Question to the HM Treasury:

To ask His Majesty's Government what steps they plan to take to reduce public sector borrowing, following the release of the latest Office for National Statistics figures for public sector net borrowing.

The Government’s approach to borrowing is set out in its fiscal rules – to move the current budget into balance so day-to-day spending is met by revenues, meaning the Government will only borrow for investment, and to reduce net financial debt as a share of the economy.

At the Budget in October, the Government took tough but necessary decisions on tax to put the public finances on a sustainable path. This is the responsible choice to reduce our levels of borrowing in the years ahead, so we can spend more on the priorities of working people and less on servicing debt.

The Chancellor has always been clear the fiscal rules are non-negotiable and the independent Office for Budget Responsibility (OBR) has confirmed the Government is on track to meet them. In its Spring forecast, the OBR forecast borrowing to fall in every year of the forecast – from 4.8% GDP in 2024-25 to 2.1% in 2029-30. By 2027-2028, the Government is funding day-to-day spending with revenues and only borrowing for investment.