Oral Answers to Questions

Debate between Chloe Smith and Virendra Sharma

Tuesday 24th January 2012 Commons Chamber

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

11. What assessment he has made of the Office for Budget Responsibility’s most recent estimate of the size of the deficit in 2015.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

The OBR forecast in November that borrowing in 2015-16 would be £53 billion, which is 2.9% of gross domestic product. That compares with £156 billion last year and £127 billion this financial year.

[Mr Sharma]

I thank the Economic Secretary for answering the question. Can she tell us why the Government are now forecast to borrow £37 billion more than the more balanced plan Labour set out before the election, despite the pain of £40 billion more spending cuts and tax rises?

[Miss Smith]

This Government are engaged in a credible deficit reduction plan. I would like to hear the hon. Gentleman and his colleagues tell us what their plan is and whether it veers towards credibility or the policies of the delusional left.