Pre-Budget Report 2009

Definitely not. Quite the opposite; it is the British Government saying, "Rely on us to ensure that the economy continues into a strong, sustainable, low-inflation recovery that will give us the benefit of higher tax proceeds. The fiscal stabilisers will reverse their impact, and we will move to being able to reduce expenditure progressively to get government debt back to where we targeted it to be". I am grateful for that chance to correct the noble Lord’s misunderstanding in that respect. As I said, the Government have rightly taken action to support the economy while uncertainties and risks remain, but when the time is right we will reduce debt and ensure the public finances. It is absolutely critical that we do so. No one in government or on my own Benches should believe for one moment that we can or will flinch from making those difficult decisions once we believe that the economy is firmly in a state of strong recovery. All the actions with which I have presented your Lordships today are based on our values of fairness and opportunity, and only by following these polices can the nation expect to enjoy the fruits of an economic recovery that is characterised by those qualities of fairness and opportunity. Finally, and most importantly, I wish all noble Lords a very merry Christmas and a happy new year. Motion agreed.