A minister of the Treasury has come under fire for asserting that debt as a share of GDP is declining, which runs counter to official projections.
Labour praised Laura Trott’s “terrifying” handling of the nation’s finances, saying it was a response to her repeated claims that debt as a percentage of GDP was declining.
The Office for Budget Responsibility (OBR) has released updated official predictions that indicate a rise in debt over the next five years. Ms. Trott claimed to have “different figures” after receiving them.
The fiscal watchdog predicts that debt would increase from 89% in 2023–2024 to 92.8% in 2028–2029 as a percentage of national revenue in its November outlook.
During her appearance on BBC Radio 4’s PM show, Ms Trott was questioned on how the government will be able to finance any tax cuts before the next election, seeing that lowering the national debt is one of Rishi Sunak’s five main promises.
She stated: “The central pledge… is that debt needs to be falling over the five-year fiscal forecast as a percentage of GDP, which it is.”
Former economist and presenter Evan Davis interrupted, warning her that the debt is expected to be “higher in five years than now” and citing the most recent estimates.
