Lord Barwell
Main Page: Lord Barwell (Conservative - Life peer)Department Debates - View all Lord Barwell's debates with the HM Treasury
(11 years, 3 months ago)
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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.