Oral Answers to Questions

Debate between Desmond Swayne and Rachel Reeves

Tuesday 4th March 2025 Commons Chamber

[Sir Desmond Swayne (New Forest West) (Con)]

10. What assessment she has made of the implications for her policies of the most recent figures for Government borrowing.

[The Chancellor of the Exchequer (Rachel Reeves)]

In the autumn I took the decisions to put our public finances back on a firm footing. The most recent GDP data showed that the economy grew by 0.4% in the final month of last year. As I have said on many occasions, our fiscal rules are non-negotiable. The Conservative party sent mortgage rates and business borrowing costs spiralling; we have returned stability to the public finances to give families and businesses the stability that they need.

[Sir Desmond Swayne]

The servicing cost is now twice what we are spending on defence, which the Chancellor is right to be increasing. What is her ambition for finding savings in the welfare budget?

[Rachel Reeves]

I agree that we need to get a grip of the welfare budget, which got out of control under the previous Conservative Government. Frankly, I am not going to take lectures from the Conservative party, which crashed the economy. Let me remind the House what the right hon. Gentleman said about the disastrous mini-Budget:

“I share entirely the free-market ideology that underpins the Chancellor’s statement…The Chancellor was right to be radical.”

He added:

“I rejoice at the two fingers the Chancellor has raised to socialist dogma and envy.”

I think that the financial markets and the British public have united in their view on the previous Government.

Oral Answers to Questions

Debate between Desmond Swayne and Rachel Reeves

Tuesday 21st January 2025 Commons Chamber

[Rachel Reeves]

We inherited a high amount of debt from the previous Government, and we have to pay interest costs on that debt. The forecast I set out in the Budget in October showed that debt falling to a sustainable level. As I said, the OBR forecast will be published on 26 March, and I will make a statement at that time.

[Sir Desmond Swayne]

The Chancellor’s increased demand for Government borrowing drives up its price and crowds out investment by productive private enterprises, doesn’t it? [Hon. Members: “No.”]

[Rachel Reeves]

Let me have a go. There have undoubtedly been moves in global financial markets this year, and the UK is not immune to those movements. The OBR has not yet started its forecast. It will update that in due course, and I will make a statement on 26 March.

Oral Answers to Questions

Debate between Desmond Swayne and Rachel Reeves

Tuesday 29th October 2024 Commons Chamber

[Rachel Reeves]

We will set out more details in the Budget tomorrow, including the consequentials that will go to the Scottish Government.

[Sir Desmond Swayne (New Forest West) (Con)]

Investment requires a measure of optimism, not the collapse in business confidence that the Chancellor has engineered. She would have done better to stress some of the positives that she inherited, wouldn’t she?

[Rachel Reeves]

It is good to have an explanation of how to do my job from one of the Conservative Members who crashed our economy. Some £63.5 billion of investment into the UK was announced at our international investment summit—investment in life sciences, investment in data centres and digital, investment in clean energy—because businesses have confidence that this Government are bringing stability back to our economy and working with businesses to seize the opportunities. I am really excited about doing that in all parts of our country and working with business to do so.

Public Spending: Inheritance

Debate between Desmond Swayne and Rachel Reeves

Monday 29th July 2024 Commons Chamber

[Rachel Reeves]

We have had to make difficult decisions today to cancel road and rail infrastructure projects. These are not decisions we wanted to make, but if the money is not there, we cannot go ahead with those projects. It is as simple as that. The money has to be there and the sums always have to add up, because I will not make the mistakes of the previous Government and Liz Truss, crashing the economy and sending interest rates and mortgage rates spiralling for our constituents. That is why I have had to take these actions today to get a grip on public spending and public finances. I make no apology for that, but I recognise the damage it does to so many constituents with projects that they had expected to see happening.

[Sir Desmond Swayne (New Forest West) (Con)]

When the Chancellor’s legislation enables illegal entrants to leave their current accommodation, where will they go?

[Rachel Reeves]

Under the previous Government, no applications were being processed and so nobody was being sent home. We will process those applications and send people who have no right to be here back home.