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Displaying 3697 contributions
Finance and Public Administration Committee
Meeting date: 20 December 2022
John Mason
You also used the word “caution” in the introduction. You are not arguing against measures such as increasing the child payment or putting more into the health service. You are not talking about that kind of fiscal commitment, are you?
Finance and Public Administration Committee
Meeting date: 20 December 2022
John Mason
That was very helpful.
My final question is perhaps also for Dr Brewer, to start with. In the report, you mentioned that
“Although it is normal for debt to increase during a recession, the UK has failed to address the accumulation of debt following the financial crisis and the pandemic.”
Should we be worried about the level of UK debt?
Finance and Public Administration Committee
Meeting date: 20 December 2022
John Mason
Thank you—that was very helpful.
On the issue of where the UK is raising money from, you mention in your report that new energy levies are a part of that. There has been some debate about whether such levies discourage investment or, because they are just one-offs, they do not really have an impact. What are your thoughts on that?
Finance and Public Administration Committee
Meeting date: 20 December 2022
John Mason
Do you have a date as to when we are going to hit that limit?
Finance and Public Administration Committee
Meeting date: 20 December 2022
John Mason
Undoubtedly, there will be another crisis somewhere along the line.
10:30Finance and Public Administration Committee
Meeting date: 20 December 2022
John Mason
The committee heard from the expert panel earlier and the witnesses made the point that the UK has failed to address the accumulation of debt following all the different crises that we have had. If I remember correctly, when I was younger—I believe that I am the oldest member of the committee—interest rates had to rise because the pound was getting weak, and the UK debt was so great that interest rates had to be above inflation. Is there any risk of that happening again?
Finance and Public Administration Committee
Meeting date: 20 December 2022
John Mason
As I understand it, you are more concerned about what is going to happen in two years’ time than, perhaps, what is going to happen immediately. You say in your report:
“Adding future fiscal commitments or pressures at this time given the spending outlook is unwise and would require a larger subsequent adjustment.”
Do you think that such things are happening? Are “future fiscal commitments” being made that should not be made, or are you just giving a general warning that we should not be making any major new commitments at this time, given Professor Ruane’s comment that the whole country is becoming poorer?
Finance and Public Administration Committee
Meeting date: 20 December 2022
John Mason
There is no public pay policy for 2023-24, which is a point that has already been made. We all understand that that is because we do not know what the public pay policy for 2022-23 is. Was that a problem for you when you were forecasting? How did you take that into account?
Finance and Public Administration Committee
Meeting date: 20 December 2022
John Mason
We have mentioned capital expenditure. There is a borrowing limit of £3 billion. Where are we with that? How close are we getting to the borrowing limit, and how scared should we be?
Finance and Public Administration Committee
Meeting date: 20 December 2022
John Mason
That is fair enough.
Your report quoted Andy Haldane saying that the situation around health is acting as a “brake on economic growth”. Will you expand on that? Do you think that Covid, long Covid and waiting times in hospitals are having an impact on the economy?