Commons Sense

House of Commons · Ministers' Questions

Government Borrowing

Tuesday 4 March 2025 · 2 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • Government borrowing figures prompted an assessment of current policies by the minister.
  • The minister referenced economic growth of 0.4% in the final month of the previous year based on recent GDP data.
  • The minister stated an intention to adhere strictly to fiscal rules and address the welfare budget, which they argue became uncontrolled under the previous Conservative administration.

Topics (select to filter)

Questions & Answers

Q1 Desmond Swayne Con New Forest West
Economy
Context

The most recent figures for government borrowing were released, prompting an assessment of the implications on current policies.

Question

What assessment she has made of the implications for her policies of the most recent figures for Government borrowing?

Answer from The Chancellor of the Exchequer (Rachel Reeves)

In the autumn, I took the decisions to put our public finances back on a firm footing. The most recent GDP data showed that the economy grew by 0.4% in the final month of last year. As I have said on many occasions, our fiscal rules are non-negotiable. The Conservative party sent mortgage rates and business borrowing costs spiralling; we have returned stability to the public finances to give families and businesses the stability they need.

Partly answered

Not addressed: The Chancellor did not provide a direct assessment of the implications for her policies from the latest government borrowing figures.

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Q2 Desmond Swayne Con New Forest West
Economy Benefits & Welfare
Context

The servicing cost of government borrowing is twice the spending on defence.

Question

The servicing cost is now twice what we are spending on defence, which the Chancellor is right to be increasing. What is her ambition for finding savings in the welfare budget?

Answer from The Chancellor of the Exchequer (Rachel Reeves)

I agree that we need to get a grip of the welfare budget, which got out of control under the previous Conservative Government. Frankly, I am not going to take lectures from the Conservative party, which crashed the economy. Let me remind the House what the right hon. Gentleman said about the disastrous mini-Budget: “I share entirely the free-market ideology that underpins the Chancellor’s statement…The Chancellor was right to be radical.” He added: “I rejoice at the two fingers the Chancellor has raised to socialist dogma and envy.” I think that the financial markets and the British public have united in their view on the previous Government.

Not addressed: The Chancellor did not specify ambitions or plans for reducing the welfare budget but instead cited criticisms of the previous government's policies.

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