Daisy Cooper

The hon. Gentleman is right to point to the fact that many people were impacted by the mini-Budget in different ways. [Interruption.] I hear chuntering from a sedentary position from the shadow Minister, the hon. Member for North Bedfordshire (Richard Fuller). Those on the Conservative Benches may want to forget the impact of the mini-Budget, but many of our constituents across the country continue to live with the consequences. In the run-up to the Labour Government’s Budget, we Liberal Democrats welcomed one of the Government’s new fiscal rules—namely, the switch to public sector net financial liabilities as the targeted measure of debt. We are pleased that the Chancellor made a change that will create more room for productive public investment, while also making a commitment that debt as a share of GDP should keep falling. We Liberal Democrats have long recognised the need to boost public investment in a responsible way, and we are glad that the Government have moved in that direction. However, as we debate the new charter, it is also worth reflecting on how fiscal rules are treated in our politics more broadly. Although they are absolutely necessary for economic stability, there is too often a sense that fiscal targets can be arbitrary and that they are chosen based on what is convenient for each Government; previous Conservative Chancellors changed the fiscal rules five times in seven years between 2015 and 2022. What often seems to be lacking throughout the process is a sober, pragmatic dialogue about what the best fiscal rules are for our economy, for everything from growth and investment to jobs and net zero—a discussion perhaps ideally not affected by politics, but focused on what is right for our economy. Notwithstanding that, and although I hope we will all agree to these changes in the borrowing rules, the costs of borrowing clearly rely on good economic management, which, in turn, as the Chief Secretary said, relies on stability. Borrowing costs have gone up in part due to events abroad, but they have also risen because of the Government’s jobs tax, the uncertainty over their business rates reform and the impact that that will have on small businesses. It is therefore clearly important that we recognise that any changes to productive borrowing must go hand in hand with the responsible management of day-to-day spending and tax changes. A second point, which I made in an earlier debate around the time of the Budget, is that although the Liberal Democrats welcome productive borrowing for investment, we recognise that the Government’s headroom is quite slim. Will the Minister be able to offer a word or two about which measures the Government are taking to ensure that we have a resilient economy that can withstand any external shocks? We live in a very uncertain world. There are rumours of trade wars and tariffs, and God forbid we have another pandemic. It is only by having a resilient economy that we can withstand unpredictable external shocks. There are several elements in the charter that we support, and we do not want to stand in its way, but I express the hope that, from here on in, we may be able to adopt an approach to fiscal rules that is more pragmatic, open and grounded in what is best for our British economy.