Public Finances: Borrowing Costs
Debate between Darren Jones and Torsten Bell(6 days, 14 hours ago)
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Darren Jones
I can absolutely assure the Father of the House that we are working through this spending review on the basis of the envelope set at the Budget. Public services will have to operate within the means that we are providing to them. The OBR forecast will come in March, which will give us the latest set of information, and we will work to that with Departments. This is why we have set up organisations such as the Office for Value for Money, why we have set tough productivity and efficiency targets for Departments and why we are investing in, for example, technology to improve the productivity of the public services we provide. Public services must live within their means, as set out in the Budget, and that is an absolute guarantee from this Government.
Torsten Bell (Swansea West) (Lab)
I thank the Chief Secretary for his response. I have just sat through Transport questions, or some of them, during which I repeatedly heard calls for more spending from Conservative Members, but they oppose every single tax rise to pay for that spending. Does the Chief Secretary agree that one of the lessons from global developments in recent days is that we must pay for day-to-day public spending through tax rises, however tough that is?
Darren Jones
I very much agree with my hon. Friend. We have to pay day-to-day bills with the income we generate day to day. The lesson that we learned from the Opposition was about what they were happy to do, but this Government are not. They were happy to announce plans and programmes to make promises to the British people, even though they knew they did not have the money to pay for it. That will never happen under this Labour Government.
Fiscal Rules
Debate between Darren Jones and Torsten Bell(2 months, 2 weeks ago)
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Darren Jones
I thank my hon. Friend for his excellent question, and I agree that £63 billion invested in this country was a sign of confidence, because investors around the world know that Britain is back after years of chaos.
Torsten Bell (Swansea West) (Lab)
It is good to hear about changes to address the big problem with our macroeconomic framework—the bias against new investment spending. May I draw the Chief Secretary’s attention to the other problem with the system, which acts as an incentive for Ministers not to manage well the assets that they already hold? I refer him to the 2017 sale of £3.5 billion-worth of student loans for just £1.7 billion. Will he reassure the House that the changes that he is making will ensure that we get value for money for the existing financial assets that we hold?
Darren Jones
I can give my hon. Friend that reassurance, and I point to the Office for Value for Money, which will work for us to ensure that we improve on behaviours of the past. I also point more broadly to the way that we manage our current assets. People have only to look at the state of our prisons, hospitals and schools, with reinforced autoclaved aerated concrete and roofs falling in, to know that after 14 years of cuts to investment, we cannot carry on like that. That is why people voted for change at the last election, and why we will deliver it.