Government Performance against Fiscal Rules

Lord Clarke of Nottingham Excerpts

Tuesday 8th July 2025 Lords Chamber

[Lord Livermore (Lab)]

I may have agreed with the first half of the noble Viscount’s question; I am not sure I agreed with the second half of it. But, absolutely, the best way to repair the public finances is through economic growth. That is why it is our number one mission.

[Lord Clarke of Nottingham (Con)]

My Lords, since the 2008 financial crisis, this country has built an unsustainable level of public debt in relation to our GDP, and the cost of servicing that debt is a serious constraint on financing public services. Does the Minister agree that any easing of fiscal rules in those circumstances would run a serious risk of creating another financial crisis, with more hardship? Will he undertake to stick firmly to the rather lax fiscal rules we have, as the Chancellor keeps affirming, and try to put up more stalwart resistance to the left-wing Back-Benchers in his party who seem to have got into the House of Commons in rather considerable numbers?

[Lord Livermore (Lab)]

I slightly disagree with the noble Lord’s characterisation of the Parliamentary Labour Party, but I certainly agree with what he says about the fiscal rules. They are essential to maintaining our ability to invest in our public services. The second fiscal rule absolutely allows the additional investment into our public services, but, as he says and as I have said before, the previous Government doubled the national debt, and we have to fund that. The more that it looks like we will not, the harder it becomes. I give him that undertaking. Our commitment to the fiscal rules is non-negotiable.