Economic Policy
Debate between George Osborne and Lord Barwell(11 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Mr Osborne
As I have been explaining for the past 57 minutes, the test is there each day and each week as we have to borrow money to fund the deficit we inherited—even if it has come down. That is the test, and at the moment the world is lending us money at some of the cheapest rates in our history.
Gavin Barwell (Croydon Central) (Con)
Will my right hon. Friend confirm that a significant part of the deficit is structural, which means that, as vital as growth is, it will not do anything to reduce the structural element? As long as Opposition Front Benchers refuse to acknowledge the key fact that we need to start living within our means again, they will not be fit to return to office.
Mr Osborne
My hon. Friend is absolutely right, and that is why one of our debt objectives relates to the structural deficit. The structural deficit is the part that does not go away when the economy grows. The shadow Chancellor’s argument that all these problems will disappear as the economy grows is simply nonsense. That was his argument before the financial crisis, that is why Britain went into the financial crisis with a 5% structural deficit, and that is why, when boom turned to bust, the country found itself without any money.
Office for Budget Responsibility
Debate between George Osborne and Lord Barwell(14 years, 6 months ago)
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Mr Osborne
The most obvious set of failed economic policies is that pursued by the Labour party.
Gavin Barwell (Croydon Central) (Con)
If I heard my right hon. Friend correctly, the policies of the previous Administration will lead to us spending an incredible £67 billion on debt interest alone by the end of this Parliament. In the interests of transparency, may I encourage him to put that number in context for the wider electorate, so that we know the amount per household in relation to the amounts we spend on our NHS and school system?
Mr Osborne
That is an excellent idea. I will ensure that that information is circulated not only to Government Members, but to Opposition Members as well.