Public Spending: Borrowing Increase

Lord Sikka Excerpts

Thursday 13th October 2022 Lords Chamber

[Viscount Younger of Leckie (Con)]

I am well aware of what the Prime Minister said yesterday. I reiterate that the 2021 spending review set out the departmental budgets for three years and overall departmental spending is still growing in real terms. It also cited that 5% efficiency savings against day-to-day budgets would be looked at for 2024-25. Having said all that, a reprioritisation, efficiency and productivity review has been announced and will be undertaken.

[Lord Sikka (Lab)]

My Lords, according to the ONS, since 2010 this Government have borrowed more in real terms than all Labour Administrations combined—and Labour created the National Health Service, the welfare state and many new industries. In contrast, the Government, despite borrowing an extra £1.5 trillion, have created poverty and homelessness and destroyed public figures. Can the Minister publish a paper explaining how this £1.5 trillion has been wasted?

[Viscount Younger of Leckie (Con)]

I have spoken about an efficiency review and a reprioritisation, and that is under way. I say that it is not all as the noble Lord paints; for example, we have got unemployment down to its lowest level for about 40 years, at 3.5%, which is excellent, and there is much more we can do to that extent. The economy is actually in a pretty robust state, despite what the noble Lord might be indicating.