Baroness Neville-Rolfe (Con)

My Lords, we on these Benches accept that fiscal rules are important, and we have noted the Government’s attachment to the current version and the widespread concern as to where they will turn for spending cuts or tax rises, as it is apparent that the rules are not going to be met. Today’s OBR Fiscal Risks and Sustainability report concludes: “The UK’s public finances have emerged from a series of major global economic shocks in a relatively vulnerable position”. We have heard from the OBR that the UK Government have the sixth-highest debt, the fifth-highest deficit and the third-highest borrowing costs among 36 advanced economies. In November, the Chancellor wrote to the Economic Affairs Committee in response to its robust and convincing report on the UK’s national debt. She said: “The Budget took the necessary difficult decisions to put the public finances on a sustainable path—setting realistic plans for public spending while raising revenue—to create the conditions for growth”. In the light of the dismal and depressing OBR report, does the Minister agree that this Statement and the Government’s entire economic strategy are in tatters and that the Chancellor needs to write another, more realistic letter?