Interest Rates

Part of Oral Answers to Questions — Treasury – in the House of Commons am 12:00 am ar 13 Mawrth 1997.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Kenneth Clarke Kenneth Clarke The Chancellor of the Exchequer 12:00, 13 Mawrth 1997

The best estimate that I can give is about £2½ billion per year. It is clear that the Opposition are committed to such a policy, but they will not say how they would finance it. If they return to borrowing, which must be one of the methods that they are contemplating to fill the obvious gaps in their public spending plans, that will put upward pressure on interest rates, as my hon. Friend said. That is an irresponsible approach to an area of policy in which the Government are achieving remarkable success.