Spring Statement

Debate between Caroline Johnson and Rachel Reeves

Wednesday 26th March 2025 Commons Chamber

[Rachel Reeves]

My hon. Friend is absolutely right that her constituents—all our constituents—depend on economic stability. It ensures that they know how much they will pay on their rent and mortgages; it ensures that they are not caught out, when they go to the shops, by prices constantly rising. That is why, as a Government, we have said that the No. 1 thing we need to achieve in order to grow our economy is economic stability, which is why I am so pleased that the Bank of England has been able to cut interest rates three times since the general election and the OBR has forecast that inflation will fall rapidly to 2.1% next year, and then 2% in the years after that.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Schools face a huge rise in costs imminently due to the rise in national insurance contributions. Headteachers had been reassured by the Government that schools would be recompensed with money to cover these costs, yet Sir Robert Pattinson academy in my constituency—a great school—finds itself £33,000 short. Will the Chancellor commit to ensuring that Sir Robert Pattinson, and indeed all the schools in my constituency, is given enough money to cover her jobs tax?

[Rachel Reeves]

Public services, including schools, have been compensated for the increase in national insurance, but I am happy for the hon. Lady to get in touch with me or the Education Secretary to set out the case of that school.

The only reason we have been able to put record investment into our schools is because of the stability we have returned to the economy, including the tax increases that we had to bring forward last year in order to provide that extra money for our public services, including the schools in the hon. Lady’s constituency.

Oral Answers to Questions

Debate between Caroline Johnson and Rachel Reeves

Tuesday 3rd December 2024 Commons Chamber

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

T2. Air ambulance charities deliver life-saving treatment to people every single day, yet they are under threat from the Chancellor’s rise in national insurance and taxes. The Lincolnshire & Nottinghamshire Air Ambulance alone will need to find another £70,000 just to pay the national insurance rises. Two weeks ago, local right hon. and hon. Members and I wrote to the Chancellor on this matter, but we have not yet had a reply. I ask her now: will she exempt these vital charities, so that they can continue their vital, life-saving work?

[Rachel Reeves]

The tax rises in the Budget were used to provide a £22.6 billion uplift in the Department of Health and Social Care budget to ensure that our NHS is properly funded. The NHS will ensure that important services are properly funded, and those allocations will be set out in the normal way.

Public Spending: Inheritance

Debate between Caroline Johnson and Rachel Reeves

Monday 29th July 2024 Commons Chamber

[Rachel Reeves]

We have heard today that hon. and right hon. Members across the House campaigned in good faith on projects that they thought the money was there for. The money simply was not there. We cannot go on like that, which is why I have been open, transparent and honest about the state of our public finances and the £22 billion black hole left by the previous Government. The Secretary of State for Health and Social Care, my right hon. Friend the Member for Ilford North will meet my hon. Friend the Member for Watford (Matt Turmaine) and all MPs who are affected by the problems left by the previous Government.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Congratulations, Madam Deputy Speaker, on your new role. This Labour Government have chosen to take the winter fuel payment away from pensioners. The right hon. Lady does say she will keep it for those on pension credit, but the threshold for that is very low. That means someone on an income of just £220 a week may find themselves receiving nothing. It is long established that being cold increases ill health among vulnerable people. What estimate has she made of what her changes will cost the NHS?

[Rachel Reeves]

Pension credit is paid to a single person who has an income of just under £12,000 and for a pensioner couple of just under £18,000. We will indeed keep pension credit for the poorest pensioners and boost take-up of pension credit to ensure that everybody who is entitled to it gets it, but we cannot make promises—the previous Government should not have made promises—without being able to say where the money is going to come from. That is the road to ruin. We saw that with Liz Truss, and I am afraid it was repeated under the current Leader of the Opposition and the current shadow Chancellor. They should hang their heads in shame for what they have done to our public finances and our public services.