Oral Answers to Questions

Ellie Reeves Excerpts

Tuesday 7th February 2023 Commons Chamber

[Catherine West]

4. What recent steps he has taken to ensure fairness in the application of the tax system.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

23. What recent steps he has taken to ensure fairness in the application of the tax system.

[The Financial Secretary to the Treasury (Victoria Atkins)]

With permission, Mr Speaker, I should like to answer this question with Question 25; I hope that is correct.

--- Later in debate ---

[Victoria Atkins]

If I may correct the hon. Member, in fact, individuals on, for example, an average salary of £28,000 will pay £900 less income tax and national insurance in 2027-28 compared with the personal allowance and personal thresholds rising in line with inflation since 2010-11. These are concrete measures we have taken to ensure that the spread of tax burdens is borne by those with the broadest shoulders. On her point about non-doms, of course we keep all tax policies under review, but I again emphasise that our economy needs to be open to people around the world who come to the UK to do business. What is more, they pay UK taxes on their UK incomes, which last year was worth £7.9 billion.

[Ellie Reeves]

While UK households face the heaviest tax burden since the 1940s, the Tories refuse to scrap non-dom status or end tax breaks for private equity bosses and private schools. Labour would do that and use the money for more doctors, teachers and nurses. Does the Minister agree that, far from being the party of low taxes, the Conservatives are the party of unfair taxes?

[Victoria Atkins]

Again, I refer the hon. Lady to the autumn statement, in which we attempted to ensure that those with the highest wealth pay their fair share in taxes, including by increasing corporation tax for the most profitable 30% of companies. We have ensured that the small profits rate protects smaller businesses and those that are not the most profitable, so only about 10% will pay the full main rate; that remains the lowest in the G7.

IMF Economic Outlook

Ellie Reeves Excerpts

Tuesday 31st January 2023 Commons Chamber

[James Cartlidge]

I am not sure whether the hon. Lady was here for my maiden speech—I entirely recognise that she may not have been—but I said:

“I am a one nation Conservative,”

because I believe in

“not going back to dark and divisive days of high unemployment.”—[Official Report, 3 June 2015; Vol. 596, c. 636.]

And here we are, with the lowest unemployment in almost 50 years.

On regional earnings specifically, I can confirm that pay has grown faster in every region outside London since 2010. That shows that we are succeeding in our levelling-up agenda.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

The IMF chief economist highlighted rising mortgage costs as a central issue facing the UK economy. I have heard from countless constituents who are fearful of losing their homes when their fixed rates come to an end, and others whose dreams of getting on the property ladder have been snatched away. What guarantees can the Minister provide that interest rates will get back to the levels seen before the disastrous mini-Budget?

[James Cartlidge]

The hon. Lady is an experienced colleague. She is well aware that we have an independent Bank of England, and interest rates are its responsibility. The crucial thing is that we need to work in partnership with the Bank, and we do that by ensuring that fiscal policy does everything possible to support a stable framework in which inflation falls. That is why we have set a target to halve inflation, and if we do that, interest rates will be lower than they would otherwise have been.

Autumn Statement

Ellie Reeves Excerpts

Thursday 17th November 2022 Commons Chamber

[Jeremy Hunt]

My political choices are focused on helping Scottish schools and Scottish hospitals, with £1.5 billion more to support them. I think they need that money, so that is where we have a difference of opinion.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

A constituent who is an A&E doctor told me about an elderly lady who was admitted to hospital from a house that she could not afford to heat. She had a temperature of 26°C and died shortly after. I am pleased that the Chancellor has finally extended the windfall tax, but Labour has been calling for that for months. Does he accept that the delay has had very real consequences for people and that the Government should have taken up Labour’s stance far sooner?

[Jeremy Hunt]

I do not accept that for one second, because these are terrible tragedies on which we have acted very quickly, with support worth £62 billion this year to help families deal with fuel price increases and support next year that will save families £500 off their average bill at today’s prices. We are doing everything we possibly can, because we do not want to be a country where that kind of thing happens.

Economic Update

Ellie Reeves Excerpts

Monday 17th October 2022 Commons Chamber

[Jeremy Hunt]

That issue has been raised by several colleagues from across the House and, as I have said previously, I thank my hon. Friend for raising it and understand how important it is. He will understand that I am not in a position to make any commitments in any area today. We will make our decisions as soon as we can and bring them back to this House, but I hear what he says.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

SE20 Cycles in my constituency is a popular bike shop and the proud home of Penge cycle club, but owner Winnie faces an energy bill of £11,000 before winter has even started. It is only through the support of a local crowdfunder that Winnie is able to keep his doors open. What does the Chancellor have to say to SE20 Cycles and the thousands of other small businesses that face higher energy bills, higher rents, higher prices and, frankly, terrifying uncertainty because of this Government’s incompetence?

[Jeremy Hunt]

We introduced the energy price guarantee precisely because we care about families and also businesses that face unexpected increases in their fuel bills. I will write to the hon. Lady to tell her exactly how we are supporting small businesses in her constituency.

Economic Situation

Ellie Reeves Excerpts

Wednesday 12th October 2022 Commons Chamber

[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.

The Growth Plan

Ellie Reeves Excerpts

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

I would be very happy to engage my right hon. Friend on that. He and I entered the House at the same time, and I know nobody has been more tireless and unstinting in supporting their constituents and focusing on lessening the tax burden.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

We welcome the Chancellor’s target to get back to levels of growth last sustained under a Labour Government, but under the Conservatives the UK is currently forecast to have the slowest growth rate of any advanced economy next year. Can the Chancellor tell us what the OBR’s estimate is of the impact of the measures he has announced today on growth?

[Kwasi Kwarteng]

As I said, the OBR will come up with a full forecast before the end of the calendar year.

Tackling Short-term and Long-term Cost of Living Increases

Ellie Reeves Excerpts

Tuesday 17th May 2022 Commons Chamber

[Ellie Reeves (Lewisham West and Penge) (Lab)]

After 12 years of a Conservative Government, taxes are at their highest level in 70 years and we are seeing the biggest drop in living standards since the 1950s, with food prices increasing, heating bills going up, wages stagnating, and the Bank of England forecasting growth to go negative next year. The Conservatives claim to be the party of economic responsibility, but this is their record in government.

At my local food bank, Bromley Living Well, demand is soaring. In March last year it gave out food for just over 600 people; this March it gave out food for well over 1,000 people. One of those was a young single mother in work who had to visit the food bank because buying a school uniform for her son’s new school left her without any money for food. She was in tears because she never thought she would have to use a food bank, and only wanted to take the bare minimum. One of Living Well’s regular users has started requesting food that does not require cooking because they do not have the money for the fuel to cook food. While rising food and energy prices are hitting us, the Government have decided to hit working people with a tax rise. No other major economy is doing that in the middle of a cost of living crisis.

One of my constituents, a full-time carer for those with learning disabilities, wrote to me about their situation. Their rent, energy bills, council tax and travel come to £1,400 a month, and their take-home pay comes to £1,600, leaving £200 a month for food and clothes for their children—and that was before the national insurance increase. To get by, my constituent has to take 14-hour shifts at the weekends and goes to bed hungry at night. She says that as things stand, she will be left either homeless or in huge debt. It is frankly shameful that the message to her from those on the Government Benches is: work more hours or get a better-paid job.

Those cases are not unique to my constituency. Across the country, millions of people are feeling the crunch from the cost of living crisis. That is why Labour is calling for an emergency Budget. We would use it to scrap the national insurance hike, and bring in a one-off windfall tax on oil and gas producers to cut household energy bills. How can it be right that while my constituents worry about turning the radiators on, the boss of BP has doubled his salary to £4.5 million a year?

The Queen’s Speech was an opportunity for the Government to show that they are in touch with reality and on the side of working families. It was an opportunity to show that they understand the challenges people are facing, but they failed. Tonight, those on the Conservative Benches have an opportunity to show that they understand the very real impact of the cost of living crisis by voting for Labour’s amendment calling for a windfall tax. For the sake of my constituents and theirs, I hope that they are finally listening and will do the right thing.

Financial Statement

Ellie Reeves Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

My hon. Friend makes an excellent point and he is absolutely right: we want people to be able to keep more of their own money. The tax plan announced today represents the biggest net cut to personal taxes in a quarter of a century, proving that we very much are on the side of hard-working British people.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

Many of my constituents are having to choose between putting food on the table or heating their homes. At my local food bank last week, staff told me that they were facing levels of demand that they had never seen before. Meanwhile, the boss of BP’s salary has increased to almost £4.5 million. Surely the Chancellor must see that it is time for a windfall tax on oil and gas, to tackle rising energy bills.

[Rishi Sunak]

I have already addressed this and I urge the hon. Lady to wait for the Prime Minister’s forthcoming energy security strategy, which will ensure that British people have affordable, secure and reliable energy and, most importantly, in the process will support British jobs and British investment.

Downing Street Garden Event

Ellie Reeves Excerpts

Tuesday 11th January 2022 Commons Chamber

[Michael Ellis]

Certainly not. If that were the case, there would be no investigation. The very fact that there is an investigation in progress—the very fact that this matter is in the public domain and is being inquired into—is a clear indication that the same rules apply to everyone.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

When one of my constituents gave birth to her first child in May 2020, her husband could be there only for the final stages of labour, and had to leave two hours after the birth of his son. Mum and baby had to stay in hospital owing to complications, and they were not allowed any visitors. She was lonely and isolated, and her baby was struggling to feed. Her husband did not see the baby again until he was four days old.

My hon. Friend the Member for Ogmore (Chris Elmore) has asked the Minister if he will apologise to the parents of lockdown babies who did the right thing, at great personal cost, while No. 10 partied. Will the Minister now give that apology?

[Michael Ellis]

I cannot prejudge the investigation, but of course it is a source of considerable personal regret that anyone should suffer that imposition, inconvenience and distress, of which many examples have been given in the House. Of course that is a matter of personal regret. It is not appropriate to prejudge the investigation that is in progress. However, if the hon. Lady is asking me to express my regret about the tragedy that has befallen all those families who have suffered loss, and what have been grotesque invasions of their family life, I do so, unreservedly.

Working People’s Finances: Government Policy

Ellie Reeves Excerpts

Tuesday 21st September 2021 Commons Chamber

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

I beg to move,

That this House is concerned about the negative impact of Government policy on the finances of working people, with a growing squeeze on living standards caused by the £1,040 per year reduction to universal credit, the rise in National Insurance Contributions for low and middle income workers, increases in council tax, the freezing of the personal income tax allowance from April 2022, the increasing cost of household energy bills, the highest petrol prices since 2013 and the potential for the largest rail fare increase in a decade, the fastest rise in private rental prices since 2008, successive above inflation increases in childcare costs, and rising prices resulting from the supply chain disruption caused by worker and supply shortages; and calls on the Government to change the direction of its policies on these issues because they have created an avoidable and unacceptable burden on working people.

Before I begin in earnest, I welcome the Chief Secretary to the Treasury, the right hon. Member for Middlesbrough South and East Cleveland (Mr Clarke), to his new role and congratulate him on his appointment.

In our country today, working families face a sudden squeeze on living standards on a scale not seen for a generation: incomes are coming down; prices are going up, especially energy prices; taxes are going up; rents are going up; childcare costs are going up; fuel costs are going up; rail fares are going up. And with empty shelves in too many shops, restaurants closing because of meat shortages and now refrigerant shortages putting Christmas at risk, it is not just that people can afford less; there is also less to afford.

The people of Britain face an extraordinary squeeze on their living standards this winter—not simply by chance, but because of the choices made by Conservative Governments this year, last year and in the 10 years before. It is not some tragic, unforeseeable series of unhappy accidents that brought us here today. It is a string of choices that this Government have made, sometimes in the face of evidence, sometimes against advice, sometimes through a dogmatic refusal to try, and sometimes simply through a lazy and complacent failure to take the hard decisions that government involves. Time and again, through the pandemic and the long years before it, the Government have left issues to fester rather than taking action to address them, and then rushed at the last moment, only to find that it is too late and the damage is done.

I said at the beginning that incomes are going down, prices are going up, taxes are up, rents are up, childcare costs are up, fuel costs are up and rail fares are up. Let me take each one in turn.

Ten months ago, the Chancellor set out his policy of a public sector pay freeze. Like so much of his policy making, it was a triumph of short-term accountancy over rational economics. Public sector workers—council staff cleaning our parks in lockdown, police officers on the frontline, teaching assistants doing everything they can to give our children the best possible start in life—are not somehow separate from the rest of the economy. They buy food from the same shops as their neighbours working for private firms. Their children go to the same schools as private sector workers. They shop on the same high streets. They visit the same pubs and cafés. Taking money from their pockets while the recovery is so fragile—and it is so fragile—is taking money from our shops, our high streets, our economy. It is pulling demand out of our economy at the worst possible moment.

But the Government have not been content with clobbering those who did so much to keep our country running during the pandemic. In just a few weeks’ time, they are putting their hands in pockets once again: the pockets of the millions of families in our country—40% of them in working households, doing everything the Government have asked of them—for whom universal credit is what keeps them out of poverty. Again, let us be clear: many of the people being clobbered by this hit are the heroes whose bravery in the face of a then little understood disease kept this country running through lockdown after lockdown.

The Government are taking £20 each week from every family who receive universal credit. Government Members may choose to forget what that means. In the years ahead, their voters will remember the choices that they made. They will have heard from their own constituents, as I have heard, the growing worry and anger of the people they represent—the genuine sense of surprise that any Government could do this, mixed with a lasting fury that the Government really are doing this. Twenty pounds each week is not simply a number. It is school shoes, a gas bill, dinner on the table, and decent meals for the children.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

Thirty-seven per cent. of children in Lewisham are growing up in poverty. That is the stark reality of the cost of living crisis. Rather than addressing the issue, the Government are cutting those people’s universal credit and putting up their taxes. Does my hon. Friend agree that this is not the way to treat hard-working families and their children? Should not the Government keep the £20 uplift, cancel the cut and think again about the tax rises?

[Bridget Phillipson]

My hon. Friend is absolutely right. It is frankly indefensible. We knew that poverty was already beginning to rise before the pandemic even hit, and we know the impact that the cut to universal credit will have on family and household budgets, and on child poverty.

It is bad enough to be taking money out of people’s pockets as the recovery falters, but as price after price goes up for working people, this is unforgivable—because prices are up, and they are up sharply. Madam Deputy Speaker,

“August saw the largest rise in annual inflation month on month since the series was introduced almost a quarter of a century ago.”

Those are not my words, but the words of the Office for National Statistics. Alongside the most recent GDP figures, that is a powerful signal of how fragile our recovery remains.

Rising food prices have been driving upward pressure on the inflation rate, but this week, of course, it is energy prices that are the focus of our attention. That rise is taking money out of household budgets directly, but it will also be taking money out indirectly. Higher prices for energy mean higher prices for industry, and that means higher prices for goods. Already factories are being shuttered by higher prices and already that is driving further problems, such as knocking out the carbon dioxide supplies that keep meat fresh along our supply chains.

Ministers are always keen to blame other people, the weather or bad luck, and to claim that all of Europe has the same problems. That is not good enough and the public know it. To assert that other Governments have faults is not to excuse our own. What we are seeing and what we have seen over the last decade is a chronic failure to take responsibility, and it is hard-working families and struggling businesses who will pay the price.