Economic Responsibility and a Plan for Growth

Baroness Keeley Excerpts

Wednesday 19th October 2022 Commons Chamber

[Rushanara Ali]

rose—

[Barbara Keeley (Worsley and Eccles South) (Lab)]

rose—

[Andrew Griffith]

I will make a little progress and then come back to hon. Members, if I may.

The most important thing we can do now, in the national interest, is cement that financial and economic stability. That is what is vital for all those who are concerned about their jobs, those who have to pay their mortgages, and those who are saving for retirement. It is essential for businesses investing for the future, and for society as we get through the bout of rising prices.

--- Later in debate ---

[Andrew Griffith]

My hon. Friend makes his point typically strongly. He, like me, will look forward to hearing the medium-term fiscal strategy shortly. The hon. Member for Bethnal Green and Bow (Rushanara Ali) asked what we will do to protect households with their interest rates and mortgages.

[Barbara Keeley]

Will the Minister give way?

--- Later in debate ---

[Barbara Keeley]

Will the Minister give way?

[Andrew Griffith]

No, I am going to make some progress.

I have talked about the measures that we are taking to support growth, and about the tough decisions that the Chancellor spoke about in the House on Monday. I reiterate that, as we must not sugar coat it. In common with every other major economy, we face economic challenges at this time for three reasons.

First, there is the cost of covid. Through the first two years of the pandemic, the Government borrowed more than £300 billion more than had been forecast in March 2020—about £260 billion more in 2020-21 and £70 billion more in 2021-22—to fund emergency covid support, which had support on both sides of the House.

Secondly, interest rates are rising around the world on the back of increased costs and Putin’s war in Ukraine.