Question
6. What assessment he has made of the potential impact of levels of Government borrowing on the economy.
Answer
The Government are bringing down borrowing, helping to bear down on inflation to support households and businesses. Last year, borrowing fell by 0.7% of GDP to its lowest level in six years, and borrowing is forecast to fall across the forecast period to 1.8% of GDP by 2031-32.
Verdict: AMBER (62/100)
The reply directly addressed the question about the economic impact of government borrowing. It argued that lower borrowing helps bring down inflation and supports households and businesses, and backed this with concrete figures: borrowing fell to 0.7% of GDP, a six-year low, and is forecast to reach 1.8% of GDP by 2031-32. The answer was narrow, however, covering only the inflation channel and saying little about other effects such as debt interest costs or gilt yields, so the person who asked may want more detail.
How we got there
| Question item | Coverage | Specificity | Rationale |
|---|---|---|---|
| What is the department's assessment or view of the potential impact of levels of Government borrowing on the economy. | Addressed | Direct | The reply states the department's view that lower borrowing helps bear down on inflation to support households and businesses, which addresses the economic impact of borrowing levels, and backs this with concrete figures (borrowing down 0.7% of GDP to a six-year low, forecast to reach 1.8% of GDP by 2031-32). It is thin, though: it covers only the downward trajectory and says little about other channels such as debt interest costs or gilt yields. |