§ 10. Mr. Desmond Browne (Kilmarnock and Loudoun)What his policy is on the management of the national debt. [121380]
§ The Economic Secretary to the Treasury (Miss Melanie Johnson)Our debt management policy, as set out in the debt management report published on Budget day, is to minimise the long-term cost of the Government's financing needs, taking into account risk. Thanks to the introduction of the new monetary and fiscal framework, the debt interest bill is projected to be £4 billion a year lower than when we took office from the Conservative party.
§ Mr. BrowneI thank my hon. Friend for that reply. In common with other Labour Members, may I welcome a debt management policy that will in the long term generate more resources every year for spending on our priorities, principally the reduction and elimination of child poverty?
In the absence of a helpful quotation from the shadow Chancellor of the Exchequer to illuminate my question, I draw my hon. Friend's attention to the advice of that other great economic analyst, the hon. Member for Banff and Buchan (Mr. Salmond). On Saturday, at the Scottish National party's conference, he said:
Scotland should demand £2 billion—from the £22 billion proceeds of the mobile phone spectrum auctionfor investment in public services and infrastructure now.Will my hon. Friend explain to the House why the Government have chosen not to do that but have instead chosen to use that money to reduce the national debt?
§ Miss JohnsonOur policy is to manage the economy in a prudent fashion and gain the benefits of our prudence. The reduction of the national debt will bring benefits to the whole country and our aim is to reduce debt interest over the next few years and beyond. Of course, we inherited a £28 billion deficit from the Tories, under whom the national debt doubled. We have turned public finances around and made a massive investment in public services. I know that my hon. Friend will share my eagerness not to return to the Tory policies of boom and bust.