Public Sector: Debt

Lord Higgins Excerpts

Thursday 23rd January 2014 Lords Chamber

[Lord Newby]

My Lords, the Government are trying to get under control a disastrous fiscal situation that we inherited from the previous Government. I am not quite sure whether the noble Lord is saying that we should cut expenditure more, but if he is, I would be grateful to hear his specific proposals.

[Lord Higgins (Con)]

Does my noble friend agree that, although the deficit has been reduced by one third or so, extra borrowing is still increasing at an alarming rate? The Chancellor is therefore absolutely right to make it clear that his intention is to eliminate the deficit completely, if we are not to burden future generations with the terrible task of dealing with the borrowing and also incurring higher interest rate costs. Does my noble friend further agree that it is high time the Opposition recognised the fact that reducing the deficit is the only possible way forward?

[Lord Newby]

I do agree with my noble friend. I am not sure that it is widely understood that cutting the deficit, which we are doing, will still mean that this Government will have borrowed an extra half a trillion pounds during the course of this Parliament. The party opposite has so far come forward simply with plans to increase that additional borrowing further. That would simply not be credible.