Oral Answers to Questions

John Howell Excerpts

Tuesday 16th January 2018 Commons Chamber

[Mel Stride]

My right hon. Friend raises an interesting point. He might like to make specific representations to me on the matters he has raised. Indeed, if he wishes to meet me to discuss them, I would be very happy to do so.

[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.

[John Howell]

Does the Chancellor agree it is essential that our policies continue to show that we are living within our means, because the alternative—a failure to do so—simply passes on our bills to the next generation?

[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.