(12 years, 10 months ago)
Lords ChamberMy Lords, that is exactly what we are doing: we are investing in infrastructure projects. Indeed, as was announced at the autumn Statement, we are targeting an additional £20 billion of private sector money coming into infrastructure from long-term UK investors. As to the policy mix, I can only refer back to the IMF’s latest assessment which said that the case for relatively tight fiscal and relatively loose monetary policy is strong.
My Lords, surely the question for most ordinary people not schooled in economics is whether the Government’s programme for rapid deficit reduction is actually a price worth paying. Could the Minister tell us how the Government propose to quantify the cost of deficit reduction in terms of the impact on people and communities?
The right reverend Prelate is absolutely right. The end objective here is not a balanced budget but sustainable growth, to bring down unemployment and increase employment in this economy. So what is really important, whether it is infrastructure spend, the fundamental reform of the welfare system or our education system, is that in the end we get a better balanced economy with more sustainable employment over the long term.