Rt Hon Lord Lilley

     Is the Prime Minister aware that at a time of grave economic crisis, the House can rarely have heard a statement of such worrying complacency about the public finances? In particular, he apparently believes that as long as the ratio of debt accumulated to GDP is low, it does not matter how high the current deficit is. That is the exact opposite of the experience of most countries. He should recall the mistake made by the previous Labour Government, who thought that they could enter a recession with a high level of deficit and spend their way out of the recession. They found that they had to call in the IMF in the biggest rescue of a developed nation that there has ever been.

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