HC Deb 22 March 1979 vol 964 cc1675-6
7. Mr. Rost

asked the Chancellor of the Exchequer what has been the percentage increase in the national debt, and the percentage increase in servicing it, since February 1974.

Mr. Robert Sheldon

To the nearest available dates, the percentage increase in the outstanding national debt between 31 March 1974 and 31 March 1978, at constant March 1974 prices, was about 5 per cent. The percentage increase between the interest payable in 1973–74 and in 1977–78, at constant 1973–74, prices was about 14 per cent.

Mr. Rost

Has not the right hon. Gentleman cooked the figures again? What will people say to the Chancellor of the Exchequer if they ever find out that the Government have more than doubled the national debt? How does the Chancellor propose to repay the amount that he has borrowed and squandered on behalf of the British people?

Mr. Sheldon

I shall ignore the last part of the question because it is an obvious piece of nonsense. In relation to the gross national product, the national debt has declined. In 1973–74 the amount of national debt, as a proportion of the gross national product, was 55¼ per cent. Last year it was 54½ per cent. Perhaps the hon. Gentleman will take note of that.

Mr. Flannery

Will my right hon. Friend take into account the horrific increase in our national debt to the Common Market? Will he provide some answers as to how we can be rid of the national debt which the hon. Member for Derbyshire, South-East (Mr. Rost) seems to ignore? Will he level matters by reference to the common agricultural policy and our possible withdrawal if proper terms are not reached?

Mr. Sheldon

The correct way to deal with the difficulties of debt arising from the considerable repayments is to pursue the vigorous policy of my right hon. Friend the Prime Minister.

Mr. Lawson

The Financial Secretary is trying to confuse the House. Is it not the case that, in straightforward money terms, the Government have added more to the national debt in five years of office than have all the previous Administrations over the past 300 years? When he makes comparisons with 1974 prices, is he satisfied that, at constant 1974 prices, the burden of interest on the national debt—a burden for future generations to bear—has risen by about 50 per cent.?

Mr. Sheldon

The hon. Gentleman chooses real terms when it suits him and money terms when they support his argument. In practice, interest payments are not as he states. In real terms—that is the only way to look at it—interest payments were 3.1 per cent. in 1973–74 and rose to 3.5 per cent. in 1977–78.

Mr. Rost

On a point of order, Mr. Speaker. In view of that deliberately misleading answer. I beg to give notice that I shall seek to raise the matter on the Adjournment at the earliest opportunity.