Pre-Budget Report 2006

My Lords, we have heard a number of interesting points. I thank all noble Lords who have contributed and welcome the breadth of discussion and of interest expressed. This Motion asks the House to take note with approval of the Government’s assessment, as set out in the Pre-Budget Report, for the purposes of Section 5 of the European Communities (Amendment) Act 1993, which enables the UK to make an effective contribution to multilateral surveillance within the European Union. I will seek to answer as many of the issues raised as I can. The noble Lord, Lord MacGregor of Pulham Market, questioned the golden rule. He asserted that it had lost credibility, due to the dating of the cycle and the definition of borrowing. As other noble Lords raised this point, let me clarify that the NAO will be invited to audit the dating of the cycle once the Treasury has made a firm judgment on when it ends, just as it was asked to date the beginning of the cycle. I do not see the issue there.