Government Performance against Fiscal Rules

Baroness Kramer Excerpts

Tuesday 8th July 2025 Lords Chamber

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

The noble Baroness mentions many things. She mentions debt. Of course, the last Government doubled the national debt. There is one reason why we are where we are. It is because of the last Government losing control of the economy—something that this Government will not do. We will meet our fiscal rules at all times. I am not going to give a running commentary on those fiscal rules. Following the usual process, the Chancellor will ask the OBR to produce a new forecast in the autumn for the annual Budget, which will include an updated assessment of the Government’s performance against the fiscal rules. At that time, we will set out our fiscal plans in the usual way.

[Baroness Kramer (LD)]

My Lords, the Government have constantly asserted that meeting the fiscal rules is non-negotiable. Will the Minister now reassure the House that protecting the NHS and social care is also non-negotiable, and rule out any cuts to those services as the Government try to balance the books? Will he also accept that raising employers’ NICs, especially on small businesses, is actually holding back growth? Will he look instead at what we recommended—raising taxes on the broadest shoulders of the social media giants, the gambling companies and the big banks—to consider some proper relief and support for those small businesses?

[Lord Livermore (Lab)]

I normally try to agree with the noble Baroness, but that is one of the most extraordinary questions I have heard in these debates. She says that we should protect the NHS and then says that we should not have the main measure that is funding the NHS. If she wants the investment in the NHS, she has to stand up for the taxes that fund the NHS.