Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Chris Davies

Tuesday 17th January 2017 Commons Chamber

[Chris Davies (Brecon and Radnorshire) (Con)]

4. What steps his Department is taking to reduce sovereign debt.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

The only way to reduce debt sustainably is to return the public finances to balance. Our new fiscal rules commit us to doing that as soon as possible in the next Parliament. We have already reduced borrowing as a share of GDP by almost two thirds from the post-war peak that we inherited in 2010, and we are forecast to borrow less than 1% of GDP by the end of this Parliament.

[Chris Davies]

I thank the Chancellor for his answer. Government debt interest sits at around 5% of overall Government spending, which is equivalent to nearly 20% of the overall health budget. Would my right hon. Friend consider paying down our debt more swiftly to relieve the strain that debt interest is putting on the public finances?

[Mr Hammond]

We are committed to reducing debt while at the same prioritising investment in high-value infrastructure that will enhance our productivity. Of course, the only way we can pay down debt is to generate a current surplus, which means more tax or less spending. The trajectory that I set out at the autumn statement is the right one for this country in the circumstances. I intend to stick to that and ensure that we get the public finances back into balance as early as possible in the next Parliament.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Chris Davies

Tuesday 20th October 2015 Commons Chamber

[Mr Hammond]

First, let me congratulate the hon. Gentleman on his very good pronunciation of those particular islands. Our position on this is clear: we do not take a position on the different claims to sovereignty over disputed territory in the East China or the South China seas. What we are clear about is two things: first, these disputes must be resolved in accordance with international law and peacefully; and secondly, the international right to freedom of navigation and freedom of overflight must be preserved. That is the position that we consistently take and that we consistently make to Japanese, Chinese and other south-east Asian interlocutors.

[Chris Davies (Brecon and Radnorshire) (Con)]

5. What assessment he has made of the progress of negotiations to reform (a) the EU and (b) the UK’s relationship with the EU.

[Andrea Jenkyns (Morley and Outwood) (Con)]

14. What assessment he has made of the progress of negotiations to reform (a) the EU and (b) the UK’s relationship with the EU.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr Philip Hammond)]

We are making good progress in our discussions on reform of the EU at both a political and technical level. We will continue discussions with our EU colleagues as well as with the European Parliament and Commission ahead of the December European Council. As the Prime Minister said last week, he will also be writing to the president of the European Council in early November to set out the areas of change that we wish to achieve.

[Chris Davies]

Does the Minister share my concern that economic and monetary union states could force new legislation on non-EMU states by commanding a majority in the EU? What measures can be put in place to ensure that a country not in the eurozone, as Britain is proud to be, can guarantee that their voice is heard in the EU as loudly as those inside the eurozone, particularly on policy relating to the single market?

[Mr Hammond]

My hon. Friend is right to point out that concern. It is the case that the eurozone states will have a qualified majority between them in due course. That is why part of this negotiation is about putting in place a framework to govern relationships and decision making between eurozone and non-eurozone states so that the interests of the non-eurozone states are protected as the eurozone proceeds with the closer integration that—in our judgment—will be necessary to ensure that the euro is a successful currency. That is something that is greatly in the interests of the United Kingdom.