Fiscal Rules

Debate between Darren Jones and Jeevun Sandher

Monday 28th October 2024 Commons Chamber

[Darren Jones]

I thank the hon. Lady for her question and share her continued anger about the behaviour of the last Conservative Government, because as she and the whole House will know, our constituents are still paying the price of that Government’s chaos and failure. That is why the first Act of this Labour Government— the first Act that I took through this House—was the Budget Responsibility Act 2024, which locked in the power of the Office for Budget Responsibility to hold this Government and future Governments to account. If we ever again ended up in a position where Conservative Ministers decided to ignore independent checks and balances, the OBR would be able to report its view to this House independently, so that Parliament could hold that future Government to account. I end by pointing to our first fiscal rule, which is that we will pay for day-to-day spending with receipts. Again, that means that we will not end up in the situation that we were in under the last Government, when month after month, borrowing just paid the bills for which they did not put money aside.

[Dr Jeevun Sandher (Loughborough) (Lab)]

Fiscal rules are a tool for responsibility, and we should all welcome rules that help us to act responsibly and invest responsibly. The rules and the accounting definitions that underlie them are not matters of faith, preordained by the Almighty and passed to us on stone tablets; they are there to help us make responsible decisions. Does my right hon. Friend agree with me, and with the former chief economist of the Bank of England, the OECD, the International Monetary Fund and George Osborne’s former Treasury Minister, that we should welcome changes to the fiscal rules that promote investment?

[Darren Jones]

I will avoid the suggestion that we might go back to putting things on stone tablets if I may, but I will accept the invitation in my hon. Friend’s question, and say that after 14 years, we have seen the failure of the approach taken by the last Government. I noted in my statement that public sector investment would now have been at its lowest in 10 years, under the plans of the now Opposition. That has been a failure for the economy and for the British people, and this Government will rectify it.