Government Performance against Fiscal Rules

Debate between Bernard Jenkin and Darren Jones

Monday 7th July 2025 Commons Chamber

[Darren Jones]

My hon. Friend is right. If any party on the Opposition Benches wants to be competitive in the next election, it needs to set out what it proposes to do with the country and how it will pay for it. Time and again, whether it is the Conservative party, Reform UK, the Green party or any other party, it is all promises of jam tomorrow, with no idea about how to pay for it. The public have been burned by that already because of the last Government, and they will not be burned by it again.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

Has the Chief Secretary seen the much longer-term forecasts by the OBR for the growth in public spending and the growth in debt rising to more than 250% of GDP in decades to come and the debt interest rising to 12% of GDP? Now that there is a gaping hole in the Government’s financial plans because of the votes last week and the U-turns on welfare reform, why does he think that he can play for time, instead of acting to give the markets confidence before they lose confidence?

[Darren Jones]

The Treasury obviously monitors all OBR forecasts and considers them in detail. As the hon. Gentleman knows, it is right and proper that the Treasury looks at OBR forecasts in an orderly way when it produces its forecast in line with the fiscal forecast. That is how we bring stability back to the public finances, and that is what we will be doing.

Public Finances: Borrowing Costs

Debate between Bernard Jenkin and Darren Jones

Thursday 9th January 2025 Commons Chamber

[Darren Jones]

My hon. Friend is absolutely right. Let me set out the difference that the British people will experience. At the end of 14 years of Conservative Government, they had higher mortgages, higher bills, a higher cost of living and public services on their knees. At the end of this Labour Government, pointing towards the next general election, as set out in the Prime Minister’s plan for change, they will have more money in their pocket, public services will be functioning again, and they will be proud once again of their Government, and of the British economy.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

Having listened very carefully to the right hon. Gentleman’s responses, I believe that he is making a more significant statement than many of his colleagues might realise. By underlining that there will not be any tax or borrowing increases, he is, in effect, saying that austerity is back, because there is no way that the public finances can be remedied by another Budget of wishful thinking that pretends that increased borrowing and spending will produce growth. That is once again being proved by a Labour Government to be a false way of leading the economy.

[Darren Jones]

I am always grateful to the hon. Gentleman for thinking that I am making such substantive interventions, and for his continued support in that respect. This is not austerity, as he will know full well. Austerity was ideological cuts to public financing and the size of the state. It was 3% cuts, irrespective of what that meant for public services or for people across the country. That is far from what the Chancellor unveiled in her autumn Budget. That was the absolute opposite of austerity; we increased financing for frontline public services, and will continue to do so.