Lord Redwood: John Healey’s economics is almost non-existent

Lord Redwood has accused the Chancellor of not understanding economics and warned the government is borrowing at higher interest rates than were ever seen under the Truss government.

Speaking on GB News he said: “I’m afraid [Healey’s] history was very bad throughout, as well as his economics being almost non-existent. And yes, [confusing fiscal and monetary policy] was a clear error.

“And even worse error was saying that it was the Truss interest rates four years ago that did the damage. Well, for one day there was a nasty spike in interest rates but what he should understand is that for the last 20 months, for the whole 20 months, the interest rates have been considerably higher than the worst one-day spike under Truss.

“And the government didn’t borrow any money at the one-day spike under Truss. This government has been borrowing at considerably higher rates than her worst rate for 20 months, which is why we are crippled with interest costs, which then mean that we can’t have a proper defence budget and we can’t have tax cuts.

“They’re looking at Britain and seeing it’s got a spendthrift government that’s borrowing too much. That’s the [Labour] government.

“This government has to borrow £270 billion this year and £300 billion next year for its extra spending and to replace the debt. It will all be at massively higher interest rates, thanks to Rachel Reeves.”