Commons Sense

House of Commons · Ministers' Questions

Public Finances

Tuesday 2 November 2021 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Government will borrow only to invest in future growth to support economic recovery.
  • The Chancellor asserts that the Government's fiscal plan is responsible and sustainable, contrasting with the Labour party's approach.
  • The Government's net zero strategy includes 30 billion of investment, addressing the costs of transitioning to net zero.

Topics (select to filter)

Questions & Answers

Q1 Gagan Mohindra Con South West Hertfordshire
Economy
Context

The question addresses the government's fiscal rules and borrowing policies announced in the recent Budget. It highlights the commitment to borrow only for investment and reduce debt by 2024.

Question

What steps his Department is taking to manage the public finances effectively, borrowing only to invest and ensuring the Government's fiscal plan supports a strong economic recovery as per the Office for Budget Responsibility's analysis?

Answer from Rishi Sunak

The fiscal rules announced at Budget will ensure that the public finances remain on a sustainable path and support a strong economic recovery. The Government will borrow only to invest in future growth, so that future generations are not unfairly burdened, and I am pleased to say that the Office for Budget Responsibility's analysis shows that the Government's fiscal plan is working.

Answered
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Q2 Gagan Mohindra Con South West Hertfordshire
Economy
Context

The question builds on the previous one, emphasizing the contrast between the Conservative's responsible borrowing policy and Labour's lack of a concrete plan for public finances.

Question

I welcome the new fiscal rules set out by my right hon. Friend in his Budget last week, which will mean that the Government borrow only to invest and that they get the debt falling again by 2024. Does he agree that unlike the Labour party, which has no plan to deliver responsible public finances, these rules show how it is only the Conservatives who can be trusted to manage our public finances responsibly?

Answer from Rishi Sunak

My hon. Friend is absolutely right. The best foundation for our success as a country is a strong economy and responsible public finances. In contrast to the Labour party, which comes out with unfunded, reckless promises that would lead to our debt rising uncontrollably, it is this Government, and only this Government, who can be trusted to manage the nation's economy responsibly.

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Q3 Sammy Wilson DUP East Antrim
Economy Climate
Context

The question addresses the costs associated with the transition to net zero emissions, highlighting concerns about the lack of transparency in cost estimates and potential impacts on taxes.

Question

Given the commitments that the Prime Minister is making at the climate circus in Glasgow this week, how can the Chancellor possibly say that the public finances will be managed effectively when the huge costs of net zero are not even published by the Treasury, let alone known by the public? We are already seeing taxes increasing to pay for the huge infrastructure changes that reaching net zero is going to entail.

Answer from Rishi Sunak

I very much appreciate the right hon. Gentleman's concern about the cost of transitioning to net zero. The Government are also mindful of those costs, and the net zero strategy sets out a comprehensive approach to transitioning, backed up by £30 billion of investment. Indeed, as a result of the spending review and the Budget, the Northern Ireland Executive will receive on average about £1.5 billion a year in Barnett consequentials to help to fund priorities as required.

Partly answered

Not addressed: the specific costs and transparency issues raised by the questioner were not directly addressed

How: Changing Subject

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