Lord Haskel
Main Page: Lord Haskel (Labour - Life peer)
Lord Haskel
To ask Her Majesty’s Government what is the fiscal framework within which they are making their spending promises.
Lord Bethell (Con)
My Lords, the Government have brought the deficit down by four-fifths since 2010. With a strong fiscal position and close-to-record low costs of borrowing, we can invest more in our growing economy and public services. The spending round was delivered in line with existing fiscal targets in the Charter for Budget Responsibility. The Government are reviewing these and will maintain a clear set of rules to anchor our fiscal policy.
Lord Haskel (Lab)
I thank the Minister for that reply, but it does not tell us what we can afford: it tells us the Government’s hopes and aspirations. Yet the Office for National Statistics tells that the public finances are getting worse, borrowing is going up, income from taxes is going down and our deficit is increasing. Does he not agree that in these circumstances a constant stream of spending promises and tax cuts without some sort of credible fiscal framework is irresponsible, reckless and not the action of a serious Government?
Lord Bethell
My Lords, the situation described is not one that I recognise. A thousand extra people are in work every day since 2010. The deficit is down by four-fifths from its peak of 10% in 2009-10 to 1.9% in 2018-19, and wages currently outpace inflation. Productivity is a challenge. It is not performing as we would like—it has stalled since the financial crisis—which is of deep concern to the Government. Historic low interest rates for borrowing costs are a big opportunity. That is why the Chancellor has made it clear that the fiscal rules are under review and, when we have a chance to have a Budget, those will be made clearer.