We all have to try and live within our means and the government is no different. That is looking challenging and a few days ago, I was in Parliament as part of the Shadow Treasury team to debate an urgent question on the rapid increase in the amount the government has to pay for its borrowing. This is happening as markets lose confidence in the government’s economic plan.
Sadly, this was the latest worrying economic news and comes after business confidence has plummeted. It is welcome there was a slight reduction in inflation this week but the key for the economy is to get growth going again.
In the Budget, the Chancellor hiked taxes but also increased borrowing by an average of £32 billion a year across this Parliament. She changed her fiscal rules to allow her to do this. That decision has left the UK more exposed to even small changes in borrowing costs – and these are not small.
Borrowing costs have reached their highest levels in 27 years. There are international factors at play but the premium on UK debt compared to Germany’s has just reached its highest level since 1990. Investors are demanding higher rates for our government bonds than those of Spain, Italy and France. This is concerning as every pound spent on debt interest - currently £100 billion a year - is money that cannot be spent on the NHS or defence.
Higher debt and growth weakening since the election - and predicted to be lower in the years to come - is causing real concern and affecting households and firms. It looks like the government could be at risk breaching its fiscal rules. If that happens the Chancellor will have to choose whether to increase taxes again, cut spending, or break her rules.
Having turned a corner with the economy last year, what needs to change is the course the government has set. As the Conservative Party seeks to rebuild the trust of voters we will continue to hold the government to account for the damage it is doing to the economy.
And we will hold them to account on their plans to reverse the education reforms that has seen the UK rise in the international league tables for readings, maths, and science. Improving educational outcomes has been one of my priorities as this is the best way to help children realise their potential. It has been encouraging to see the hard work of schools across North West Norfolk being recognised in improved Ofsted ratings.
By taking away freedoms that have allowed academies to innovate and improve schools will be weakened. As a governor at KES I have seen how being part of the Inspiration Trust has helped provide support, resources, guidance, and expertise that were very important in getting their recent Good rating.
As part of the debate on the schools bill, I also backed calls led by the Conservative Party for a national inquiry into the child abusing grooming gangs. Disappointingly, Labour MPs opposed this and the Liberal Democrats didn’t even vote.
While there have been some local inquiries, they cannot compel witness to attend or give evidence on oath. Nor can they look at the systemic issues raised by this appalling abuse in dozens of towns. A proper inquiry is necessary to get the full picture of this appalling abuse and hold those responsible for covering up these actions to account.
