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The Economy

With the greatest respect to the hon. Gentleman, I think that he is confusing his argument about overall debt levels—which, of course, are climbing rapidly—and my argument about the level of the budget deficit. That is indeed at a peacetime high and, as I said in my speech, was forecast in the pre-Budget report to be 8 per cent. Many now suspect that it is at 10 per cent. or higher; we will find out in the Budget. That is the serious problem that the country faces. We went into the downturn after a long period of economic growth carrying a 3 per cent. budget deficit and climbing public debt. That was the problem.