Economic Situation
Debate between Bim Afolami and Chris Philp(2 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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Chris Philp
I have explained in response to an earlier question that spending restraint is not the same as real-terms cuts. We do not plan real-terms cuts, but we do plan iron discipline when it comes to spending restraint. The answers to the hon. Lady’s questions will be set out in full at the fiscal statement, which will be accompanied by a full Office for Budget Responsibility scoring and a set of OBR forecasts. That is when all those questions will be answered very clearly.
Bim Afolami (Hitchin and Harpenden) (Con)
The intervention of the Bank of England in both the gilt market and the corporate bond market has alarmed many in recent days. I would be interested in the view of the Chief Secretary to the Treasury on the Treasury’s assessment of the cost to the Treasury and the fiscal position following the interventions by the Bank of England in those markets.
Chris Philp
I thank my hon. Friend for his question. It obviously depends on the prices at which the Bank and England buys and sells bonds or gilts in the market. It is worth observing that so far it has purchased considerably less by value of gilts than the limits that were set out originally. The volume of gilts that it has on its balance sheet is much less than the limits. On his question about fiscal cost, if there is any fiscal cost, that will depend entirely on market prices.