Fiscal Responsibility Bill — 5 Jan 2010 at 21:41

I beg to move, That the Bill be now read a Second time.

We are debating the pre-Budget report more fully on Thursday, so this evening I will confine my remarks to the Bill. Every country in the world has been hit by a severe financial crisis, resulting in the worst global economic recession for decades. Inevitably, borrowing and debt levels have risen as revenues have fallen. We are affected by that; so is every other major economy in the world. Like other countries, we are now taking steps as we emerge from the recession to secure growth while reducing the deficit, but as I have said on a number of occasions, we have got to do that in a way that does not risk wrecking the recovery and damaging the economy, and our ability to secure growth over the medium and long term.

I beg to move an amendment, to leave out from "That" to the end of the Question and add:

"this House declines to give a Second Reading to the Fiscal Responsibility Bill because it does not establish an independent mechanism for ensuring the publication of credible fiscal forecasts and assessing the effectiveness of Government fiscal policies in achieving stated fiscal objectives; because the duties imposed by the Bill are not accompanied by any corresponding sanctions; because in the absence of spending plans which set out a credible means by which public sector net borrowing is to be reduced, legislating to secure sound public finances is irrelevant and a distraction; and, consequently, considers that the Bill is inadequate in achieving the objective of securing sound public finances."

Question put, That the amendment be made.

The House divided: Ayes 182, Noes 280.

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