Oral Answers to Questions

Philip Hollobone Excerpts

Tuesday 6th September 2011 Commons Chamber

[Mr Osborne]

I took action in the Budget to cut fuel duty.

[Mr Philip Hollobone (Kettering) (Con)]

What would happen to domestic interest and mortgage rates were Britain to lose its triple A status by relaxing its financial deficit reduction targets?

[Mr Osborne]

Of course the benefit of having a credible economic policy and a credible fiscal policy is having low market interest rates. Greece today has one-year bond rates of 82% and Italy’s bond spreads have gone out in recent days. We are borrowing money at 2.3%, and that is, in part, because we have a credible economic policy. If we did not have plans to deal with the largest budget deficit in the G20, we would find ourselves in a similar position to Italy or Spain.