Budget Resolutions

Mark Garnier Excerpts

Wednesday 26th November 2025 Commons Chamber

[Mike Wood]

I think the hon. Lady is extremely brave to come to that point so early, given the levels that bonds are still trading at.

The OBR report is clear that the extra cost of borrowing, which is not replicated in other major economies, amounts to an extra £3 billion a year by 2030—more than the OBR expected just in March. In short, we are paying what I understand the markets call a “moron premium” because of the Chancellor’s choices.

[Mark Garnier (Wyre Forest) (Con)]

While we are talking about bonds, does my hon. Friend agree that, given the fact that we have an unusually large amount of index-linked gilts in the market and inflation is running at a higher rate than it was when Labour came to power, the cost of paying off the debt is going up at a disproportionately fast rate, thanks to Labour’s policies?

[Mike Wood]

My hon. Friend hits the nail on the head. I would go slightly further and say that it is not about paying off the debt; it is purely about servicing additional borrowing. That has real consequences for working families.

Perhaps the most concerning part of the OBR’s report is in paragraph 1.9, which says:

“Growth in real household disposable income per person is projected to fall from 3 per cent”

last year. It is falling not to 2%, or even to 1%, but to one quarter of one per cent on average for the next five years.