Meeting our fiscal rules has meant that borrowing has averaged just 1.2 per cent of national income compared to the Tory years when it was 3.4 per cent. And debt which — at the start of the economic cycle in 1997 — was 43.3 per cent of GDP had fallen to 36.6 per cent of GDP by the end of 2006-7. Keeping debt low and stable; borrowing only for investment over the economic cycle; has delivered sound public finances in the medium term. This discipline has protected public investment and has allowed fiscal policy to support monetary policy at the right time to sustain economic stability and growth.

Email this to a friend.
Previous item — Next item.