Government Borrowing
During Treasury Questions, Brooks Newmark asks the Chancellor of the Exchequer how much debt the Government would be willing to take before it became unsustainable (including both on and off balance sheet)?
Mr. Brooks Newmark (Braintree) (Con): Given that the Government intend that borrowing will be in excess of £1.4 trillion over the next four years, will the Chancellor please tell us how much debt the Government would be willing to take-both on and off balance sheet-before it became unsustainable?
Mr. Darling: As I was saying a few moments ago, it is important that we support the economy now. As I think the hon. Gentleman knows, as a result of what is happening, we, like other countries, have experienced a substantial drop in our tax revenues. For example, more than 25 per cent. of our corporate tax revenue used to come from the banking sector, so what has happened has had a consequence. In the face of that, he might argue that we should embark on wholesale cuts now, but that would be absolutely nonsense-
Mr. Newmark: No.
Mr. Darling: The hon. Gentleman says no-I agree with him-but that means that borrowing will be allowed to rise, which has a consequence on debt. At the same time, however, we must take action to ensure that we bring down borrowing and debt, and we have announced how we propose to do that. It is right and sensible to support our economy while ensuring that we have sustainable public finances in the long term.
