Oral Answers to Questions

Chris Davies Excerpts

Tuesday 17th January 2017 Commons Chamber

[Mr Gauke]

We are at an early stage, in terms of the impact on foreign direct investment. On the level of business investment since the referendum, the numbers have held up pretty strongly, although, as I say, it is early days and early data. The hon. Gentleman says he welcomes business investment in this country; he should listen to some of the things his party leadership is saying, which would do nothing but drive business out of the United Kingdom.

[Chris Davies (Brecon and Radnorshire) (Con)]

4. What steps his Department is taking to reduce sovereign debt.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

The only way to reduce debt sustainably is to return the public finances to balance. Our new fiscal rules commit us to doing that as soon as possible in the next Parliament. We have already reduced borrowing as a share of GDP by almost two thirds from the post-war peak that we inherited in 2010, and we are forecast to borrow less than 1% of GDP by the end of this Parliament.

[Chris Davies]

I thank the Chancellor for his answer. Government debt interest sits at around 5% of overall Government spending, which is equivalent to nearly 20% of the overall health budget. Would my right hon. Friend consider paying down our debt more swiftly to relieve the strain that debt interest is putting on the public finances?

[Mr Hammond]

We are committed to reducing debt while at the same prioritising investment in high-value infrastructure that will enhance our productivity. Of course, the only way we can pay down debt is to generate a current surplus, which means more tax or less spending. The trajectory that I set out at the autumn statement is the right one for this country in the circumstances. I intend to stick to that and ensure that we get the public finances back into balance as early as possible in the next Parliament.