Kit Malthouse
Main Page: Kit Malthouse (Conservative - North West Hampshire)Department Debates - View all Kit Malthouse's debates with the HM Treasury
(1 day, 6 hours ago)
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Sir Mel Stride
My hon. Friend is absolutely right. If we borrow more money, we pay more for that borrowing. Of course, that has fed through to inflation. We know that inflation this year, according to the International Monetary Fund, will be the highest in the G7. The IMF also says it will be the highest in the G7 next year. The consequence of that in monetary policy is interest rates being higher for longer. Of course, if we have a mountain of debt and add to it ruinously, the cost of servicing that debt goes through the roof. It now stands at about £100 billion a year, rising to £130 billion at the end of the scorecard. That is more than twice what we spend on defence every year.
Kit Malthouse (North West Hampshire) (Con)
The shadow Chancellor is laying out compellingly the calamitous choices that were made at the last Budget. Does he agree that fundamentally underlying them is the most calamitous choice of all, which was the strategic decision that the public sector would be expanded and the private sector contracted? The crowding out of the private sector is resulting in this doom loop that we are trapped in. We have fewer and fewer wealth creators and businesses paying for this bloated public sector, and their ability to shoulder that burden gets weaker by the day.
Sir Mel Stride
My right hon. Friend makes an extremely incisive and correct point. If a Government spend huge amounts of money, there is an opportunity cost to that and it comes through in various forms, including, as he rightly says, raising the cost of capital and crowding out labour, skills and so on. It is a fine and important balance to get right and this Government, palpably, have got it wrong.
James Murray
As a Treasury Minister, what I am very used to in the run-up to a Budget is members of the media and Opposition Members finding more and more convoluted ways of trying to work out what is going to happen in the Budget. My answer would be the same at every turn: they simply have to wait until 26 November to see what the Chancellor announces in her Budget. The official Opposition are entirely entitled to put forward what they say they would do differently.
Kit Malthouse
I hear what the Minister is saying about us waiting for the Budget. Could he reassure the House that he has not discussed anything that might be in the Budget with any journalist, and certainly that he has not authorised any members of his office or anybody within the Treasury press team to brief out some of the kites that have been flown about the Budget in the media over the past few weeks?
James Murray
Despite the right hon. Gentleman’s invitation, I am not going to engage in speculation ahead of the Budget. I am not going to feed the speculation that he is trying to wind up. I understand that the Budget is an important day in the parliamentary calendar, and it is an important day for the Government. Rightly, Conservative Members and Members of all parties want to know what is in the Budget, but they simply must wait until 26 November to find out.
Kit Malthouse
On a point of order, Madam Deputy Speaker. I seek your guidance. The Minister has said that he is unwilling to discuss what might be in the Budget with the House. He did not, however, deny that he may have done so with journalists, or that he may have authorised others to brief to the media what may or may not be in the Budget. In the absence of that denial, are we within our rights to demand that the House be privy to what those conversations contained, in the same way that the business pages of The Times may have been?
Madam Deputy Speaker (Judith Cummins)
That is not a point of order; it is a matter of debate. I can calm Members’ nerves by saying that it is not many more sleeps until Budget day.