Public Spending: Inheritance

Debate between Al Pinkerton and Rachel Reeves

Monday 29th July 2024 Commons Chamber

[Rachel Reeves]

The OBR has just published a letter, as my hon. Friend said, which states:

“We were made aware of the extent of these pressures at a meeting with the Treasury last week”,

and goes on to state:

“If a significant fraction of these pressures is ultimately accommodated through higher DEL spending in 2024-25, this would constitute one of the largest year-ahead overspends against DEL forecasts outside of the pandemic years.”

This is incredibly serious. That is why I came to this House today to set out that £22 billion overspend compared with what the Government set out at the previous Budget. This letter from the chair of the Office for Budget Responsibility can leave no one in this Chamber in any doubt about the seriousness of the situation.

[Dr Al Pinkerton (Surrey Heath) (LD)]

I thank the Chancellor for her candour and her clarity today. There will be many residents and patients at Frimley Park hospital in my constituency—surrounded by a forest of acrow props holding up RAAC-riddled roofs—who will be deeply anxious at her announcement. Can she recommit to the Health Secretary’s commitment last week to prioritising spending, where possible, on those RAAC-affected hospitals and bring some comfort and clarity to the patients and the staff of Frimley Park hospital?

[Rachel Reeves]

I fully understand the hon. Gentleman’s concerns. I know that during the election campaign, like so many Members across the House, he will have campaigned in good faith, believing that the money was there. I can say in all candour today that the money was not there for this hospital programme. Although it is not my apology to make, I apologise on behalf of the Conservatives for the state of the public finances that they have left for us to sort out. My right hon. Friend the Health Secretary will meet the hon. Gentleman and everyone affected so that we can do whatever we can to make sure that we can get hospitals in the condition that his constituents, and so many of our constituents, rightly expect.