Oral Answers to Questions
(1 month, 1 week ago)
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Michael Wheeler (Worsley and Eccles) (Lab)
The Secretary of State for Transport (Heidi Alexander)
May I start by saying it is very good to be here? I wish you, Mr Speaker, and the House staff a happy new year, and I wish the Aviation Minister, my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane), a happy birthday.
Heidi Alexander
In the Budget, the Government confirmed more than £1 billion of funding to support bus services, an additional £200 million for the city region sustainable transport settlements for eligible mayors, more than £650 million for local transport outside the city regions, a £500 million increase in local highways maintenance, and £485 million in capital funding for Transport for London.
Michael Wheeler
I begin by welcoming the Secretary of State to the Dispatch Box for her first question time. She brings great experience of working to bring transport authorities together. My constituency of Worsley and Eccles suffers from regular serious rush-hour congestion. How can she support transport authorities in urban areas to work with neighbouring authorities to ensure a strategic approach is taken across commuter belts to alleviate congestion?
Heidi Alexander
I thank my hon. Friend for his kind words, and I assure him that the Government are committed to improving local transport across individual local authority boundaries. We have provided more than £1 billion in funding to the Greater Manchester combined authority in his area, which takes a strategic approach to managing transport across its region. My right hon. Friend the Deputy Prime Minister has also set out ambitious measures in the recent “English Devolution” White Paper to support more joined-up running of local transport networks, which people rely upon every day.
Wera Hobhouse (Bath) (LD)
I welcome the Secretary of State to the Dispatch Box, and say happy birthday to the Aviation Minister. Buses in my constituency are not adequate and the situation has been made worse since the £2 fare cap was lifted. Local authorities in Bath want to improve the situation. They want to franchise bus services themselves, but their hands are tied by the Labour West of England combined authority Mayor, who refuses to do so. What should local authorities such as Bath do?
Heidi Alexander
The Government stepped in to ensure that bus fares would not explode at the beginning of this year, when the £2 fare cap that the previous Government legislated for ran out. In the worst-case scenario, costs on some services could have increased by 650%, and it was important that we took that action to ensure such fare rises were avoidable. I advise her local authority to work through any issues with the regional mayor. It is vital that we see transport authorities of all types collaborating to ensure that we have good, high-frequency, high-quality bus services for local people to go about their daily lives.
Andy McDonald (Middlesbrough and Thornaby East) (Lab)
May I also welcome the Secretary of State to her place? It is a delight to see her there. I wonder if she might help me. In circumstances where a mayor does not want to embrace the opportunities of the Bus Services (No. 2) Bill and fully re-regulate, as in the Tees Valley, will she give some consideration to providing a power in forthcoming legislation for the public to overreach that? Will she consider that option?
Heidi Alexander
A number of options are outlined in the Bus Services (No. 2) Bill, which had its Second Reading in the other place yesterday, including franchising options, enhanced local bus partnerships and municipal ownership of bus companies. While my hon. Friend’s suggestion is not currently in the Bill, I gently point out to him that there would have to be an authority to let contracts, including with private providers. While I am happy to explore options, we need to think through the practicalities of suggestions such as his.
Richard Foord (Honiton and Sidmouth) (LD)
Cullompton and Wellington railway stations were two of the most advanced of all the programmes in the restoring your railway fund. The existing local transport authorities have already invested in getting us to the stage of a full business case, with a high benefit-cost ratio of 3.67. Can the Secretary of State confirm that this programme is in no way disadvantaged compared with those transport authorities in urban areas that have mayors?
Heidi Alexander
We consider business cases for rail enhancements fairly, and no undue advantage would be given to the areas that the hon. Gentleman suggested. I was fortunate in my first couple of weeks in this job to visit the opening of the Northumberland line, which provides services up to Ashington. I know what an invaluable difference the improved connectivity on the rail network can provide. I would be happy to talk to him about his schemes.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
The Parliamentary Under-Secretary of State for Transport (Mike Kane)
The Department for Transport is working with the Department for Science, Innovation and Technology to consider options for the UK’s access to a navigation system of this type, which lapsed following Brexit. This work is ongoing, and no decision has been made at this time.
Graham Leadbitter
I also welcome the Secretary of State to her new role, and I look forward to working across party boundaries where possible. EGNOS is a satellite enhancement system for GPS. Prior to Brexit, Highlands and Islands Airports Ltd, which is headquartered in my constituency, had been working with National Air Traffic Services on developing the use of the system, and invested a lot of time and effort. It would increase mapping accuracy and, vitally, enable planes flying lifeline air services to land in a broader range of circumstances, improving service and reliability. As the Minister said, that work has stalled since Brexit, but the Government can re-engage with the programme should they choose, as it is open to non-EU members. Will the Minister commit to doing that?
Mike Kane
I am grateful to the hon. Member for putting this on my radar. [Interruption.] Too early? [Laughter.]
Mike Kane
It is an important issue. We are considering the costs and benefits of all options, and it is very good particularly for regional airports. We are working with the EU to identify areas where we can strengthen co-operation for mutual benefit, but it is still too early to discuss that specific area in detail. I hope to come back to the House at a later time with a more considered view.
Olly Glover (Didcot and Wantage) (LD)
The Parliamentary Under-Secretary of State for Transport (Lilian Greenwood)
I assure the hon. Member that this Government treat road safety with the utmost seriousness. We are committed to reducing the number of those killed and seriously injured on our roads. My Department is developing our road safety strategy, and will set out further details in due course.
Olly Glover
I join others in welcoming the Secretary of State to her place. Bikeability is the world’s largest road safety programme. Recent data from the Bikeability Trust showed that in areas with higher levels of training for children, the number of people killed or seriously injured on the roads decreased. Does the Minister agree that Bikeability training is an essential life skill that everyone should have access to, and will she commit to joining me on a visit to a local Oxfordshire school to see the scheme in action?
Lilian Greenwood
A total of 1.6 million people have participated in Active Travel England’s training programmes, including a record half a million children receiving cycle training last year. I am a keen cyclist and, having been knocked off my bike in the last couple of years, I understand how important it is to feel confident about cycling safely. I would be happy to join the hon. Member to see some of that work in action.
Sarah Coombes (West Bromwich) (Lab)
I warmly welcome my right hon. Friend the Secretary of State to her place. A couple of years ago, some children in my constituency started a campaign about a really dangerous stretch of road where cars speed and there is no pedestrian crossing. Tragically, a few months ago, one of those children lost her grandmother to a car crash on that very stretch of road. This is devastating for families and communities. What steps are the Government taking to make our roads safer?
Lilian Greenwood
I thank my hon. Friend for raising that case. Every single death on our roads is tragic, which is precisely why we will bring forward further measures with the new road safety strategy—the first in more than a decade—which will consider how to prevent such appalling tragedies, including in her constituency.
Mr Andrew Snowden (Fylde) (Con)
As police and crime commissioner for Lancashire, I invested significant amounts of money in increasing the resources available to target drink and drug drivers, which is a key plank in improving road safety. It has become easier for police to target drug drivers over recent years, in particular through the advancement of technology, but while arrest rates have improved, charge rates are still lagging behind; it takes months for drug drivers, compared with weeks for drink drivers. D.tec International is a Fylde company that provides all 43 police forces with DrugWipe kits. It would like to use technology that is used in other European countries to improve charge rates through the use of roadside saliva testing. Will the Minister meet me and D.tec International to look at how this technology could improve the speed with which we can get drug drivers banned and off our roads?
Lilian Greenwood
The hon. Gentleman is absolutely right to raise concerns about the impact of drug driving. Those affected by an impairment drug were involved in 13% of fatalities last year. Just before Christmas, I went out with Jo Shiner, one of the leading police officers responsible for roads policing, and saw the work that is happening and heard about prosecutions, which the hon. Gentleman has raised. I would be very happy to meet him to discuss the matter further.
Phil Brickell (Bolton West) (Lab)
St Helens Road in my constituency has regrettably become the site of numerous serious car crashes, and local residents have raised their grave concerns with me about both speeding and dangerous driving. How is the Minister working with local leaders in particular to drive improvements to road safety?
Lilian Greenwood
My hon. Friend is right to raise the concerns of his constituents. Local authorities have a vital role to play; they are responsible for introducing road safety measures appropriate to their areas. Of course, the Department is responsible for legislation and the guidance to help them to do so. I continue to engage with local authorities to ensure we are providing them with the support they need to make our roads safer.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Luke Murphy (Basingstoke) (Lab)
Warinder Juss (Wolverhampton West) (Lab)
Jen Craft (Thurrock) (Lab)
Emma Foody (Cramlington and Killingworth) (Lab/Co-op)
The Secretary of State for Transport (Heidi Alexander)
The Government are determined to help local authorities in England to tackle the highways maintenance backlog that is the result of a decade of under-investment by the previous Government. We are making an immediate start by providing an extra £500 million next year—an increase of nearly 50% compared with the current financial year.
John Lamont
The A1 is a vital road link for the Scottish Borders and Scotland to the rest of the United Kingdom, and Labour’s decision to scrap much-needed improvements will harm the local economy and stop businesses investing in jobs. The local Labour MP, the hon. Member for North Northumberland (David Smith), has said he was “disappointed and frustrated” by the decision of his Labour colleagues. What do the Labour Government have against car drivers and truck users on roads in rural Scotland?
Heidi Alexander
I can assure the hon. Gentleman that we have nothing against car drivers and truck users. We appreciate the long-standing local desire for dualling the A1 from Morpeth to Ellingham, but I am sorry to say that in the assessment we carried out post the general election, it represented poor value for money. There have been several delays to the development consent order decision and the contractors were decommissioned more than two years ago. In that time, scheme costs have risen significantly, making the scheme even less affordable and further worsening the value for money. Having said that, I recognise that there are safety issues on the existing route, which we will need to look at carefully, as we would with any other part of the network. However, that alone does not warrant the dualling scheme.
Luke Murphy
I welcome my right hon. Friend the Secretary of State to her place. Potholes represent a serious issue in Basingstoke, with many constituents telling me of damaged vehicles and even physical injuries. The AA, which is based in Basingstoke, highlights inconsistent standards across the country, with some potholes left unaddressed for longer than others. The Pothole Partnership urges UK-wide standards and permanent repairs over temporary fixes. I welcome the Government’s additional investment to tackle this issue, but will the Secretary of State consider ensuring that councils adopt common standards so that communities such as Basingstoke no longer face dangerous, crumbling roads?
Heidi Alexander
My hon. Friend is absolutely right about the damage that potholes can cause for all road users. We have committed record money to fixing this issue and to enabling councils to get on with this work. All local authorities should have their own standards of road maintenance service and inspection in line with local needs and priorities. However, I do want to update the Department’s guidance to local authorities on how best to look after their highways networks and ensure best practice is followed, and so that there are common minimum standards so that all road users know what they can expect.
Warinder Juss
I also welcome my right hon. Friend the Secretary of State to her place. Many of my constituents in Wolverhampton West complain not only about the number of potholes in our roads but about the standard of repairs, with some potholes reappearing shortly after they have been repaired. While the £1.6 billion of funding for councils is very welcome, will she please confirm what other steps the Government are taking to ensure that our roads are always well maintained to avoid the risks of injury to people and damage to vehicles?
Heidi Alexander
We agree that local authorities should not just patch potholes, but focus on long-term preventive programmes for repairing and maintaining all parts of the highway network, including footpaths, pavements and bridges. We will require local authorities to follow best practice to get the full funding uplift, and we will update the guidance document “Well-managed Highway Infrastructure: A Code of Practice” to support local authorities in that and to emphasise the importance of proactive preventive measures.
Jen Craft
Potholes plague the streets of Thurrock and are a daily reminder of 14 years of Conservative neglect. Stifford Clays, where my own tentative attempts to learn to drive took place, is particularly bad, but the effects are felt throughout my constituency. I am pleased that the Secretary of State is tackling this issue, with £4 million committed for Thurrock specifically. Will she tell me how much motorists in Thurrock could save under Labour’s plans?
Heidi Alexander
Our broken roads have long been a national embarrassment, and a proper fund to fix our roads has long been overdue. In answer to my hon. Friend’s specific question, RAC data shows that the average cost of pothole-related damage to vehicles is about £500, with severe repairs often costing much more. The Government’s extra funding for local highways maintenance next year could therefore save individual motorists in Thurrock hundreds of pounds, if not more.
Emma Foody
Local residents tell me of their frustration at the epidemic level of potholes across my constituency after 14 years of failure to grasp the problem. Motorists are all too often the ones who will pay the price. Does the Secretary of State agree that local councils like Northumberland, North Tyneside and Newcastle in my constituency will benefit from proper long-term funding to allow them to plan works and carry out repairs?
Heidi Alexander
I totally agree with my hon. Friend. We need to get the basics right as a country, and fixing our roads is the first step to getting our economy firing on all cylinders. We did see a decade of decline and under-investment under the previous Conservative Government. The additional £500 million that we have allocated, if it were all used to fill potholes, would fill another 7 million potholes every year, smashing our manifesto commitment to provide funding for an extra 1 million.
Josh Babarinde (Eastbourne) (LD)
Whether on Silverdale Road, Rodmill Drive, Quebec Close or Ceylon Place, potholes litter our roads in Eastbourne after years of neglect by the Conservative county council. Indeed, the Mirzas at my local garage have replaced my tyre a number of times, and I thank them for it. We also have a ridiculous situation where potholes right next to each other are not sorted out at the same time. Will the Secretary of State urge East Sussex county council to stop that wasteful practice and ensure that Eastbourne benefits from its fair share of the nearly £300 million granted to the south-east to tackle potholes?
Heidi Alexander
I have been clear that local transport authorities should use the money in a way that provides excellent value for money for the taxpayer, and the situation that the hon. Member described does concern me. We have waited a long time for this level of investment to come forward, and I am keen to see local authorities such as his cracking on with the job and making sure that motorists—all road users, for that matter—have safe, smooth roads that they can travel on.
Clive Jones (Wokingham) (LD)
The roads in Wokingham, like everywhere else in the country, have deteriorated in the last few years. We need to stop potholes, not just fix them, and that means regularly resurfacing roads. The unfunded backlog of resurfacing left by the Conservatives in Wokingham is about £16 million and getting bigger; nationally, it is £14 billion. When will the Minister’s Department deliver proper funding for Wokingham’s roads?
Heidi Alexander
I disagree slightly with the hon. Gentleman, because I think a £500 million uplift is proper funding—it represents, on average, a 40% increase, and it takes the overall amount of funding up to £1.8 billion. However, I do agree with his substantive point. Some of this money should be used for proactive preventative road resurfacing, because in some cases that will provide the best value for money for the taxpayer.
Tim Farron (Westmorland and Lonsdale) (LD)
Hundreds of local authority roads across the country include half-joint bridges built in the 1960s and 1970s that are now dangerously unsafe. They include the Brigsteer Road and Underbarrow Road bridges leading out of Kendal, which have been closed for the last six months, causing great inconvenience to the local community. They were built with Government funding 50 or 60 years ago, but local councils are unable to replace them with the funds available to them now. Will the Secretary of State meet representatives of Westmorland and Furness council as a matter of urgency, so that the bridges can be reopened and our communities can be reconnected quickly?
Heidi Alexander
I will ask my colleague the Minister for the Future of Roads to have that meeting with the council. However, the additional money that we have provided, and the individual allocations that were announced before Christmas, can be used not just for road maintenance, but for bridges and pavements.
Jerome Mayhew (Broadland and Fakenham) (Con)
I, too, welcome the Secretary of State to her post, and look forward to helping her to do an excellent job.
As we can see following the last few days of flooding, changing weather patterns are damaging our roads and increasing potholes. The last Government allocated an additional £8 billion for road improvements, paid for by the cancellation of the northern leg of HS2, yet all we have seen from Labour is a commitment of £1.8 billion for this financial year. Will the Secretary of State commit to matching the additional £8 billion for road maintenance?
Heidi Alexander
We are more than matching the commitments made by the previous Government. Let me say gently to the hon. Gentleman that his commitment in respect of resurfacing roads falls into exactly the same category as the promise to provide 40 new hospitals, and a range of other commitments that proved not to be worth the paper they were written on. They were fantasy figures, unlike the Labour party’s promise to deliver change. An additional £500 million is coming into our highways maintenance budgets, so that people across the country can see that change delivered to their local areas.
Jerome Mayhew
I do not know about you, Mr Speaker, but I am not sure whether that was a commitment to match the £8 billion, or whether the Secretary of State considered it to be a fantasy commitment. However, it is not just the £8 billion investment that seems to have gone missing. As soon as they were in power, the Labour Government cancelled the A27 bypass, the Stonehenge tunnel, improvements to the A47 in Great Yarmouth, the A1 from Morpeth to Ellingham, junction 8 of the M27 at Southampton, and other projects. That is £3.3 billion axed from works to help motorists. What have they done with the money? Has Labour prioritised pay rises for unions over improving roads and helping motorists?
Heidi Alexander
The truth of the matter is that when this Government came to office, we inherited a raft of half-baked, unfunded schemes that we are having to work through to provide a sensible pipeline of infrastructure improvements for our country. I will take no lessons from the hon. Gentleman about investment in our national infrastructure.
Lewis Cocking (Broxbourne) (Con)
The Parliamentary Under-Secretary of State for Transport (Lilian Greenwood)
I am delighted to confirm that, as part of the £1.6 billion investment in highways maintenance that the Government announced before Christmas, we will clamp down on disruptive works by doubling fixed penalty notices for utility companies that fail to comply with rules and extending charges for works that overrun into weekends.
Lewis Cocking
I draw Members’ attention to my entry in the Register of Members’ Financial Interests.
Drivers in my constituency are sick to death of the endless road closures and temporary traffic lights when no works are taking place. Will the Minister demand that utility companies do everything in their power to get roads open as quickly as possible, particularly when they have dug them up under the emergency procedure?
Lilian Greenwood
Absolutely. There can be legitimate reasons why works are sometimes left unoccupied—for example, when they are waiting for materials to cure or gas to vent—but I take the hon. Member’s point, particularly where utilities are using emergency procedures unnecessarily. We have examined Street Manager data and spoken to industry representatives and found no evidence of misuse. None the less, given the number of urgent works—which are, of course, not unrelated to the appalling state of our roads left by the previous Government—we will see what more can be done to ensure that these works are managed and communicated to road users properly.
Jacob Collier (Burton and Uttoxeter) (Lab)
Roadworks plague my constituency. A significant issue is that utility companies dig up the roads without requiring council permission, and they often leave these sites incomplete while different teams carry out their work, causing chaos and congestion in the process. We frequently face the absurd situation where there are roadworks on diversion routes for roadworks. Does the Minister agree that we need to require utility companies to co-ordinate with councils to properly plan this maintenance work and complete their projects in a timely manner, in order to avoid congestion?
Lilian Greenwood
My hon. Friend is proving a great champion for road users in his constituency. The simple answer to his question is yes. Local authorities already have a legal duty to co-ordinate all works on their network, and utility companies have a duty to co-operate, and we will ensure that they do so.
Sarah Owen (Luton North) (Lab)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
We are working with industry to deliver a transport network that puts passengers and their needs at its heart. The new aviation accessibility task and finish group, for example, brings together industry and consumer advocates with first-hand experience to improve accessibility in air travel. The Government will take advantage of the benefits of a unified rail network to deliver a more reliable and consistent customer experience for everyone with accessibility needs, and our buses Bill will make bus travel more accessible and inclusive, including by extending the requirements for relevant bus staff to undertake disability training.
Sarah Owen
I thank the Minister for his response. Leagrave station in Luton was one of a number granted Access for All funding by the previous Government for long-overdue lifts. However, Network Rail now says that this money was never allocated and that it only qualifies for a business case, despite a feasibility study already being agreed and completed. Those who can make the nearly 2 million journeys from Leagrave station, including myself, are left with a crumbling footbridge that is not accessible for many. Will the Minister offer assurances that Access for All funding to Leagrave station will be honoured, and will he meet me and the Bedfordshire Rail Access Network to establish the quickest path to having lifts at Leagrave station?
Simon Lightwood
My hon. Friend is a formidable advocate for this, having raised it numerous times. The Rail Minister is carefully considering the decisions made by the previous Government in relation to the Access for All programme. My hon. Friend will be aware that Leagrave was one of 50 stations across Britain selected by the previous Government for further consideration of whether they could be made step-free between the entrance and all platforms. We will shortly update the House on our approach to Access for All, but let me assure her that we are committed to improving the accessibility of the rail network, recognising the social and economic benefits that that brings.
Paul Holmes (Hamble Valley) (Con)
Like the hon. Member for Luton North (Sarah Owen), I have stations in my constituency—in Hedge End and Swanwick—that were allocated money by the previous Government for accessibility lifts. Unlike her rail company, mine did accept that that money was allocated. Within the first week of this Government taking over, that was scrapped, and the Rail Minister wrote to me without any clear plan for when this Government will make an announcement on what will happen with the Access for All scheme. The Minister has just said that it will happen shortly. Can he be more clear for my constituents, who have been waiting for a very long time, so that disabled people and people with wheelchairs and pushchairs in my constituency can make the journeys they need to make? When will this Government make an announcement on Access for All?
Simon Lightwood
I can assure the hon. Member that as soon as I am in a position to do so, I will give him more information on the Access for All programme.
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
Two of my friends, Ruth and Janet, are wheelchair users—one of them as a result of an accident just outside this place 25 years ago. They cannot travel together on our buses, as there is only ever one wheelchair space. They often book assistance at train stations, only for it not to turn up, leaving them stranded. Their handling on planes has led to not only bruising and pain, but loss of dignity and sometimes missed flights when assistance does not come in time. They are now reluctant to go on holiday if it means flying. Will the Secretary of State meet them and set up consultations with disabled passengers up and down the country, so that our public transport can meet their needs in every region? Will she require local authorities taking over bus services to consult disabled passengers and set minimum standards for delivery?
Simon Lightwood
We want a transport system for everyone, in which accessibility is designed as standard across the network so that we can make it easier for people to get on and off services, and build a safe and more secure network, particularly for women and girls. It is the Government’s ambition for disabled people to have equal access to transport, recognising the needs of people with visible and less visible conditions, and I would be more than happy to meet my hon. Friend.
Wendy Chamberlain (North East Fife) (LD)
Leuchars train station in my constituency serves St Andrews and is well used by residents, students and tourists, but its wheelchair access is completely unacceptable. It feels as though we fall through the gaps between the Scottish Government and the UK Government on Access for All. Can the Minister confirm whether the Access for All review is looking at ensuring that those in the devolved nations do not miss out?
Simon Lightwood
I can assure the hon. Lady that I will raise this issue with the Rail Minister. I am quite confident that he has had these discussions with the devolved Governments.
Gregor Poynton (Livingston) (Lab)
The Parliamentary Under-Secretary of State for Transport (Mike Kane)
The SAF mandate, which is one of the first pioneering policies of its kind, came into force on 1 January 2025 to build domestic demand for SAF. We are also growing UK supply through the advanced fuels fund, and we are committed to introducing a revenue certainty mechanism in the King’s Speech to encourage investment in UK SAF production.
Gregor Poynton
I thank the Minister for his response. This UK Government are indeed working at pace to position the UK as a global leader in the rapidly growing SAF industry, which is vital for decarbonising aviation and our aviation industries, and for growing our economy. Will he commit in the forthcoming sustainable aviation fuel Bill to bringing forward the timeline for the revenue certainty mechanism to the end of this year or perhaps early 2026? Accelerating that measure, which has wide support, will give investors the confidence they need to back the 10 potential SAF facilities across the UK, including in Grangemouth, which is near my constituency.
Mike Kane
I thank my hon. Friend, who has been a huge campaigner for Grangemouth. We have committed to bringing forward the revenue certainty mechanism. We have already legislated for a 2% fuel mix in the SAF mandate, which came into force on 1 January this year, and we look forward to the Bill coming before the House when parliamentary time allows.
Jim Shannon (Strangford) (DUP)
I thank the Minister for his answer. I know that he has a deep interest in Northern Ireland, so may I ask a similar question? Northern Ireland wants to provide the necessary aviation fuels and has the ability to do so. What progress has he made in his discussions with the Northern Ireland Assembly to ensure that we can be part of the future of this great United Kingdom of Great Britain and Northern Ireland, which is always better together?
Mike Kane
The hon. Member is a doughty champion of air travel and SAF in Northern Ireland. Through the advanced fuels fund, we have 13 projects and we are currently investing well over £100 million across the UK to see what comes forward in the market, and I hope that Northern Ireland will be integral to that process.
Greg Smith (Mid Buckinghamshire) (Con)
May I, too, wish the Minister a very happy birthday?
Estimates suggest that the SAF mandate provisions and the revenue certainty mechanism will still leave a shortfall, with a family of four facing over £300 extra to fly on holiday by 2040. That is a clear concern for consumers, as well as the airline industry. Net zero should not come at an additional cost to consumers or undermine freedoms—in this case, the freedom to fly. The test must surely be how to defossilise, decarbonise and allow people to do the same at the same cost. What steps is the Minister taking in conjunction with the Treasury to close the financial gap between incentives in the mandate and the actual increased cost of switching to SAF for the end consumer?
Mike Kane
I think the good will ended with “happy birthday.”
I remind the shadow Minister that a little over 12 months ago, in one of his better videos, the then Prime Minister came out into Downing Street, looked at the sky and lauded the policy he wanted when we saw Virgin Atlantic’s 100% SAF trip across the Atlantic. This was the previous Government’s policy but, because of the sclerotic nature of that Government, we are only now getting on with implementing both the SAF mandate and the revenue support mechanism. As the shadow Minister knows, a regular review point is baked into the legislation so that we can revisit targets, if required.
Greg Smith
Of course, there is always another way. Much of the debate so far on SAF has been about fuels made from feedstocks and waste products. Unlike fuels that require feedstock, whose input costs will only ever go up, the industrial process that creates power-to-liquid synthetic aviation fuel will actually see its production costs reduce, with some predicting cost parity between the production of these synthetic fuels and the extraction and production of fossil fuels within a decade. Does the Minister agree that synthetics offer a much better long-term solution, and will he reprioritise the Government’s approach to SAF away from transitional solutions and towards synthetics?
Mike Kane
The hon. Gentleman runs his car on synthetic fuel, so I know his passion. There are many ways to get to SAF. The SAF mandate is supported by industry, and there is a real opportunity to establish a plethora of production. We can create thousands of new well-paid jobs while protecting the pound in the holidaymaker’s pocket.
Max Wilkinson (Cheltenham) (LD)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
The Department continues to work closely with the rail industry to minimise the disruption to passengers on the great western main line during the new station’s construction and operation. Our priority is to mitigate the impact on passengers, as far as possible, by investing £30 million for service continuity during periods of disruption.
Max Wilkinson
The Secretary of State’s constituents will also be affected. Compensation comes in many forms. It may be in the form of better wi-fi on trains to improve the service for business users. It may be in the form of more rolling stock to end the bizarre practice of running half-length trains out of Paddington at peak times. And it may be in the form of an investigation into how we can reduce the ridiculous turnaround times at Gloucester station that delay Cheltenham passengers so much. I hope the Minister will confirm that all these things are being looked into for passengers in my constituency and the Secretary of State’s constituency.
Simon Lightwood
The Rail Minister has met MPs from both sides of the House to discuss this issue and has attended an industry programme board to ensure that passenger interests are considered and that disruption is minimised for passengers, both during and after construction.
Baggy Shanker (Derby South) (Lab/Co-op)
2025 is an exciting year for Derby, partly because of the progress on Great British Railways, which will be headquartered in Derby, and rightly so. Can we also make this the year that the British public fall in love again with rail travel, by giving GBR a strict timetable to simplify complicated ticketing and fares and to implement digital pay-as-you-go, as well as automatic compensation?
Mr Speaker
Order. I am not sure that fits the original question. We have probably strayed too far.
Charlotte Cane (Ely and East Cambridgeshire) (LD)
The Secretary of State for Transport (Heidi Alexander)
Transport is central to this Government’s plans for rebuilding Britain and growing our economy. We are committed to investing in the rail capacity needed to support that growth. This means improving performance and timetables to make the best use of the capacity we have, but it also means investing in new and improved infrastructure, such as High Speed 2, the trans-Pennine route upgrade and East West Rail.
Charlotte Cane
I thank the Secretary of State for her answer and welcome her to her place. Ely Junction is a major bottleneck in our rail network and the Ely area capacity enhancement scheme is designed to improve that. If the scheme goes ahead, it could deliver over a quarter of a million extra rail passenger journeys and take 98,000 lorry journeys off the road every year. It will also help the midlands and the north grow their economies, because it will improve freight transport to and from ports, the midlands and the north. To add to all those benefits, the business case stacks up: every pound invested will deliver nearly £5 of benefits. Will the Minister—
Mr Speaker
Order. The question is far too long— I think the hon. Lady needs to secure an Adjournment debate on the subject. The Secretary of State can grasp the sense of the question.
Heidi Alexander
I understand how passionately the hon. Lady feels about the scheme, and the Under-Secretary of State for Transport, my hon. Friend the Member for Wakefield and Rothwell (Simon Lightwood) responded to her written parliamentary question on the subject at the end of November. Projects like this one, in areas like hers, have the potential to contribute to the Government’s plans to deliver economic growth. She will know that the spending review is coming up, so a decision on the scheme and any potential timetable will be subject to the outcome of that review.
Ruth Cadbury (Brentford and Isleworth) (Lab)
I welcome the Secretary of State to her place and I look forward to working with her.
The original vision for HS2 was to link London with the midlands and the north, and to address the growing capacity challenge on the west coast main line with a whole new rail line. The last Government panicked and mothballed much of the project because of cost overruns on phase 1, thus incurring yet further costs. I welcome the Secretary of State’s commitment to get a grip on the phase 1 cost overruns, but do the Government plan to deliver a rail solution linking phase 1, north of Birmingham, to the rest of the country, thus delivering the Government’s vision to drive growth for the whole country?
Heidi Alexander
I congratulate my hon. Friend on her election as Chair of the Transport Committee. She will be formidable and I look forward to working with her.
I am pleased that my hon. Friend raises the question of the mess we inherited from the Conservative Government on HS2 and rail connectivity in the north. When we entered Government in July, we found a rag-bag collection of half- baked, unfunded spending commitments for rail schemes up and down the country. The previous Government drew up their Network North plans on the back of a napkin. As part of the spending review, we have started the hard work of identifying a realistic pipeline of schemes that is affordable and will deliver better connectivity in partnership with local leaders.
Mr Paul Kohler (Wimbledon) (LD)
I welcome the Secretary of State to her new position. My party knows her well from her hard work on London’s transport network. We look forward to continuing the constructive relationship we had with her then and with her predecessor in this House.
May I take this opportunity to express my sadness at the passing of my Liberal Democrat transport colleague, Baroness Jenny Randerson? Jenny was a force of nature, intelligent, kind, hard-working and principled, with a mischievous wit and love of life. I learned a huge amount from her in the few months we worked together, and will miss her deeply.
Improving transport links to Wales was an issue close to Baroness Randerson’s heart, and one she regularly pressed in the other House. Will the Secretary of State review the Tories’ decision to class HS2 as an England and Wales project, thus depriving Wales of billions of pounds of Barnett formula funding, and will she commit to a high-speed rail link from Birmingham to Crewe to ensure that mid and north Wales can at least share the benefits of HS2?
Heidi Alexander
May I extend my condolences and those of the Government to the family of Baroness Randerson? I know she was a deeply loved and highly respected colleague to many.
On the hon. Gentleman’s substantive question, I have already met Ken Skates, the Welsh Minister for Transport, and I am working closely with the Secretary of State for Wales to ensure that we bring public transport improvements to Wales, which I hope will be Baroness Randerson’s lasting legacy.
Tom Hayes (Bournemouth East) (Lab)
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
South Western Railway has been working closely with Network Rail and the local authority to provide a viable scheme that will result in the installation of new lifts at the station. To establish the likely cost of the scheme and assess affordability, detailed design works are under way and are expected to be finalised in 2025.
Tom Hayes
I thank the Minister for that very helpful answer. The people of Pokesdown are certainly very keen for their lift, which they have been waiting a long time for. Back in the 1980s and 1990s, train services between Bournemouth and London Waterloo took the historically fastest time of 90 minutes. Will the Minister meet me and South Western Railway to discuss whether we can restore that fast time, as well as to discuss Pokesdown?
Simon Lightwood
There are no current plans to introduce an express service between Bournemouth and London, but I will keep my hon. Friend updated on the future plans regarding South Western Railway, which will become the first operator to be taken back into public ownership in May.
Vikki Slade (Mid Dorset and North Poole) (LD)
The residents of Wareham, just along the way from Bournemouth, have been waiting more than 20 years for electronic gates—
Vikki Slade
It is a very niche question, and I want to ask about the next railway line along from Bournemouth.
Mr Speaker
In which case, it does not count. Thank you for that clarification. Let us go to topical questions.
Ben Obese-Jecty (Huntingdon) (Con)
The Secretary of State for Transport (Heidi Alexander)
Transport is at the heart of this Government’s plan for change. Since I joined the Department more than a month ago, we have introduced the Bus Services Bill, which will give transport authorities across the country the tools to take back control of local services. We are bringing clarity and confidence to our automotive industry, with a consultation on how we will restore the 2030 phase-out date for new petrol and diesel cars. We have also confirmed the first three train operators that will be brought under public control later this year.
We have delivered record funding to protect vital bus routes and keep fairs capped, and we smashed our manifesto target with a £1.6 billion investment to repair 7 million more potholes on Britain’s broken roads. I am determined that our transport system delivers reliable, accessible journeys for all; enables the construction of millions of new homes; supports the jobs and industries of the future; and enables rising living standards for everyone in every part of Britain.
Ben Obese-Jecty
On those new bus routes, within the last hour, Stagecoach East has issued a statement about the delayed new tiger bus routes, citing the decision by Cambridgeshire and Peterborough combined authority to retender the routes, inconsistencies in the award letter, concerns over the legality of the operation and the increased cost due to the Government’s national insurance increase as reasons for the delay until at least May. Does the Secretary of State share my concern that bus services in Cambridgeshire and Peterborough are not being managed effectively by the Labour mayor?
Heidi Alexander
I am happy to speak further with the hon. Gentleman about his concerns regarding local bus services. I know how critical bus services are for young people wanting to get to school, people wanting to get to work and older people wanting to access vital lifeline services. I am happy to meet him to talk in more detail about his local concerns.
Michelle Scrogham (Barrow and Furness) (Lab)
The Parliamentary Under-Secretary of State for Transport (Lilian Greenwood)
My hon. Friend is absolutely right to highlight the importance of those roads to her constituents. I am working closely with National Highways and holding it to account for those parts of the road network, as well as working with local authorities to ensure that roads are reliable, well maintained and available.
Gareth Bacon (Orpington) (Con)
I was appalled to discover this morning that I have known the Secretary of State for the thick end of two decades. We have had various exchanges in various other fora, but this is our first exchange across the Dispatch Box in this House. I therefore warmly congratulate her on her appointment and welcome her to her place.
The Government promised to deliver more reliable rail services, but over Christmas, what did we see? Chaos, cancellation and delays. The train drivers, having accepted the Government’s no-strings pay deal, chose to turn down overtime shifts, leaving passengers stranded and left in the cold. The Government’s no-strings agreement was supposed to bring stability to the railways, but it did the exact opposite, causing major disruption. Will the Secretary of State admit that the pay deal that they thought would improve reliability in fact only made services worse?
Heidi Alexander
I am grateful to the hon. Gentleman for his kind words. I remember those days on the London Councils transport and environment committee. I hope he does not mind my saying that both he and I have a little bit more grey hair since then, which is not necessarily helped by this new job.
On the substance of the hon. Gentleman’s question, I must vehemently disagree with him. The reality is that this Government acted when the previous one refused to do so, to put an end to the industrial action that was blighting our railways. We had a two-year national rail strike that ground down everyone who travelled or worked on the railways, at a cost of £850 million in lost revenue. He might take a lesson from the former Conservative Rail Minister, the former Member for Bexhill and Battle—
Mr Speaker
Order. I say to the Secretary of State gently that I had wanted to welcome her today, but I have to get through a lot of Members. We are on topicals, which are short and punchy. I call the shadow Secretary of State to give us a good example.
Gareth Bacon
I note the Secretary of State’s answer, but, in the real world, we know that the Government’s union paymasters will keep pushing for more. Labour’s plans to scrap the minimum service levels will give the unions more power to hold the railways hostage. Does the Secretary of State accept that the Christmas chaos will not be a one-off, and will in fact be the start of an ongoing decline in reliability?
Heidi Alexander
We have had decades of chaos on the railways, and railways that simply did not work for people. What is needed is a fundamental reset with the trade unions to deliver improvements for passenger services.
Grahame Morris (Easington) (Lab)
Grahame Morris
I know. Will the Secretary of State facilitate a meeting with the Rail Minister to put in place an urgent action plan and address the issues of staff shortages?
Mr Speaker
I know you could go on, but I am sure the Minister can answer that.
Heidi Alexander
I, along with the Rail Minister, will be meeting the management of Northern Rail before the end of this month.
Mr Paul Kohler (Wimbledon) (LD)
Last week, the Government ramped up bus fares by 50%. The previous Government commissioned a full impact assessment, which was completed last year, on the abolition of the £2 bus fare cap. In November, the Under-Secretary of State for Transport, the hon. Member for Wakefield and Rothwell (Simon Lightwood) promised the House that he would release the report, but nothing has appeared. I ask the Secretary of State, what is her Minister hiding and when will the report be released?
The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)
I thank the hon. Gentleman for his question. I can assure him that the report will be released in due course.
John Slinger (Rugby) (Lab)
Simon Lightwood
We know how important local bus services are to communities. Our reforms of the bus sector, combined with £1 billion of investment, will ensure that local leaders have the necessary tools to ensure that bus services truly reflect the needs of passengers.
Mr Joshua Reynolds (Maidenhead) (LD)
Lilian Greenwood
The hon. Member is right to raise concerns about these appalling practices that are being used to rip off learner drivers. To help with this, we announced a call for evidence on the current rules and processes, and we will be working hard to eliminate the bots and make sure that learner drivers get a proper deal.
John Whitby (Derbyshire Dales) (Lab)
Under the previous Government, bus services in rural areas were decimated. The number of bus journeys in the Derbyshire Dales declined by 55% between 2010 and 2023. What steps is the Minister taking to stop further cuts to bus services in rural areas like the Derbyshire Dales.
Simon Lightwood
I thank my hon. Friend for his question. A total of £1 billion was announced in the Budget for bus services, which will be available to his local transport authority to invest in areas, including rural areas, to ensure that bus services are accessible, regular and affordable.
Freddie van Mierlo (Henley and Thame) (LD)
Simon Lightwood
The hon. Member will be aware that close to £100 million was announced in the recent Budget. We will work closely with Active Travel England to ensure that that money is put to good effect across the country.
Lillian Jones (Kilmarnock and Loudoun) (Lab)
The nationalisation of ScotRail has been another SNP transport fiasco. The Scottish Government’s flagship £25 million scheme to boost the amount of freight transported by rail failed to achieve growth. Their mismanagement of ScotRail and their own budget has led to a double-whammy price hike for passengers, with the return of peak fares at the same time as price rises. Does the Secretary of State agree that, at a time when we need better trains to boost growth and reduce emissions, the SNP has instead consigned Scotland to a spiral of decline and let my constituents down?
Heidi Alexander
I agree. We will not make the same mistakes when we take train operating companies into public ownership. We will do it properly. It is a massive undertaking, but we will make our railways a system for the whole country to be proud of.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
The Parliamentary Under-Secretary of State for Transport (Mike Kane)
Changes made during the pandemic crippled airport duty-free shopping. I will get the hon. Member a more detailed letter on the matter.
Rachael Maskell (York Central) (Lab/Co-op)
York’s advanced digital and advanced rail cluster can really boost our economy with the innovations that it is bringing, as well as providing 5,500 jobs in York. Will the Secretary of State meet me to discuss how we can bring it into her strategy for developing the rail industry?
Heidi Alexander
I will. I know that my hon. Friend represents the proud railway city of York, as I represent the proud railway town of Swindon. I look forward to having that meeting with her.
Robbie Moore (Keighley and Ilkley) (Con)
Mrs Emma Lewell-Buck (South Shields) (Lab)
In South Shields, not only is our public transport expensive, we have to suffer constant metro delays, tunnel closures and replacement bus breakdowns. This Christmas, our roads were completely cut off. Will my right hon. Friend please meet me to discuss these long-standing ongoing issues?
Heidi Alexander
I would be happy to meet my hon. Friend. I have already met a number of Members of Parliament in the Gateshead area about some of the recent problems with the flyover, and met the Mayor for the region.
Matt Vickers (Stockton West) (Con)
When HS2 was cancelled, the last Government set aside £1 billion for Teesside to protect our iconic transporter bridge, deliver a new train station for Teesside Park, upgrade the train station at Thornaby, and much more. We are six months in now. Can the Secretary of State tell me whether we will get the money, or is the Labour party pulling the plug on investment in Teesside?
Heidi Alexander
We are six months in. The Conservative party had 14 years. Those promises are worth nothing without a plan to deliver.
Helena Dollimore (Hastings and Rye) (Lab/Co-op)
In Hastings, Rye and the villages, we have some of the worst potholes in the country, so I welcome the record £21 million awarded to east Sussex to fill potholes. Will the Secretary of State join me in calling on Conservative-run East Sussex county council to fill the potholes, and ensure that Hastings and Rye gets its fair share of that funding?
Heidi Alexander
My hon. Friend is a doughty campaigner for her local area, and I fully endorse her efforts to get money to fix the broken roads in her constituency.
Gregory Stafford (Farnham and Bordon) (Con)
In Hale and Badshot Lea, in the northernmost parts of my constituency, many residents can only get into Farnham town centre using the bus service. There is concern, given the increased amount of building, and future building under the new Government’s plans, that bus services will not be adequate. Will the Minister meet me to discuss the plans for north Farnham, and Badshot Lea and Hale?
Simon Lightwood
Buses are of course the most commonly used mode of public transport in Britain, and the lifeblood of our communities. I will be more than happy to meet the hon. Member.
Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)
While welcoming rail renationalisation, may I ask what can be done to expedite investment in crucial rail infrastructure developments, such as the Haughley junction in my constituency, taking traffic off the A14 and possibly facilitating Bury St Edmunds to London trains? Was the previous Prime Minister’s promise to redeploy funds from the cancelled HS2 realistic?
Heidi Alexander
We spend about £2 billion a year on rail enhancement projects. We will be looking carefully through the spending review at all proposals that get freight off the roads and increase the availability of passenger services.
Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)
I am delighted to see that you are proudly wearing the newly formed Royal Army Medical Service tie, Mr Speaker.
In Solihull West and Shirley, the new year has been welcomed by increases in bus fares and reductions in services. In places such as Cheswick Green, people are faced with choosing between either more expensive and difficult journeys or not being able to get to work, the shops or college. Given the Government’s stated ambitions, what assessment has the Minister made of the economic impact of the policy?
Simon Lightwood
Conservative Members had no plans or funding put aside to continue with the bus fare cap beyond 2024. We have secured £151 million to ensure that buses remain affordable for many. In some areas, without that intervention fares could have risen by as much as 80%.
Kevin Bonavia (Stevenage) (Lab)
I welcome the Secretary of State to her place. In my first public meeting after my election, residents in Knebworth called for more fast train services. We got some, but there has been poor reliability. Will she meet me to discuss those issues?
Heidi Alexander
Yes, I think I will have a busy diary coming up.
Lincoln Jopp (Spelthorne) (Con)
We have an anomalous situation in Spelthorne whereby someone can get six London red buses on an Oyster card, but they cannot get the train out to the stations at the end of the line. Major employers, such as BP and Shepperton Studios, are sending buses up the line to bring down those people who cannot use an Oyster card. As the Secretary of State will own South Western Railway and is brilliant with Transport for London, could she please get Spelthorne into the Oyster zone?
Heidi Alexander
We are exploring how we can extend pay-as-you-go to other stations in the south-east. I must admit that my mental map is not good enough to identify every station yet, but we share that ambition to make it easier for people to use the railways across the south-east region.
Noah Law (St Austell and Newquay) (Lab)
This weekend, grassroots campaigners in Newquay will meet to oppose the privatisation of car park charge enforcement in Newquay and Cornwall more widely. Will the Secretary of State and colleagues in the Ministry of Housing, Communities and Local Government meet me to discuss how councils can retain more of that profit locally, instead of sending it up-country to often unscrupulous and usurious operators?
Lilian Greenwood
I thank my hon. Friend for raising the concern, and I would be happy to meet him to discuss the issues further.
Vikki Slade (Mid Dorset and North Poole) (LD)
The residents of Wareham, just along from Bournemouth, have been trying to get electronic gates for 20 years. Network Rail’s latest excuse is that it is for the Office of Rail and Road, and the Office of Rail and Road says that it is for Network Rail. Will the Secretary of State meet me so that we can bang heads together and get this resolved once and for all?
Heidi Alexander
I will certainly ask the Rail Minister to take that meeting.
Dr Scott Arthur (Edinburgh South West) (Lab)
Pavement parking is a massive issue in many of our towns and cities, particularly for people faced with sight loss and for parents trying to push buggies. All of us here benefit from the pavement parking ban in London, but given that it is over four years since the consultation closed, is it time to give towns and cities across England the power to enforce a pavement parking ban if they so wish?
Lilian Greenwood
My hon. Friend is absolutely right to raise this problem. We will publish a formal response to the consultation, which the previous Government shamefully failed to act on. We will announce next steps for pavement parking policy in England in due course.
James Wild (North West Norfolk) (Con)
Upgrading Ely junction would deliver more passenger services to King’s Lynn in my constituency, boost freight and unlock benefits of £5 for every £1 invested. Will the Secretary of State confirm whether that is a priority in the Department’s bid for the spending review?
Heidi Alexander
We are working on a whole range of schemes in respect of the spending review, and I will provide the hon. Gentleman with more information as soon as I have it.
Louise Jones (North East Derbyshire) (Lab)
Last year, Derbyshire was judged to be the worst county in the country for potholes, so one would think that the county council would welcome the record £76 million investment into our roads. Can the Minister assure me that that money will make a real difference to our roads and pave the way for a better Britain?
Public Finances: Borrowing Costs
(1 month, 1 week ago)
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Mel Stride (Central Devon) (Con)
(Urgent Question): To ask the Chancellor of the Exchequer if she will make a statement on the growing pressure of borrowing costs on the public finances.
The Chief Secretary to the Treasury (Darren Jones)
I am always grateful to see Conservative Members welcome me to the House.
Financial markets are always evolving, as the shadow Chancellor knows, so there is a long-standing convention that the Government do not comment on specific financial market movements, and I will not break that convention today. Financial market movements, including changes in Government bond or gilt yields, which represent the Government’s borrowing costs, are determined by a wide range of international and domestic factors. It is normal for the price and yields of gilts to vary when there are wider movements in global financial markets, including in response to economic data.
In recent months, moves in financial markets have been largely driven by data and global geopolitical events, which is to be expected as markets adjust to new information. UK gilt markets continue to function in an orderly way. Underlying demand for the UK’s debt remains strong, with a generally well-diversified investor base. The Debt Management Office’s gilt sales operations continue to see strong demand. The latest auction, held yesterday, received three times as many bids as the amount on offer.
The Chancellor has commissioned from the Office for Budget Responsibility an updated economic and fiscal forecast for 26 March incorporating the latest data. Only the OBR’s forecast can accurately predict the effect on the public finances of any changes in financial markets or the economy, and I will not pre-empt that forecast. There should be no doubt of the Government’s commitment to economic stability and sound public finances. That is why meeting the fiscal rules is non-negotiable.
May I end by saying that I am pleased that the shadow Chancellor is holding this Government to account on our stewardship of the economy? It is important that he does so. He will remember when his party crashed the economy with unfunded tax cuts, unrealistic public spending plans and a clear disregard for the consequences on family finances. Families across the country are still paying the price for the Conservatives’ disastrous performance on the economy through higher mortgages and bills. If there was one clear reason why the Conservative party suffered such an historic defeat at the last general election, it was their performance on the economy. That is presumably why the shadow Chancellor himself admitted in December that the lack of trust in the Conservative party’s management of the economy has left a “deep and painful scar” in the pockets of every person across Britain.
Let me tell the House what has changed. In our first six months, this Labour Government have exposed the £22 billion black hole in the public finances. Not only have we exposed it, but we have dealt with it: the Chancellor’s autumn Budget protects working people, wipes the slate clean of the mess the Conservative party left the country in, and invests in our NHS and schools. We have given the independent Office for Budget Responsibility enhanced powers of oversight, in law, so that we never again get into the situation where that lot left the country: a £22 billion black hole in the public finances. We have set tough new fiscal rules that are non-negotiable, with a budget settlement for public services that they must all live within. We have kick-started growth in this country—this Government’s No. 1 mission —by unlocking investment and bringing forward reforms, such as those to planning and in the Mansion House speech.
May I say to the shadow Chancellor that that work stands in stark contrast to the negligent and shameful horror of a circus performance that the Conservative party in government unleashed on this country only a few years ago? Until he can come to the House with an apology for the British people, I will not take any lectures from the Conservative party about how to run the economy.
Mel Stride
The performance we have just seen was a slightly anxious and breathless one, which leads me to the question: where is the Chancellor? It is a bitter regret that at this difficult time and given these serious issues, she herself is nowhere to be seen.
In the last 48 hours, borrowing costs have reached a 27-year high, and it is the Chancellor’s decisions that have led us here. Before the election, the right hon. Lady promised that Labour would get debt falling, would not fiddle the figures, would not raise taxes and would grow the economy, but the economy is now flatlining. Survey after survey is showing that business confidence has simply evaporated, and at the Budget, the Chancellor hiked up taxes, increased borrowing by an average of £32 billion a year across the forecast, and conveniently adjusted her fiscal rules to allow her to do so.
Higher debt and lower growth are understandably now causing real concerns among the public, among businesses and in the markets, and despite what the Chief Secretary has said about international factors, the premium on our borrowing costs compared with German bonds recently hit its highest level since 1990. With those rising costs, regrettably, the Government may now be on course to breach their fiscal rules. The Chancellor has committed to no further tax rises, so does the right hon. Gentleman stand by her commitment not to increase taxes even further? If so, does that mean that the public should expect cuts to public service spending if the OBR judges that her fiscal headroom has evaporated?
There are media reports that the Chancellor will make an emergency intervention to soothe markets, but with no confirmation that such a statement will occur in this House. Will the right hon. Gentleman confirm that any such statement will be made first to Members in this House? Rates on Government bonds ultimately feed through to the broader credit market, so what estimates has the Treasury made of how recent market movements will impact mortgage costs and lending across the economy?
I will make one final point, Mr Speaker. Every pound that we spend on debt interest is money that we cannot spend on the public’s priorities. The Government’s decision to let rip on borrowing means that their own tax rises will end up being swallowed up by higher borrowing costs, at no benefit to the British people. Far from this Government laying the foundations for a stronger economy, the Chancellor is squandering the endeavours of millions of hard-working people up and down our country, who are now having to pay the price for yet another socialist Government taxing and spending their way into trouble. Does the right hon. Gentleman not now accept that it is time to change course?
Darren Jones
I am pleased that the right hon. Gentleman enjoyed my performance—I have not even had my first cup of coffee yet this morning. Let me answer some of his questions. [Interruption.] Conservative Members might like to listen, if the questions are so important to them.
The right hon. Gentleman asked me about the fiscal rules. As I said in my statement, those rules are non-negotiable. As the Chancellor set out at the Budget, we have two fiscal rules: first, that day-to-day spending should be met by tax receipts, and secondly, that debt should be falling as a share of the economy.
The right hon. Gentleman talked about the debt burden that this country has. Maybe we should reflect a little on why we have so much debt—[Interruption.] From pre-pandemic, Mr Speaker. Let us look at the burden of debt inherited by this Government from the Conservatives. From 2010 onwards, why did the last Government have to borrow so much money every single month, not just to invest but to pay the day-to-day bills? Because of an absolute failure to get growth into the economy. They could not make the numbers add up. They stacked up the country’s credit card and left it to the Labour party to deal with, and we are going to deal with it. That is why those fiscal rules are non-negotiable, and it is why public spending will be within the numbers set out at the Budget.
We are starting the spending review now, and it will conclude in June. Public services will have to live within their means—the Chancellor has been very clear about that. That is why with this Government, you get economic stability and absolute clarity on public spending. That is why the British people trust this party and booted that lot out of office.
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
We all know that fiscal rules and certainty are vital for the markets and the good stewardship of the public finances, so will the Chief Secretary to the Treasury explain what process he will be going through as he conducts the spending review, and what notice he will give to Departments about extra cuts that they may have to make in order to meet the fiscal rules? In addition, when the Chancellor comes in front of the House for the OBR forecast in March, will she be making a fiscal statement at that point?
Darren Jones
I thank the Chair of the Select Committee for her question. As the House knows, we have started the second phase of the spending review, to set public sector budgets from 2026-27 onwards. The Chancellor confirmed in a written ministerial statement before the House rose for Christmas that there will be a forecast from the OBR and a statement on 26 March. As I said in my response, that will be the next time the OBR will give a view about the UK economy and the levels of funding for public services. Between the OBR forecast in March and the conclusion of the spending review in June, the House will be updated in the normal way.
Clive Jones (Wokingham) (LD)
I recognise that the Chancellor has a very difficult job. She inherited an economy on its knees, following the Conservatives’ mismanagement of the economy, from their terrible trade deal—[Interruption.] That extends from their terrible trade deal with Europe, which is holding back businesses in Wokingham, to soaring inflation, stagnant growth and the Liz Truss mini-Budget, which hit so many mortgage holders across the country.
However, the Government seem to be repeating some of the same mistakes. Last night, the Treasury issued a statement saying that
“meeting the fiscal rules is non-negotiable”.
Will the Chief Secretary reassure this House that protecting the NHS and care is also non-negotiable, and will he rule out any cuts to those services as the Government try to balance the books? Will he work to repair our ties with Europe and cut trade-related red tape, especially in the face of Donald Trump and his oligarch allies such as Elon Musk?
Darren Jones
I thank the hon. Member for his question. He will note from the Prime Minister’s plan for change that the NHS is the subject of one of this Government’s key commitments, with commitments to get the elective waiting list down and to invest in the national health service so that we can do so. He will have heard that from the Chancellor at the Budget in the autumn, and he will see that it is a continued commitment from this Government. We can do that because of our commitment to the fiscal rules and because of our investment to grow the economy, which is the only route to long-term, sustainable public financing.
The hon. Member was very rudely groaned at by Conservative Members, but when it comes to their performance on the economy, it is not they who should be groaning, but the British people who should be groaning at them for what they did to their family finances.
Dr Jeevun Sandher (Loughborough) (Lab)
US bond rates are rising as well as those in the UK, with higher than expected inflation and interest rates. I note that Conservative Members have not mentioned that; perhaps they have not looked. The best way to make our debt sustainable is to invest to get growth growing, and to get expected inflation down by investing in clean energy. Does the Minister agree that our plans to invest in growth and in lower-price, cleaner energy is exactly the way to make our debt sustainable?
Darren Jones
My hon. Friend knows very well that this Government’s approach has been about stability, investment and reform: the stability we have brought following the chaos of the years under the Conservative party, as has been recognised by the British people and by the markets; the investment we have been unlocking, from our global investment summit all the way through to the work we have been doing in the Budget and since; and the reforms we are bringing forward—for example, planning reform—to make sure we can deliver infrastructure better in this country and unlock the investment that private capital has wanted to put forward in the UK for many years, but could not because of the chaos from the Conservatives when they were last in government.
Sir Edward Leigh (Gainsborough) (Con)
On 6 November, the Chancellor said:
“We have now set the envelope for spending for this Parliament, and we are not going to be coming back with more tax increases or, indeed, with more borrowing.”
I am sure, because the Chancellor is an honourable lady, that she will not be opening that envelope, putting her sticky fingers inside and coming out with more borrowing or tax increases. Will the Minister give an absolute assurance of no more tax increases or borrowing?
Darren Jones
I can absolutely assure the Father of the House that we are working through this spending review on the basis of the envelope set at the Budget. Public services will have to operate within the means that we are providing to them. The OBR forecast will come in March, which will give us the latest set of information, and we will work to that with Departments. This is why we have set up organisations such as the Office for Value for Money, why we have set tough productivity and efficiency targets for Departments and why we are investing in, for example, technology to improve the productivity of the public services we provide. Public services must live within their means, as set out in the Budget, and that is an absolute guarantee from this Government.
Torsten Bell (Swansea West) (Lab)
I thank the Chief Secretary for his response. I have just sat through Transport questions, or some of them, during which I repeatedly heard calls for more spending from Conservative Members, but they oppose every single tax rise to pay for that spending. Does the Chief Secretary agree that one of the lessons from global developments in recent days is that we must pay for day-to-day public spending through tax rises, however tough that is?
Darren Jones
I very much agree with my hon. Friend. We have to pay day-to-day bills with the income we generate day to day. The lesson that we learned from the Opposition was about what they were happy to do, but this Government are not. They were happy to announce plans and programmes to make promises to the British people, even though they knew they did not have the money to pay for it. That will never happen under this Labour Government.
John Glen (Salisbury) (Con)
When the Chancellor set the envelope for spending for this Parliament, and said to the Treasury Committee on 6 November that she would not come back for more tax increases or more borrowing, that was based on her assumptions about the cost of borrowing. Those are manifestly in significant doubt, to look at it in the most charitable way. I have sat in the Chief Secretary’s position, and I know he will want to equivocate and push decisions to the next OBR assessment and the next fiscal event, but the truth is surely this: this Government have to cut spending, increase taxes or borrow more. If the cost of borrowing is increasing, that moment will come sooner. Which of those choices is he inclined to make, and when will he tell the British people honestly what this Government have done?
Darren Jones
I have been clear to the House, as has the Chancellor, that the fiscal rules are non-negotiable. Public services will have to live within their means. We set the Budget in the autumn last year, and we have the OBR forecasts coming in March. Those are the numbers that Departments are working to in the spending review, and those are the numbers that we will hold public services to when we conclude the spending review in June.
Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
We thought we knew the dire economic situation when the general election was called, but on entering government, we found the real consequences of the previous Tory Government’s addiction to unfunded spending announcements. The people of Newcastle upon Tyne Central and West are paying the consequences for the Truss-Kwarteng economic crash. With the imminent entry into the White House of a President also committed to significant unfunded tax cuts, the economic stability of the UK becomes even more important. Will my right hon. Friend confirm that this Government are absolutely committed to fiscal responsibility and rising living standards, and that the plan for growth will deliver both?
Darren Jones
I thank the Chair of the Science, Innovation and Technology Committee for her question. She will know that our first commitment in the Labour party manifesto at the last election was to fiscal responsibility. It is the bedrock of this Government and the bedrock of every decision we take. As the Prime Minister set out in his plan for change, the reason people will know the difference that a Labour Government make is that they will have more money in their pockets by the end of this Parliament than when it started.
Dame Harriett Baldwin (West Worcestershire) (Con)
In yesterday’s extraordinary emergency statement from the Treasury to try to calm the markets, it paid tribute to the fact that the Government inherited the second-lowest debt in the G7. Is the reason the Government Front Bench is so empty today and the Chancellor has fled to China that she has realised that her Budget means she now is the arsonist?
Darren Jones
I must say I am rather surprised by the inflammatory language of the former Chair of the Treasury Committee, which is clearly no reflection of reality. The Chancellor is going on her trip to China. It has been well documented for many weeks, and it is an important visit for trade and investment in the UK economy. May I say that there was no emergency statement or emergency intervention? Those are make-believe words being propagated by Opposition Members. The Treasury responded to requests from journalists about headroom, as we might do in the normal way. There is no need for any emergency intervention, and there has not been one.
Matthew Patrick (Wirral West) (Lab)
One would think, from listening to Opposition Members, that they had not crashed our economy and presided over high taxes, high debts and falling living standards, which affect my constituents and, I expect, some of theirs, too. [Interruption.] That is the Tory cycle. Will the Minister confirm that the route out of that is growth, and that remains our No. 1 mission?
Darren Jones
My hon. Friend is right. May I offer some probably unwelcome advice to Opposition Members? The sooner they stop groaning and stop laughing about their performance when they were last in government, and the sooner they apologise for it, the sooner the British people might start listening to them again.
Mr Joshua Reynolds (Maidenhead) (LD)
Public services are at breaking point after the previous Government’s mishandling of the economy and budgets locally. However, does the Minister recognise that scaling back investment in vital public services risks even more devastating consequences for our local communities?
Darren Jones
At the autumn Budget, the Chancellor invested in frontline public services, because we recognise that people rely on them, but also because functioning public services are an important route to growth in the economy. If people are sick and cannot get to work, they need to be able to see a doctor in a timely fashion, so that they can get back to work. That is the priority of this Government, as well as investing in modernising our public services, so that they are fit for the future.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
My constituents suffered real hardship as a result of the disastrous mini-Budget pursued by the Conservative party. Does the Chief Secretary to the Treasury agree that in order to improve living standards for my constituents, we must stick to our fiscal rules, maintain fiscal discipline and invest in our public services?
Darren Jones
I very much agree. That is why fiscal stability and economic responsibility are at the heart of this Labour Government and the Chancellor’s agenda. Members on the Opposition Benches may want to pay attention to that.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
There is no point beating around the bush: the Chancellor has just lost over £9.9 billion of headroom, and stands on the cusp of breaking her own fiscal rules. She said last year that she would not come back for more tax rises. Will the Chief Secretary be honest and admit, just as the former Bank of England rate setter Martin Weale said today, that this leaves only the option of more austerity? Will he level with people about when and where the next round of cuts will fall?
Darren Jones
As I said, the fiscal rules are non-negotiable. The only reliable sources on future financing will be the OBR forecast on 26 March, the conclusion of the spending review in June, and the Budget, which the Chancellor will present in the autumn. The hon. Gentleman mentioned austerity, but I remind him that this Labour Government have given the Scottish Parliament the largest real-terms increase in funding since devolution. He should be grateful for that.
Warinder Juss (Wolverhampton West) (Lab)
This Labour Government have been in power for six months, and we are having to deal with 14 years of Conservative chaos. Does the Chief Secretary agree that the Government’s plan for change, which aims to provide a stable economy and raise living standards in every part of the United Kingdom, and has economic growth as the No. 1 mission, is the right approach to ensure that the United Kingdom can weather the global uncertainty that we face?
Darren Jones
My hon. Friend is absolutely right. Let me set out the difference that the British people will experience. At the end of 14 years of Conservative Government, they had higher mortgages, higher bills, a higher cost of living and public services on their knees. At the end of this Labour Government, pointing towards the next general election, as set out in the Prime Minister’s plan for change, they will have more money in their pocket, public services will be functioning again, and they will be proud once again of their Government, and of the British economy.
Sir Bernard Jenkin (Harwich and North Essex) (Con)
Having listened very carefully to the right hon. Gentleman’s responses, I believe that he is making a more significant statement than many of his colleagues might realise. By underlining that there will not be any tax or borrowing increases, he is, in effect, saying that austerity is back, because there is no way that the public finances can be remedied by another Budget of wishful thinking that pretends that increased borrowing and spending will produce growth. That is once again being proved by a Labour Government to be a false way of leading the economy.
Darren Jones
I am always grateful to the hon. Gentleman for thinking that I am making such substantive interventions, and for his continued support in that respect. This is not austerity, as he will know full well. Austerity was ideological cuts to public financing and the size of the state. It was 3% cuts, irrespective of what that meant for public services or for people across the country. That is far from what the Chancellor unveiled in her autumn Budget. That was the absolute opposite of austerity; we increased financing for frontline public services, and will continue to do so.
Noah Law (St Austell and Newquay) (Lab)
Will the Chief Secretary outline the steps that this Government have already taken to fix the fiscal foundations and put this country on a stronger footing for growth?
Darren Jones
My hon. Friend asks an important question. Why did we have to take that action? Why was this Government’s first Bill about fiscal responsibility? It was because of the mess that Conservative Members left this country in. That is why we have given the Office for Budget Responsibility stronger, independent powers of oversight in statute—something that the shadow Chancellor presumably welcomed, given his comments criticising Liz Truss and her Budget when he was Chair of the Treasury Committee. We brought that change forward, which the Conservative party failed to do. That is why we have set fiscal rules that are non-negotiable, why public services must live within their means, and why the Government’s absolute focus is on securing growth, investment, reform and long-term sustainability for public finances.
Richard Tice (Boston and Skegness) (Reform)
Is the Chief Secretary aware that the last two months’ GDP figures, for September and October, are both down? Is he aware that sterling is falling—in fact, almost collapsing? Confidence is falling and investors are fleeing. The only things going up are inflation, wasteful public spending and the cost of debt. Be under no illusion: we are heading towards a financial crisis. Will he ask the Chancellor to return from her ridiculous trip to China, to reverse course, and to cut daft spending and wasteful regulations, so that we can create some growth?
Darren Jones
I think the question was whether I was going to demand that the Chancellor come back from her trade trip to China. I will not, no.
Katie White (Leeds North West) (Lab)
Does the Chief Secretary agree that there is an irony in the Conservatives raising concerns about the cost of borrowing, when they oversaw debt rising from 64.7% of GDP to more than 96% of GDP and left a £22 billion unfunded black hole in public finances—and now continue to oppose the tough decisions that we are making on tax and spend to fix their mess?
Darren Jones
That is exactly why our fiscal rules are non-negotiable. While the Conservatives borrowed to pay the bills every month because they did not have enough money to pay for all their promises, this Government are investing in the future of our country, whether through reforming public services or investing in infrastructure and opportunities for growth. That is exactly the right approach to the economy; it is what our fiscal rules demand, and what we will be held to.
Harriet Cross (Gordon and Buchan) (Con)
Next has said that it will increase prices by 1%, directly because of the increases to national insurance contributions, and has warned of slowing growth. With business confidence plummeting, gilts at a 26-year high and growth stagnating, do the Government still maintain that they have an iron grip on public finances, or will they admit that their Budget has done exactly what the Conservatives warned: increase costs, increase prices and reduce growth?
Darren Jones
The question was whether the Government have an iron grip on public finances; the answer is yes.
Perran Moon (Camborne and Redruth) (Lab)
Meur ras ha myttin da, Mr Speaker. Does the Chief Secretary agree that the only way that we can wrest the economy out of the clutches of the Conservatives’ doom loop is to go for growth? The Government’s new industrial strategy will be a core foundation underpinning that growth.
Darren Jones
My hon. Friend is absolutely right. Our industrial strategy, through which we will invest alongside businesses and industries of the future, and our infrastructure strategy, which sets out how we will get Britain building again, are two examples of the Government playing their part by bringing economic and political stability. By, for example, reforming the planning system, we will unlock billions of pounds of private sector investment in UK plc—something that did not happen under the previous Government.
Mr Paul Kohler (Wimbledon) (LD)
I completely sympathise with the Chief Secretary about the incredible brass neck of the official Opposition. He talks about kick-starting growth, but can he give us any evidence that growth has been kick-started? Does he not realise that the only way to kick-start growth in the near future is to re-engage with Europe?
Darren Jones
The hon. Gentleman will know that this Government’s approach to stimulating growth in the economy is about stability, investment and reform—the political and economic stability the Chancellor has brought to this country; the investment from private sector partners, as well as from the state, where appropriate; and the reform of policy areas such as the planning system, or the financial services reform that the Chancellor set out in her Mansion House speech. He is also right, of course, that we need to improve our trading relationship with countries around the world, which is why the Chancellor is going to China today, and why we have begun negotiations with our friends in the European Union on how we can improve our relationship on a whole host of issues, including trade, energy, defence and security.
Joe Morris (Hexham) (Lab)
Does the Chief Secretary agree that the Conservatives, having added gutter politics to their fantasy economics and unfunded spending commitments, can no longer call themselves the party of decency in public life, and of sound money?
Wendy Morton (Aldridge-Brownhills) (Con)
It is deeply disappointing that the Chancellor is not here to answer questions in the House on such an important topic, so I shall have to ask my question to the Chief Secretary to the Treasury instead. It is quite a simple one. Will he stand by the Chancellor’s comment that she will not come back with more tax increases?
Darren Jones
I am sorry to disappoint the right hon. Member, but I will answer the question none the less. She asked me whether I stand by the Chancellor’s statements, and the answer is yes.
Louise Jones (North East Derbyshire) (Lab)
I want us to get serious for a minute here. [Interruption.] Many of my constituents in North East Derbyshire, who will have just heard the guffawing from the Opposition, have been really struggling with the cost of living crisis. They voted the Government in, and we are committed to restoring the foundations of our economy. Will the Minister assure me that we are doing everything we can to deliver on that promise?
Darren Jones
It is absolutely right that the Labour Government are bringing fiscal and economic stability back to this country, because we know that when you play fast and loose with the nation’s finances, you play fast and loose with family finances. That is what voters in every constituency experienced when the Conservatives were last in government. They will not experience that under this Labour Government.
Graham Stuart (Beverley and Holderness) (Con)
We are looking at higher interest rates, lower growth and a higher cost of borrowing to the Government; as my hon. and right hon. Friends have said, we are grateful to the Chief Secretary to the Treasury for being so honest with the House. It is clear that if he sticks to his word, there will not be any more borrowing, or any more tax rises. Given the numbers, that leaves only one option: cuts in public services. I wonder whether his colleagues behind him on the Government Benches realise that reality. What word other than “austerity” will he use to describe it?
Darren Jones
As I have said, it seems that the Conservative party is proud of its record on austerity. We do not support austerity, which was blind ideological cuts to public services—3% cuts—irrespective of the outcome for the people who rely on public services. The Chancellor increased investment in public services at the Budget in the autumn, and we will continue to increase investment in them, because we need to get them back on their feet, and they are an important foundation for economic growth. I am pleased that the right hon. Gentleman recognises my statements, and says that they are honest, because of course they are. I look forward to coming back to the House in future months and years to show him the progress that the Government are making.
Sally Jameson (Doncaster Central) (Lab/Co-op)
It is a relief for me and my constituents in Doncaster Central that we finally have a Labour Government providing economic stability and investing in the industry of the future. [Interruption.] It is all right for Conservative Members to chunter, but after the mess they made, a period of silence on their part is warranted. Will my right hon. Friend lay out the action that he will take to ensure that all regions of the country, including places like Doncaster and South Yorkshire, benefit from growth?
Darren Jones
My hon. Friend is right to point out that the Government are in the service of working people. What does that mean? It means that people’s lives—the money they have in their pocket, and the ability to pay the bills, get a roof over their head and seek opportunity—are at the very heart of what it means to be in the Labour party and in this Labour Government. Conservative Members might not have suffered from higher mortgage bills or worried about the cost of living during their supermarket shop each month, but people across the country did, and they suffered as a consequence of the Conservatives’ behaviour. I welcome my hon. Friend’s comment that they should have a period of silence while they learn the lessons.
Neil O’Brien (Harborough, Oadby and Wigston) (Con)
I think that I heard the Chief Secretary say that the Chancellor has not gone to China. Will he confirm first that she is still planning to go? Secondly, if she has not gone to China yet, why is she not here? Lots of people would like to hear from her. Thirdly, has the Chancellor talked to the Governor of the Bank of England about market turbulence at any point in the last seven days?
Darren Jones
The Chancellor is going to China, as has been well documented. Again, I am sorry that it disappoints the hon. Member that I am here. I refer him and his colleagues to the urgent question, which is about a statement on borrowing costs and public finances. He will know that I am the Minister for public finances, which is why I am here answering his questions.
Gregor Poynton (Livingston) (Lab)
Will the Chief Secretary to the Treasury confirm that the Government’s No. 1 mission is still growth? That is the only way that we can break out of the Tory inheritance of low growth, high borrowing, high taxes and squeezed living standards for people in my constituency in Livingston, and across the UK.
Darren Jones
My hon. Friend is absolutely right. His constituents will know from their family finances that they cannot just put the bills on the credit card every month without having a plan for how to pay it off. That is not a sustainable way to manage household finances, and it is the same for the country. One of the reasons why we have such a mess left to us by the Conservative party is that it did just that—borrow money every month to pay for the day-to-day bills, and stack up the promises. That is why in the end there were so many promises and not enough pounds to pay for them. That is not a way to run the economy or family finances. That is why fiscal responsibility is at the heart of the approach taken by the Chancellor and the Government. We will never play fast and loose with the nation’s finances, as the Conservative party did.
Max Wilkinson (Cheltenham) (LD)
According to media reports today, the former Member of Parliament for South West Norfolk is issuing cease and desist letters to those who have accused her of crashing the economy—[Interruption.] I hope I will not get one; Members will be conscious that I am being very careful with my wording. I wonder whether the Chief Secretary might wish to take advantage of parliamentary privilege to compare and contrast the impact of her disastrous mini-Budget with what is being discussed today.
Darren Jones
You will correctly tell me, Mr Speaker, that it would not be right for me to comment on legal proceedings, but I am happy to say that one of the huge lessons for the country, for the British voting public and perhaps, one day, for the Conservative party is that the actions that the Conservative party took were not just reckless and negligent, but had a direct impact on public finances in every single constituency. There was a direct connection: it was Conservative Ministers’ hubris, ego and lack of focus on working people that ruined the lives of people across the country. I say that today and I will say it every day, because the British people must never forget the recklessness of the Conservative party.
Luke Murphy (Basingstoke) (Lab)
I thank the Chief Secretary for his statement—
Luke Murphy
I am sorry, Mr Speaker. During these exchanges on the urgent question alone, we have heard chuntering from Opposition Members about the cut in the winter fuel payment. We have heard them oppose the tax increases that have been introduced to pay for public spending, and we have heard them urge the Government to call off talks with economic partners including China. Is it any wonder that the GDP-to- debt ratio rose by a full 30 percentage points under the Conservative Government?
Darren Jones
It might have been legitimate for the Conservatives to say that their economic policy was to borrow for day-to-day costs—as they did. That could be a decision that they took. What is not forgivable is the fact that they reached a point at which they were making promises to the British people that they knew they did not have the money to pay for, and that is where the £22 billion black hole came from. They should be ashamed of their record on the economy, and they should apologise to the British people.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
When will the Chief Secretary take responsibility for the actions of his own Government? We had a general election, and that is when the public held the previous Government to account. They gave their verdict, and the Labour party is in power now. What the public want is accountability for this Government’s reckless decisions: the national insurance increases are an attack on jobs; there has been an attack on the farming community; and business confidence is at an all-time low.
Darren Jones
The right hon. Gentleman may not wish to reflect on his party’s performance in government, but I am afraid he has to. Although this is a new Government—we have been in office for six months—the reality is that we are having to clear up the mess that the last Government left us. That is why we have to talk about it, and explain to the country why the actions taken by the Conservative party not only affected family finances, but decimated the British economy and pushed public services on to their knees. We are taking responsibility for clearing up their mess, and that is why we will keep talking about it.
Kevin Bonavia (Stevenage) (Lab)
A key ingredient of economic growth has to be responsible government. People in Stevenage and across the country are still paying the price for 14 years of irresponsible government—the terrible decisions, the mini-Budget—and now we have a party in opposition that still does not get it. Opposition Members responded to this party’s Budget by saying that they accepted the improvement in public services, but they would not say how they would pay for it. Can my right hon. Friend assure us that this Administration will be committed to responsible government for the rest of the parliamentary term?
Darren Jones
Yes, I can. There is no denying that the economic inheritance that we were given by the Conservative party makes life very difficult for us: it means that we have to take difficult decisions. The fiscal rules are non-negotiable and public services have to live within their means because that is that the bedrock of any approach in government. Is that going to be easy for us? No, it is not, but it is part of our responsibility in clearing up the mess left by the Conservatives, and from that we can build for the future, as is set out in the Prime Minister’s plan for change.
Nick Timothy (West Suffolk) (Con)
The issue here is spending. Will the Chief Secretary confirm that the Labour manifesto said that a Labour Government would increase spending by £9.5 billion a year, and the Treasury Red Book is increasing that to £76 billion? Is that not the issue?
Darren Jones
One of the issues was that the Conservative party made a whole list of unfunded spending commitments. They promised hospitals and train stations, they had unsettled pay disputes with public sector workers— I could go on and on. That is why the Chancellor took the decision at the Budget to wipe the slate clean, to deal with the mess that we inherited and then to bring forward the manifesto commitments that we set out at the election. If the hon. Gentleman wishes to see more detail about our public spending plans, he is very welcome to come to my statement in June.
Jacob Collier (Burton and Uttoxeter) (Lab)
Conservative Members talk about economic stability, but they seem to have forgotten that they were swapping out Chancellors every five minutes. Does the Chief Secretary agree that it is this Government who are restoring stability to our economy?
Darren Jones
Restoring economic and political stability is important. When the markets observed the behaviour of the Conservative party in government, it is no wonder they did not want to invest in the UK, and that is why the market crashed, to the detriment of working people across the country. It is very clear that under this Labour Government, not only do we have stable leadership; we have a stable set of policies in our plan for change and fiscal responsibility as the bedrock for the Chancellor’s action. That is a country people can believe in, trust in and invest in, unlike the country that was left to us by the Conservative party.