Interest Rates

Baroness Altmann Excerpts

Tuesday 10th November 2026 Lords Chamber

[Lord Pitt-Watson (Lab)]

I agree with many of the noble Lord’s comments. Our debt is way too high and the interest we are paying on the burden of that is very serious. How we go about righting that—as he says, there is a long history, and it is unhelpful to go into it—is a matter of judgment and balance, and it needs to be done over time. I go back to the comments of the chief economist of the IMF: of all the countries it is reviewing, she picks the UK out as the one that, basically, stands out. I hear that there may be some moves a little this way and some a little that way, but I hope that the House will acknowledge the seriousness with which this issue is being treated.

[Baroness Altmann (Non-Afl)]

My Lords, what analysis have the Government made of the impact of monetary policy on the fiscal deficit and whether there has been too much conflict between the Bank of England’s policy, which is anti-growth by pushing up interest rates, and the requirements of the economy to boost growth?

[Lord Pitt-Watson (Lab)]

This is an interesting economic argument, but the institutional structure in the UK is that we have an independent Bank of England. That is seen as a strength for the UK in controlling inflation and those other economic effects, which in turn underpins growth for the future. I think that, in general, there is cross-party agreement that that is a good way of doing things.