Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of increased borrowing costs on capital expenditure projects in (a) local government and (b) other public services.

The government will need to take difficult decisions on both spending and on tax in order to place the public finances on a sustainable footing. We have already reversed a number of tax reforms in order to ensure the country’s economic stability and show our commitment to sound public finances.

While no government can eliminate market volatility and its implications for the cost of borrowing, we can give certainty of our plans for the public finances. The government will publish our full Medium-Term Fiscal Plan on 31 October, accompanied by an independent Office for Budget Responsibility economic and fiscal forecast. The Fiscal Plan will set out the government’s responsible fiscal approach fully, including how we will reduce debt as a percentage of GDP over the medium term.