Government Performance against Fiscal Rules

Meg Hillier Excerpts

Monday 7th July 2025 Commons Chamber

[Darren Jones]

I think the House knows what losing control of the public finances looked like, because under the previous Conservative Government interest rates went through the roof, families were paying higher mortgage rates and the Chair of the Treasury Committee was calling out the irresponsible behaviour of Liz Truss and her Ministers in the Treasury. That is what losing control of the public finances looked like and that is why the Conservative party lost control of Government and is in opposition today. The right hon. Gentleman asked me to comment on forecasts of annually managed expenditure and on future tax decisions. He knows how this works. All of that will happen with a forecast and a Budget, which will happen in the autumn.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

We all know why the Government want to keep their fiscal rules tight, because we know what happens when the markets go wrong, but a lot of things have rocked the country since the Labour Government were elected a year ago. Will the Chief Secretary explain to our constituents what the benefits of the fiscal rules are for them in their day-to-day lives? This can seem a very remote and distant discussion for people who are living in overcrowded conditions or who need healthcare, for example.

[Darren Jones]

I thank the Chair of the Treasury Committee for her question. The way I would describe it to the public is that when the Government lose control of the public finances, as the Conservative party did in government, it affects not only the accounts in the Exchequer and the Treasury but the family finances in every house across the country. People are still paying for the consequences of the last Government not sticking to their fiscal rules and acting irresponsibly. That is why our fiscal rules are non-negotiable, and we will stick to them.