Oral Answers to Questions

Darren Jones Excerpts

Tuesday 8th April 2025 Commons Chamber

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

8. What steps she is taking with Cabinet colleagues to increase economic growth through new transport infrastructure.

[The Chief Secretary to the Treasury (Darren Jones)]

The growth mission is the central mission of this Government. At the Budget, we delivered a £1.1 billion cash increase to the transport budget for 2025-26 compared with 2024-25, representing a 1.5% real-terms increase. We will set out further spending plans for transport in June.

[Sadik Al-Hassan]

What value does my right hon. Friend expect that the recently announced and much-anticipated Portishead and Pill railway line will add to the local economy of my constituency of North Somerset?

[Darren Jones]

First, I congratulate my hon. Friend on his campaigning on this issue. As I represent the neighbouring constituency, I declare that the project may have some indirect benefit for my constituents. I can confirm to the House that the project supports regional and national strategic objectives. The West of England is the most productive city region outside of London, and it is set to continue to grow. An efficient and reliable rail link between Bristol and Portishead will support a range of large and small sites for housing and employment across the region, halving journey times and opening a wide range of job and leisure opportunities for the residents of North Somerset.

[Martin Vickers (Brigg and Immingham) (Con)]

If steel production ceases or is curtailed at the Scunthorpe steelworks, there will be a massive impact on the wider economy in northern Lincolnshire. Can the Minister give an assurance that contingency plans, including improvements to transport infrastructure, are in place should the worst happen?

[Darren Jones]

We recognise how important this issue is for the hon. Member’s constituency, the region and, indeed, the national economy. My ministerial colleagues in the Department for Business and Trade are in discussions on this particular issue, but in our infrastructure strategy we are considering, as he would expect, the best value for aligning investments between housing, rail, energy and other types of infrastructure to deliver growth for everyone, in every region of the country.

[Mr Speaker]

I call the shadow Minister.

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

We know that the Energy Secretary is against airport expansion unless it is in Doncaster, and we know that many Labour MPs are against airport expansion unless it is in Pakistan. To be fair, at least the Chancellor wants airport expansion actually in this country, but at the same time she is jacking up air passenger duty by as much as 16%. Only this Chancellor could be pro-airport, but anti-passenger. Labour’s Climate Change Committee wants to see air passenger numbers fall by 2030, so I ask the Minister: does he?

[Darren Jones]

No.

[Navendu Mishra (Stockport) (Lab)]

9. What steps she is taking through the national wealth fund to increase regional economic growth.

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[Kim Johnson (Liverpool Riverside) (Lab)]

11. What discussions she is having with Cabinet colleagues on helping to improve high streets in Liverpool Riverside constituency.

[The Chief Secretary to the Treasury (Darren Jones)]

Liverpool City Region combined authority will benefit from the £900 million UK shared prosperity fund, which will allow authorities to invest in local communities such as my hon. Friend’s. From the start of 2026-27, her combined authority will receive a single flexible pot through its integrated settlement. Integrated settlements will allow local leaders across the UK to deliver important projects for their areas, including high streets. To fulfil our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality and leisure properties—including those on high streets—from 2026-27.

[Kim Johnson]

Everton, in my constituency, is the most deprived area in the country, and residents have received a double blow as a result of the imminent closure of Lloyds Bank and the planned closure of the Crown post office, which will have a devastating impact on residents and businesses alike. Will the Minister agree to meet me to discuss those closures and the desperate need for a banking hub in the area?

[Darren Jones]

As every constituency MP will know, the closure of banking services on our high streets is always a difficult decision. The Government are committed to championing access by rolling out banking hubs across the country. We are committed to delivering 350 of those hubs, and 220 have already been announced. The closure of the post office that my hon. Friend mentions will trigger a further cash access assessment for her constituency. I would be pleased to arrange a meeting for her with the relevant Minister to look at the options for her constituency.

[Jim Shannon (Strangford) (DUP)]

rose—

[Jim Shannon]

The Minister’s response is key. He is right to highlight the issues, whether they are in Liverpool, Everton, Cardiff, Edinburgh, Belfast or Strangford. In Northern Ireland, we have made the most of over-the-shops apartment conversions as opportunities for housing. Does the Minister agree that the possibilities for the regeneration of high streets and town centres also include housing opportunities?

[Darren Jones]

We have a shared ambition to ensure that our high streets are thriving communities for the people who live, shop or work there. We are delivering an integrated settlement for combined authority mayors in England, and have delivered a real-terms increase in funding for the Northern Ireland Executive—the largest since devolution began—to invest in exactly those types of local projects.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

To follow on from what the hon. Member for Strangford (Jim Shannon) said, high streets up and down the land, be they in Liverpool Riverside, St Albans or anywhere else, have just been hit with the double whammy of the jobs tax and higher business rates bills. What steps are Ministers taking to prevent an epidemic of boarded-up shop fronts in the next 12 months, before the new rate comes in next year?

[Darren Jones]

As I have informed the House already, we are committed to supporting independent businesses and retailers on the high street. The change to employer national insurance contributions was designed to support smaller businesses in our country; over 50% of businesses will pay the same national insurance as before, or less than they did under the previous regime. The hon. Lady alluded to the fact that we are bringing forward permanent deductions in business rate taxation for the retail, hospitality and leisure sector, which will be important for the long-term sustainability of the businesses she mentions.

[Callum Anderson (Buckingham and Bletchley) (Lab)]

12. What assessment she has made of the potential impact of her Department’s regulatory policies on trends in the level of investment.

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[The Chief Secretary to the Treasury (Darren Jones)]

Mr Speaker, you shocked me by moving to topical questions so quickly, but I have now found my page and am ready to answer them.

[Mr Speaker]

You need to get a new watch!

[Darren Jones]

From ferries to the National Care Service, we have seen failure after failure from the SNP in Scotland, including a track record of waste. In contrast, this Labour Government are tackling waste and investing in frontline services such as our national health service, which has seen waiting lists fall for each of the past five months in England. We hope that the people of Scotland will soon have the opportunity to experience such a transformation.

[Douglas McAllister]

The Chancellor set out in the spring statement a clear plan to drive better value for taxpayers, including through the transformation fund, which will transform frontline delivery while making savings in the long term. Does he agree that that is in stark contrast to the SNP Scottish Government’s record of waste?

[Darren Jones]

As my hon. Friend knows, we have given the Scottish Government the largest increase in spending since devolution began. The people of Scotland expect that money to be spent well, which we are doing in England by transforming public services and improving the national health service. However, given that SNP Members are not present in the Chamber today, the people of Scotland need to know that they will have to elect a Labour Government in Scotland later next year for that to happen.

[Mr Speaker]

I call the shadow Chancellor.

[Mel Stride (Central Devon) (Con)]

It was obvious to many before the emergency Budget that the President of the United States was going to be slapping tariffs on our exports. May I therefore ask the Chancellor why it was that she came forward at the emergency Budget with a recklessly slender slither of headroom—the same headroom that she had at the time of the autumn Budget, which proved then to be entirely inadequate. She blew that headroom and more due to her disastrous economic choices.

[Darren Jones]

I am sorry to disappoint the shadow Chancellor, but I am afraid that, because of the ordering of questions, he is stuck with me. To answer his question, he will have seen at the Budget that we increased the fiscal headroom back to our agreement of £9.9 billion, which was more than the headroom that we inherited from the Conservative party. The key difference is that this is a Government who take economic and political stability seriously, because when a Government lose control of the economy, they lose control of family finances and, ultimately, end up in opposition.

[Mr Speaker]

Just to correct the record, the Order Paper has not changed at all in topicals.

[Mel Stride]

You are quite right about that, Mr Speaker, as you are about everything. Indeed, the right hon. Gentleman is completely wrong when he says that he inherited less headroom than was the case at the autumn Budget. He inherited, on the current Budget, £23 billion, and he took it down to £9.9 billion to be precise. He also loosened the fiscal targets, which is why he is not underwater already on the targets that we had when we were in government.

May I ask him this: the fiscal targets are looking like they will be under a great deal of pressure come the autumn. There is a great deal of speculation and uncertainty among businesses as to whether this will lead to tax increases. Can he take away that uncertainty now, particularly given the tariffs and all the uncertainty that is vested in that, to make it clear at that Dispatch Box that there will be no further increases in taxation on businesses this Parliament?

[Darren Jones]

My apologies, Mr Speaker. It was our ordering that caused the problem, not the ordering of questions in the House.

The right hon. Gentleman knows that tight decisions were taken at the Budget, but we have been very clear that we are working hand in glove with businesses to be able to bring growth back to the economy and to ensure that investment—private sector and public sector—is coming forward. As he will know, from his time of swimming underwater, this Government are taking a different approach to fiscal discipline, and he should welcome that.

[Catherine Atkinson (Derby North) (Lab)]

T5. The defence sector is a vital part of our local economy in Derby, particularly with the landmark £9 billion deal struck with Rolls-Royce, which is supporting the Royal Navy’s submarines and providing a major jobs boost. Does the Chancellor agree that national security goes hand in hand with economic security and, in turn, financial security for households?

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

T8. Will the Minister join me in congratulating Goodwin International, which is building a multimillion-pound production unit in Newstead in Stoke-on-Trent South, creating up to 100 jobs in defence manufacturing? Does he agree that increased investment in defence spending will have a tangible impact on my constituents, fuelling jobs and local investment?

[Darren Jones]

Yes, and I congratulate my hon. Friend on championing jobs and businesses in her constituency. As she knows, the Prime Minister and the Chancellor have confirmed that defence spending will increase to 2.5% of GDP by 2027 and that a minimum of 10% of the Ministry of Defence equipment budget will now be spent on novel technologies such as drones and artificial intelligence, which will create highly skilled jobs and drive benefits to the wider economy, including in her constituency of Stoke-on-Trent South.

[Mr Richard Holden (Basildon and Billericay) (Con)]

T4. Earlier, in response to my hon. Friend the Member for Grantham and Bourne (Gareth Davies), the Chief Secretary rejected Labour’s Climate Change Committee’s advice regarding aviation policy. That also goes directly against what the Energy Secretary had committed to. Who in Government should we believe when it comes to aviation policy?

[Darren Jones]

The right hon. Member knows that we are supporting airport expansion alongside investment in things like sustainable aviation fuel to be able to reduce carbon emissions from long-haul flights as well as supporting investment into decarbonised surface transport, to help people get around the country and to their airports. Opposition Members might want to welcome investment into this country, as opposed to talking it down.

[Margaret Mullane (Dagenham and Rainham) (Lab)]

Will the Minister introduce a 12-month delay to the incoming change in taxation for double-cab pick-up trucks? The manufacturers and their commercial customers feel that they have had insufficient time to adjust to the new changes this month. Can he share with us any impact assessment work carried out on the reclassification of double-cab pick-ups and what effect it would have on the sector in Britain?

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[Josh Fenton-Glynn (Calder Valley) (Lab)]

The last Government left 4.5 million children in poverty, but, like many colleagues, I am alarmed that the impact assessment of the spring statement suggests that that number will rise, not fall. Will the Minister tell me when we can expect the results of the child poverty taskforce? Will they be delivered in time to influence decisions in the spending review?

[Darren Jones]

My hon. Friend knows that the Government are committed to reducing child poverty and that we will be bringing forward a child poverty strategy later this year. It will look at levers that support households to increase their income, such as supporting parents into secure employment, supporting progression in the labour market and considering social security reforms. I confirm that the work of the taskforce is feeding into the spending review.

[Nick Timothy (West Suffolk) (Con)]

The Chancellor talked earlier about the Government’s response to the new US trade policy, but what are the Government doing about China’s abuse of the world trade system? In particular, what will they do to challenge China’s status as a developing country at the World Trade Organisation? That is the means by which China dodges so many of the rules imposed on countries such as Britain and others in the west.

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[Baggy Shanker (Derby South) (Lab/Co-op)]

Local businesses have huge potential to create local growth in our community. It was fantastic to see my right hon. Friend the Chief Secretary to the Treasury visiting Derby South earlier this year and engaging with business leaders. Does the Minister agree that continued engagement with business leaders is absolutely key to building the business confidence that we so desperately need and which was shattered by the previous Government?

[Darren Jones]

I thank my hon. Friend for his question and for the invitation to join him in his constituency. I very much enjoyed the regional reception with business leaders, as I have done in every region and nation across the country during the spending review. We will continue to work hand in glove with them to unlock investment, create jobs and create growth for everybody, across the whole country.

[Jim Allister (North Antrim) (TUV)]

Earlier, when the Chancellor was talking about the impact of tariffs, she pledged that the Government would act in our national interest. How can it be in the whole national interest, so long as the trade laws governing Northern Ireland are not the trade laws of the UK but those of a foreign jurisdiction, namely the EU?