Fiscal Responsibility Bill

No, I want to make some progress. Perhaps I will give way later. Clause 1 of the Bill imposes three duties on the Treasury: first, to ensure that Government borrowing as a share of GDP falls in every year to 2015-16; secondly, to ensure that Government borrowing is at least halved as a share of GDP over a four-year period to 2013-14; and thirdly to ensure that Government debt as a share of GDP is falling by 2015-16. The latest forecasts for the public finances, which I set out at the pre-Budget report last month, are consistent with these duties: in the next financial year, 2010-11, Government borrowing will start to fall and continue to do so each and every year after that; borrowing will reach 5.5 per cent of GDP by 2013-14, so that we will more than halve the 12.6 per cent. of GDP reached this year; and with further consolidation thereafter, debt as a share of GDP is projected to fall in 2015-16. I have announced measures that will allow us to more than halve the deficit as a share of GDP over four years—from 12.6 to 5.5 per cent. That is the sharpest reduction in the budget deficit for any G7 country. In relation to the points raised by some hon. Members earlier, there are no powers to amend those duties. They can be changed only through new primary legislation. In other words, the Government would have to return to the House were they not meeting the obligations.