Government: Economic Policies — Question

Part of the debate – in the House of Lords at 3:07 pm on 30th January 2013.

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Photo of Lord Deighton Lord Deighton The Commercial Secretary to the Treasury 3:07 pm, 30th January 2013

I agree with the implicit statement of the noble Lord that the economy is taking a long time to recover. That is because of the depth of the problems that we confront and the global nature of the economic recession with which we are dealing. There is only one effective solution to that, which is to restore market credibility. The only way in which we can do that is to ensure that our finances are absolutely stable. The alternative strategy of borrowing more to increase demand has already been proven, given the state that we got into, not to work. You do not borrow your way out of a recession which is caused by a deficit created by borrowing too much.