Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Theresa Villiers

Tuesday 6th November 2018 Commons Chamber

[Theresa Villiers (Chipping Barnet) (Con)]

11. What steps he is taking to reduce the deficit and improve the public finances.

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

The 9.9% of GDP post-war record deficit that we inherited in 2010 is forecast by the Office for Budget Responsibility to fall to 1.2% this year and to 0.8% of GDP in 2023-24, the lowest level since the start of the century. The OBR’s Budget forecast shows that borrowing will be lower in every year than was the case at the spring statement, and that we are now meeting our two fiscal rules three years early. We continue to be committed to our balanced approach—getting debt down, keeping taxes low, investing in Britain’s future and funding our public services, with the spending review to take place next year.

[Theresa Villiers]

The nature of the economic cycle means that, inevitably, over the next few years there will be a global economic downturn. Can the Chancellor reassure the House that he will always retain sufficient headroom and resilience in the public finances to enable us to respond strongly to such a shock?

[Mr Hammond]

Yes, and I remind my right hon. Friend that the fiscal targets are set in cyclically adjusted terms, so that in the event of an economic downturn, fiscal space is automatically created. In addition, I have kept a buffer, over and above any cyclical dividend, of £15.4 billion in 2020-21 to allow us firepower should any unexpected events cause headwinds for the economy.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Theresa Villiers

Tuesday 24th October 2017 Commons Chamber

[Mr Hammond]

We are preparing for all outcomes in our negotiations with the European Union, but the Government’s objective is to reach a deal. As the Prime Minister made clear in her Florence speech, as part of that deal we want to agree an implementation period, during which businesses and Governments can prepare for the new relationship, and we want to agree the principles of that period as soon as possible. Last week, at the European Council, the 27 agreed to start internal preparatory discussions on guidelines in relation to an implementation period. Together with the broad support for the idea in Parliament, this should give British businesses confidence that we are going to provide them with the certainty they require.

[Theresa Villiers (Chipping Barnet) (Con)]

Will the Chancellor welcome the fact that there are more women in work than ever before and set out what steps we can take to ensure that this is one of the best countries in the world for women to set up and run their own businesses?

[Mr Hammond]

One of the remarkable achievements of the past seven years has been the increase in participation in the workforce, particularly in the number of women participating in the workforce. That is in large part due to the family-friendly policies this Government have pursued, with huge increases in the availability of childcare—free childcare—and in the tax deductability of childcare. We will continue to drive a set of policies that encourages women into the workforce, both because it is economically sensible and because it is socially inclusive.