Government: Economic Policies

Debate between Lord Mitchell and Lord Deighton

Wednesday 30th January 2013 Lords Chamber

[Lord Mitchell]

To ask Her Majesty’s Government what is their assessment of the impact of their economic policies during their 1,000 days in office.

[The Commercial Secretary to the Treasury (Lord Deighton)]

My Lords, the Government’s economic strategy is underpinned by fiscal consolidation, allowing monetary activism and supply-side reforms to support the economy. This strategy has provided the foundations for recovery. Market interest rates have fallen to near-record lows; the deficit has been reduced by a quarter; more than 1 million private sector jobs have been created; and goods exports to China, India and Brazil have increased by around a third.

[Lord Mitchell]

My Lords, I thank the Minister for that reply. Today, this Government have been in office for 1,000 days: 1,000 days, and we are teetering on the brink of a triple-dip recession; 1,000 days, and the UK’s credit rating is close to being downgraded; 1,000 days, and our national debt is rising; 1,000 days, and our productivity is falling; 1,000 days, and our trade gap is widening. After 1,000 days, does not the Minister think that this Government should stop blaming the previous Government and start taking responsibility for their own failed economic policies?

[Lord Deighton]

I thank the noble Lord for that question. I confirm that we are facing extraordinarily challenging economic conditions, but the economy is recovering from the most damaging financial crisis in generations after a decade of growth built on unsustainable levels of debt. This Government inherited the largest deficit since the Second World War and the largest in the G20, and we experienced one of the deepest recessions of any major economy. This Government’s strategy is designed to protect the economy through this period of global uncertainty, to maintain market confidence and keep those interest rates low, and to lay the foundations for a stronger, more balanced economy.