Oral Answers to Questions

Debate between David Gauke and Daniel Kawczynski

Tuesday 27th January 2015 Commons Chamber

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

11. What progress he has made on his fiscal consolidation plans.

[The Financial Secretary to the Treasury (Mr David Gauke)]

The Government inherited the largest deficit since the second world war. Since then, we have made substantial progress on reducing the deficit. Borrowing has already fallen by more than a third since 2009-10 and is forecast to have fallen by half this year as a share of GDP. The Government’s consolidation plans have been central to the reduction of the deficit.

[Daniel Kawczynski]

I thank my hon. Friend for that answer. Given the eye-watering amount of British taxpayers’ money that is spent on paying the interest on our national debt, I am pleased that the Government have already reduced the annual structural deficit by half. Does he agree that it is vital to continue with the policy of reducing the annual structural deficit in order to tackle our national debt?

[Mr Gauke]

I completely agree with my hon. Friend, who is right to make that point. We need to go on and run an overall surplus, to ensure that our public finances are sustainable over the longer term.