Economic growth and fiscal policy
Andrew Bridgen calls for a Parliamentary debate on the relationship between economic growth and fiscal policy and highlights figures from the US that show that its recent economic growth was delivered during a time of fiscal tightening.
Andrew Bridgen (North West Leicestershire) (Con): Can we have a debate about the relationship between economic growth and fiscal policy, especially in the light of recent figures from America, which show that its recent economic growth was delivered during a time of fiscal tightening? Also, given that our national debt exceeded £1 trillion at the end of last year, such a debate would provide an excellent opportunity to explode the myths perpetrated by Opposition Members, who cling to the misguided mantra that we are going too fast and too far in cutting the deficit that we inherited from the last Government.
Sir George Young: My hon. Friend draws attention to the fact that the debt is now around £1 trillion. When my party left office in 1997, it was around £300 billion; when we came back, in coalition, it was somewhere around £900 billion. That was the escalation that took place in the intervening 13 years, and that is why we need to take steps to get the debt back under control.