HC Deb 29 January 2004 vol 417 cc387-8
19. Sir Michael Spicer (West Worcestershire) (Con)

When he will publish revised forecasts for the public finances. [151561]

The Chancellor of the Exchequer (Mr. Gordon Brown)

An updated assessment of public finance projections will be available as usual in the forthcoming Budget on 17 March.

Sir Michael Spicer

May I repeat the question that I asked the Prime Minister yesterday, to which I got a hopeless non-answer? Why are the balance of payments deficits and fiscal deficits now totally out of control?

Mr. Brown

The current account deficit in 2002 stood at 1.8 per cent. of GDP, well below past peaks. In 1989, under the hon. Gentleman's Government, the current account deficit reached more than 5 per cent. of GDP. As far as the public finances are concerned—the second deficit—he may know that the deficit in America is between 5 and 6 per cent., in Japan it is 7 per cent., in Germany and France it is 4 per cent. or more, and in Britain it is 3.2 per cent. I ask him to recall that the deficit in the early 1990s under the Conservative Government was not 3.2 per cent.; it was more than 8 per cent.

Roger Casale (Wimbledon) (Lab)

Is it not the case that while many countries continue to suffer from the global recession—France and Germany cannot even stay within the European Union stability pact—this country is investing more in public services against a background of economic growth? We have our public finances under control, and recent reports by the OECD, the IMF and the World Bank demonstrate that the British economy and public finances stand up well to any international comparison, despite the attempts by Conservative Members to talk down not only the British economy but the achievements of this Government.

Mr. Brown

We meet our fiscal rules, which would never have happened under the previous Government, and we will not engage in public spending cuts. If the shadow Chancellor persists in saying that he will announce public spending cuts because people say that our spending is horrifically too much. I know what the people of this country will say to him.