Treasury and Work and Pensions

I am grateful to the hon. Gentleman for giving me the opportunity to highlight the fact—I was not going to refer to it and the Chancellor certainly never refers to it—that the Chancellor was a more enthusiastic supporter of British membership of the ERM than anyone in that Conservative Government. The point that I was trying to make about GDP growth was that we are repeatedly told about the success of this Chancellor’s conduct of the economy and the many quarters of steady economic growth, forgetting that the foundations were laid during the Chancellorship of my right hon. and learned Friend the Member for Rushcliffe (Mr. Clarke). The other issue I wished to address is that of taxation as a proportion of GDP. In 1997, taxation was under 39 per cent. of GDP, but for the year ending April 2007 it is forecast to have increased to 42.6 per cent., which will be the highest proportion since 1986. That is not a record in which the Chancellor should take much pride. What are the consequences of those fragilities and frailties in the economy? One that we need to bear in mind—it has been touched on by other hon. Members—is record levels of debt in the economy. Public sector debt is at record levels, personal debt is at record levels and the debts that are not on the Government’s books, because they have been carefully kept off them, are also at record levels.