" to suggest Mr Duncan Smith - a prominent Eurosceptic - was really motivated by a desire to wound the government ahead of the EU referendum. |
"It was entirely about welfare," he said. | "It was entirely about welfare," he said. |
In his first act - on Monday - as Mr Duncan Smith's replacement as work and pensions secretary, Stephen Crabb confirmed the proposed benefit cuts had been dropped and that there would be no further raid on welfare spending to plug the gap. | |
The chancellor reiterated this on Tuesday, saying the government had already met its manifesto promise on identifying £12bn worth of welfare savings and its focus would be on implementing the cuts already approved by Parliament. | |
As well as the welfare changes, Downing Street said ministers would also not seek to oppose amendments to scrap the so-called "tampon tax" and an increase in VAT on solar panels. | As well as the welfare changes, Downing Street said ministers would also not seek to oppose amendments to scrap the so-called "tampon tax" and an increase in VAT on solar panels. |
What are Personal Independence Payments? | What are Personal Independence Payments? |
Who would the PIP changes have affected? | Who would the PIP changes have affected? |