David Williams (Stoke-on-Trent North) (Lab)
The Chancellor of the Exchequer (Rachel Reeves)
The approach in the Budget provides significant support for low-income households, taking an average of £150 off people’s energy bills from April next year, freezing rail fares and prescription fees for a year, and expanding the free childcare offer. The steps that I have taken as Chancellor, including the removal of the two-child limit and the expansion of free school meals, will also lift about 550,000 children out of poverty.
David Williams
Child poverty rates remain far too high in my constituency of Stoke-on-Trent North and Kidsgrove. What assessment has the Chancellor made of how the fair decisions taken in the Budget will address poverty among low-income working families in my constituency and across the country?
Rachel Reeves
My hon. Friend may know that about 4,000 children in his constituency will benefit from the removal of the two-child benefit limit. That means 4,000 more children being able to go to bed in houses that are not cold and damp and waking up in the morning and being able to have breakfast, and parents being able to afford things that they cannot currently afford. This Government are also providing funds for free school meals in England and delivering free breakfast clubs in every state-funded primary school in England, and extending the warm home discount to 3 million more children. I am proud to be the Chancellor whose actions have led to the largest expected reduction in child poverty over a Parliament since records began.
Esther McVey (Tatton) (Con)
The biggest issue for those on low incomes is losing their jobs. Does the Chancellor believe that there is any link at all between her increase in employer national insurance contributions —her job tax—and employment levels slumping to a 14-year low?
Rachel Reeves
The number of jobs has increased by 329,000 this year. That is the record of this Government in getting people back into work. The youth guarantee is dealing with the fact that when we took office last year, one in eight young people were not in education, employment or training. That is the Conservatives’ record; this Government are addressing it.
Gareth Thomas (Harrow West) (Lab/Co-op)
I commend the steps that my right hon. Friend took to support those on low incomes, both in the Budget and through the recently published financial inclusion strategy, but may I encourage her to go further on the issue of savings, given that a quarter of the people in the UK have little by way of savings and, indeed, one in seven have no savings at all? Will she encourage employers to work with local credit unions to help those who want to save automatically, and to save even a small amount from their pay packets, to do so?
Rachel Reeves
Through the financial inclusion strategy led by the Economic Secretary to the Treasury, we are extending Help to Save within the universal credit system, and working with banks and building societies. I know that, as a Labour and Co-operative MP, my hon. Friend works closely with the co-operative movement and with building societies to ensure that more people from low-income backgrounds can save for the future.
Sammy Wilson (East Antrim) (DUP)
Low-income families have been hit by being dragged into tax bands that they were not in before and by energy costs, and now the chief executive of Aldi has said that unless the Chancellor reviews her raid on farm inheritance tax, rising food prices will hit those families as well. If she will not listen to the farmers, will she at least show some concern for consumers, and look again at this tax?
Rachel Reeves
Since the Budget, the Co-op has cut or frozen the prices of 2,700 essential products at a cost of £1 billion, recognising the impact that the cost of living still has on families, but also reflecting the Budget package that supports our high streets, including our supermarkets.
Stephen Gethins (Arbroath and Broughty Ferry) (SNP)
The Chancellor of the Exchequer (Rachel Reeves)
The Office for Budget Responsibility has estimated that productivity will be 4% lower than it would have been had the UK not withdrawn from the EU. However, alongside the trade deals struck with the US and India, the Government are resetting our relationship with the EU to get better deals on, for example, food and farming, as well as on electricity trading. The hon. Member’s party talks about how leaving the European Union has been costly and disruptive, but somehow thinks that Scotland leaving the UK and its internal market would be magically effortless and cost free. I must say that the SNP is no better than those who promised the public an extra £350 million a week for the NHS. It is all talk, but no delivery.
Stephen Gethins
I will try to strike a note that is maybe a little better. We worked together with the Prime Minister, the Chancellor and others to overcome the Tories’ secrecy about their analysis of what it would be like to be outside the single market and the customs union. If we can overcome Tory secrecy on an analysis of leaving the EU, with it now costing an estimated £250 million a day, when will the Labour party release its analysis?
Rachel Reeves
The Office for Budget Responsibility has produced an independent analysis and confirmed that it believes that 4% is the correct number, and the OBR continues to maintain that in its forecasts.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
Has the Treasury made any assessment of the SNP’s plans to separate Scotland from its main market, the rest of the UK, which accounts for 60% of its trade? While I am at it, may I thank the Chancellor for the £820 million extra for the Scottish budget?
Daisy Cooper (St Albans) (LD)
The botched Brexit deal has wrapped up British businesses in red tape and blown a hole in the public finances to the tune of £90 billion a year. The Chancellor insists that her No. 1 mission remains to get economic growth. If that is the case, will she and her Ministers vote with the Liberal Democrats this afternoon to make sure that we get rid of that red tape and deliver on a new UK-EU customs union?
Rachel Reeves
Since we came to office last year, we have reset our relationship with the EU, which is why last May we agreed with the EU an expansive set of changes to our relationship, including on food and farming, on electricity and energy trading, and on youth mobility and Erasmus. We are taking all that forward, but at the same time we are taking opportunities to trade more with fast-growing economies around the world, including India, and we also got the first, and the best, trade deal that anybody has secured with the US. That is how we are going for growth, alongside passing the Planning and Infrastructure Bill last night in this place.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Sir Ashley Fox (Bridgwater) (Con)
The Exchequer Secretary to the Treasury (Dan Tomlinson)
The Chancellor was clear at the Budget that we are taking the fair and necessary decisions on tax to do all we can to ensure that the contribution of working people is kept as low as possible. We have reduced the gap between taxes on income from assets and on income from work, stopped the unfairness that meant people could pay less council tax for a £10 million property than for a typical terraced house in much of England, and done much more.
John Lamont
There seems to be only one word that the Chancellor understands: tax. Her decision to continue the freeze on income tax thresholds is a hammer blow to working people. In fact, even one of the Chancellor’s favourite unions, Unison, has said:
“Freezing personal income tax thresholds disproportionately impacts lower and middle-income workers.”
Does the Chancellor agree with the Labour party’s union paymaster?
Dan Tomlinson
I am a bit confused by that question. The hon. Member said there was one word that was important. Let me give him one figure: £150. That is the amount we are taking off energy bills next year to help people to deal with the cost of living in the here and now. We are supporting people because of the mistakes that previous Governments made by not investing in our energy infrastructure and not investing in our future. We are picking up the pieces after the Conservatives did not take the necessary decisions.
Sir Ashley Fox
Extending the freeze on income tax thresholds will cost working families £900 a year. It will also drag many pensioners into paying income tax for the first time. Why is the Minister hitting these low-income families to pay more for welfare?
Dan Tomlinson
I suggest the hon. Member asks his Front Benchers why 75% of the impact of people paying more tax at the lower end is the result of decisions made by the previous Government, who spent seven years freezing income tax thresholds. It is a bit rich for the Conservatives to talk about this Government doing it for three years when they did it for seven years.
Martin Rhodes (Glasgow North) (Lab)
What assessment has the Minister made of the impact on working people of the historic increase in the living wage?
Dan Tomlinson
We have chosen to uplift the national living wage and the national minimum wage so that those on low incomes are properly rewarded for their hard work. It will benefit 2.7 million people, including many people in my hon. Friend’s constituency and across the whole country. I thank him and Members—particularly those on this side of the House—for their support in making sure that we can make work pay up and down the country.
Mr Jonathan Brash (Hartlepool) (Lab)
Pensioners in my constituency of Hartlepool who rely solely on the state pension have shared with me their concern that freezing the tax threshold will draw them into paying tax. Can the Minister confirm what the Chancellor has already said publicly, which is that pensioners who rely solely on the state pension will not be taxed during this Parliament?
Richard Fuller (North Bedfordshire) (Con)
The Minister said this was “fair”—no, no, no. Perhaps breaking the election promise on tax thresholds is the reason why, by two to one, the public view the Budget as unfair, just 3% think it will make them better off, and two out of three think things will get worse. Does the Minister want to tell the public they are wrong, or will he explain to the House why this Budget has been received so badly by the British people?
Dan Tomlinson
The Conservative spokesperson talks about fairness. Let me just identify one element of unfairness he left in the tax system that this Government is correcting, and it is a popular measure when we look at the views of the public up and down the country. We on this side of the House do not think it is fair that someone in a £10 million property can pay less council tax than someone in a typical terraced house in his constituency, my constituency and constituencies across the whole of England. We are making that change to make things fairer in this country.
Jack Rankin (Windsor) (Con)
The Parliamentary Secretary to the Treasury (Torsten Bell)
The forecasts accompanying the Budget set out that the Office for Budget Responsibility expects employment levels to rise in every year of this Parliament. They also set out that employment is forecast to be higher in every year than previously expected back in March.
Jack Rankin
Having 1 million young people not in work, education or training and 2.8 million people out of work on long-term sickness benefits is both a financial catastrophe and a moral failure. The Prime Minister has rightly said that it is his moral mission to get young people into work, but how does the Minister square that with two Budgets that have hiked taxes on working people by £66 billion while giving a pay rise to those on benefits?
Torsten Bell
The hon. Member is right to call those things a moral and economic disgrace. Does he know who created them? It was the Conservative party opposite. Who saw a 50% rise in the number of those not in education, employment or training? The party opposite. Who created the benefits system that is failing today? The party opposite. Who failed to reform the benefits system? The party opposite.
Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)
The Economic Secretary to the Treasury (Lucy Rigby)
We published the financial inclusion strategy last month, outlining ambitious measures that will improve financial inclusion right across the country. I am very grateful to my hon. Friend for her advocacy on this issue through the all-party parliamentary group on debt and financial inclusion. In line with the priorities outlined by the APPG, the strategy champions inclusive design to make products more accessible, increases debt advice capacity and supports financial independence for survivors of economic abuse.
Katrina Murray
I welcome the Minister’s response. I am a long-standing member of the NHS credit union, which is one of the credit unions affected by the withdrawal of the family protection plan by CMutual on 30 November. Policyholders over the age of 70 who have paid premiums well in excess of what they would have expected to have paid out have been left in the lurch with no alternative provision given. I thank the Minister for what she has done so far in pursuing peace of mind for those who have tried to do the right thing and planned for their funerals, but in the interim, can she bring all the stakeholders to the table to try to reach a solution that benefits those policyholders in particular?
Lucy Rigby
As my hon. Friend knows, I have been very sorry to hear of the difficulties of those affected by the withdrawal of that product. I pay tribute to her for all her efforts and those of her colleagues. They are doing everything possible to assist constituents. My officials are monitoring the matter very closely. We encourage anyone with information relevant to the Financial Conduct Authority’s investigation to go straight to the FCA. However, I would be more than happy to do as she suggests and get the stakeholders together.
Tim Farron (Westmorland and Lonsdale) (LD)
Access to banking is surely a key part of financial inclusion. The high street banks save £2 billion a year from having abandoned our high streets and town centres. Our post offices pick up the tab and we are glad that they do, but they are not funded by the banks anywhere near enough to be able to maintain their presence. In Westmorland, we have lost Hawkshead, Staveley and Grasmere post offices, and we are set to lose Shap and Tebay largely because the banks do not fund the post offices for doing their jobs properly. What is the Chancellor going to do to make them do that?
Lucy Rigby
I thank the hon. Member for his question. We very much understand the importance of in-person banking, including in beautiful, rural communities such as those that he represents. That is exactly why we are committed to rolling out 350 banking hubs right across the UK by the end of this Parliament. Over 240 hubs have been announced so far and more than 190 are already open.
Mr Speaker
Order. [Interruption.] No, please just sit down. Don’t challenge me; it is not a good idea. We did quite a few days on the Budget. I think we can all remember every point you are making. Is there anything you would like to add? If you are carrying on the list, forget it. I call the Minister.
Lucy Rigby
The shadow Minister makes reference to a number of changes in the Budget that were pragmatic, responsible and fair. I contrast that with the Conservatives’ approach, which would return us to austerity. That would be both irresponsible and unfair.
Sir Julian Smith (Skipton and Ripon) (Con)
Wera Hobhouse (Bath) (LD)
The Exchequer Secretary to the Treasury (Dan Tomlinson)
Small and medium-sized businesses are vital to our economy and our communities, and the Government’s small business strategy, published in July this year, sets out our approach to supporting them. As temporary pandemic business rates relief ends and the new revaluation comes into effect, we are supporting the high street with £4 billion-worth of support through transitional relief and our supporting small business schemes, as well as through our long-term reforms to permanently lower the multipliers for eligible retail, hospitality and leisure properties, and support them with a significant package that will cap most of the increases this year for those who have seen large increases since the pandemic.
Sir Julian Smith
Last week, Skipton was voted the happiest town in Britain to live in. One of the reasons for that—[Hon. Members: “Is you!”]—is its hospitality sector. Through covid, energy cost rises, national insurance rises and other challenges, that hospitality sector is facing massive challenges. I urge the Government to look again at reliefs and multipliers. Over the weekend, so many pubs and hotels raised with me the fact that they are not going to invest. We need the growth and we need the jobs. Will the Government look at how they can make things easier for the pub and hospitality industry?
Dan Tomlinson
If I had a such a charming Member of Parliament, I would also be as happy as his constituents in Skipton. I thank him for his question. We considered the support really carefully in advance of the Budget decisions announced last month. There is a challenge in that the revaluation, which was instigated by the previous Government and is carried out independently by the Valuation Office Agency, means that some businesses have seen their values increase significantly since the pandemic. That is why the Government are putting in £4 billion of support over the coming years, with around half of that coming next year to support businesses. Many will see their increases capped at either £800 or 15%. We think that that support will provide significant help to those businesses, alongside the underlying reform we are making to rebalance the system in favour of the high street.
Wera Hobhouse
May I give the Minister another example in which the numbers simply do not stack up? Mr B’s independent bookshop in Bath will see its business rates bill rise by more than 70% after factoring in changes to rateable value. The changes were packaged as a move away from short-term fixes, yet vital discounts have been scrapped and replaced with less-generous support and an unclear transitional relief system. How can he justify such a stark increase in business rates? It is a challenge for Bath’s cherished bookshops—we have three—which we want to support.
Dan Tomlinson
It is important that we all communicate to the small businesses in our constituencies, as I was doing this weekend, that there is a difference when it comes to the increase in the rateable value. It may be that the business to which the hon. Lady refers—I like good small independent bookshops myself—has seen a large increase in its value since the pandemic, but precisely because that has happened in some cases, we are implementing a significant support package this year. That will mean that no business that has a rateable value of less than £100,000 will see an increase in its bills of more than either 15% or £800. There is a bit of a technical detail there, which I would be happy to go into with her, but the important thing is that there are significant protections on bills in place this year, even if rateable values have increased significantly since the pandemic.
Clive Lewis (Norwich South) (Lab)
In Norwich there is a saying: there is a church for every Sunday and a pub for every day of the week. After 14 years of austerity, the numbers are a lot lower. After this Budget, many pub landlords—small and medium-sized businesses—tell me that we are not going far enough, and that many of them will go under. They need more support, and they need it soon. If the changes go through, I fear that Norwich will not have that saying at all; we will have hardly any pubs. Can we not put more of the burden on the pub companies and big corporations, which should be paying their fair share, rather than on the small and medium-sized businesses and small pub landlords, who cannot pay what is coming at them?
Dan Tomlinson
One of the things we announced at the Budget is a rebalancing in the system away from properties that have large rateable values and towards the small businesses on our high streets. That shift from the large to the smaller properties is worth almost £1 billion and supports them in the business rates system, as part of our work to reform business rates and support our high streets.
Ruth Cadbury (Brentford and Isleworth) (Lab)
I welcome the Government’s support for our high streets and the consultation on the business rates system, which the Treasury launched on 25 November. But it is not just high streets that are suffering. Under the current system, major transport infrastructure owners face crippling bills: Eurotunnel’s business rates valuation has tripled from 2017, so it has cancelled investment in its international freight hubs, and Heathrow Airport’s business rates bill will increase by millions of pounds. Will the Treasury’s consultation on 25 November give transparency and predictability—
Mr Speaker
Order. The hospitality sector might use the rail industry, with freight, so I am sure we can get something on that.
Dan Tomlinson
I am sure that many of us do jump on the train to support our hospitality businesses. The consultation that my hon. Friend mentions, which we published on the day of the Budget, is an important piece of work. Chapter 4 of our call for evidence on how we can reform business rates to support investment will be important. We recognise that airports and other large infrastructure are valued in a different way from other business properties, and we want to look at the changes that we can make to support those businesses, which have seen very significant increases in their rateable values. Under the scheme that we have announced, they will of course be capped as well.
James Wild (North West Norfolk) (Con)
The Chancellor promised a new golden era of hospitality, but the reality of her business rates raid, as the British Beer and Pub Association has said, is
“sleepless nights, pay cuts and staff layoffs”
for publicans, who will be paying an extra £13,000 on average. Why did the Chancellor tell businesses last week that their taxes were going down when they are going up, and will she think again and change the multipliers?
Dan Tomlinson
The multipliers are a product of the change in the valuation, and they did come down. We brought them down even further for retail, hospitality and leisure businesses. Without intervention this year, the bills paid by pubs would have increased by 45% as a result of the increase in value since the pandemic; because of this Government’s significant intervention this year, bills are going up by 4%. That is the impact of the changes this Government have made.
Dan Tomlinson
We have set out our plans to reduce the multipliers for retail, hospitality and leisure properties, which is a rebalancing in the system. It means that those businesses—particularly the smallest RHL properties—face the lowest tax rate in the system since 1991. At the same time, there is—[Interruption.] The hon. Lady shakes her head, but the tax rate is the lowest it has been since 1991. At the same time, there has been an unwinding of the reduction in values going into the pandemic, and because we are seeing a recovery and businesses are bouncing back, and their properties are worth more, there has been an increase in the values. We are spending £2 billion this year to cap those increases at either 5% or 15% for many of those businesses up and down the country.
Kevin Bonavia (Stevenage) (Lab)
The Chancellor of the Exchequer (Rachel Reeves)
Transport costs represent 14% of household spending, so the Government took decisive action in the Budget to freeze all regulated rail fares in England for one year from March 2026—the first time that has happened in 30 years.
Kevin Bonavia
I thank the Chancellor and the Transport Secretary for freezing rail fares next month, which will help to ease commuting costs, especially for my constituents who use Stevenage and Knebworth stations. However, affordability alone is only part of the railway jigsaw; regeneration schemes like Stevenage station gateway, supported by the Government’s towns fund, are part of a wider £1 billion regeneration programme for our town and provide a real opportunity to modernise transport hubs and improve connectivity, helping commuters get to work more easily. Will my right hon. Friend ensure that infrastructure investment for projects like the station gateway are prioritised, so that commuters can get to work—
Mr Speaker
Order. I am sorry, Mr Bonavia, but the Chancellor is ready now—your season ticket has run out.
Rachel Reeves
I just want to talk about Stevenage, Mr Speaker. The Government’s action is saving commuters in Stevenage £285 a year on the cost of a five-day season ticket. With the uplift of £120 billion in capital spending, the Government have also committed to the sorts of projects that my hon. Friend mentions, particularly around transport hubs. I will arrange for my hon. Friend to have a meeting with the relevant Transport Minister.
Rachel Reeves
In Tonbridge, as elsewhere, regulated fares will be frozen for a year from March next year. I know that many of the right hon. Gentleman’s constituents commute into central London every day, and our rail fares freeze will mean that commuters in Tonbridge and all our constituencies have a bit more money in their pockets.
Jack Abbott (Ipswich) (Lab/Co-op)
John Slinger (Rugby) (Lab)
The Economic Secretary to the Treasury (Lucy Rigby)
The recent Budget backed British innovation and aspiration by supporting businesses to start, scale and list in the UK. We have put in place a three-year listing tax relief for firms that list here, and we are expanding enterprise tax reliefs to incentivise investment in scaling firms. That means more jobs, more growth, and more British companies competing globally.
Jack Abbott
Over the last 18 months I have been working hard to drive investment into my town, county and region, and I was proud to unveil the east of England’s £4 billion investment prospectus at the UK’s Real Estate Investment and Infrastructure Forum earlier this year. I am also keen to encourage our own home-grown entrepreneurs in Ipswich and Suffolk so that we can better support innovative and high-growth businesses. Can the Minister outline how the three-year stamp duty exemption on shares, alongside other measures in the Budget, will seek to do that?
Lucy Rigby
At the Budget, we introduced the UK listing relief, which incentivises companies to list in the UK. The UK raised more equity capital in 2024 than was raised in the next three European exchanges combined. I look forward to seeing the brilliant entrepreneurs in my hon. Friend’s constituency benefit from these deep pools of capital.
John Slinger
In my constituency, I can combine rugby and gin, so I am grateful to the Chancellor for the measures in her Budget to help the hospitality trade and small businesses. Following, my visit to the family-owned Rugby Distillery—branded and flavoured around the game—can I ask what steps her Department could try to level the playing field, such as by extending small producer relief to alcohol above the 8.5% ABV limit? Small-scale producers find it harder to compete fairly with big producers, and we must help them to tackle their challenges and convert their entrepreneurial spirit into greater success.
Lucy Rigby
As someone who enjoys both rugby and gin, sometimes at the same time, I pay tribute to my hon. Friend’s support for the businesses in his constituency. To support spirits producers, the Government have put in place a range of measures. As for small producer relief, I know that the Exchequer Secretary to the Treasury is open to evidence on the operation of the new system. I should add that the Government plan to evaluate the reforms in late 2026, which will be three years after they took effect.
Sir Roger Gale (Herne Bay and Sandwich) (Con)
In east Kent, an entrepreneurial chain of 25 coffee bars employs young people who otherwise would probably be unemployable. The profit margin on those 25 coffee bars for the last year was £12. The hospitality industry is on its knees. Will the Chancellor recognise the need to cut VAT on hospitality to 10%?
Lucy Rigby
As has been covered by my colleagues, we are putting in a £4 billion support package and continuing to engage with the hospitality sector. I should also add that we are easing licensing to help venues offer pavement drinks and one-off events too.
John Glen (Salisbury) (Con)
I welcome the changes to the listings review, but will the Minister look at what is happening with research and development tax credits and the efficiency of the delivery of those tax credits, because when the system does not work well enough, businesses are struggling before they get to listing?
Lucy Rigby
I am grateful to the right hon. Member for his question, as I always am. We are doing an awful lot to support R&D in this country, including through many of the measures announced at the Budget. That includes putting an additional £7 billion into specific areas within the industrial strategy.
Euan Stainbank (Falkirk) (Lab)
The Chief Secretary to the Treasury (James Murray)
As my hon. Friend will know, last year the Government signed a £100 million Falkirk and Grangemouth growth deal with the Scottish Government. At the Budget this year, we further recognised Grangemouth’s centuries of history as a key UK industrial site by announcing additional investment of up to £14.5 million to support industrial projects that can create jobs. Alongside that, the National Wealth Fund is ready to invest £200 million alongside the private sector to help unlock Grangemouth’s full potential and secure our clean energy future.
Euan Stainbank
I welcome the additional £14 million-plus to get new industry delivered quickly in Grangemouth and the £25 million to finalise the freeport in the Budget two weeks ago. Forth Valley college is vital to giving local working-class kids the skills they need to grasp the new opportunities that must come to Grangemouth, but it has been failed by the SNP Scottish Government’s staggering 20% cut to colleges since 2021. The Alloa campus now faces closure. Will the Minister consider stepping in with direct skills support for this vital college?
James Murray
Education and skills policy, including the funding and operation of colleges, is fully devolved to the Scottish Government. That means that it is for Scottish Ministers to decide how to support Forth Valley college with the overall settlement. As my hon. Friend will know, the spending review provided the Scottish Government with their largest settlement in real terms since devolution in 1998, and the Budget provided an additional £820 million to Scotland through the Barnett formula. In the months ahead we will be campaigning to ensure that decisions about how to invest that funding in Scotland’s future will be taken by Anas Sarwar and a Scottish Labour Government.
Dave Doogan (Angus and Perthshire Glens) (SNP)
The challenges experienced by the businesses of Forth valley are the highest industrial energy prices in the G7, Labour’s farm tax, Labour’s family business tax, Labour’s £26 billion raid on the cost of employing people, Labour’s fiscal drag on everybody’s earnings, the Potemkin support for Grangemouth, the ambivalence to Mossmorran and the defunding of the Acorn project. For how long does the Minister think Scotland should put up with this chaos from Westminster?
James Murray
The hon. Member is happy to criticise tax decisions taken by this Government, but where does he think the largest spending review settlement since devolution began came from? Where does he think the £820 million announced at the autumn Budget came from? He needs to support the tax decisions we take if he wants the investment to go into Scotland.
Liam Conlon (Beckenham and Penge) (Lab)
Dr Simon Opher (Stroud) (Lab)
The Chief Secretary to the Treasury (James Murray)
The spending review 2025 provided record investment in the NHS, including the largest ever health capital budget. That investment has enabled a reduction in waiting lists of 230,000, with an extra 5.2 million NHS appointments. At autumn Budget 2025, the Chancellor protected NHS investment by allowing it to retain and reinvest efficiency savings in 2028-29, as well as making available up-front funding to abolish NHS England: a move that will unlock £1 billion in savings by the end of the Parliament, which can instead be used to support frontline care.
Liam Conlon
I thank the Minister for his response. When I was in sixth form at the end of the last Labour Government, I became one of the youngest people in Britain to have a hip replacement. I will always be grateful to the incredible NHS staff who cared for me. But between 2011 and 2024, because of savage Tory cuts, the waiting list for hip replacements at King’s College hospital trust, which serves my constituency of Beckenham and Penge, more than doubled. The Tories left thousands of people waiting months on end, but thanks to record investment from this Labour Government, those waiting lists are starting to fall. Will the Minister commit to continuing that investment in the NHS?
James Murray
I thank my hon. Friend for his question. Like him, I will always be grateful to the incredible NHS staff who got me back fighting strong after I was diagnosed with a neuromuscular condition in my 20s. People across the country have stories like ours because we all depend on the NHS, and that is why it is such a priority for us as a Government to invest in our health service to get it back on its feet and build an NHS that is fit for the future.
Dr Opher
I thank the Chancellor for investing in our community care. In Stroud, the two beating hearts of our community—GP surgeries and our village pubs—reduce social isolation. Today, the publicans are meeting at Stroud Brewery to discuss the impacts of business rates. May I invite the Minister to discuss how we can help our pub landlords—perhaps over a pint?
James Murray
My hon. Friend is right to point to the role that pubs play at the heart of local communities—I assume that the pubs and GP surgeries in his example are separate. As my hon. Friend the Exchequer Secretary set out earlier, we are in a situation where the temporary pandemic business rates relief is coming to an end and the new revaluation, which is post pandemic, comes into effect. In that context, we are supporting the high street, including pubs, with permanently lower tax rates for eligible retail, hospitality and leisure, as well as a support package that means most properties seeing increases will see them capped next year at 15% or less, or £800 for the smallest properties.
Bob Blackman (Harrow East) (Con)
One of the challenges that the NHS faces is dealing with people who are street homeless and who have to go into hospital for treatment. They are then discharged, and it is almost like a rotating saw, unfortunately. What is needed now is targeted funding to ensure that the NHS discharges people to somewhere they have a safe place to live. Will the Minister take up that challenge, particularly at this time of year?
James Murray
The hon. Member is right to point to the fact that people showing up in hospital can often reflect other social issues, whether homelessness, child poverty or other challenges. As a Government, we take tackling homelessness—by which I mean temporary accommodation and rough sleeping—incredibly seriously and we will publish a homelessness strategy shortly.
Mr Will Forster (Woking) (LD)
Ashford and St Peter’s hospital, which serves my constituency, has an £80 million repair backlog. When will the Government allocate sufficient funding to fix our crumbling hospitals, including Ashford and St Peter’s?
James Murray
As the hon. Gentleman will know, the coalition Government, of which his party was a part, slashed capital investment in our health service. We have restored capital investment in our health service, which is critical to getting it back on its feet. If he is requesting greater investment in the NHS, I hope that he will change his mind, correct the record and support the tax changes that we have made in order to make that possible.
John Milne (Horsham) (LD)
The Chief Secretary to the Treasury (James Murray)
Growth is the No. 1 mission of this Government, and we are committed to unlocking growth in every corner of this country. We have committed £2.7 billion per year to supporting sustainable farming, £2.3 billion of transport funding for places beyond city regions through the local transport grant, and more than £1.9 billion for gigabit broadband and 4G connectivity. That funding will help to tackle key blockers to growth in rural areas, unlocking the opportunities and benefits of growth for people right across the UK.
John Milne
Later today I will chair a meeting of the all-party parliamentary group for rural business and the rural powerhouse, which focuses on generating rural growth. If we could push rural productivity closer to western European averages, it would fix the Government’s budgetary black hole all by itself. Will the Minister agree to set a measurable target for increasing rural productivity so that we can hold the Government to account on progress?
James Murray
I welcome the hon. Gentleman drawing attention to the importance of productivity in the UK economy and our prospects for growth. As we know, the Office for Budget Responsibility reviewed the productivity impact of the previous Government’s record in office and found that the decisions they had taken over those 14 years meant that we had a £16 billion revenue hit to the public finances in the target year of the scorecard. We know that means that productivity has been downgraded as a result of decisions taken by the previous Government, but that gives us an opportunity—an opportunity to not be held back by the failures of the previous Government and to exceed those forecasts in future.
Noah Law (St Austell and Newquay) (Lab)
Cornish communities and small and medium-sized enterprises in the supply chains of Cornwall’s most promising industries alike will have been delighted by the Chancellor’s announcement of the Kernow industrial growth fund in the recent Budget. Does the Chief Secretary to the Treasury agree that those funds should be invested prudently and sustainably and that the proceeds should be recouped for the Cornish public’s coffers so they can be invested in future projects?
James Murray
My hon. Friend and many of his neighbouring MPs are excellent advocates for Cornwall and for the benefits that Cornwall can bring to growth, both in the region and right across the country. I know that, in the Budget, the Chancellor was keen to support investment in future industries in Cornwall. For the local council to deliver that, we will work closely with it to make sure that money is well spent. The key thing for us is to ensure that we enable people in Cornwall to be part of the economic growth mission of this Government.
Richard Fuller (North Bedfordshire) (Con)
As this is my last question before Christmas, I want to ask my counterpart a nice and constructive one. As he will know, rural residents and businesses already pay more on fuel than their urban counterparts and there are fewer public transport options. Can he advise what were the results of his assessment of the relative impact of the Budget’s introduction of road pricing on rural, compared with urban, areas?
James Murray
I think the hon. Gentleman is referring to the changes we announced in the Budget in relation to electric vehicles and their contribution towards public finances. If people drive electric vehicles, wherever in the country they drive them, they benefit from investment in roads and maintenance alongside those of us who drive petrol cars, so it is important to ensure that we make the tax system fit for the future. This is a decision that people have talked about for many years. The hon. Gentleman’s party ducked it, alongside many other difficult decisions, but we are taking them head-on to ensure that we are fit and stable for the future.
Lorraine Beavers (Blackpool North and Fleetwood) (Lab)
The Chancellor of the Exchequer (Rachel Reeves)
Covid fraud and error under the previous Government’s mismanagement cost the taxpayer £10.9 billion. They played fast and loose with the public purse and left the front doors wide open to fraud. That is why I have appointed a covid corruption commissioner to carry out the independent review. This Government are doing everything to recover taxpayers’ money. We have already got back around £400 million, with more to come. That money belongs to the British people in our communities and in our NHS. We welcome the publication of the commissioner’s independent report and will respond fully in the new year.
Lorraine Beavers
The British people are paying the bill for criminal covid fraud. Under the Conservatives, waste and corruption exploded and taxpayers’ money was stolen. Will the Chancellor make sure that the Labour Government continue to go after those who stole from the British taxpayer and make sure that we get every penny back?
Rachel Reeves
I could not agree more. The previous Government failed to protect public money, while this Government have generated around £400 million by getting money back. We all know what happened: the Tories dished out contracts to their friends and donors—money that never belonged to them. This Government will leave no stone unturned because that money belongs to taxpayers, not with cronies or crooks.
Sir Mel Stride (Central Devon) (Con)
The process surrounding the Budget was utterly chaotic. We had months of damaging speculation, fuelled by briefings and leaks from the Treasury itself. They included briefings on 14 November that moved markets and gave the appearance, at least, of being deliberately inaccurate, which is why we need the Financial Conduct Authority to investigate. May I ask the Chancellor a simple question? Did she at any point authorise or allow confidential details of the Budget or the forecast to be briefed to the press—yes or no?
Sir Mel Stride
The Office for Budget Responsibility’s own guidance states:
“The interim rounds are transmitted to the Chancellor in confidence”.
Yet the Chancellor repeatedly stated before the Budget that the OBR had downgraded its productivity forecast. In her statement in Downing Street on 4 November, she said in relation to the OBR’s forecast that
“it is already clear that the productivity performance…is weaker than previously thought.”
Why did the Chancellor breach the confidentiality of the OBR?
Rachel Reeves
In its spring statement, the OBR was clear that productivity was coming in lower than forecast, and it was clear that it was reviewing that over the summer. The numbers that the OBR has since published showed that in the final pre-measures forecast the fiscal headroom was just over £4 billion. I was clear in my speech on 4 November that I did not want to reduce the headroom; I wanted to increase it. I increased it to bring back the stability that is much needed in our economy after 14 years of Conservative government.
Josh Fenton-Glynn (Calder Valley) (Lab)
The Chief Secretary to the Treasury (James Murray)
The child poverty strategy published last week sets out the steps that we are taking to support families now, as well as the building blocks that we are putting in place for the long term. We will lift 550,000 children out of poverty by removing the two-child limit and through other measures, including the expansion of free school meals.
Sir Ashley Fox (Bridgwater) (Con)
Rachel Reeves
Employment is up since we took office, and part of the reason for the disparity between those numbers is the fact that people who were economically inactive are now seeking work. That is exactly what we want, for people to be seeking work and to get back into work, but there are more jobs in the economy today than when we took office.
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
Rachel Reeves
My hon. Friend will know that when I was at secondary school, my school library was turned into a classroom because there were more students than there was space. We have put £10 million into primary schools to get a library in every single primary school in this Parliament, and next year, to celebrate the national year of reading, we are putting £5 million into having more books at secondary schools, and I am really proud to be doing that.
Matt Vickers (Stockton West) (Con)
The Exchequer Secretary to the Treasury (Dan Tomlinson)
Let us be clear: nobody’s business rate bills are trebling. If businesses come to talk to us about increases in their rateable values because of the unwinding of the effect of the pandemic, it is important that all of us, on both sides of the House, are clear that the Government have put in support to ensure that pubs and those that have seen their values go up will not see increases next year. If the pubs rateable value is more than £100,000, they will be capped at a 30% increase. If it is less, they will be capped at 15% or £800. That is £4 billion of support that this Government are providing.
Tom Hayes (Bournemouth East) (Lab)
An independent and effective OBR is critical for our country, but it needs to do better. Why can the OBR not count? Why can it not forecast accurately, given that the economy grew 50% faster than it had predicted in March? Why can it not even publish the Budget document without making a dog’s breakfast of it? Is it not time for the OBR to properly price pro-growth measures and get behind our growth mindset?
James Murray
I can be clear that we are committed to the OBR’s independence as a forecaster and to the core role it plays within our fiscal framework. The Chancellor has also been clear, however, that forecasts are not our destiny. We will not let Britain be held back by the failures of the previous Government. At the Budget, the OBR revised upward its growth estimate for this year, and we are determined to exceed forecasts again.
Chris Coghlan (Dorking and Horley) (LD)
The Economic Secretary to the Treasury (Lucy Rigby)
The Government of course recognise that innovation is key to our long-term economic growth and to higher productivity, and indeed to living standards. That is exactly why we are investing more in R&D, and we have made other incentives available too.
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
It has been a rocky week for the Office for Budget Responsibility, so I am glad that the Chief Secretary to the Treasury recognises and has reiterated the value of an independent regulator in this space. Nevertheless, a lot of criticism of the OBR is swirling around. Would the Chief Secretary or the Chancellor like to remind people about the role of the fiscal risks and sustainability report, which does look longer term at the economy, and the importance that this has in planning? As the Chancellor said, it is not destiny just because of the figures, but that report is particularly useful in that respect.
Rachel Reeves
I have huge respect for the Office for Budget Responsibility, and I reappointed Richard Hughes for a second term earlier this year. We deeply regret the publication of the Budget document ahead of the Budget. Richard Hughes has apologised for that and has resigned, but I thanked him for his leadership of the OBR. My hon. Friend is right to point to the longer-term risks that the OBR also points out. That is why at the Budget we took measures on electric vehicles and on high-value properties, because we need to reform the tax system so that it works for the future.
Edward Morello (West Dorset) (LD)
James Murray
The Ministry of Housing, Communities and Local Government recently published “English indices of deprivation 2025”, which included the supplementary report on how deprivation manifests in rural areas. I can assure the hon. Gentleman that the Government will further consider those assessments of deprivation, as well as other inputs, when deciding funding models for local areas.
Dave Robertson (Lichfield) (Lab)
Constituents across Lichfield, Burntwood and the villages will be pleased to see the Government taking action on the cost of living by reducing energy bills, but they want the benefits to be fair and felt by all bill payers. What steps will the Chancellor take with Cabinet colleagues to ensure that reductions in energy bills are reflected in standing charges, not just in unit prices?
The Parliamentary Secretary to the Treasury (Torsten Bell)
Energy bills are too high. The Conservatives left Britain dependent on the rollercoaster of gas prices, and left families paying almost £2 billion on bills for their failed energy efficiency scheme, the energy company obligation. We are scrapping ECO and taking some of the expensive levies off bills. My hon. Friend makes an important point about standing charges. He will know that Ofgem continues to consider low standing charge tariffs for exactly the reason that he raises. More generally, reducing energy bills is so important precisely because they are typically a higher share of disposable income for low-income households.
Wendy Chamberlain (North East Fife) (LD)
Lucy Rigby
I am afraid that I must disagree with the hon. Lady when she says that 350 is a meaningless number, but of course we understand the importance of in-person banking for rural communities. The location of banking hubs is determined independently by Link, and the criteria are a matter for the FCA, but I regularly meet MPs to discuss the adequacy and the application of those rules. In fact, there will be a banking hub surgery for Members of Parliament tomorrow, and she is more than welcome to join it.
Gill German (Clwyd North) (Lab)
I warmly welcome the second rise in the national minimum wage under this Government. Some 160,000 workers in Wales have already benefited since the rise in April. Many of them are younger workers, particularly in the retail and hospitality sector, which is so important to my constituency at Christmas and beyond. What assessment has been made of the impact of the national minimum wage rise on younger workers, and what progress has been made on equalising the national minimum wage with the national minimum wage for under-21s?
James Murray
About 300,000 young workers are expected to benefit from the national minimum wage increases in April 2026. The Low Pay Commission was given a remit to develop its preferred path and pace for the equalisation of the 18-to-20 national minimum wage and the national living wage. The 18-to-20 national minimum wage rate from April 2026 makes steps towards that commitment.
Alison Bennett (Mid Sussex) (LD)
Dan Tomlinson
At the Budget, we came forward with a revision to the policy to support people whose spouses have already passed away, and we made the allowance transferable between the spouses. That change will reduce the number of farms affected by the agricultural property relief changes from about 500—as was estimated at the previous Budget—to 375, when coupled with changes to the underlying economic forecast. The policy raises money from those with the largest estates in a fair way, and I encourage Members in all parts of the House to consider whether or not—
Alison Hume (Scarborough and Whitby) (Lab)
Alexander Dennis is a British electric bus manufacturer employing more than 700 people in Scarborough. Major bus contracts are due to go live in early 2026. Will the Minister confirm that this Government are backing British-built buses over Chinese imports, and can he confirm that the changes to public procurement processes will be implemented in time for taxpayers’ money to be spent on buying British buses?
James Murray
We have a proud history of manufacturing in this country, including in my hon. Friend’s constituency, and we will capitalise on that history as we drive our future growth. The UK is a leader in bus manufacturing, and the Government are committed to supporting the sector, including through the Department for Transport’s UK bus manufacturing expert panel. As a Government, we want to back British buses, unlike the SNP.
Olly Glover (Didcot and Wantage) (LD)
James Murray
The National Wealth Fund is at the forefront of public investment, investing in early-stage companies and projects to support innovation, boost jobs and create growth. It will work closely and collaboratively with other public financial institutions such as the British Business Bank, Innovate UK and UK Research and Innovation to support innovative companies across the UK.
Sarah Owen (Luton North) (Lab)
Removing the two-child benefit cap means that 5,000 children in Luton North will be lifted out of poverty. Many live in households where parents work but ends still do not meet. Does the Chancellor agree that action like this and the youth guarantee scheme will end the vicious cycle of poverty for good?
Rachel Reeves
I thank my hon. Friend for this question and for all the campaigning work she has done on it. Removing the two-child limit, combined with the changes we are making around free school meals, the warm home discount, capping the cost of school uniform and rolling out more childcare to more families, will lift more families—more children—out of poverty. It is worth noting that around 70% of kids growing up in poverty are in a family where someone works.
Steve Barclay (North East Cambridgeshire) (Con)
The Office for Budget Responsibility shows that welfare spending will be £32 billion a year more at the end of this Parliament, just as a result of decisions in the last Budget. Why was the Chancellor not more honest in the Labour party manifesto about the choices she wanted to make?
Torsten Bell
The welfare state that the Conservative party created is failing, and we are changing it. Welfare spending rose three times as fast under the Conservative Government than it has under this one, because they created a broken welfare system, and I repeat: we will change it.
Antonia Bance (Tipton and Wednesbury) (Lab)
Last week I went to Alucast in Wednesbury, one of our brilliant foundries. I have also been to Newby Foundries. Both told me of their relief that the landfill tax will not impose significant additional costs on them. I wonder whether the Chancellor would like to set out the action she is taking to support our brilliant manufacturing and automotive industries at this Budget.
Rachel Reeves
I thank my hon. Friend for that question. We are backing building and getting Britain building with the Planning and Infrastructure Bill, which passed yesterday—I think without the support of Conservative Members, but frankly, we do not need them. We are backing our automotive sector with changes to employee car ownership schemes, the electric car grant and so much more. We are backing the British manufacturing industry—automotives, buses, trains and everything else.
Stephen Flynn (Aberdeen South) (SNP)
Prior to the election, the Daily Record reported the Chancellor as having said that Labour will be as economically radical as Thatcher. With the closures at Grangemouth and Mossmorran, uncertainty over the Acorn project and 1,000 jobs being lost every month in the North sea, have I finally found a promise that this Chancellor has kept?
Rachel Reeves
As the right hon. Gentleman knows, we are backing Grangemouth and have put money into the Acorn carbon capture and storage project. We are taking £150 off people’s energy bills in Scotland. In England and Wales, NHS waiting lists are falling. I wonder why they are still increasing in Scotland.
Rachel Blake (Cities of London and Westminster) (Lab/Co-op)
Short-term lets—[Interruption.]
Dan Tomlinson
I thank my hon. Friend for her question and her continued campaigning on this issue, which I know is important to her constituents. On those who seek to bend the rules, companies like Airbnb now send data to His Majesty’s Revenue and Customs on all their hosts, and where hosts fail to provide the detail that HMRC requires, Airbnb stops payments until they do. However, we need to go further, and I will meet my hon. Friend to discuss this.
Simon Hoare (North Dorset) (Con)
In the hope that the Government had listened to the National Farmers’ Union and others, a North Dorset farming family sat to watch the Chancellor’s Budget statement, in expectation. They were disappointed with the announcement on the family farm tax. The farmer withdrew from his medical treatment, and three days later he died. That is how determined he was to keep the farm in his family. He knew the struggle that they would have had in meeting the tax bill after 1 April. I share that not to be inflammatory, but to ensure that Members on the Treasury Bench know that their decision on the family farm tax has direct consequences for people up and down the country.
Dan Tomlinson
Members on the Treasury Bench are fully aware of the fact that changes to inheritance tax have an effect on those who are older. In the changes to both agricultural and business property relief that we have put forward, we have ensured that there is a higher allowance, with an extra £1 million, and a tax rate that is half as low as everyone else pays. We think that these reforms, which raise money in a fair and sustainable way, will contribute to raising the revenue that we need, in a way that protects family farms. Of course, we understand that there will be impacts on people. That is why we have designed the policy in the way that we have, and why we came forward with the changes that we announced at the Budget just a few weeks ago.
Rachael Maskell (York Central) (Lab/Co-op)
Independent businesses in York are really struggling with the revaluation of business rates. In 2024 they were £6,200; in 2025 they are £15,000; and in 2026 they will be £19,100, after discounts. Will the Minister meet representatives from York High Street Forum to understand the challenge of those rates for my city?
Dan Tomlinson
I am happy to speak to my hon. Friend about the issues that she raises in her constituency.
Rupert Lowe (Great Yarmouth) (Ind)
The Chancellor has embarked on a Fabian programme of brutal tax-and-spend economics that might please the dwindling number of Labour voters, but is hollowing out the nation’s productive base. Those who take risks, invest long term and create high-quality jobs are increasingly voting with their feet. Record numbers of top earners—the rain-makers who actually bankroll public services—are leaving the UK for good, taking their wealth and, more importantly, their brain power with them. Does the Chancellor even begin to understand the lasting and irreversible damage that she is causing to the British economy?
Torsten Bell
We have all watched the hon. Member voting with his feet by leaving the bunch of crazies that he was with before. Let us get back to what this Government are doing to drive growth: we are increasing public investment by £120 billion over this Parliament and making sure that things get built. We are building housing and giving a default “yes” to developments around train stations. We are building transport infrastructure, including the lower Thames crossing and expansion at Heathrow and Gatwick airports. We are expanding energy infrastructure at Wylfa and Sizewell. This Government are backing the builders, month after month.
Nick Smith (Blaenau Gwent and Rhymney) (Lab)
The Minister for pensions was brilliant at the Budget in helping our mining communities across the UK. Will he provide an update on plans for changing the surplus sharing arrangements for both the mineworkers’ pension scheme and the British Coal staff superannuation scheme?
Torsten Bell
My hon. Friend has been a powerful campaigner for those surpluses to be shared with the members of those pension schemes. He knows that we made an announcement at the Budget to ensure that the British Coal staff superannuation scheme surplus is shared with its members, and I know that the trustees are bringing forward their proposals on the sharing of future surpluses.
Alan Mak (Havant) (Con)
The Budget cut the venture capital trusts tax relief that allowed investors to back Britain’s fastest-growing companies. How can the Chancellor claim to support our entrepreneurs when she is cutting off the funding that they rely on?
Rachel Reeves
I hosted an event last night for entrepreneurs. Speaking at it were the chief executives of Quantexa and Motorway, both of whom welcomed the changes that we made to support entrepreneurs at the Budget, particularly the changes we made around enterprise management incentives, the enterprise investment scheme, VCT, and the three-year stamp duty holiday for companies choosing to list here in Britain. We are backing entrepreneurs in Britain, and they are backing our changes.