Public Sector: Debt

Lord McFall of Alcluith Excerpts

Thursday 23rd January 2014 Lords Chamber

[Lord Newby]

My Lords, sadly, we are not going to abolish the debt by 2018, although I hope that we shall abolish the annual deficit by then. The Government have set out expenditure plans for 2015-16; how expenditure falls beyond that will, as I said, be the task of the next Government. The parties will set out their plans, and my party has already explained that it would expect further fiscal consolidation to take place, but that a proportion of that fiscal consolidation will need to be borne by the shoulders that are broadest.

[Lord McFall of Alcluith (Lab)]

Is there a case for the Government to establish an education programme to distinguish between the deficit and the debt? Is it not misleading for them to focus only on the deficit, particularly when their actions are making the national debt increase by more than 60% compared with any other European country?

[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.