Oral Answers to Questions

Tuesday 8th September 2026 Commons Chamber

The Chancellor of the Exchequer was asked—

[Elaine Stewart (Ayr, Carrick and Cumnock) (Lab)]

1. What recent steps he has taken to increase economic growth.

[Tristan Osborne (Chatham and Aylesford) (Lab)]

15. What steps he is taking to help ensure that the UK remains the fastest growing economy in the G7.

[The Chancellor of the Exchequer (John Healey)]

May I start by paying tribute to my predecessor, my right hon. Friend the Member for Leeds West and Pudsey (Rachel Reeves)? I am proud to have been a member of a Government with the first female Chancellor in 700 years. She did hard yards on the task of rebuilding Britain’s fiscal credibility, public services and levels of growth after 14 years of Conservative Governments’ failure. I now build on her work.

Yesterday, I set out the Government’s determination to see the next chapter of Britain’s growth story written in more places. That means more devolution and the combined force of the Government to get things done, back businesses and get more investment, innovation and jobs across the UK.

[Elaine Stewart]

Last week, the UK Government announced a financial boost of £11.8 million to support the regional economy across Ayrshire. The money will fund projects across Ayr, Carrick and Cumnock, supporting employability and business start-ups. Does my right hon. Friend agree that although the SNP is obsessed with centralising in Holyrood and taking away local powers, the route to regional economic growth lies in empowering local communities and local councils?

[John Healey]

My hon. Friend does a great job of standing up for the people of Ayrshire. The £11.8 million will fund jobs, training and business start-ups right across Ayrshire. In England, this is a Government who are backing local areas to generate growth in more areas, and I would love to see the Scottish nationalist Government do the same.

[Tristan Osborne]

Thank you, Mr Speaker—and happy Star Trek Day.

Last week, the Opposition chose to Klingon to the Truss legacy, and what a damaging legacy that was. How can we engage in warp speed, so that our economy continues to grow the fastest in the G7?

[Mr Speaker]

Captain Kirk!

[John Healey]

Mr Spock, I think some would say, Mr Speaker! My hon. Friend is right. Despite global conflicts, trade tensions and rising threats in the world, which are pushing up inflation, bearing down on growth and pushing up borrowing costs, the UK economy is demonstrating huge resilience. He is right that in the first six months of this year, the UK economy grew the fastest in the G7. I set out yesterday some early steps to back stronger growth in more places: backing innovation with more investment in fast-growth firms across the north; changing the Government’s Green Book discount rate so that projects across the country with long-term potential will get a fairer hearing; and taking an axe to the thicket of administration that too often slows down decisions, holds back growth and prevents the private investment that we need.

[Alan Mak (Havant) (Con)]

This week, Arthur Laffer, economic adviser to three former US Presidents, said Britain is being taxed to death under this Labour Government, so will the Chancellor rule out tax rises in the Budget?

[John Healey]

The hon. Gentleman could have asked that question to any Chancellor at any time in the past few decades, and no Chancellor ahead of a Budget would have commented on speculation or ruled out measures. I will set out the decisions I take before the House on 28 October, and I look forward to him being there on that day.

[Sarah Olney (Richmond Park) (LD)]

The former Chancellor invested a significant amount of political capital into driving forward the white elephant project of building a third runway at Heathrow on the basis that it would deliver economic growth, but the Government’s appraisal report states that the net present value of expansion is between minus £23.4 billion and minus £62.5 billion. Will this Chancellor put an end to this absurd proposal?

[John Healey]

After years of delay, indecision and often vexatious challenge, we have given the go-ahead to this project quite simply because the economic case stacks up and will help to bring growth.

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I welcome the Chancellor’s clampdown on speculation and leaks ahead of the Budget; it is certainly an important step he has taken. On the issue of certainty, the National Wealth Fund is a critical investor in crowding in private investment around the UK. I noted that he has changed the remit. How will he balance his desire to see change with ensuring that it is strong and stable and that there is certainty for businesses seeking to invest with the support of the National Wealth Fund?

[John Healey]

I thank my hon. Friend for that, for the work she does in chairing the Treasury Committee and for her previous work on the Public Accounts Committee. She is right about the damage of speculation ahead of Budget. It led last year, for instance, to a large number of people cashing in pension pots, but the speculation was entirely unfounded.

On my hon. Friend’s question about the National Wealth Fund, we have capitalised it by over £200 billion, and the challenge is to ensure that we get good value-for-money decisions, but decisions made quicker, so that we can get investment into local areas to see private investment bring the growth that we need.

[Robert Jenrick (Newark) (Reform)]

I welcome the right hon. Gentleman to his position. I have known him for a long time—I wish him well. He has a huge task ahead of him. Earlier in the summer, the Prime Minister said that walking the streets of Makerfield lodged in his mind that so many working people want to see the personal allowance raised. In Reform, we want to do that as well; in fact, we want to raise it to £15,000 a year and to make work pay. Is it still the Prime Minister’s and the Chancellor’s ambition to raise the personal allowance?

[John Healey]

At the Budget last year, my right hon. Friend the Member for Leeds West and Pudsey (Rachel Reeves) continued the freeze in the personal allowance, which was first brought in by the Conservatives, in order to help fund the improvements in health and schools that this country needs that the people voted for at the election just two years ago. We will keep all of this under review, as we always do. Reform is making promises that it simply cannot keep. The right hon. Gentleman is right that I have known him a long time; I say to him and to the country that he is also a man whose own party leader described as

“a man that believed in nothing”.

[Mr Speaker]

The Chancellor does not need to worry; he has no responsibility for Reform.

I call the shadow Minister.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I welcome the Chancellor to his new role. I paid close attention yesterday to the long speech he made to reset the narrative and drive growth Britain. In paying tribute to his predecessor, will he recognise that she left the highest tax burden on record? Instead of postponing the words he could utter to my hon. Friend the Member for Havant (Alan Mak), could he make a short speech today from the Dispatch Box to say that he does not plan to increase the tax burden further?

[John Healey]

I could have spoken a lot longer yesterday. I am grateful to the hon. Member for watching or reading it. In the two years of this Labour Government, we have started to see this country beginning to turn a corner. That is a corner after 14 years in which the previous Tory Governments had a record of low growth and high debt, and a mini-Budget that crashed the British economy and collapsed confidence in Britain’s fiscal strength. This country has huge strengths in its people, its businesses and its communities, who want to seize the future. This is a country in which interest rates have been cut six times since the election; in which borrowing, which is still too high, is down to a six-year low; in which growth—still fragile and under pressure—was fastest in the first half of this year in the G7; and in which productivity and investment are finally, after long Conservative years, beginning to tick up. That is the basis on which we now build.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

I welcome the Chancellor to his place. After two anti-growth Budgets, I genuinely wish him well and urge him to deliver a growth Budget this autumn, so that we can avoid more punishing tax rises or painful spending cuts.

Last week, the Prime Minister acknowledged that Brexit had ushered in a “decade of low growth” but did not outline what he thinks is needed to tackle it. On Monday, the Chancellor made what was briefed as a major economic speech on growth, the product of deep thinking, and yet there was barely a mention of the impact of Brexit. Recent studies suggest that deeper alignment with Europe could boost GDP by at least 2.5% to 3.6%, so should the Chancellor’s plan for growth not include the growth and defence partnership with the EU that we have called for?

[John Healey]

The hon. Lady is talking to the person who led the work to establish a defence and security partnership with the European Union and bilateral agreements with other countries, on which we now build both our economic strength and our national security strength.

On the question of the Budget, I ask the hon. Lady to look at what we have done in the seven weeks of this Government. We know that we cannot relieve the cost of living and the cost of business pressures, but we will take steps where we can to do that. I will take that principle into the Budget, and we will back business and do what we can to see growth in more places across the country, because for too long this country has relied on too few of our major cities to drive national growth.

[Dr Allison Gardner (Stoke-on-Trent South) (Lab)]

2. What steps he is taking with local leaders to attract private investment into areas that have historically received lower levels of investment.

[Dan Carden (Liverpool Walton) (Lab)]

11. What steps he is taking with local leaders to attract private investment into areas that have historically received lower levels of investment.

[The Exchequer Secretary to the Treasury (Dan Tomlinson)]

My hon. Friends are right to ask these critical questions, and I agree with them that private investment is critical to delivering good growth in every postcode. The Prime Minister and the Chancellor have been clear that centralisation of power has led to too much of the country losing out on investment, leading to lower productivity and lower living standards for our constituents. The Chancellor set out yesterday his vision to shift power and resources so that they sit with local leaders, to enable long-term local investment and industrial strategies that will crowd in private investment.

[Dr Gardner]

Stoke and north Staffordshire is an industrial heartland known around the world for its prowess in ceramics. With the right support, its full economic potential can be unleashed. As an officer on the Labour Reindustrialisation Research Group, I am working with Stoke council on a reindustrialisation plan to ensure that Stoke and north Staffordshire make the fullest possible contribution to growth across the UK. Will the Minister commit the Treasury to working with us on a reindustrialisation plan to maximise our region’s expertise in advanced materials, defence and digital technology, so that we can all go forth and prosper?

[Dan Tomlinson]

I fully agree with my hon. Friend that going forth and prospering is a very good objective, and I look forward to working with her and the local businesses in her constituency that she has raised with me, including Mantec and Goodwin. There are some fantastic ceramics and advanced manufacturing businesses that we need to identify, and across the Treasury and No. 10 North, we will work with local leaders and parliamentarians to ensure that we can identify the right clusters in the right places to back and support.

[Dan Carden]

Last month, Liverpool city region’s visitor economy reached £6.8 billion, and our productivity growth is currently running at four times the national average. The region has an incredibly exciting plan to redevelop Central station in the city centre and link it to Lime Street. It would be one of the most important growth stories and opportunities for the whole of the north of England, and it would drive billions in investment from the private sector. When the Minister visits us for the party conference, will he take a bit of time to meet Mayor Rotheram and the leader of the council, Liam Robinson, to see their exciting plans?

[Dan Tomlinson]

I am delighted to inform my hon. Friend that my conference calendar already includes a meeting with local leaders in Liverpool to talk about what we can do to back growth and investment in his city and region. I have been in conversations already with the mayor of the city region about the things that he wants to work on and focus on to boost economic growth, and that includes the Liverpool Central development.

[Carla Lockhart (Upper Bann) (DUP)]

Private investment in the steel industry in Northern Ireland is being curtailed by the Windsor framework, because it is forcing businesses in Upper Bann to pay 50% EU tariffs on category 4 and category 7 steel. How many jobs must be lost across Northern Ireland’s manufacturing sector before the Chancellor takes action on this crazy steel tariff situation?

[Dan Tomlinson]

The Government understand the challenges of the implementation of steel tariffs, but we have to ensure that we keep a foundational steel sector in the UK. That is critical for our national supply and our national security. The Government looked very carefully at ensuring that the tariffs were applied in the right way to protect downstream suppliers, and we will continue to engage with industry and with Members of Parliament on these important decisions.

[Caroline Voaden (South Devon) (LD)]

Good growth in every postcode is a very catchy slogan, but it will mean nothing if it is not backed up with investment. Time and again, significant funding is announced for cities and urban areas, usually in the north, while the south-west is left with pennies in comparison. Yesterday, the Chancellor once again announced investment in the north with no mention of investment in the south-west. That might be due to political expediency—I could not possibly say—but what are the Government going to do specifically to encourage growth in the south-west?

[Dan Tomlinson]

The hon. Member raises an important point. We need to ensure that we see higher economic growth in every part of the country, and that includes the north, the east, the west and the south-west of England. We have many fantastic Members on both sides of the House who are working and advocating for their communities. We will ensure that we drive and deepen devolution in areas that do not yet have a mayor. The Prime Minister has discussed the need to ensure that those who do not want to have a mayor—he highlighted Cornwall—can have specific further devolution powers. One of the examples we are looking at not too far from the hon. Member’s constituency, I believe, is place-based business cases, so that we can unlock investment in particular parts of the country; one of the places that we are looking at in detail is Plymouth.

[Claire Hazelgrove (Filton and Bradley Stoke) (Lab)]

3. What discussions he has had with representatives of pubs on the potential impact of business rates relief on the hospitality sector.

[Peter Swallow (Bracknell) (Lab)]

18. What discussions he has had with representatives of hospitality businesses on the potential impact of business rates relief on the sector.

[Gill German (Clwyd North) (Lab)]

20. What discussions he has had with representatives of hospitality businesses on the potential impact of business rates relief on the sector.

[Will Stone (Swindon North) (Lab)]

23. What discussions he has had with representatives of the hospitality sector on the potential impact of business rates relief on that sector.

[The Financial Secretary to the Treasury and Paymaster General (James Murray)]

We love our pubs, so to support them the Prime Minister announced in his first week after taking office a 20% cut in business rates for them, as well as for social clubs and live music venues, from April 2027. That is building on the 15% reduction earlier this year. I and other Ministers have regular discussions with representatives from the pubs and hospitality sector to understand the impact of business rates support.

[Claire Hazelgrove]

My first job was as a pot washer and waitress in a pub at the age of 14. Today, pubs help me to bring fellow residents together for my pub politics events across the constituency. I know how much our pubs mean to us locally, and I warmly welcome further support for them. Will the Minister set out how that support will help to give pubs and the wider sector the certainty they need so that they and the great jobs they provide are here for generations to come?

[James Murray]

I know my hon. Friend is a great champion of pubs in her constituency. In fact, she has brought together people for her pub politics events, including at the Willy Wicket, the Beaufort Arms, the Baileys Court Inn—which I have been to—and the White Lion, where people come to talk about issues that matter to them. The support we are providing for pubs will be worth nearly £250 million next year. That will benefit around 32,000 venues, which helps to ensure that they and the jobs they provide will be there for the future.

[Peter Swallow]

I recently stopped by the wonderful Koh-I-Noor Indian restaurant in Priestwood to meet its owner, Kamran, and to speak about the realities of running a family-owned restaurant. He told me how rising costs were making it challenging for him to invest and grow his business. I genuinely welcome the Chancellor’s action on cutting business rates for pubs and music venues ahead of the Budget, but will the Minister look at what more he can do to support the hospitality and retail businesses at the heart of our local communities?

[James Murray]

I thank my hon. Friend for highlighting the contribution that businesses such as Koh-I-Noor provide to local communities and economies. As he set out, the Government are helping pubs right now, because of the important community assets that they are and the real pressures that they face. I assure him that we will continue to look at what more we can do to support high street businesses more widely to help them to invest and grow.

[Gill German]

Like our new Prime Minister, many of us on the north Wales coast love the pubs and music venues of the north-west. The boost to them from business rates relief is really welcome, but we love our pubs and venues too. Pubs such as the Bay Hop and the Mayquay face the same challenges as our north-west neighbours, and we want to attract more live music to north Wales too. Decisions on business rates in Wales are of course the responsibility of the Welsh Government, but does the Minister agree that the need for support does not stop at the border, and that a 20% cut to business rates in Wales would be a welcome boost for us too?

[James Murray]

I very much agree with my hon. Friend about the vital role that pubs and clubs play in local communities on either side of the border. As she rightly points out, business rates decisions in Wales are a decision for the Welsh Government. In England, we have taken action to support community venues and high streets, including the targeted business rates support for pubs. I urge the Welsh Government to consider doing the same.

[Will Stone]

Pubs across Swindon, such as Arkell’s, contacted me regularly about the reduction in business rates, so I thank the Minister for that. However, can he outline whether there will be any further business rates reductions for the wider hospitality sector?

[James Murray]

My hon. Friend is a great champion for pubs and other hospitality venues in his constituency, including Arkell’s brewery, which I know supplies pubs across Swindon and Wiltshire. As he rightly points out, we have provided support for pubs and community venues, which the Prime Minister announced soon after taking office. We will consider all options for what we can do to further support them in the Budget.

[Nigel Huddleston (Droitwich and Evesham) (Con)]

That is some brass neck, Mr Speaker. I am astounded that the Minister can stand at the Dispatch Box and expect credit and gratitude for giving a little bit of support to a sector that his own policies have undermined and destroyed—two pubs a day closing down, and 100,000 jobs lost in hospitality and tourism. Will he instead adopt the Conservative policy of 100% business rates relief and actually support these sectors, rather than giving hypocritical warm words?

[Mr Speaker]

Order. I do not like the word “hypocritical”.

[Nigel Huddleston]

I apologise, and take it back.

[Mr Speaker]

No problem. I call the Minister.

[James Murray]

The hon. Gentleman has some cheek, given the number of pubs that closed when his party was in government. The Labour party is making sure that the business rates system is set right for the future. Not only have we announced a 20% cut in business rates for pubs as a result of the new Prime Minister taking office, but I was pleased to announce a review of the way in which pubs and hotels are valued for the future, following concerns raised by the sector. That review will report in time for decisions taken on the basis of it to be in place for the next revaluation.

[Mr Joshua Reynolds (Maidenhead) (LD)]

Pubs, cafés and restaurants are among the largest employers of young people across the country, but the sector has seen 100,000 job losses as a result of the Government’s jobs tax. Business rates relief might have some impact, but the hospitality sector is telling us that what it needs is a cut in VAT to really help people get back into hospitality venues. Have the Government looked at what a cut in VAT would be able to do for both growth and new jobs?

[James Murray]

The hon. Gentleman is right to point out the important role that pubs and hospitality play in providing jobs, including jobs for young people. However, I gently say to him that one of the issues with the Lib Dems is that they welcome extra investment in our NHS and public services, but they never want to pay for it. When it comes to hard decisions on the economy, all they offer is soft politics.

[Wera Hobhouse (Bath) (LD)]

The 20% rate cut for music venues and pubs is of course very welcome, but what my high street in Bath really needs is an overhaul of the business rates system, which the Labour Government promised. Rather than accuse us of not having ideas, will the Minister do the bold thing, which is to get rid of business rates and replace them with a commercial landowner levy?

[James Murray]

As the Prime Minister made clear when he took office, we are giving pubs and community venues real breathing space through the 20% cut to their business rates, but our reform of business rates and our support for the high street does not end there. We are considering every possible opportunity to support retail, hospitality and leisure businesses on the high street, so that high streets in all our communities across the country can thrive.

[Mr Tom Morrison (Cheadle) (LD)]

I recently visited the Station House in Cheadle Hulme, one of the Almond family’s five pubs in Stockport, and spoke to the owner, Doug, about how hard it was for him to run his business. Like many pub owners across the country, the Almonds welcome the 20% cut in business rates, but they are contending with a system that penalises hospitality. The Minister dodged the question from my hon. Friend the Member for Bath (Wera Hobhouse), so may I ask him to commit himself now? Will the Government overhaul the business rates system so that community pubs such as the Station House can help our high streets to thrive?

[James Murray]

I thank the hon. Gentleman for talking about the Station House in his constituency; I am sure we all have pubs in our own neighbourhoods that we feel are at the heart of the local communities that we represent.

The 20% business rates cut that we announced was a down payment on further reform. We will continue to look into what we can do to support pubs, hospitality and other high street uses, because we know how much they matter to everyone in this Chamber and all the people whom we represent.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

As the Member of Parliament for the constituency with more pubs per square mile than anywhere else in Britain, I have been campaigning to reform the broken business rates system for longer than I have been an MP. My understanding is that the Government’s review will look at the fair maintainable trade criterion, which sees pubs singled out to be valued on the basis of what they could earn rather than what they actually earn; but, as pointed out by my hon. Friends the Members for Bath (Wera Hobhouse) and for Cheadle (Mr Morrison), the review falls far short of the Labour party manifesto, which pledged to overhaul the entire business rates system. May I ask Ministers whether that pledge still stands? If so, will they overhaul the business rates system before the next general election?

[James Murray]

I wonder whether any other Members might say that they have the most pubs in their constituency, or whether the hon. Lady has done her research. [Interruption.] I hear her saying that hers are the best pubs, a claim that even more Members may challenge in the Chamber.

Although the hon. Lady and I have some differences, I think that we share a desire to see a fairer business rates system. I know that the 20% cut for pubs and community venues was widely welcomed, and the Prime Minister and the Chancellor have made it clear that we want to go on looking at what we can do to support our hospitality venues, pubs and other high street uses. This is not a question of taking one policy announcement from July and thinking that that is the end of the story, because we know how important high streets are to communities across the country, and we want to see them thrive.

[Mr Connor Rand (Altrincham and Sale West) (Lab)]

4. What fiscal steps he is taking to support the renewal of high streets.

[The Chancellor of the Exchequer (John Healey)]

This is a Government who are determined to help good councils and businesses to breathe new life into our high streets and town centres. In April we introduced a permanent reduced tax rate worth almost £1 billion for high street businesses, and in July, in the new Prime Minister’s first week, he and I announced a further 20% cut for pubs, social clubs and music venues. This is a Government who will do what they can to help bring a bit of breathing space from the cost of living and the costs of business.

[Mr Rand]

In Altrincham and Sale West, we know how much our pubs and bars contribute to the local high streets of which we are so proud. That contribution goes beyond their economic impact; they create the sense of community that is so important to local people. The Government’s 20% cut in business rates was indeed welcome to them, but I know from events that I have held locally with the Altrincham business improvement district that they still face challenges and need more support. Will the Chancellor update the House on what more he will do to support all hospitality businesses in constituencies such as mine?

[John Healey]

My hon. Friend speaks up very strongly for his local area. He is right about the importance of pubs, social clubs and live venues, and about the importance of the 20% cut that we announced in July. These are the things that make the places where we live the places that we also love. Later this year the Government will produce our high street strategy, and I encourage my hon. Friend to contribute to the work of my right hon. Friend the Secretary of State for Housing, Communities and Local Government in that regard. I agree with what my right hon. Friend the Financial Secretary said a few moments ago: he should see the move that we made in July as a down payment on further reform.

[Graham Stuart (Beverley and Holderness) (Con)]

The Conservatives will save our high streets, and may I explain to the Chancellor why that is important? Donna, who ran the Beverly Card Company, saw this Labour Government increase her business rates from £135 a month to £840 a month. That is why in February, after 30 years of her running it and having won national awards, the business closed. She will have to make payments for the next four years for those business rates. Will the Chancellor stop trimming, support the Conservative plan and abolish business rates altogether for the 250,000 high street businesses? He needs to stop talking and sounding sympathetic, and actually do something that makes a difference to our high streets.

[John Healey]

What an extraordinary claim! It is hard to take seriously the idea that somehow the Conservatives will save our high streets. We are, of course, concerned about the impact of business taxation. As a Government, we have put in £4.3 billion to help cushion the changes, including in the right hon. Gentleman’s area. We are in the process of taking further steps to review and reform the business rates system, and I will be able to set out more details at the Budget.

[Mr Speaker]

I call the shadow Minister.

[Gareth Davies (Grantham and Bourne) (Con)]

The Chancellor is going around lauding an apparent cut to business rates, but it was his Government who reduced business rates relief for retail, hospitality and leisure from 75% to 40%. If he goes out there and speaks to the owner of any average pub, they will tell him that their business rates have almost doubled. Why will he not answer the question as to why he cannot and will not follow the Conservative plan to cut Labour’s spiralling welfare bill to fund the abolishment of business rates for hundreds of thousands of high street businesses across our country?

[John Healey]

The Prime Minister and I have been clear that we must cut the costs of welfare. On levels of taxation, we had a period of Conservative Government, with low growth and high debt. They crashed the economy with the mini-Budget, and we had levels of taxation that were putting pressure on business, adding to the cost of living. What people have seen under this Government is a willingness to recognise those pressures and to do what we can—not to remove them, but to provide relief where we can. It is about giving people and families a bit of breathing space from the cost of living, and giving businesses a bit of breathing space from the costs of business. That is why the move that the Prime Minister and I made in July for pubs, social clubs and live venues was so welcomed.

[Alex McIntyre (Gloucester) (Lab)]

5. What assessment he has made of the potential impact of changes to regional funding arrangements on the economies of local communities which either are not part of a combined authority or do not have a metro mayor.

[Perran Moon (Camborne and Redruth) (Lab)]

16. What assessment he has made of the potential impact of changes to regional funding arrangements on the economies of local communities.

[The Chief Secretary to the Treasury (Emma Reynolds)]

The Government will support good growth in every postcode, including in Cornwall and Gloucester. We have already established No. 10 North to work in partnership with local leaders, businesses and communities, and at the Budget next month we will publish plans for further fiscal devolution, including greater retention of business rates revenue for local councils and strategic authorities.

[Alex McIntyre]

I thank the Minister for her answer. I fully support the Government’s exciting agenda of devolution, which takes power out of Whitehall and puts it into the hands of residents and communities like mine. However, my constituency of Gloucester does not have a metro mayor, and we are not part of a combined authority. I am determined to ensure that Gloucester is not left behind and is included in these important plans going forward. Can the Minister confirm how we can work together to ensure that Gloucester feels the benefits and investment from the Government’s devolution agenda?

[Emma Reynolds]

My hon. Friend is a great champion for his constituency. The Cabinet statement on devolution set out the Government’s ambitions to accelerate devolution across the country by establishing a strategic authority for every area in England that wants one by the end of 2028. All strategic authorities, including those without a mayor, will benefit from greater powers over skills, transport and housing.

[Perran Moon]

As the furthest southerly Labour MP in the UK, I note several recent announcements of funding going to the north of England and mayoral strategic authorities. I have been very encouraged by the Prime Minister’s comments on Cornish devolution, and there is no requirement for Cornwall to join a mayoral strategic authority, but can the Minister elaborate on how changes to regional funding arrangements will support the Cornish economy?

[Emma Reynolds]

My hon. Friend is a doughty champion for his area. As he said, the Prime Minister has been engaging with Cornwall—including, importantly, with its six MPs, including my hon. Friend—on a devolution agreement. This will support the Cornish economy through stronger statutory powers on transport and housing, and the ability to introduce an overnight visitor levy, which can be invested in projects that drive growth in the region. As he will know, the Government are already investing in Cornwall’s high potential sectors with the £30 million Kernow industrial growth fund.

[John Glen (Salisbury) (Con)]

I welcome the Chief Secretary to her new position, but what words of comfort could she give the residents of Salisbury in Wiltshire, a unitary authority? We are not part of a combined authority and we do not have a metro mayor. Since this Government came in, we have seen the lowest settlement or one of the lowest three settlements on police funding and local government funding, and we have seen the withdrawal of funding for our road network in the south of Wiltshire. There is a concern that, with the focus elsewhere in big urban metropolitan areas, rural England will be forgotten. Is that not likely to be the case?

[Emma Reynolds]

I thank the right hon. Gentleman, in whose footsteps I am again following by taking on another job that he did in government. As a former Environment Secretary, living in a rural area of Buckinghamshire myself and representing a semi-rural seat, I reassure him that this Government of course care about driving growth in rural areas. There is great potential there, which is why we are supporting our farmers through a £2.7 billion a year sustainable farming budget, and we are also improving connectivity in rural areas.

[Andrew George (St Ives) (LD)]

Notwithstanding the Minister’s response to the hon. Member for Camborne and Redruth (Perran Moon), my constituency neighbour, does the Minister not need to reflect on the fact that Cornwall, being the poorest region in the country and therefore entitled to EU objective 1 aid, is now receiving no regional funding whatsoever? That is simply not sustainable for a region that really does need additional support to get growth happening.

[Emma Reynolds]

I thank the hon. Gentleman for his question, but I disagree with his assessment. As I said to my hon. Friend the Member for Gloucester (Alex McIntyre), there are opportunities for areas that do not opt to have a mayor, but set up as foundation strategic authorities to gain the benefit of retaining more business rates and of greater powers over skills, transport and housing.

[Christine Jardine (Edinburgh West) (LD)]

6. What assessment he has made of the potential impact of reducing fuel duty on the cost of living for working families.

[Greg Smith (Mid Buckinghamshire) (Con)]

22. What estimate he has made of the average annual cost to motorists of discontinuing the 5p fuel duty reduction from December 2026.

[The Financial Secretary to the Treasury and Paymaster General (James Murray)]

As part of the £600 million package the Government announced in May, there will be no rise in fuel duty this year. This means that the temporary 5p cut will be extended till the end of the year, providing certainty to motorists. In total, the decisions taken since the 2024 general election to freeze fuel duty save motorists 11p per litre, or £120 per year for the average car, compared with the plans inherited from the previous Government.

[Christine Jardine]

I appreciate what the Minister has said about the fuel duty freeze, but the Liberal Democrats have called for an emergency cut of 10p per litre, which would make a difference of 12 per litre at the pump for ordinary families. For my hard-pressed constituents in Edinburgh West this winter, that could make a big difference not only to their travel costs, but to the cost of food and other services. Will the Government consider that emergency cut in the forthcoming Budget?

[James Murray]

I agree with the hon. Lady about the importance of providing breathing space for families, which is a priority for us as a Government, and she mentioned her plans. I have set out what we have done since the general election to reduce fuel prices by 11p per litre compared with what they would have been otherwise. As I set out in my earlier remarks, the 5p cut has been extended to the end of the year, and as she would expect, any future decisions will be taken at the Budget by the Chancellor.

[Greg Smith]

I cannot believe the Minister just said he wanted to give families breathing space when the RAC Foundation has found that, since fuel prices increased due to international issues earlier this year, the Treasury has raked in £1 billion extra from the VAT on fuel. How can it possibly be fair on motorists or give them any breathing space whatsoever to carry on with another fuel duty hike in January?

[James Murray]

The hon. Gentleman is right to point to the fact that international events have an impact on prices here at home. We did not want to get involved in that conflict, unlike the Conservative party. None the less, we are impacted by it, and the right thing for us to do as a Government is to make sure we are providing breathing space for families as we weather international events.

[Danny Beales (Uxbridge and South Ruislip) (Lab)]

I welcome the Government’s commitment to the cut on fuel duty, although motorists are being not only squeezed at the pumps but ripped off by unfair monthly insurance charges. Does the Minister agree that insurance companies should not be charging unfair and unjustified additional costs for monthly insurance, when that is what most people can afford? Will he meet me to discuss the Which? research, which has found that people paying monthly for insurance are paying hundreds of pounds in additional costs?

[James Murray]

Although my hon. Friend is right that fuel duty is one cost that families face, they also face a number of other costs, including through insurance. He is a formidable campaigner on a range of issues, so I would be happy to meet him to discuss this issue, or to ask my colleague, my right hon. and learned Friend the Member for Northampton North (Lucy Rigby), to do so, if she is better placed to respond.

[Euan Stainbank (Falkirk) (Lab)]

I welcome the Government’s fuel duty freeze for working families, alongside the road tax holiday for hauliers and the diesel fuel duty cut. Fuel costs for businesses in my constituency, such as Northfield quarry near Dunipace, have nearly tripled due to the Iran war and the previous Government’s tightening of eligibility for red diesel. In the Budget, will the Chancellor consider extending fuel duty reductions for industries such as quarrying, which is essential for house construction and provides good local jobs for working families?

[James Murray]

I thank my hon. Friend for his request of the Chancellor at the Budget. As the Chancellor set out earlier, he will take those decisions at the Budget in the normal way, but my hon. Friend has made a powerful case for his constituents and used this opportunity to ensure that all of us on the Treasury Front-Bench team have heard what he has to say.

[Mr Speaker]

I call the shadow Minister.

[John Cooper (Dumfries and Galloway) (Con)]

Fuel duty is catnip for a Chancellor desperate for revenue, but it is no sin tax, because for millions of Britons, vehicles are lifelines not luxuries. The imminent rise in fuel duty comes as tankers are ablaze in the strait of Hormuz. Must family budgets also go up in flames?

[James Murray]

I think the hon. Gentleman’s point is that the price of fuel is linked to international events, which, as I said earlier, I very much agree with. That is why it is important that we de-escalate the situation in the strait of Hormuz, which is the best way to bring down the cost of fuel. Meanwhile, the Government are determined to give families across the country breathing space—extending the 5p cut until the end of the year, a £2 cap on bus fares, and removing VAT from electricity bills—as we weather the impact of international events.

[Sir Jeremy Hunt (Godalming and Ash) (Con)]

7. What steps he is taking to improve public sector productivity.

[The Chief Secretary to the Treasury (Emma Reynolds)]

Public sector productivity is improving, with the NHS delivering 3.5% productivity growth in 2025-26, beating its 2% target. The Government will continue to drive public sector efficiency so that taxpayers’ money delivers the best possible public services. In addition, we are investing in AI adoption across the public sector to help realise the overall target of £14 billion of efficiencies by 2028-29, as agreed at the last spending review.

[Sir Jeremy Hunt]

May I welcome the Chief Secretary to the Treasury to her new role? If she has any questions, may I recommend an excellent book by a former Chancellor, which has a number of tips? [Laughter.] The public sector is 20% of our national output, so it offers a major opportunity for the Government to improve our national productivity. Was it wise to give the ASLEF train drivers on the Avanti West Coast route an above-inflation pay rise without any apparent productivity quid pro quo? With the public finances so tight, should the rule not be that above-inflation increases must have productivity gains sitting alongside them?

[Emma Reynolds]

We in the Treasury Front-Bench team are wondering when the third book in the trilogy will come along and what it might be called. We have a guess for the title of the next book. I thank him for his advice in his books and in his recent Financial Times article. On train drivers and their pay, I am proud to be part of a Government who have avoided strikes that impact on public spending.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Public sector productivity is improving, with the latest Office for National Statistics figures showing output continuing to grow faster than inputs, and Departments being challenged to improve efficiency and modernise outdated processes. Can the Minister confirm that the Government expect that will have a positive impact for residents in Feltham and Heston and people across the country, ensuring that Government services are faster, better and easier to access?

[Emma Reynolds]

I could not agree more with my hon. Friend. Driving public sector productivity is extremely important in two ways: first, because we get better value for money for taxpayers for the tax that people are putting in, including taxpayers in our own constituencies; and secondly, as she says, we are driving efficiencies, faster service delivery and using AI in the NHS to really drive improvements in care, as well as delivering more bang for buck.

[Mr Speaker]

I call the shadow Minister.

[Mark Garnier (Wyre Forest) (Con)]

Many commentators have commented about public sector productivity underperformance. EY tells us that the public sector has underperformed to the point where it has cut GDP growth by 3% since 2019. The Institute for Government highlights an average of nearly 1% underperformance every year for that same period. Morgan Stanley reminds us that in the last year private sector productivity was up 1.8%, but public sector underperformance dragged it back into negative territory. Despite that, public sector pay was up over 6% last year, against private sector pay up just 2.8%. Why are the Government rewarding poor performance and does the Chancellor think that is sustainable?

[Emma Reynolds]

I can reassure the hon. Gentleman that we are focused on driving public sector productivity to reach the efficiency targets I talked about. We are holding each Department to account on that. As I said earlier, we are seeing great progress in the NHS, which is making a huge contribution to our productivity gains as a Government.

[Steff Aquarone (North Norfolk) (LD)]

T1. If he will make a statement on his departmental responsibilities.

[The Chancellor of the Exchequer (John Healey)]

Since day one in the job, the Prime Minister and I have been in lockstep in our determination to meet Britain’s fiscal rules. This is the bedrock on which we build good growth and help give a bit of breathing space to families and businesses. We acted in the first week to cap bus fares, cut business rates for pubs, social clubs and live venues, and cut VAT on electricity bills. We have also announced further sanctions on Russia. We have changed procurement rules to back British jobs. We launched a new plan for growth from places right across the UK and £100 million to back British sovereign AI firms. This is a Labour Government who are determined to deliver good growth in every postcode and sound fiscal discipline.

[Steff Aquarone]

If the Treasury wants a quick trick to increase tax receipts from new employment, may I suggest that the Chancellor takes steps to boost rural bus connectivity? North Norfolk has independent operators such as Central Connect which, in spite of challenges facing the sector, has managed to double its bus frequency in Stalham and Hoveton. It wants to go further. Can he tell us how he will work with the Department for Transport to ensure barriers are lifted and support is provided to bring more buses to my constituents?

[John Healey]

I am disappointed that the hon. Gentleman did not recognise that capping bus fares must be a benefit to his constituency in Norfolk and a benefit to passengers. Beyond that, let me take his contribution as an early Budget representation.

[Ms Julie Minns (Carlisle) (Lab)]

T3. Child trust funds were designed to give every child the same financial start, regardless of who they are. However, trust fund savings are currently taken into account when assessing an 18-year-old disabled person’s financial contribution to their social care, meaning that they do not get the same financial start as their non-disabled peers. What steps is the Minister taking to ensure that all young people benefit in full from their child trust fund?

[The Economic Secretary to the Treasury (Lucy Rigby)]

I am grateful to my hon. Friend for her question. She raises a concern about the interaction between matured child trust funds and adult social care assessments. The financial assessment framework to which she refers is a matter for the Department of Health and Social Care, but I am, of course, more than happy to facilitate a conversation with her and the relevant departmental Minister.

[Mr Speaker]

I welcome the new shadow Secretary of State.

[Andrew Griffith (Arundel and South Downs) (Con)]

Thank you, Mr Speaker. First, let me pay tribute to my own predecessor, my right hon. Friend the Member for Central Devon (Sir Mel Stride), and let me welcome the Chancellor to his role. He is already responsible for the highest borrowing costs for 28 years. One in six of our young people are unemployed and yesterday we had the news that one of Britain’s top taxpayers is leaving our country. Every time a billionaire leaves, our country becomes poorer. Chris Rokos is reported to have paid over £300 million in taxes last year. Could the Chancellor tell us how many average taxpayers it will take to replace him?

[John Healey]

I welcome the new shadow Chancellor to his place and thank him for his words. I welcome him back to the Treasury brief—perhaps Members on the Government Benches will have more to say about that later. I echo his comments about the right hon. Member for Central Devon (Sir Mel Stride), who has played an important role in this House, including his cross-party work during the pandemic as Chair of the Treasury Committee. We thank him for that as he steps down from the Front Bench.

The shadow Chancellor takes reports in the paper and tries to make serious points in this House. We will set out our plans at the Budget to give families and businesses a bit of breathing space, to back good growth in more places throughout this country, and to rebuild confidence in strong British fiscal discipline—something that was lost under the shadow Chancellor’s Government.

[Andrew Griffith]

The Chancellor does not know the answer. On the Treasury’s own statistics, it would take 38,000 average income tax payers to make up for the loss of Chris Rokos. That is a lot of breathing space paid for. It means higher taxes for everyone else, or lower public spending. We know what Labour will choose. The last Chancellor raised taxes on farmers, family businesses and jobs. Conservatives will reform welfare to cut taxes; Labour always puts them up. Which, if any, of his predecessor’s damaging decisions will the Chancellor reverse?

[John Healey]

The future of this country will be written in our growth rates, after 14 years in which we had low growth, high debt and a Budget that crashed confidence in the British economy. Under this Government, we have already seen a new way of generating growth in more places across the country. Members have seen the way that we will reform the centre of Whitehall, so that we cut through slow decision making, with public leadership and control made accountable to the people. I made announcements yesterday on the ways that we will go further to axe the thicket of administration, to back fast-growth firms, and to change the way that we generate investment across the country.

[Dr Jeevun Sandher (Loughborough) (Lab)]

T4. In areas such as mine in the east midlands, growth has been too low because spending has been too low. As life has become unaffordable, growth has fallen even further. We are seeing that with growth in my local area, as well as nationally, with a rising output gap. Will the Minister set out how making life affordable will make growth rise in Loughborough, Shepshed and the villages?

[The Parliamentary Secretary, Cabinet Office (Dan Tomlinson)]

My hon. Friend is an expert on those matters and is totally right to point to the importance of looking at the demand side of the economy. The Chancellor and Prime Minister have focused on just that, for example, with the cut to VAT on electricity bills and the reinstatement of the £2 cap on bus fares for 2027. My hon. Friend will also support the big focus on the supply side that the Chancellor talked about in his speech yesterday, improving the productive capacity of our economy, so that we can build more homes, labs, transport and power.

[Charlie Dewhirst (Bridlington and The Wolds) (Con)]

T2. I doubt that businesses in East Yorkshire will have taken much comfort from the Chancellor’s words today. With youth unemployment spiralling out of control, what is his message to young people in my constituency unable to find a job as a direct result of the punishing business taxes of his predecessor?

[The Parliamentary Secretary to the Treasury (Torsten Bell)]

Employment levels have risen since the general election, but the hon. Gentleman is absolutely right to highlight that too few young people are getting the chance to move into work and to participate in education. That is exactly what the Milburn report is looking at, and I hope the hon. Gentleman will feed into that. However, we are not waiting for that report; the Government are already acting. That is what the jobs guarantee is doing, and why businesses that employ young people on universal credit will receive £3,000. It is right that there is a moral as well as economic imperative to get young people into work.

[Several hon. Members rose—]

[Mr Speaker]

Order. I really am struggling to get all Members in—it is now 29 minutes past 12, and we have not even got through the topicals list. I ask Members on both Front Benches to help me to help them.

[Catherine Fookes (Monmouthshire) (Lab)]

T6. I applaud the Prime Minister’s rates cut for English pubs, but the Plaid Cymru Government in Wales have done nothing to help Welsh pubs. That is why I am supporting the “VAT’s the Problem” campaign, which seeks a much-needed cut in VAT to 10% for our struggling hospitality businesses, which is the rate in some EU countries. Will Treasury Ministers look at the campaign and help us to help our hospitality businesses in Monmouthshire?

[The Financial Secretary to the Treasury and Paymaster General (James Murray)]

Fiscal decisions are taken at the Budget, but I join my hon. Friend in urging the Welsh Government to consider extending the support that we have given to English pubs to pubs in Wales.

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

T5. Following the summer, recovery will be at the forefront for communities in my constituency and others who have been impacted by devastating wildfires. Many businesses in these communities are in the hospitality sector, the pressures on which are well documented. A reduction in VAT would provide a much-needed boost, enable reinvestment by these businesses and support economic growth. Will the Chancellor therefore consider cutting VAT for hospitality?

[James Murray]

As I said a moment ago, decisions on fiscal matters are taken at the Budget, but I urge the hon. Gentleman to urge the Scottish Government to follow the UK Government’s example by providing support to pubs in Scotland, too.

[Adam Thompson (Erewash) (Lab)]

T10. The Chancellor will no doubt be aware that this month marks the fourth anniversary of the disastrous Liz Truss mini-Budget, which risked my constituents’ pensions and locked thousands out of home ownership. Last week we saw Liz Truss’s Financial Secretary, the hon. Member for Arundel and South Downs (Andrew Griffith), made shadow Chancellor. Does my right hon. Friend have any advice for the shadow Chancellor on how he might learn from his mistakes?

[John Healey]

My hon. Friend is right that the Truss mini-Budget means that families with a new mortgage are now paying £600 a year more and the Government are paying more for our borrowing—money that we could be spending on schools and hospitals. The shadow Chancellor is the same man who at the weekend said that there were “lots of good things” in the Truss mini-Budget. With Labour, Britain is starting to turn the corner; it is clear that with a new shadow Chancellor, the Tories are turning back to Liz Truss.

[Rosie Duffield (Canterbury) (Ind)]

T7. This week, Professor Susan Ayers launches her report, “The Cost of Birth Trauma”, in Parliament. It is a first, as it goes beyond the more obvious health and social care implications, and follows the 2024 inquiry by the all-party parliamentary group on birth trauma. Lifelong care, litigation and the impact on the workplace come at a high price, as, of course, do many other women’s health scandals, such as the sodium valproate issue. Will the relevant Minister or the Chancellor read Susan Ayers’ report and meet me and the professor to discuss it?

[The Chief Secretary to the Treasury (Emma Reynolds)]

I thank the hon. Lady for raising this important issue. I would be very happy to meet her.

[Sadik Al-Hassan (North Somerset) (Lab)]

Very briefly, I would like to congratulate my beautiful, long-suffering Kiwi wife on completing her citizenship ceremony today in North Somerset. Will my right hon. Friend the Chancellor set out how the Government’s investment can support the development of more local schemes for young people in North Somerset?

[Torsten Bell]

I thank my hon. Friend for his question and congratulate his wife on what is a significant achievement; I am sure the whole House is supporting her. He is absolutely right that we want to see more young people having the income, opportunities and purpose that work provides, which is why it is welcome that employment is up. However, we do need to do more. We will keep providing national insurance relief for employees aged under 21 and apprentices under 25, and we are rolling out our youth hubs, including in North Somerset.

[Clive Jones (Wokingham) (LD)]

T8. Given the chronic underfunding of Wokingham borough council, which is facing difficult choices and placing increasing pressure on local services, what steps will the Government take to ensure that Wokingham receives a fairer settlement and can provide the services that residents deserve?

[Emma Reynolds]

We are improving funding for local government as a result of the spending review, and I would be happy to meet the hon. Gentleman to discuss that further. It is also obviously a question for the Ministry of Housing, Communities and Local Government.

[Amanda Hack (North West Leicestershire) (Lab)]

When CoalWorks in my constituency fundraised for a defib, the charity London Hearts reached out to it. Because it is a charitable organisation, there was no VAT on the purchase, meaning that CoalWorks could afford to buy two. However, when the Kings Arms in Coleorton recently fundraised, it had to pay VAT because it did not go via a charity partner. Will the Minister make an assessment of the potential impact of removing VAT on defibs for community-based purchases?

[James Murray]

I congratulate the organisation in my hon. Friend’s constituency for successfully fundraising for two defibrillators. As she knows, decisions on fiscal matters are taken at the Budget. She makes a powerful case, but we have to evaluate whether VAT reliefs are passed on in full to consumers. That is one of the key considerations when taking decisions of this sort.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

T9. Nearly 100,000 hospitality jobs have disappeared in two years. Pubs, hotels and restaurants across the Scottish Borders are struggling with higher employment costs. When will the Labour Government cut their tax on jobs?

[James Murray]

We are providing a 20% cut in business rates for pubs in England. I urge the Scottish Government to do the same for Scottish pubs.

[Imogen Walker (Hamilton and Clyde Valley) (Lab)]

When the Bank of Scotland closed its Larkhall branch, it left the town with no high street bank. It is a problem not only for Larkhall but for nearby villages including Ashgill and Netherburn. I am grateful to Treasury Ministers for engaging with me on this issue over the last few months. What can the Government do to support towns like Larkhall and protect face-to-face banking services in rural communities?

[Lucy Rigby]

I want to be really clear about this: people who need in-person banking must be able to access essential services, including those in rural communities. That is exactly why I commissioned the independent review on access to banking services, which will gather data about current access to banking services. It is the Government’s intention for there to be a power in the Financial Services and Markets Bill to allow the Government to act on that review.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

In his previous role, the Chancellor demonstrated that he is a man of principle who is able to advocate for change, even when politically difficult. Where the evidence shows that Labour policies are harming businesses and jobs, will he also advocate a change of course?

[Torsten Bell]

The difficult choices that we have had to make are why NHS waiting lists are falling in the hon. Gentleman’s constituency and why his own police chief constable said that

“increased officer numbers will enable us to further tackle issues such as antisocial behaviour, theft and drug-related crimes.”

The hon. Gentleman is a man who, unfortunately, on the day of the mini-Budget spoke up in this Chamber and said that it was a “vote of confidence” in the whole UK economy. The only regret he must have is not being more enthusiastic—otherwise he would be shadow Chancellor.

[Phil Brickell (Bolton West) (Lab)]

UK Finance estimates that two thirds of all fraud cases are enabled online. Jonathan Fisher’s recent review into fraud recommended that an anti-fraud levy be placed on digital and communications platforms. Will the Minister meet me to discuss how we ensure that economic crime enforcement agencies are properly funded to protect us all from predatory scammers on the internet?

[Lucy Rigby]

Fraud is the most common type of crime in this country, and its impact can be truly devastating for individuals and businesses. That is why this Government are committed to tackling it, including via the doubling of the economic crime levy. The Fisher review made a number of recommendations, including about the role of technology companies. We are considering those recommendations very thoroughly.

[Robin Swann (South Antrim) (UUP)]

The Northern Ireland Executive have been without a budget this year, and in the last six months the Secretary of State for Northern Ireland has been engaging with the Executive parties. What latitude or support has the Chancellor given the Secretary of State for Northern Ireland to enable a budget to be agreed in Northern Ireland, and what steps will the Government take if the Northern Ireland Executive are unable to set a budget?

[Emma Reynolds]

I can reassure the hon. Gentleman that I am working extremely closely with the Secretary of State for Northern Ireland who, as he will know, is in discussions with all the parties in the Northern Ireland Executive. We need to make sure that a budget is set for Northern Ireland so that the Executive can continue to deliver vital local public services.

[Sureena Brackenridge (Wolverhampton North East) (Lab)]

I was pleased to see that the Chancellor was in the west midlands yesterday meeting manufacturing apprentices alongside Mayor Richard Parker. What conversations has he had with the mayor about using new devolution powers to invest in local skills and employment, and what will he do to make sure that young people in Wolverhampton North East get more local opportunities to benefit from?

[John Healey]

Indeed, the West Midlands Mayor, Richard Parker, is using the powers that he has, including recently by stepping in and taking action to improve bus services across the west midlands. Yesterday he stepped in to provide support for the Jaguar Land Rover workers who may face redundancy and will certainly be well placed to get further jobs.

[Sir Mel Stride (Central Devon) (Con)]

May I welcome the Chancellor to his position and thank him for his kind remarks earlier? May I also wish him every success, because I am afraid that under this Government we need some? He will know that if we are to fix the economy, we have to fix the welfare bill. Will he give a commitment today that at the Budget next month, he will come to the House with a comprehensive plan for how he will arrest the burgeoning welfare bill? He and I know that failure to do so will lead to millions of hard-working people and hundreds of thousands of businesses up and down the country facing unnecessary and unacceptable tax increases.

[John Healey]

The right hon. Gentleman sets out the challenge facing the country in the long term. That is exactly why we have commissioned Alan Milburn and the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for East Ham (Sir Stephen Timms) to do the reviews they are currently doing. When they produce them in the autumn, we will look at them and act on the recommendations.

[Mrs Sharon Hodgson (Washington and Gateshead South) (Lab)]

What conversations has the Chancellor had with the Department of Health and Social Care on providing compensation to those harmed by valporate and vaginal mesh, as per the Hughes report, which was published over two years ago?

[Emma Reynolds]

I reassure my hon. Friend that I am working extremely closely with the Health Secretary and discussing overall levels of NHS spending—of course, the Department has the biggest budget across the Departments. The NHS is performing well, but I will take back the specifics that she mentioned.

[Lara Bird (Arbroath and Broughty Ferry) (SNP)]

Monifieth in my constituency is home to over 9,000 people and is the central connection point for a vast rural community across Angus. Despite an application in 2023, a banking hub was denied because the regulations are not fit for rural communities. Will the Minister commit to meet me to discuss how those regulations impact rural communities and see if we can finally get Monifieth the banking hub that it needs?

[Lucy Rigby]

I will indeed meet the hon. Member. The issues she identifies are exactly why we had a commitment in our manifesto to work with industry to roll out 350 banking hubs over the course of the Parliament. We are well on track, with 282 banking hubs having already been announced, so we are running way ahead of schedule.

[Rosie Wrighting (Kettering) (Lab)]

In recent weeks, the fast fashion online retailer Shein has been valued at a fraction of its price when it listed in Hong Kong, in part due to the treatment of low-value imports in the US and Europe. With that in mind, I welcome the Government’s decision to end the £135 de minimis relief by October 2028, but what more can be done before then to level the playing field for British retailers?

[James Murray]

My hon. Friend is right to highlight the importance of removing the low-value imports relief and levelling the playing field with high streets. As she will know, my predecessor announced in June that we are bringing forward the implementation of the measure to October 2028 to benefit high streets across the country as quickly as possible.