Government Debt

Debate between Lord Pitt-Watson and Lord Londesborough

Wednesday 16th September 2026 Lords Chamber

[Lord Pitt-Watson (Lab)]

Let me write to my noble friend to make sure that my reply is accurate. However, I believe that matter is under discussion.

[Lord Londesborough (CB)]

My Lords, is not the real problem here our chronic dependency on borrowing? Debts have tripled over the past 20 years in spite of our fiscal rules. Has the Minister found the time to read the insightful report of the Economic Affairs Committee on our fiscal architecture—45 pages, 22 sparkling recommendations and available in all good print offices? It poses the key question: “Is our fiscal framework fit for purpose?”, to which the answer, in brief, is “No, it’s not”. How much does that concern the Minister?

[Lord Pitt-Watson (Lab)]

I have read that document. I point out that, in 2025-26, our borrowing will be the lowest for six years and for the first time since 2004 we are projected to borrow less than the OECD average. As regards external evaluation of the fiscal rules, I will read from the IMF’s 2025 Article IV report, which said that

“the plans that have been put forward by the UK Treasury strike a good balance between providing favorable conditions for growth, and the emphasis on public investment is welcome in that regard and safeguarding fiscal sustainability”.