Public Spending: Borrowing Increase

Lord Hain Excerpts

Thursday 13th October 2022 Lords Chamber

Asked by

[Lord Hain]

To ask His Majesty’s Government what are the implications for public spending of the increase in borrowing announced by the Chancellor of the Exchequer on 23 September.

[Viscount Younger of Leckie (Con)]

My Lords, the Government’s growth plan set out the important steps we are taking to drive growth. This will help to improve living standards and fund high-quality public services. Sustainable long-term growth depends on a disciplined approach to public finances that includes focusing our spending on core priorities and working efficiently. The Government will set out more details on their approach to public spending at the medium-term fiscal plan on 31 October.

[Lord Hain (Lab)]

I thank the noble Lord for that expert reply. Has the Prime Minister any idea what on earth she is doing? The Institute for Fiscal Studies estimates she must slash public spending by some £62 billion, on top of the £180 billion of public spending cuts since 2010, or forego the tax cuts. The NHS is on its knees, social care hangs by a thread, and schools and local government are tottering, while millionaires will be much better off. Then, just yesterday, the Prime Minister claimed, “All is well. There’s no need for cuts”. Is it any surprise that the markets are spooked?

[Viscount Younger of Leckie (Con)]

I do not take the view that the noble Lord has. The Government are focused on increasing economic growth to boost living standards through supply-side reform. This will create new, better-paid jobs, allowing people to keep more of what they earn, and ensure that people from across all spectrums of society, including the most vulnerable, will benefit. On the noble Lord’s question, the detail of the growth plan will be rolled out on 31 October. It is intended that we should show that we are fiscally responsible.