Economic Situation
Debate between Ben Lake and Chris Philp(2 years, 1 month ago)
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Chris Philp
The right hon. Gentleman can say no and not want to hear it, but I will just tell him again. In the United States, in the last nine months, there has been a 3% increase in the federal reserve base rate. In that same period, the Bank of England base rate increase has been only 2%. It has gone up by one and half times more in the United States compared with the United Kingdom. We do understand that there are cost of living pressures and that is why we have stepped in with the energy price guarantee to protect families in his constituency and mine from the £5,000 or £6,000 bills that they would otherwise have faced. That is why we are alleviating the tax burden on their shoulders and why we will ensure that the economy grows.
Ben Lake (Ceredigion) (PC)
A few weeks ago, the Welsh Government warned that they face a shortfall of some £4 billion to their three-year funding settlement as a result of rising inflation. Will the Minister confirm that the Treasury will consider, in the statement at the end of the month, providing additional funding support to help mitigate the impact of inflation on the budget for public services in Wales?
Chris Philp
Public expenditure both in Wales and across the United Kingdom stands at record levels. It has never been higher. In relation to extra funding, we are going to have iron discipline when it comes to public spending so the spending plan set out at the comprehensive spending review 2021, covering this current financial year and the next two, contains the limits we are going to stick to with discipline because it is important that we make the numbers add up.