Charter for Budget Responsibility — 10 Jan 2022 at 21:44

The majority of MPs voted to balance the national budget, reduce public sector debt, ensure public sector investment does not exceed 3% of GDP, and to keep spending on welfare under the cap set.

The motion supported by the majority of MPs in this vote was:

• That the responsibility-autumn-2021-update Charter for Budget Responsibility: Autumn 2021 update, which was laid before this House on 5 January, be approved.

The Budget Responsibility and National Audit Act requires the Charter for Budget Responsibility to set out^[1]:

• the Treasury’s objectives in relation to fiscal policy and policy for the management of the National Debt,
• the means by which the Treasury’s objectives in relation to fiscal policy will be attained (“the fiscal mandate”), and
• matters to be included in a Financial Statement and Budget Report

The update in question^[2] stated:

• The Treasury’s objectives for fiscal policy are to ensure sustainable public finances, economic growth and stability, value for money for the taxpayer, a strong balance sheet, and intergenerational fairness.
• [T]he Treasury’s mandate for fiscal policy is: to have public sector net debt (excluding the Bank of England) as a percentage of GDP falling by the third year of the rolling forecast period.

The fiscal policy is supplemented by the following:

• * a target to balance the current budget by the third year of the rolling forecast period
• * a target to ensure that public sector net investment does not exceed 3% of GDP on average over the rolling forecast period
• * a target to ensure that expenditure on welfare is contained within a predetermined cap and margin set by the Treasury

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• [1] Section 1 of the Budget Responsibility and National Audit Act 2011, Legislation.gov.uk
• [2] Charter for Budget Responsibility: Autumn 2021 update, Gov.uk

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