John Redwood

|

Borrowing money in the UK

The Rt Hon John Redwood, MP asked the government why it costs so much more to borrow in the UK than in leading competitor economies? Is it government incompetence, or has the Bank let us down?

He believes that government interference with the Monetary Policy Committee (especially changing the target before the last election) coupled with too much public spending and borrowing has left the UK with much higher interest rates than Japan, Euroland or even the USA.

Extract from Hansard:

Mr. John Redwood (Wokingham) (Con): If borrowing has been under such wonderful control, how does the Chief Secretary account for the fact that over the last decade sterling interest rates have been so much higher than dollar rates, yen rates and euro rates, including areas that are growing much faster than Britain?

Mr. Timms: Let me remind the right hon. Gentleman that International Monetary Fund said that “macroeconomic stability remains remarkable”. I suggest that he looks at what interest rates were when he was a member of the Government. They were sky high, repossessions took place on an enormous scale and unemployment was also high. The claimant count has fallen for three months in a row and growth is at a higher level than we and others were expecting. We are determined to ensure that that impressive record continues.