Balancing the Public Finances
Debate between Robert Courts and Joan Ryan(7 years, 5 months ago)
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Neil O'Brien
You are absolutely right—my hon. Friend is right—to point out that we are paying that much in debt interest payments. You will know that more than a quarter of our debt is held overseas, so by my calculations we are spending something like £10 billion a year to other countries for them to spend on their schools and hospitals. My constituents in Harborough will be shocked that we are spending that much to support public services overseas.
Joan Ryan (in the Chair)
Order. I remind the hon. Member for Harborough (Neil O'Brien) that he is supposed to address the Chair.
Robert Courts
I am grateful to my hon. Friend for making that powerful point. He is right that when we are paying debt interest overseas, we are paying money elsewhere when it could be spent in this country building up the economy and spent on our priorities.
The central point is that a strong economy is needed to fund strong services. It is all very well to have a long list of priorities on which we would like to spend. Let us be under no doubt that everybody Government Member wants strong public services. We want to increase spending, but that must be done in a responsible way. That money, in order to be spent, has to be raised. If public spending is not balanced, it leads to a weaker economy. That means less money to be spent on our public services, and it means that we are in a weaker positon to withstand the next economic shock when it comes. In due course, there always will be a downturn in the economy and we need to be in a strong position to meet it when it comes. That is the overriding mistake made by the Labour Government.
Living within our means is not an ideological fixation. It is not simply a desire. It is a necessity to ensure that we can protect our public services and spend sensibly for this generation and for generations to come.