Government Debt Debate
Full Debate: Read Full DebateDepartment: Department for International Development
Lord Hamilton of Epsom
Main Page: Lord Hamilton of Epsom (Conservative - Life peer)Department Debates - View all Lord Hamilton of Epsom's debates with the Department for International Development
(5 years, 1 month ago)
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Lord Bates
If the noble Lord is arguing that we should have gone further and faster in reducing the debt, he is somewhat at odds with his leader down the other end of the Corridor, who has come up with a plan to spend another £1 trillion. We are taking a balanced approach, protecting essential public services and delivering tax cuts while investing in infrastructure, and that is how we will go forward.
Lord Hamilton of Epsom (Con)
My Lords, at the moment, the Government are spending about 39% of GDP on public services. In my noble friend’s opinion, is that too much, too little or about right, and does he see merit in repaying debt?
Lord Bates
Certainly, the Government see merit in repaying debt; we pay interest rates of about £50 billion a year on debt, so there is a good rationale for trying to do that. However, we need to balance our approach. Primarily, we seek to stop that debt level increasing by bringing it down as a percentage of GDP from around 85% to 73% at the end of the forecast period, but we need to go further on that.