Chris Leslie
Main Page: Chris Leslie (The Independent Group for Change - Nottingham East)Department Debates - View all Chris Leslie's debates with the HM Treasury
(6 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Hammond
My hon. Friend is right to express concern about the vulnerability created by the high level of debt. As the OBR made clear last week, that debt means that if the economy were to face an external shock, we would not be in a position to respond in the way that we would ideally like. That is why we have to get debt down, and the only way to get debt down is to get the deficit down. That means responsible fiscal policy, not the kind of rubbish we hear from Labour Front Benchers.
Mr Chris Leslie (Nottingham East) (Lab/Co-op)
Was it not clear from the OBR report last week that it is a hard Brexit that presents the biggest threat to our national finances? Just a 0.1% decrease in productivity could lead, over 50 years, to a 50% increase in the ratio of debt to GDP. If the reports are true that the Chancellor is prepared to champion a longer transition from the single market for the UK, such welcome news might secure a lot of support on both sides of the House.
Mr Hammond
I welcome the hon. Gentleman’s contribution. On an issue as important to our nation’s future as our exit from the European Union, I welcome any opportunity to build consensus across the House and the nation. He is right to draw attention to what the OBR said. Even a very small decline in our productivity performance would add huge amounts to the debt and would reduce, by significant amounts, our projected growth in GDP. That is why it is so important that we now act responsibly in maintaining fiscal discipline and ensuring that we reduce our debt over time.