Spending Review and Autumn Statement

Debate between Baroness Chapman of Darlington and George Osborne

Wednesday 25th November 2015 Commons Chamber

[Mr Osborne]

My hon. Friend is right that we have been able to boost skills in his Yorkshire constituency. We have been able to fund the great national parks of Yorkshire. We have also been able to invest in one of our great British industries, which has not always got a mention in Chancellors’ speeches in the past—farming. The big investment that we are making in agri-tech science with those four centres around the country, including one in York, will be very welcome.

[Jenny Chapman (Darlington) (Lab)]

Can the Chancellor explain why the OBR has just forecast that household debt to income levels are set to rise to above pre-crash levels?

[Mr Osborne]

The OBR is forecasting a rise in household debt which is partly reflected in a rise in house prices and therefore household assets, against which the debt is secured. But of course there is a big difference from the unsecured debt that we found in 2008. The big difference we now have is a Bank of England with a Financial Policy Committee, which is able to step in when it sees debt levels reach worrying levels. The Governor of the Bank of England signalled before the Treasury Committee yesterday concern about buy-to-let prices, for example, and he is receiving the powers to do something about it. That is a big change from the situation five years ago.