Oral Answers to Questions

(Limited Text - Ministerial Extracts only)

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Tuesday 29th October 2024

(1 month ago)

Commons Chamber
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Polly Billington Portrait Ms Polly Billington (East Thanet) (Lab)
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24. What steps she plans to take to help improve living standards.

Rachel Reeves Portrait The Chancellor of the Exchequer (Rachel Reeves)
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This is likely to be the last time that the shadow Chancellor, the right hon. Member for Godalming and Ash (Jeremy Hunt), is up against me at the Dispatch Box. We have had the privilege of these exchanges for just over two years now, and I have a huge amount of respect for him. He steered our country through a very difficult time after the mini-Budget, and I wish him well in whatever he chooses to do next.

If UK living standards, as measured by real household disposable income per capita, had grown by the same amount between 2010 and 2023 as they did between 1997 and 2010, the amount would have been over £4,000 higher in 2023. We are committed to boosting economic growth to turn that around. Although it will have been welcome news for millions of families that inflation is now below 2%, there is still more to do. Earlier this month, we delivered our first international investment summit, announcing over £60 billion of investment and unlocking nearly 38,000 jobs in the UK, all focused on creating and spreading opportunities to lift living standard.

Joe Morris Portrait Joe Morris
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The Conservatives oversaw a living standards disaster. In places such as Hexham, Prudhoe and Throckley in my constituency, people saw hardly any improvements to their incomes in over 14 years. Surely the clearest sign of whether government is working is whether working people feel better off. Does the Chancellor agree that papering over Tory failure is not enough, and that in tomorrow’s Budget we must reset the foundations of our economy?

Rachel Reeves Portrait Rachel Reeves
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My hon. Friend is right: the previous Parliament was the worst ever recorded for living standards. Tomorrow’s Budget is an opportunity to fix that and turn the page so that we can start delivering for families in Hexham and all around the country.

Marie Rimmer Portrait Ms Rimmer
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The bottom 50% of the population owned less than 5% of wealth in 2021, while the top 10% stacked up 57% of it—up from 52.5% in 1995. In our communities, the less well-off are struggling with energy prices and other costs. What will the Government do to ensure that the gap closes?

Rachel Reeves Portrait Rachel Reeves
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We have already announced the child poverty taskforce, which is working to publish a comprehensive strategy to tackle child poverty. We will publish that strategy in spring next year. We have also provided £500 million, including the Barnett impact, to extend the household support fund in England until the end of March next year, which will help the most vulnerable households to cover the costs of essentials such as food, energy and water.

Kirsteen Sullivan Portrait Kirsteen Sullivan
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Shamefully, under the last Conservative Government, the need for food banks soared to levels even higher than during the pandemic. Recent research shows that in my Bathgate and Linlithgow constituency, the number of food parcels distributed has risen by 77% over the past five years, and that in 2022-23, 27% of children were living in poverty after housing costs. What steps are the Government taking to reduce the need for food banks in the context of child poverty?

Rachel Reeves Portrait Rachel Reeves
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I thank my hon. Friend for her question and congratulate her on her great work on the Co-op’s food justice policy. As she knows, we are right behind her in our commitment to raise living standards across the country. We made a manifesto commitment to update the remit of the Low Pay Commission so that, for the first time ever, it will take into account the cost of living when making recommendations about the minimum wage.

Polly Billington Portrait Ms Billington
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As my right hon. Friend will be aware, coastal communities such as mine struggle with a low-pay, low-skill economy. Does she acknowledge the importance of the minimum wage in tackling this problem and supporting our communities and local economies?

Rachel Reeves Portrait Rachel Reeves
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My hon. Friend is absolutely right. It is why we will ensure that the Low Pay Commission takes into account the cost of living, and why we will close the gap between the youth rate of minimum wage and the overall rate, so that all adults can be paid a fair wage for their work.

Harriett Baldwin Portrait Dame Harriett Baldwin (West Worcestershire) (Con)
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The living standards of a 90-year-old pensioner on a £13,500 income are falling sharply this winter as a result of the Chancellor’s decision to take away the winter fuel allowance. Tomorrow, she has the chance to increase the threshold. Will she take it?

Rachel Reeves Portrait Rachel Reeves
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As the hon. Lady knows, because of our commitment to the triple lock, the basic state pension and the new state pension will continue to rise. This winter, the new state pension is worth £900 more than it was a year ago, and it is likely to rise by a further £450 next April. Indeed, during the course of this Parliament, because of the triple lock, the new state pension is likely to be worth £1,700 more—much more than the value of the winter fuel payment.

Jess Brown-Fuller Portrait Jess Brown-Fuller (Chichester) (LD)
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I am sure that the Treasury was pleased to receive £1.5 billion in a windfall tax from Octopus Energy. Would the Chancellor consider using that money to reinstate the winter fuel allowance for one year until the Treasury has had the opportunity to find a better system of means-testing, so that my vulnerable residents and pensioners in Chichester are not falling off a cliff edge this winter?

Rachel Reeves Portrait Rachel Reeves
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I can understand the hon. Member’s concern, but of course, that £1.5 billion was already baked into the forecast—it is not new money to spend on initiatives. As she knows, we inherited a £22 billion black hole in the public finances; we will set out the detail of that at the Budget tomorrow, but because of that, we have had to make very difficult choices. Even in those difficult circumstances, though, we have protected the winter fuel payment for the most vulnerable pensioners who are on pension credit. We have also boosted the uptake of pension credit, so that people get the support they are entitled to.

Graham Stuart Portrait Graham Stuart (Beverley and Holderness) (Con)
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Residents of Joseph Rowntree’s St Ellens Court all gathered recently to tell me about the devastating impact that the cut in the winter fuel payment will have on their living standards, and people in Withernsea gathered Saturday last to demonstrate against it. Tomorrow, the Chancellor can do the right thing; will she?

Rachel Reeves Portrait Rachel Reeves
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I am sure the right hon. Gentleman told them about the £22 billion gap in the public finances that his Government left, which has required the difficult decisions this Government have had to make to clean up the mess left by the Conservative party.

Paul Holmes Portrait Paul Holmes (Hamble Valley) (Con)
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With the promised £300 cut in energy bills not materialising, the winter fuel payment scrapped for pensioners, and now the bus cap lifted for working people—whatever definition of that term the Chancellor is using today—can she honestly say that living standards will improve for everybody under this Government?

Rachel Reeves Portrait Rachel Reeves
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On the bus price cap specifically, the hon. Member will know that the previous Government put no money in to extend that cap. We have put money in to ensure that the bus price cap remains at an affordable level for people, unlike the previous Government, who just had short-term gimmicks.

Luke Evans Portrait Dr Luke Evans (Hinckley and Bosworth) (Con)
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2. What estimate she has made with Cabinet colleagues of the additional funding needed to process pension credit applications within target timescales.

Emma Reynolds Portrait The Parliamentary Secretary, His Majesty’s Treasury (Emma Reynolds)
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The Department for Work and Pensions has deployed 500 additional staff to process pension credit applications as quickly as possible, and I encourage all pensioners who might be eligible to apply by 21 December. As the hon. Gentleman knows, that benefit can be backdated by three months, and can passport pensioners to other benefits.

Luke Evans Portrait Dr Evans
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I am very grateful for the Minister’s answer. I put in a written question to find out how long this would take, and almost one in four people who apply for pension credit are waiting longer than 50 working days for their application to be picked up, which takes us past Christmas and into the new year. That is before the 150% increase in applications referred to in the data released by the Government, so although I am pleased to hear that there are 500 more staff, could we hear how much extra funding is going in immediately to make sure those applications are processed this side of Christmas? Otherwise, pensioners are really going to struggle.

Emma Reynolds Portrait Emma Reynolds
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I am very pleased to say that there has been a 152% increase in the number of pensioners who are applying for pension credit. That is good news, and is a result of the pension credit awareness campaign that we have been running since early September. We are putting in place all the resources we can to process claims as quickly as possible.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Nigel Huddleston Portrait Nigel Huddleston (Droitwich and Evesham) (Con)
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We on the Conservative Benches are deeply concerned about all those who will lose their winter fuel payments under Labour. Some pensioners will keep the winter fuel payment if they claim pension credit, but we know that some will not apply or will have difficulty applying. Can the Minister confirm how many people the Treasury assumes are eligible for pension credit but will not claim it, therefore losing their winter fuel payment, and what is the Treasury doing to close that gap?

Emma Reynolds Portrait Emma Reynolds
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As the hon. Gentleman will understand, the estimates of how many people might be eligible for pension credit are an imperfect science—they are based on a survey. Means-testing what is a very complex benefit, as all means-tested benefits are, requires an assessment of not only people’s income but their savings; it is about pensioner household units, too, so it is a complex set of procedures. All I can say is that I am glad we are targeting support at those most in need, something that was outlined in the 2017 Conservative party manifesto, which stated:

“we will means-test Winter Fuel Payments, focusing assistance on the least well-off pensioners, who are most at risk of fuel poverty.”

Lindsay Hoyle Portrait Mr Speaker
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I call the Liberal Democrat spokesperson.

Daisy Cooper Portrait Daisy Cooper (St Albans) (LD)
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As the newly appointed Treasury spokesperson for the Liberal Democrats, this is my first opportunity to welcome the Chancellor and Ministers to their places. Notwithstanding that, on the winter fuel payment, the Government need to think again. I recently spoke with representatives of Citizens Advice in St Albans, who are deeply concerned that letters from the Department for Work and Pensions will be sent out only in December to people that it believes are eligible, meaning that many people may lose out. We have urged the Government to either reverse the cut and make it taxable or look at, for example, raising the pension credit limit. Could the Government confirm whether they are going to look again at any of the measures that we have suggested?

Emma Reynolds Portrait Emma Reynolds
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I welcome the hon. Lady to her place. I reassure her that we are writing to all pensioners—I do not know where she got that misinformation from—about the change in policy. For the first time, we are also writing to all pensioners in receipt of housing benefit to encourage them to claim for pension credit.

We have also made a steadfast commitment to the triple lock, which will mean that the new full state pension will be worth around £1,700 more over this Parliament. We have extended the household support fund, which local authorities can use to help people who are on low incomes and struggling with their fuel bills. We have also ensured that the warm home discount scheme will provide £150 for low-income households, including pensioners.

Josh Simons Portrait Josh Simons (Makerfield) (Lab)
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3. What steps she is taking to increase long-term investment in the economy.

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Ben Coleman Portrait Ben Coleman (Chelsea and Fulham) (Lab)
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14. What progress she has made on increasing economic growth.

Rachel Reeves Portrait The Chancellor of the Exchequer (Rachel Reeves)
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The Government’s growth mission will counteract 14 years of sluggish economic growth, kick-starting a decade of national renewal. We have wasted no time in getting to work: we have already launched the national wealth fund, introduced reforms to the planning system, and hosted the international investment summit, securing more than £63 billion of investments across the United Kingdom. Work continues, and I look forward to updating the House on our next steps for growth in tomorrow’s Budget.

Josh Simons Portrait Josh Simons
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As co-chair of the Labour Growth Group, I welcome the Chancellor’s decision to unleash a revolution in investment in Britain, but the capital we must invest in is not just physical but digital. For years, Conservative Members cut capital investment in technology, depressing productivity and leaving workers with less money in their pocket. What steps is the Chancellor taking to boost long-term investment, especially in digital and technology?

Rachel Reeves Portrait Rachel Reeves
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I thank my hon. Friend for his excellent work as co-chair of the Labour Growth Group. I know that he is passionate about how we can use data to boost productivity and improve public services, and he is working with Wigan council and his local NHS trust to build data-driven tools to better deliver preventive healthcare.

The Government recognise that attracting private investment into digital and technology is crucial for driving growth, which is why we have already prioritised them in the modern industrial strategy to ensure that we are creating the right conditions for investment. Since the Government took office, we have been pleased to welcome more than £25 billion of investment into UK data centres, helping to create thousands of jobs and meet the growing demand for data, artificial intelligence and machine learning.

Julie Minns Portrait Ms Minns
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Does the Chancellor agree that a modern NHS that is fit for the future is essential to our country’s economic growth? Will she find time to visit the new Pears Cumbria School of Medicine when it opens in Carlisle next year?

Rachel Reeves Portrait Rachel Reeves
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I thank my hon. Friend for that question. I absolutely recognise the important role of the NHS and the health of our nation in getting people back to work and in boosting the economy. That is why in tomorrow’s Budget we will set out further detail of how we will increase the number of elective appointments per week, delivering one of the Government’s first steps in office to reduce waiting times in the NHS.

I was delighted to meet Professor Hugh Brady from Imperial College London at the international investment summit. He shared the detail of important plans to partner with the University of Cumbria to help the next generation of medical professionals in my hon. Friend’s constituency and to address staffing shortfalls and healthcare needs in the area. I commend her work in this important area.

Dave Robertson Portrait Dave Robertson
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High streets in Lichfield and Burntwood in my constituency were let down as, for 14 years, the Conservative party fiddled while our high street economies burned. Can the Chancellor assure me that regenerating high streets, as the physical manifestation of how well our economy is doing, is a priority for this Treasury?

Rachel Reeves Portrait Rachel Reeves
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I welcome my hon. Friend to his place, and he is doing a great job for the people of Lichfield. This Government are committed to delivering a decade of national renewal and ensuring that growth and prosperity are felt everywhere in our country. We will work in partnership with businesses and local communities to rejuvenate our high streets, which are the lifeblood of our local communities, including those in Lichfield and Burntwood. As part of this, we plan to introduce new powers to help fill vacant properties through high street rental auctions. We know that this is such an important issue for so many of our constituencies.

Ben Coleman Portrait Ben Coleman
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Thousands of my constituents in Chelsea and Fulham come from European Union countries, and they are all passionate about the UK economy doing well. Does the Chancellor agree that, for the UK to achieve its full economic growth potential, we need to deepen our trading links with the European Union? If she does, will can she say how the Treasury is working with other Government Departments to achieve this?

Rachel Reeves Portrait Rachel Reeves
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I thank my hon. Friend for his question. Since taking office, this Government have been working to reset our relationship with our European friends and neighbours. The Prime Minister recently met the President of the European Commission and agreed to strengthen the UK-EU relationship to address global challenges such as the economic headwinds, geopolitical competition, irregular migration, climate change and energy prices. Improving our relationships will be good for business and good for consumers.

Harriet Cross Portrait Harriet Cross (Gordon and Buchan) (Con)
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I am not going to ask the Chancellor to pre-empt tomorrow’s Budget, although I might actually have some luck if I did, based on current form. Instead, can she confirm to me that she fully appreciates how important agricultural property relief and business property relief are to the farmers and family businesses that do so much to grow local economies across the country?

Rachel Reeves Portrait Rachel Reeves
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I recognise the importance of being able to pass on to the next generation the assets people have built up, and we will be setting out more details on all of our tax policies in the Budget tomorrow.

Wendy Chamberlain Portrait Wendy Chamberlain (North East Fife) (LD)
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Shared prosperity funding has been used by local authorities such as Fife council to drive economic growth, particularly through support for small businesses. That funding is due to end in April 2025. Can we get a commitment from the Government that funding for these kinds of schemes will continue?

Rachel Reeves Portrait Rachel Reeves
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We will set out more details in the Budget tomorrow, including the consequentials that will go to the Scottish Government.

Desmond Swayne Portrait Sir Desmond Swayne (New Forest West) (Con)
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Investment requires a measure of optimism, not the collapse in business confidence that the Chancellor has engineered. She would have done better to stress some of the positives that she inherited, wouldn’t she?

Rachel Reeves Portrait Rachel Reeves
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It is good to have an explanation of how to do my job from one of the Conservative Members who crashed our economy. Some £63.5 billion of investment into the UK was announced at our international investment summit—investment in life sciences, investment in data centres and digital, investment in clean energy—because businesses have confidence that this Government are bringing stability back to our economy and working with businesses to seize the opportunities. I am really excited about doing that in all parts of our country and working with business to do so.

Dave Doogan Portrait Dave Doogan (Angus and Perthshire Glens) (SNP)
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Can the Chancellor tell us, to the nearest £10 billion, how much extra would be available for long-term investment were it not for the fire sale of UK Government bonds by the Bank of England, costing the taxpayer dearly?

Rachel Reeves Portrait Rachel Reeves
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I started my career as an economist at the Bank of England, and unlike Conservative Members, I think it is incredibly important to recognise the independence of our economic institutions, including the Bank of England and, indeed, the Office for Budget Responsibility.

Daisy Cooper Portrait Daisy Cooper (St Albans) (LD)
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Small businesses are the engine of our economy, but many of them are penalised for investing in their businesses because of the broken business rates system. Will the Chancellor ensure that investment is exempted from business rates, and will she ensure that the Budget tomorrow is the final Budget in which business rates are a permanent feature?

Rachel Reeves Portrait Rachel Reeves
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I thank the hon. Lady for her question, and I too welcome her to her place.

Small businesses and high street businesses are the lifeblood of all of our communities, including hers in St Albans, and it is important that we support them. In our manifesto, we committed to reform of our business rates system. I will be setting out more details in the Budget yesterday tomorrow, as well as a business tax road map, which will give businesses certainty about the tax environment they will be working with for the next five years.

Tom Morrison Portrait Mr Tom Morrison (Cheadle) (LD)
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4. What fiscal steps she is taking to encourage investment in the northern powerhouse.

Darren Jones Portrait The Chief Secretary to the Treasury (Darren Jones)
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Investment—[Interruption.] I am delighted to be welcomed by those on the Opposition Benches, and am pleased to see them in their place as well. Investment is a key part of the Government’s growth mission, alongside stability and reform. By ensuring adherence to robust fiscal rules and respect for our economic institutions, we are building the confidence needed to deliver greater investment across the country.

Tom Morrison Portrait Mr Morrison
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I thank the Minister for that response. A key part of the northern powerhouse agenda was investment in our rail infrastructure, and residents in my constituency were excited that Cheadle train station finally got planning approval recently. However, recent talk of cuts to infrastructure investment has caused concern. Can the Minister assure us that Cheadle train station is safe and will go ahead?

Darren Jones Portrait Darren Jones
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The Government are fully committed to ensuring that investment in all parts of the UK, including the north of England, creates growth and impact for working people. The north of England is home to crucial levers to achieve this, as evidenced by our recent announcements on Teesside and Merseyside, which will create thousands of jobs and secure long-term futures. The detail of individual projects will be confirmed in due course.

Bill Esterson Portrait Bill Esterson (Sefton Central) (Lab)
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The creation of the national wealth fund, and the record success of the £63 billion of investment announced at the investment summit, comes on top of investments that Ministers have just announced in carbon capture in the north-west. Those are examples of the success—

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Bill Esterson Portrait Bill Esterson
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The successful investments announced are a great example of this Government delivering jobs and economic growth, in the north of England and across the country. Does my right hon. Friend agree that this is in stark contrast to the abysmal record of the Conservative party in its 14 years in government?

Darren Jones Portrait Darren Jones
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My hon. Friend rightly points out that this country faces a choice: investment or decline. As we saw at the general election, it chose investment, and that is what the Government will deliver.

Kevin Bonavia Portrait Kevin Bonavia (Stevenage) (Lab)
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6. What steps she is taking to increase economic productivity.

Sonia Kumar Portrait Sonia Kumar (Dudley) (Lab)
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20. What steps she is taking to increase economic productivity in the Black Country.

Tulip Siddiq Portrait The Economic Secretary to the Treasury (Tulip Siddiq)
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Increasing economic productivity is a key mission in the Labour Government’s growth agenda. After 14 years of weak productivity, depressed living standards and unfunded spending commitments, we are adamant about bringing our country into an upward trajectory, using the national wealth fund and the significant planning reforms that we are bringing together to ensure a decade of national renewal for our country.

Kevin Bonavia Portrait Kevin Bonavia
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Across the UK, the hospitality sector generates £93 billion per year. In my constituency, there are many examples of local entrepreneurs, including on the old town’s High Street and in our neighbourhood centres, who provide an excellent service for residents and visitors alike. What can my hon. Friend do to help our hospitality services grow in Stevenage and across the UK?

Tulip Siddiq Portrait Tulip Siddiq
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I am fully aware of the assets of my hon. Friend’s constituency, including the neighbourhood centres that he mentions, and the surrounding villages, which host amazing music festivals. I recognise the contribution of the hospitality sector in Stevenage to the UK economy, and I know he is a great champion of the borough business club. I am confident that our Government’s growth mission will ensure that hospitality businesses in Stevenage continue to grow. The Government look forward to working with organisations such as UKHospitality to facilitate that.

Sonia Kumar Portrait Sonia Kumar
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“Invest 2035: the UK’s modern industrial strategy” identifies advanced manufacturing as a growth-driving sector. Manufacturing in Dudley accounts for 40.4% of jobs; that is double the national average. What steps are the Government taking to support and revitalise the manufacturing sector in Dudley, given its historical significance to the local economy, and its potential contribution to the UK’s overall industrial strategy?

Tulip Siddiq Portrait Tulip Siddiq
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As my hon. Friend rightly says, we identified advanced manufacturing as a growth-driving sector in the recently published industrial strategy Green Paper. I know how important manufacturing centres such as the Very Light Rail National Innovation Centre are to Dudley and the UK economy. We are committed to supporting advanced manufacturing through the industrial strategy, which, alongside sector plans, will be developed in partnership with businesses and stakeholders ahead of publication in spring 2025. I hope that she will contribute to that. Jobs will be at the heart of our industrial strategy, backed by employment rights that are fit for a modern economy.

James Wild Portrait James Wild (North West Norfolk) (Con)
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Investing in transport infrastructure will boost productivity, so is the Chancellor listening to Members from across the east of England and across the House, and will she back the Ely junction rail upgrade, which delivers benefits of £5 for every £1 invested?

Tulip Siddiq Portrait Tulip Siddiq
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As the hon. Member will know, the Chancellor listens carefully to everything that is said in the Chamber, and I am sure that she has noted what he has said.

Jim Allister Portrait Jim Allister (North Antrim) (TUV)
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We in Northern Ireland were told that, as a result of having dual access to the EU market and the United Kingdom market, we would see an increase in inward investment and economic productivity. Recently, Invest NI has had to admit that there has been no uptick in investment, because access to the EU market is counteracted by barriers from the GB market—that is clear. Do the Government now recognise that that was a mis-sold proposition?

Tulip Siddiq Portrait Tulip Siddiq
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I think we were mis-sold a lot of things by the previous Government, if that is what the hon. Member is talking about. I remind him that we had the investment summit recently, where we secured £63 billion of private investment, creating more than 38,000 jobs. That is more than double what the previous Government secured in 2023.

Will Forster Portrait Mr Will Forster (Woking) (LD)
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7. What fiscal steps she is taking with Cabinet colleagues to help support households with energy bills.

James Murray Portrait The Exchequer Secretary to the Treasury (James Murray)
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Household energy bills have fallen by 30% since their peak, and are now around £800 lower for a typical household. This Government are committed to improving the quality and sustainability of our housing stock through our warm home plan, further details of which will be set out through the spending review. That will be vital in making sure that the UK is more energy-resilient, in lowering household bills and in meeting our 2050 net zero commitment.

Will Forster Portrait Mr Forster
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Given that many constituents of mine in Woking and across the country live in fuel poverty and are fearful of losing their winter fuel allowance, does the Minister or the Chancellor agree that targeted support for low-income families and households should be included in tomorrow’s Budget or in the warm home plan, so that no one has to decide between eating and heating this winter?

James Murray Portrait James Murray
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The hon. Gentleman can see our commitment to supporting vulnerable households with the cost of energy and food in our extension of the household support fund, at a cost of half a billion pounds, from the end of September to the end of March. That will allow local authorities to help low-income families with the cost of essentials, such as food and energy.

Jeevun Sandher Portrait Dr Jeevun Sandher (Loughborough) (Lab)
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This nation experienced the highest rise in energy bills of all G7 countries after Putin invaded Ukraine, because the Conservatives left us dependent on natural gas and with the worst-insulated homes in western Europe. Can the Minister assure me that we will invest in the clean energy and home insulation that we need to lower energy bills for good?

James Murray Portrait James Murray
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My hon. Friend is absolutely right to say that while it is essential that we tackle high energy bills now, it is also essential that we invest for the future to bring energy bills down for good. Critical to that is investing in our housing stock, as I have mentioned, but also, through GB Energy, in sustainable energy sources to make sure we improve our energy security and bring bills down for families across the country.

John Grady Portrait John Grady (Glasgow East) (Lab)
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8. What steps she is taking to help ensure sustainable public finances.

Rachel Reeves Portrait The Chancellor of the Exchequer (Rachel Reeves)
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In July, a Treasury assessment of public spending showed that this Government inherited a £22 billion black hole in the public finances. I took immediate action—[Interruption.] Those on the Opposition Benches may not like it, but it is true. [Interruption.]

Lindsay Hoyle Portrait Mr Speaker
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Order. I cannot hear the Chancellor, and I will hear the Chancellor.

Rachel Reeves Portrait Rachel Reeves
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There are not many Conservative Members, but they still make quite a lot of noise.

I took immediate action by identifying savings and making reforms to the spending and fiscal framework to ensure that never again can a Government be allowed to make unfunded commitments, and to leave their successors with a massive black hole, as the Leader of the Opposition and the previous Chancellor did. As my right hon. Friend the Chief Secretary to the Treasury said to the House yesterday, the Budget will confirm the detail of the robust fiscal rules—this was set out in our manifesto—and will set out tax and spending plans, alongside an updated forecast from the independent Office for Budget Responsibility.

John Grady Portrait John Grady
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Does my right hon. Friend agree that being honest and transparent about the state of public finances is the right thing to do, and that having a long-term plan to fix the foundations of our economy and the public finances is preferable to the short-term, chaotic approach taken by the SNP in Scotland, which has led to three consecutive years of emergency in-year budget cuts?

Rachel Reeves Portrait Rachel Reeves
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This Government are committed to sustainable public finances, unlike two of the Opposition parties. A stable economy built on stable public finances is a key foundation for growth, which is why Labour is on the Government Benches, and the SNP and the Tories are on the Opposition Benches. The robust fiscal rules set out in our manifesto will put the public finances on a sustainable path, so that we can move the budget into balance, with day-to-day costs being met by revenues, and get debt falling as a share of our economy. Given our challenging inheritance, that will require difficult choices, but this Government will make them to fix the foundations of our economy.

Josh Babarinde Portrait Josh Babarinde (Eastbourne) (LD)
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The last Government left Eastbourne borough council in a position in which it spends 49p in every pound it collects in council tax on temporary accommodation. We need a solution, because that is not sustainable for councils or families. Will the Chancellor commit to supporting councils with the cost of temporary accommodation, and to investing in preventing homelessness in the first place?

Rachel Reeves Portrait Rachel Reeves
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The hon. Member is absolutely right: the number of people housed in temporary accommodation is a scandal, and the amount that costs taxpayers in Eastbourne and around the country is a double scandal. We made a commitment in our manifesto to building 1.5 million homes during this Parliament. Conservative Members oppose that, but we are determined to do it, because that is the way to bring down the cost of temporary accommodation and ensure that all families have a safe and secure roof over their heads.

Meg Hillier Portrait Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
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My right hon. Friend is right about the challenge it will be for the Government to balance the public finances. A stiff target of 2% in-year efficiency savings has been set for Departments. What is she doing to make sure that the target is robustly applied, and that Departments do not game it by putting off decisions, which will end up costing more?

Rachel Reeves Portrait Rachel Reeves
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I thank the Chair of the Treasury Committee for that question. She is absolutely right that in our July statement, we set a 2% productivity target, not just for the Department of Health and Social Care, as the previous Government did, but for all Departments. Ministers are absolutely determined to deliver against those targets, because that is the way to ensure that we have resources for the frontline public services—our schools, hospitals and police—that we all rely on.

Nick Timothy Portrait Nick Timothy (West Suffolk) (Con)
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Under the last Government, the Chancellor said that interest rates and gilt yields were driven by Government policy. Will the Chancellor guarantee that neither will rise higher than they did under the Conservatives?

Rachel Reeves Portrait Rachel Reeves
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The last Government crashed the economy with a mini-Budget and sent interest rates and mortgage rates soaring, putting huge pressure on the costs borne by families and businesses. We will set out our Budget tomorrow, including robust fiscal rules on paying for day-to-day spending through tax receipts and borrowing only to invest, whereas the previous Government borrowed for day-to-day spending, which is why we are in the mess we are in today.

Alan Mak Portrait Alan Mak (Havant) (Con)
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Last Wednesday, in Washington, the Chancellor announced changes to the debt rules to allow Labour to borrow more. However, published Treasury advice says that increasing borrowing risks interest rates staying higher for longer. Does the Chancellor agree with her Treasury civil servants?

Rachel Reeves Portrait Rachel Reeves
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Last week, when I was in Washington, I was very pleased to hear the International Monetary Fund say how important it is that countries, including the UK, borrow to invest in their capital infrastructure. Under the plans we inherited from the previous Government, capital spending as a share of GDP is due to fall from 2.6% to 1.7%. If those decisions were to go forward, it would mean plans delayed and cancelled. We will set out our plans tomorrow in the Budget, but it is crucial that we have rules ensuring that we pay for day-to-day spending through tax receipts, and that we borrow only to invest, unlike the previous Government.

Tim Roca Portrait Tim Roca (Macclesfield) (Lab)
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9. What assessment she has made of the potential impact of recent fiscal events on investor confidence in the UK.

Rachel Reeves Portrait The Chancellor of the Exchequer (Rachel Reeves)
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The Conservative party oversaw years of chaos, which cost not only families but businesses. The Government are committed to delivering the economic stability needed for investor confidence. Our commitment to a credible Budget, strong institutions and robust fiscal rules are at the heart of that plan. Earlier this month, we announced a record-breaking £63.5 billion of investment at our international investment summit. That shows that the UK can attract investment from around the world, to boost jobs and growth here in Britain, through serious, stable Government policy.

Tim Roca Portrait Tim Roca
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When does the Chancellor think that the Conservative party lost its fiscal credibility? Was it with the Liz Truss mini-Budget? [Interruption.] Was it when national debt rose from 65% to nearly 100% of GDP? Or was it when they made the farcical promise to abolish national insurance?

Lindsay Hoyle Portrait Mr Speaker
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Order. Who wants to go for that cup of tea? Normally this happens at Prime Minister’s questions; I do not want it starting in Treasury questions.

Rachel Reeves Portrait Rachel Reeves
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All of the above. That is why my hon. Friend is in his place and Conservative Members are on the Opposition Benches.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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If the Chancellor wants to increase investor confidence, the thing to do is help small and medium-sized enterprises. Tomorrow she will have the opportunity to do that. What will be done to help them? In Northern Ireland, 85% of businesses employ 10 or fewer employees. If she helps the SMEs in Northern Ireland, that will increase employment.

Rachel Reeves Portrait Rachel Reeves
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I know that the hon. Gentleman is a proud supporter of businesses big and small in his constituency and across Northern Ireland. I will set out more detail in tomorrow’s Budget, including on business rates, but I recognise how important it is for us to support small businesses, so that they can grow and create jobs right across the United Kingdom.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Gareth Davies Portrait Gareth Davies (Grantham and Bourne) (Con)
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Clearly, the Chancellor is desperately trying to raise old ghosts, along with debt and taxes, but her own broken promises are coming back to haunt her and are frightening investors. It does not have to be Halloween for socialists to spook British business. Why does she think that business confidence has fallen faster in the past three months than at any point since the pandemic?

Rachel Reeves Portrait Rachel Reeves
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I would judge this Government on their record: we secured £63.5 billion of investment right across the United Kingdom, creating nearly 40,000 jobs in constituencies up and down our country—good jobs that pay decent wages. That is more than twice the investment that the previous Government secured at their international investment summit. That shows how important it is to return stability to economy and work in partnership with businesses—something that the Conservative party might want to learn a lesson from.

Luke Taylor Portrait Luke Taylor (Sutton and Cheam) (LD)
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12. What fiscal steps she is taking to support pensioners with the cost of living.

Emma Reynolds Portrait The Parliamentary Secretary, His Majesty’s Treasury (Emma Reynolds)
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More than 12 million pensioners will be protected by this Government’s commitment to the triple lock, with the new full state pension expected to increase by around £1,700 over the course of this Parliament. Pensioners also benefit from free eye test, free NHS prescriptions and free bus passes.

Luke Taylor Portrait Luke Taylor
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We know that no impact assessment was carried out prior to the decision to cut the winter fuel payment, but was any consideration given to the burden that the daunting application form places on the elderly, and the extra burden on charities such as Age UK, which advise them on completing it? Evidence of that daunting burden is the 60% limit to uptake over the past decade. Will she work with her colleagues to simplify the application process, ease the burden on those who are losing the winter fuel payment, and help them receive the broad benefits that pension credit provides?

Lindsay Hoyle Portrait Mr Speaker
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I think the Minister got it in the first two minutes, never mind the last three.

Emma Reynolds Portrait Emma Reynolds
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The Government did an equality analysis on the change, which was published in September. I recommend that the hon. Gentleman take a look at it. It was such a long question that I have forgotten what he asked. On application forms—

Lindsay Hoyle Portrait Mr Speaker
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Order. Let’s move on.

--- Later in debate ---
James Frith Portrait Mr James Frith (Bury North) (Lab)
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16. What steps she is taking to minimise taxes on working people.

James Murray Portrait The Exchequer Secretary to the Treasury (James Murray)
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As hon. Members know, any changes to tax policy will be set out in tomorrow’s Budget. Members will also know that our approach to fixing the foundations of the economy will be one that protects working people. This Labour Government will honour our commitment to protect working people by not increasing national insurance, basic, higher or additional rates of income tax, or VAT.

Blake Stephenson Portrait Blake Stephenson
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The Government have got into an absolute pickle over the definition of working people. People deserve certainty. In Mid Bedfordshire, we are proud of the hard work of the owners of nearly 5,000 small businesses. They are working people creating jobs and growing our economy, and all while providing for their families. They are lying awake at night worrying about yet higher taxes. Will the Chancellor give them a peaceful night’s sleep ahead of tomorrow’s Budget and confirm that she will honour her manifesto commitment not to raise taxes on them?

James Murray Portrait James Murray
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I do not think I am pre-empting anything tomorrow by confirming that the Chancellor will absolutely stick to our commitment not to raise taxes on working people through national insurance, the basic, higher or additional rates of income tax, or VAT. And I might add that what people and businesses in the hon. Gentleman’s constituency might want is stability in the economy, a Government who support investment in the economy, and a Government who will get the economy growing and make people across Britain better off.

James Frith Portrait Mr Frith
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In Bury North, child poverty rates are at 43%, densely populated in three of our nine wards: Bury East, Redvales and Moorside. Does the Minister agree with me that minimising tax rises for working people is just the starting point, and that tackling the crippling level of impoverishment for those in work requires a laser focus and intervention from this mission-driven Government?

James Murray Portrait James Murray
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My hon. Friend is absolutely right that, while keeping taxes on working people as low as possible is crucial, the way to make people better off in the long run is through boosting public and private investment, and delivering sustained economic growth. That is the focus of this Labour Government, and that will guide the choices we make.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Laura Trott Portrait Laura Trott (Sevenoaks) (Con)
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During the election campaign, I held a press conference at which I outlined the glaring funding gaps in Labour’s plans and the taxes they might raise to pay for them. One of those taxes was employer national insurance contributions. The right hon. Member for Bristol North West (Darren Jones)—now Chief Secretary to the Treasury—responded at the time by arguing that this was a list of things that “Labour isn’t doing.” Is it correct that raising employer national insurance contributions is something Labour isn’t doing?

James Murray Portrait James Murray
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The right hon. Member will have to wait for the Budget tomorrow. She was a Minister not that long ago, so she might still remember that the Budget is the time when such announcements are made. Let me restate our commitment, so it is crystal clear, that we will protect working people by not increasing national insurance, income tax or VAT. Might I add, very briefly, that I note the Conservatives suddenly have a new-found interest in the livelihoods of working people? It is a shame, frankly, that they never prioritised that during their 14 years in office, during which, time and again, they made working people pay for their mistakes.

Anna Dixon Portrait Anna Dixon (Shipley) (Lab)
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17. What steps she is taking to help ensure value for money in public spending.

Darren Jones Portrait The Chief Secretary to the Treasury (Darren Jones)
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The Government have launched a multi-year spending review to set out our long-term plans for public spending and to ensure that every pound of taxpayers’ money is spent effectively. The first phase of the spending review is due to report this week, alongside the Budget, and phase 2 will begin shortly after the Budget.

Anna Dixon Portrait Anna Dixon
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I thank my right hon. Friend for his response. Recent National Audit Office reports have revealed the extent of the Tories’ economic mismanagement over the past 14 years. That has put capital projects such as Bingley pool in my constituency at risk. As a member of the Public Accounts Committee, I will ensure that taxpayers’ money delivers value. Will the Minister assure me and my constituents that tomorrow’s Budget will be based on an honest assessment of the public finances, so that this Government can deliver on their promises?

Darren Jones Portrait Darren Jones
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I thank my hon. Friend for her question. I can confirm that the Budget tomorrow will be an honest assessment of the mess left to this country by the Conservative party, but crucially our plans for clearing up the mess and then delivering the change we promised.

Tim Farron Portrait Tim Farron (Westmorland and Lonsdale) (LD)
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Given that, I assume, everyone in the Chamber has eaten at some point today, do we think that backing Britain’s farmers is a good use of public money, and given that there is a £2.4 billion budget for British farming, which the last Government underspent foolishly, recklessly and carelessly, will the Chief Secretary guarantee that at the very least the farming budget will be protected so that our farmers can carry on looking after our nature and feeding us?

Darren Jones Portrait Darren Jones
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Actually, I did not have breakfast today, so I am looking forward to lunch, and I therefore welcome that short question from the hon. Member. This Government are committed to farming and rural affairs, and to the production of the food that they provide for us, which is important for security of supply as well as, in due course, for my lunch.

Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford) (Ind)
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T1. If she will make a statement on her departmental responsibilities.

Rachel Reeves Portrait The Chancellor of the Exchequer (Rachel Reeves)
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Tomorrow I will present my first Budget. It will be a Budget that fixes the foundations of our economy and delivers on the promise of change. It will turn the page on low growth and will be the start of a new chapter towards making Britain better off. It will mean more pounds in people’s pockets, an NHS that is there when they need it, and businesses creating wealth and opportunity for all.

Rebecca Long Bailey Portrait Rebecca Long Bailey
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I commend the Chancellor for recently outlining investment in social housing, but in the interim the Joseph Rowntree Foundation has stated that the previous Government’s decision to freeze local housing allowance rates will push 80,000 private renters on housing benefit, including 30,000 children, into deep poverty during this Parliament. Will the Chancellor now consider unfreezing the allowance and relinking it to the actual cost of local rents, so that those families can keep their heads above water?

Rachel Reeves Portrait Rachel Reeves
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My hon. Friend makes a really important point, which I think is familiar to all of us in our communities, about the cost of housing outstretching people’s incomes. In our manifesto we committed to building 1.5 million new homes, including social housing, which is so important and can give security to people who would otherwise be left in insecure housing in the private rented sector.

Lindsay Hoyle Portrait Mr Speaker
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As this is his farewell question time, let us now come to the shadow Chancellor.

Jeremy Hunt Portrait Jeremy Hunt (Godalming and Ash) (Con)
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This are indeed our final exchanges in the House, so before tomorrow’s fireworks I wish the Chancellor well for the future in her role. There has been a lot of common ground between us. For example, before the election she said that raising employers’ national insurance was a jobs tax that would take money out of people’s pockets. I very much agree with her on that; does she agree with herself?

Rachel Reeves Portrait Rachel Reeves
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The right hon. Gentleman knows better than almost anyone else that there a was £22 billion black hole in the public finances. That will require difficult decisions, but even in those circumstances we will do everything in our power to protect the incomes of ordinary working people, so we are committed to ensuring that no working people will see higher taxes in their payslips after the Budget.

Jeremy Hunt Portrait Jeremy Hunt
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We all know why the Chancellor is inventing this fictitious black hole. Thirty times this year, before the election, she promised not to raise tax, and now she is planning to present the biggest tax-raising Budget in history. More consensually, however, as this is our final exchange, I welcome her announcement last week of a £2.3 billion loan for Ukraine. Does she agree that the strongest signal of resolve that we can send to Putin is a commitment to spending 2.5% of GDP on defence, and does she understand why so many people are worried by the fact that she has yet to do so?

Rachel Reeves Portrait Rachel Reeves
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I have always respected the right hon. Gentleman, but I think it is important for us not to deny the seriousness of the situation that we face with the black hole in the public finances. Combined with the lashing out at independent economic institutions, it suggests that he has more in common with Liz Truss and Kwasi Kwarteng than perhaps we thought. I watched my party lurch towards an ideological extreme and deny reality, and we spent years in opposition as a result. The shadow Chancellor risks taking his party down the same path.

Adam Jogee Portrait Adam Jogee (Newcastle-under-Lyme) (Lab)
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T2. My constituency’s beer and pub sector makes a significant contribution to the economy, both locally and nationally. Our 76 pubs and two breweries generate £23 million in tax receipts each year. Will the Chancellor work with the sector to unlock its growth potential, in Newcastle-under-Lyme and across our country?

James Murray Portrait The Exchequer Secretary to the Treasury (James Murray)
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I know that Newcastle-under-Lyme and, indeed, the whole county of Staffordshire have a proud brewing tradition, and my hon. Friend will be an excellent champion of breweries in his constituency. Supporting pubs and breweries is very important for me as a Minister. Indeed, on my first day in the Treasury’s Darlington economic campus, I visited Durham brewery—it was a work visit—where I heard from the Society of Independent Brewers and associates about the huge contribution that breweries make to British society. Further details will be set out by the Chancellor tomorrow.

Tom Morrison Portrait Mr Tom Morrison  (Cheadle) (LD)
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T4.   The Chancellor recently announced an extra £550 million for the school rebuilding programme. Can she now confirm that all the schools on that programme, including Bramhall high school, are fully funded and will get their repairs soon?

Rachel Reeves Portrait Rachel Reeves
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I thank the hon. Gentleman for his question. I went to school in the ’80s and ’90s, and I was taught in portacabins because there was not enough room in my school. I know how important it is that children are taught in proper facilities. We will set out more details of our capital investments at the Budget tomorrow.

Damien Egan Portrait Damien Egan (Bristol North East) (Lab)
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T3. I would like to ask a question that comes out of local government. One of the frustrations that I found after 14 years in local government was that short-term cuts can often end up costing more in the long run—an example that always comes to mind is youth services. What does the Chancellor make of the Local Government Association’s call for spending on prevention to be routinely considered in both Treasury and departmental spending decisions, and for better tracking of long-term outcomes?

Darren Jones Portrait The Chief Secretary to the Treasury (Darren Jones)
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My hon. Friend is right to point out the opportunities for improvement. As the Chancellor set out in her July statement, prevention will be at the heart of this Government’s new approach to public service reform. That will be set out in the spending review in the coming months.

Helen Maguire Portrait Helen Maguire (Epsom and Ewell) (LD)
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T5. Many households are facing homelessness due to increasing household costs. What support can the Chancellor provide to them?

Rachel Reeves Portrait Rachel Reeves
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Building the homes that our country needs is a top priority for this Government. In our manifesto, we committed to build 1.5 million homes in this Parliament, including social housing, so that people have access to secure and affordable accommodation and that every family have a roof over their heads. We will set out more details on all of this in the Budget tomorrow.

Paul Foster Portrait Mr Paul Foster (South Ribble) (Lab)
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T7. Prior to being elected to this place, I was the leader of South Ribble borough council in Lancashire, where we continually struggled to set meaningful budgets due to the fragmented, short-term policies of the previous Tory Government. Will Ministers please assure me that the proposals being considered in tomorrow’s Budget will see an end to the fragmented annual public sector funding allocations and a reintroduction of meaningful, forward-thinking, multi-year settlements?

Darren Jones Portrait Darren Jones
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The Government recognise the significant pressures that all councils are facing. We are looking at consolidating funding streams for local authorities into the local government finance settlement, and we will work towards implementing our commitment to a multi-year financial settlement.

Ben Maguire Portrait Ben Maguire (North Cornwall) (LD)
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T6. During my SEND summit in Bodmin on Saturday, teachers and parents revealed the shocking extent of our broken special educational needs system in North Cornwall and across the county. Thousands are struggling to get the support to which they are entitled. What are Treasury Ministers doing to ensure that local councils and schools are properly resourced to deliver an effective SEND system, so that families finally get the support they need and deserve?

Rachel Reeves Portrait Rachel Reeves
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I thank the hon. Gentleman for his question. This is an issue that resonates right across the House, with so many of us hearing terrible stories at our surgeries about the lack of support for some of the most vulnerable children in society. I know that it is a priority for the Education Secretary too, and we will set out more detail on departmental settlements in the Budget tomorrow.

Sam Carling Portrait Sam Carling (North West Cambridgeshire) (Lab)
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T8. There are over 50 pubs and breweries in my constituency, supporting more than 1,500 jobs and contributing millions of pounds to our economy. Whether it is the Mulberry Tree Farm in Hampton or the Windmill in Orton Waterville, these are valued businesses that have earned their place in our local community. Does the Chancellor agree that they deserve to be supported, and that this Labour Government will give hospitality the tools it needs to thrive?

James Murray Portrait James Murray
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I thank my hon. Friend for his question. He is absolutely right to say that pubs make an enormous contribution to our society and economy. The current alcohol duty system supports pubs through draught relief, which ensures that eligible products served on draught are charged less duty. The Government are committed to delivering a fairer business rates system for high streets, including hospitality. Any decisions on future tax policy will be announced by the Chancellor at a fiscal event, the next of which is tomorrow.

Richard Holden Portrait Mr Richard Holden (Basildon and Billericay) (Con)
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Eighty-two per cent of those who have seen Labour take away their winter fuel payment are either below the poverty line or within £55 a week of it. How can the Government justify this, when they are not even allowing a freedom of information request from the Financial Times to be responded to? They are hiding the figures from the people.

Emma Reynolds Portrait The Parliamentary Secretary, His Majesty’s Treasury (Emma Reynolds)
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We are not hiding the figures. If I had had the chance, I would have said that 455,000 pensioners are paying the higher rate of tax and that 39,300 are paying the additional rate. Many wealthy pensioners have said to me that they do not need the winter fuel payment—[Interruption.] The right hon. Gentleman says that, but there are a number of—

Lindsay Hoyle Portrait Mr Speaker
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Order. I think the Minister has answered the question. I call Emma Foody.

Emma Foody Portrait Emma Foody (Cramlington and Killingworth) (Lab/Co-op)
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T9. Residents in my constituency are still feeling the pinch in their pockets and pay packets from Liz Truss’s disastrous mini-Budget. It is vital that this Government fix the foundations of our economy to deliver proper public services and a rise in living standards. Can the Chancellor tell me how she will deliver this for the north-east and for people across the country?

Rachel Reeves Portrait Rachel Reeves
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My hon. Friend is right to draw attention to the disastrous impacts of the Conservative mini-Budget just over two years ago, which is still having an impact on people’s lives as they pay higher mortgage bills. This Government have committed to return sustainability to the economy and to working with business to reform our planning system, our pensions system and our skills system. We have already brought in £63.5 billion of private sector investment to grow our economy in all parts of the country and deliver the jobs and better wages that constituents in Cramlington and right across the country need to see.

Saqib Bhatti Portrait Saqib Bhatti (Meriden and Solihull East) (Con)
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Small business owners are working people, and they are some of the hardest-working people that I know. The Labour party struggled to define them over the weekend, but does the Chancellor agree that any rise in fuel duty, which the Conservatives froze or cut for 14 years, would be a tax on those hard-working people or those hard-working small business owners?

Rachel Reeves Portrait Rachel Reeves
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The previous Government factored into their forecasts an increase in fuel duty this year. I will set out our plans in the Budget tomorrow.

Matt Rodda Portrait Matt Rodda (Reading Central) (Lab)
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T10. Can the Minister update the House on how the Government will help to secure better returns for pensioners while also unlocking the opportunities for pension savings to help generate growth?

Emma Reynolds Portrait Emma Reynolds
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The Chancellor launched the landmark pensions review in July, which I am leading and which is looking at measures to drive more UK pension investment into the UK economy, boosting growth but also improving pension savers’ outcomes. I know that there is interest in this agenda across the House.

Greg Smith Portrait Greg Smith (Mid Buckinghamshire) (Con)
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Countryside Alliance research shows that rural households spend up to £800 a year more on fuel than urban households, so further to the question from my hon. Friend the Member for Meriden and Solihull East (Saqib Bhatti), will the Chancellor protect rural communities in the Budget tomorrow?

Emma Reynolds Portrait Emma Reynolds
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The hon. Gentleman is urging me to comment on the Budget, but he will have to wait until tomorrow.

Neil Duncan-Jordan Portrait Neil Duncan-Jordan (Poole) (Lab)
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This Government have inherited a Britain that is now the most unequal country in the G7 bar America. The UK’s 50 richest families own 50% of the country’s wealth, and our tax system exacerbates this inequality with unfair loopholes that benefit those who have wealth rather than those who go to work. What steps—

Lindsay Hoyle Portrait Mr Speaker
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Order—[Interruption.] No, these are topical questions and I decide.

James Murray Portrait James Murray
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My hon. Friend will have to wait for the Budget tomorrow, but he will know that we have committed to closing some loopholes, including VAT on private schools, the non-dom loophole and cracking down on tax avoidance.

Caroline Voaden Portrait Caroline Voaden (South Devon) (LD)
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In South Devon, the average house price is now 14 times the average salary, at £425,000. What measures is the Chancellor taking to ensure that rural and coastal areas, such as the South Hams, which face huge digital and transport connectivity problems, will be included in measures to boost economic growth?

Rachel Reeves Portrait Rachel Reeves
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Our commitment to build 1.5 million homes is about ensuring that all our constituents get the chance to have a roof over their head, including in rural areas, with more social housing as well so that people can have a secure tenancy. The hon. Lady is also right to raise the issue of digital connectivity, and we will be setting out more details on infrastructure investment in the Budget tomorrow.

Katrina Murray Portrait Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)
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“Buy now, pay later” is attractive to young people who are trying to survive on zero-hours contracts with irregular hours. What assurances can the Chancellor give me that the coming regulations will protect this group from problematic debt?

Tulip Siddiq Portrait The Economic Secretary to the Treasury (Tulip Siddiq)
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The proposed regulations will drive high standards of conduct among “buy now, pay later” firms, ensuring that consumers receive clear information and have access to strong protections. Our proposals will also allow the Financial Conduct Authority to require “buy now, pay later” firms to carry out affordability checks, ensuring that firms lend only to borrowers who can afford to repay.

Ashley Fox Portrait Sir Ashley Fox (Bridgwater) (Con)
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During the last election campaign, Labour candidates across Somerset said that a Labour Government would cut energy bills by £300. Will the Chancellor set out the timescale for fulfilling that promise?

Rachel Reeves Portrait Rachel Reeves
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I thank the hon. Gentleman for his question, and I note the number of Labour MPs we now have in Somerset and across the south-west of England. We will set out more detail in the Budget tomorrow, but our commitment to investing in home-grown energy will boost our energy security, create good jobs here in Britain and begin to reduce people’s bills, as will our programme to better insulate homes, which the previous Government failed to do.

Danny Beales Portrait Danny Beales (Uxbridge and South Ruislip) (Lab)
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A hundred councils in England have come together to call for five key changes to unlock much-needed investment in new council homes. They will welcome the news of £500 million of additional grant and changes to the right-to-buy rules, but one issue they also raise is housing revenue account debt and finance. Will Treasury Ministers look specifically at debt allocations and how HRA debt is accounted for, to unlock much-needed investment in council homes?

Darren Jones Portrait Darren Jones
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Councils’ housing revenue accounts are a significant part of local authority finances, and it is therefore not right to exclude them from our fiscal rules, but I reassure my hon. Friend that this Government’s commitment to deliver 1.5 million new homes will be delivered.

Gregory Campbell Portrait Mr Gregory Campbell (East Londonderry) (DUP)
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However “working people” is defined, does the Chancellor not accept that people on low incomes and part-time employees who earn up to £300 a week should be exempt from paying income tax?

Rachel Reeves Portrait Rachel Reeves
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We will set out details of our tax policy in the Budget tomorrow, but this Government have made a commitment to working people that we will not increase their income tax, their national insurance or the value added tax they pay.