Amendment of the Law

Part of Budget Resolutions and Economic Situation – in the House of Commons at 9:07 pm on 10th March 1992.

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Photo of Mr Mark Wolfson Mr Mark Wolfson , Sevenoaks 9:07 pm, 10th March 1992

No, I should like to continue.

A number of hon. Members have expressed concern about the size of the PSBR. I have always been something of a Keynesian. I was less happy than some on the Conservative Benches when we followed a strict policy on borrowing during earlier recessions. In the present situation it is perfectly proper for Government borrowing to rise to deal with the budgetary problems caused by recession. Structurally, there is no budget deficit. The Government have taken a sensible way forward and, as a result of the good measures that are now in place and the competitive position of British industry, we shall be able to capitalise on that and return to growth at the end of the recession. Over the medium term we shall return to a balanced budget. During their term of office the Government have been able to repay a large part of the national debt. The borrowing requirement now is different from that which existed in 1979 when the Labour Government left office. The economy is set for recovery.