Written question asked by Lord Barnett (Labour), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Tuesday, 23 November 2010.

Spending Review 2010

Question: To ask Her Majesty’s Government, further to the statement by Lord Sassoon on 20 October (HL Deb, col. 832), what is their definition of the ““structural deficit””.

Answer: The structural deficit is a measure of borrowing that aims to isolate the permanent, or structural, element of the deficit from borrowing which is a result of temporary factors. The structural deficit can be approximated using estimates for cyclically adjusted net borrowing. Cyclically adjusted net borrowing is an estimate of the level of the deficit allowing for the temporary effects of the economic cycle. More information on cyclically adjusted fiscal aggregates can be found in Public Finances and the Cycle, Treasury Economic Working Paper No. 05, published in November 2008. http://webarchive.nationalarchives.gov.uk/20100407010852 http://www.hm-treasury.gov.uk/d/pbr08_publicfinances_444.pdf

Secondary information

Type: Written question
Reference: 3860; 722 c319-20WA
Session: 2010-12
Related items: Comprehensive Spending Review
Wednesday, 20 October 2010
Parliamentary proceedings
House of Lords
Subjects: Borrowing Public sector
Link: View this Written question on www.publications.parliament.uk