1st Report - National debt: it’s time for tough decisions
- HC No.
- Not recorded
- Published
- 10 Sep 2024
- Items
- 0
- Government response
- Government response published 18 November 2024 (deadline 15 November 2024). Read the government's response ↗
Select committee: Economic Affairs Committee
How sustainable is our national debt?
Closed
Opened 8 Dec 2023
Closed 25 Apr 2025
Economic Affairs Committee Inquiry on parliament.uk ↗
Inquiry scope (the committee's words)
The Committee published its report on 10 September 2024. The Government responded on 18 November 2024 and the report was debated on 25 April 2025.
Where it stands
The inquiry is closed, opened 8 December 2023.
The committee has published 1 report, most recently 1st Report - National debt: it’s time for tough decisions on 10 September 2024.
The government's response
Published 18 November 2024. The deadline was 15 November 2024.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government says it "agrees with the Committee's conclusion" that tough choices are required to prevent debt being on an unsustainable path, and says its Budget reforms to the fiscal framework "implement many of the recommendations" in the report.
- It describes new fiscal rules, a stability rule for the current budget and a target for net financial debt to be falling as a share of the economy by 2029-30, with both then moving to the third year of a rolling forecast.
- On the Committee's recommendation of a fixed rule targeting the fifth year, it moves to a rolling rule instead, because this "avoids the need to make sharp policy adjustments in response to small changes in the forecast or economic shocks".
- On index-linked gilts, it says it is "right that the government keeps the proportion of index-linked gilts under review" and will "continue to consider refinancing risk" when taking annual financing decisions.
- On net zero, it says it "will publish a revised Carbon Budget Delivery Plan in spring 2025", and says its Strategic Defence Review will conclude in the first half of 2025.
Reports
- 1st Report - National debt: it’s time for tough decisions10 September 2024
Evidence
- 10 oral evidence sessionsLatest 28 January 2025
- 23 witnesses
Recent activity
- Oral evidence session28 January 2025, Oral evidence
- Letter from the Rt Hon Rachel Reeves MP, to the Chair of the Economic Affairs Committee (15 November 2024)18 November 2024, Report published
- 1st Report - National debt: it’s time for tough decisions10 September 2024, Report published
Reports
Oral evidence sessions
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| Date | Session and witnesses | Source |
|---|---|---|
| 28 Jan 2025 |
Oral evidence session
Allan Monks · JP Morgan,
Dr Peder Beck-Friis · PIMCO,
Roger Bootle · Capital Economics
|
View ↗ |
| 12 Mar 2024 |
Oral evidence session
Bim Afolami MP · HM Treasury,
Ruth Curtice · Resolution Foundation,
Sir Robert Stheeman · Debt Management Office
|
View ↗ |
| 5 Mar 2024 |
Oral evidence session
Joseph Stiglitz · Columbia University
|
View ↗ |
| 27 Feb 2024 |
Oral evidence session
Erich Arispe · Fitch Ratings,
Stephen D King · HSBC
|
View ↗ |
| 20 Feb 2024 |
Oral evidence session
Charles Goodhart CBE FBA · London School of Economics (LSE),
Olivier Blanchard · Peterson Institute for International Economics (PIIE),
Sir Dieter Helm · University of Oxford
|
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| 13 Feb 2024 |
Oral evidence session
Carl Emmerson · Institute of Fiscal Studies,
Peder Beck-Friis · PIMCO,
Sonja Gibbs · Institute of International Finance
|
View ↗ |
| 6 Feb 2024 |
Oral evidence session
Danisha Kazi · Positive Money UK,
James Smith · Resolution Foundation,
Julian Jessop · Institute of Economic Affairs
|
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| 30 Jan 2024 |
Oral evidence session
Dr Mohamed El-Erian · Allianz
|
View ↗ |
| 23 Jan 2024 |
Oral evidence session
Richard Hughes · Office for Budget Responsibility,
Tom Josephs · Office for Budget Responsibility
|
View ↗ |
| 12 Dec 2023 |
Oral evidence session
Martin Slater · St Edmund Hall, Oxford University,
Professor Jagjit Chadha · University of Cambridge
|
View ↗ |
Who gave evidence
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| Witness | Organisation | Sessions |
|---|---|---|
| Allan Monks · Executive Director and Chief UK Economist | JP Morgan | 1 |
| Bim Afolami MP · Economic Secretary | HM Treasury | 1 |
| Carl Emmerson · Member, and Deputy Director | Institute of Fiscal Studies | 1 |
| Charles Goodhart CBE FBA · Emeritus Professor of Banking and Finance | London School of Economics (LSE) | 1 |
| Danisha Kazi · Head of Economics | Positive Money UK | 1 |
| Dr Mohamed El-Erian · Chief Economic Adviser | Allianz | 1 |
| Dr Peder Beck-Friis · Economist | PIMCO | 1 |
| Erich Arispe · Senior Director Sovereigns Group | Fitch Ratings | 1 |
| James Smith · Research Director | Resolution Foundation | 1 |
| Joseph Stiglitz · University Professor | Columbia University | 1 |
| Julian Jessop · Economics Fellow | Institute of Economic Affairs | 1 |
| Martin Slater · Emeritus Fellow in Economics | St Edmund Hall, Oxford University | 1 |
| Olivier Blanchard · Senior Fellow | Peterson Institute for International Economics (PIIE) | 1 |
| Peder Beck-Friis · Senior Vice President and Economist | PIMCO | 1 |
| Professor Jagjit Chadha · Professor of Economics | University of Cambridge | 1 |
| Richard Hughes · Chair | Office for Budget Responsibility | 1 |
| Roger Bootle · Senior Independent Advisor and Non-Executive Director | Capital Economics | 1 |
| Ruth Curtice · Chief Executive | Resolution Foundation | 1 |
| Sir Dieter Helm · Professor of Economic Policy | University of Oxford | 1 |
| Sir Robert Stheeman · Chief Executive | Debt Management Office | 1 |
| Sonja Gibbs · Managing Director and Head of Sustainable Finance | Institute of International Finance | 1 |
| Stephen D King · Senior Economic Adviser | HSBC | 1 |
| Tom Josephs · Member, Budget Responsibility Committee | Office for Budget Responsibility | 1 |
Correspondence
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Meetings & visits
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| Date | Type | Detail | Source |
|---|---|---|---|
| 10 Sep 2024 | Formal meeting (private meeting) | Not recorded · Room 3, Palace of Westminster | |
| 21 May 2024 | Formal meeting (private meeting) | Not recorded · Room 4, Palace of Westminster | |
| 14 May 2024 | Formal meeting (private meeting) | Not recorded · Room 4A, Palace of Westminster | |
| 7 May 2024 | Formal meeting (private meeting) | Not recorded · Room 4A, Palace of Westminster | |
| 30 Apr 2024 | Formal meeting (private meeting) | Not recorded · Committee Room G | |
| 23 Apr 2024 | Formal meeting (private meeting) | Not recorded · Room 4A, Palace of Westminster | |
| 26 Mar 2024 | Formal meeting (private meeting) | Not recorded · Room 3, Palace of Westminster |