Government Borrowing

10. What assessment she has made of the implications for her policies of the most recent figures for Government borrowing.

In the autumn I took the decisions to put our public finances back on a firm footing. The most recent GDP data showed that the economy grew by 0.4% in the final month of last year. As I have said on many occasions, our fiscal rules are non-negotiable. The Conservative party sent mortgage rates and business borrowing costs spiralling; we have returned stability to the public finances to give families and businesses the stability that they need.

The servicing cost is now twice what we are spending on defence, which the Chancellor is right to be increasing. What is her ambition for finding savings in the welfare budget?

I agree that we need to get a grip of the welfare budget, which got out of control under the previous Conservative Government. Frankly, I am not going to take lectures from the Conservative party, which crashed the economy. Let me remind the House what the right hon. Gentleman said about the disastrous mini-Budget:

“I share entirely the free-market ideology that underpins the Chancellor’s statement…The Chancellor was right to be radical.”

He added:

“I rejoice at the two fingers the Chancellor has raised to socialist dogma and envy.”

I think that the financial markets and the British public have united in their view on the previous Government.