Ellie Reeves
Main Page: Ellie Reeves (Labour - Lewisham West and East Dulwich)Department Debates - View all Ellie Reeves's debates with the HM Treasury
(2 years, 2 months ago)
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Chris Philp
The hon. Member was obviously not listening to my previous answers in which I said that the decision has not been taken and the CPI figure, which is a critical input into the decision, has not even been published yet. I also explained how interest rates around the world are rising—they have risen more in the US than they have here—and how the dollar has been strong against a number of currencies. Its strengthening against the euro has been only about 3% higher so far this year than it has against sterling, so I do not accept the hon. Member’s characterisation at all. As for fiscal responsibility, we have the second lowest debt-to-GDP ratio in the G7. The Chancellor said that we will get the debt-to-GDP ratio falling over the medium term. The hon. Member for Argyll and Bute (Brendan O’Hara) has less than three weeks to wait, if he can contain himself, before the medium-term fiscal plan is set out in full.
Ellie Reeves (Lewisham West and Penge) (Lab)
A local teacher and her partner wrote to me last week. Once their fixed-rate mortgage comes to an end, their mortgage will rise by £9,000 a year; that is an extra £750 a month. They are terrified and cannot sleep because they do not have that sort of money spare. I have listened to the Minister’s answers, but given that the IMF’s Tobias Adrian said yesterday that the announcements on 23 September triggered rising interest rates, will the Minister finally accept that the Conservative Government’s mini-Budget has caused this chaos for our constituents?
Chris Philp
We have every sympathy with people who are struggling. That is why we have the energy price guarantee. It is why we have had the £37 billion intervention. It is why we are cutting taxes, particularly for people on lower incomes. It is why the minimum wage increased by so much a few months ago. It is why we have increased the national insurance threshold to help people.
On interest rates, I have explained more than once this afternoon that there is a global cycle that has been going on for about nine months. So far in this calendar year, interest rates in the United States, a comparable economy, have increased one and a half times as much as in the UK: by 300 basis points, compared with 200 basis points. It is very important that the House keeps that context in mind.