L

Lord Clarke of Nottingham (Con)

Speaking in the House of Lords on 2 September 2025

Debate

Gilt Yields

Contribution

My Lords, the recent rise in yields on bonds should serve as a warning that this country is much nearer to the risk of a financial crisis than the Government are even remotely acknowledging. It is not impossible to foresee a trip to the IMF eventually unless the Government can get their fiscal policy under control. They now have a very tough and difficult Budget to introduce, in which they will probably have to take some very unpopular decisions in the short term. Will the Minister assure us that the Government will stop floating various ideas to try them out in the newspapers, will look to raise revenue from the principal taxes that are usually used in these circumstances, which they foolishly ruled out as part of their election manifesto, and will curb and if possible reduce the level of borrowing they are making, and not simply define all borrowing as “investment” to say that it does not damage their fiscal policy? Only that kind of responsible action in the genuine medium and long-term national interest will stop the markets being as nervous as they have been.

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