Fiscal Responsibility Bill

I do not particularly want to speculate on that, other than to say that it is difficult to take action now that will produce meaningful results in 2010-11, and I have not seen proposals of any significant detail from the Conservatives that would deliver what they say they want. There is a clear commitment in the Bill to a fiscal consolidation plan that will halve public sector borrowing as a share of gross domestic product over four years from its forecast peak in 2009-10. As we have debated, we are setting a target in secondary legislation for borrowing to be 5.5 per cent. of GDP or less in 2013-14. The plan also commits us to reducing borrowing as a share of GDP in each and every year from 2009-10 to 2015-16 and it ensures that public sector net debt is falling as a share of GDP in 2015-16. This is the sharpest reduction in the budget deficit for any G7 country, but it is not unreasonable. The average pace of consolidation over the period is forecast to be comparable with the speed at which the deficit was reduced during the period of consolidation in the 1990s. The framework that we propose is flexible, as I explained in Committee. The key point to recognise is that as growth picks up we have to ensure that we have sound public finances. That is essential for economic stability for the long-term health of our economy. We all know that; the debate has been about the pace at which we achieve that and the point of having legislation on that issue. The point of legislation is to give confidence to the public and the markets that we are committed to taking these actions. Actions have already been announced, as part of the PBR 2008, the Budget 2009 and the PBR 2009. Further actions will undoubtedly be necessary. We are building on principles in the code for fiscal stability, the revised version of which was published yesterday, and we discussed those principles in Committee. The building of the fiscal framework on top of those principles—enhancing it through this Bill—will support the task of ensuring that we have sound public finances for the long term. Parliament will be given a new role to hold Government to account, and that is important and the right thing to do. I commend the Bill to the House.