16. What recent representations he has received on the introduction of new fiscal rules to limit government borrowing. (906524)
The Government will shortly publish the revised charter for budget responsibility, which will set out new fiscal rules in detail. As the Chancellor said last week, there is more to do, but our long-term economic plan is working. The deficit is forecast to fall this year, down from what the Office for Budget Responsibility described as the post-war record deficit of 10.2% of gross domestic product in 2009-10 to 5% this year—cutting it in half.
I thank the Minister for that reply. I commend the autumn statement, in particular chart 1.9 therein, which makes it clear that any Government who wish to reduce debts as a share of GDP to under 40% in the next 20 years will not merely have to balance the budget, but to run a surplus of 1% of GDP on the budget. Does my hon. Friend agree with me that it is essential that new fiscal rules are created and voted on frequently to achieve this massively important debt reduction?
My hon. Friend is right. The Opposition talk about balancing the books, but in fact what they are talking about is borrowing more once their current budget is in surplus, and that is a complete fabrication, because what the Opposition need to recognise is that the only way to return this country to prosperity is not just to deal with the massive debt left by Labour but also to get our economy back into long-term growth and long-term surpluses. [Interruption.]
Order. It is very disorderly for Members to yell at the Minister from a sedentary position, and I remind you, Mr Lucas, that you have still got to complete your apprenticeship to become a statesman. I keep updating the House on progress, but there is still a little distance to travel.
Many people in work are relying on benefits just to survive, and they are not paying tax, all of which contributes to the reason why the deficit has gone up more than the Minister, and her Government when they came in, promised. Today’s OECD report says countries that promote equality will grow and prosper. Will she accept that her Government have got it disastrously wrong for so many people and adopt the policies suggested by the OECD, including a higher rate of top tax?
I find it absolutely extraordinary that the hon. Gentleman can talk about the under- achievement of this Government. It is not by chance that our economy is the fastest growing in the G7; it is not by chance that there are 2 million more people in work in the private sector; and it is not by chance that there are now 2 million apprentices, as of today. It is extraordinary that the Opposition do not see that it is all about economic recovery, not interfering and borrowing more.
As usual we are pressed for time, but I cannot allow excessively long early questions and answers to deny Members who have been waiting patiently, so we will now hear, I hope, from Mr Philip Hollobone.