Oral Answers to Questions

Chris Green Excerpts

Tuesday 16th January 2018 Commons Chamber

[John Howell (Henley) (Con)]

5. What assessment he has made of potential risks to the economy from high levels of Government borrowing.

[Chris Green (Bolton West) (Con)]

10. What assessment he has made of potential risks to the economy from high levels of Government borrowing.

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

In 2010, we inherited the largest deficit since the second world war, standing at nearly 10% of GDP. We have successfully reduced it by three quarters, meaning that it stood at 2.3% at the end of last year, but our debt is still too high. High levels of debt leave us vulnerable to economic shocks and incur significant debt interest, which is why the Government have clear and detailed fiscal plans to reduce borrowing further and to ensure that debt falls.

[Mr Hammond]

Yes, I absolutely agree with my hon. Friend that a policy of increasing borrowing simply means passing the cost of today’s consumption to future generations and wasting more taxpayers’ money on debt interest. Even Labour’s shadow Education spokesperson has acknowledged that this is an ultra high-risk strategy that would be a gamble with our economic future.

[Chris Green]

Does my right hon. Friend agree that uncontrolled debt is bad for the economy and bad for the young people who have to pay the debt off, and that we should avoid following the model preferred by the Opposition, which has all the qualities of the parliamentary sewage system?

[Mr Hammond]

Yes, I can agree with my hon. Friend on that. Any party that aspires to government and is serious about properly managing the public finances should be able to explain how it would fund the expenditure it is committing to—and to do so without consulting an iPad.