Oral Answers to Questions

Emma Reynolds Excerpts

Tuesday 8th April 2025 Commons Chamber

[Emma Foody (Cramlington and Killingworth) (Lab/Co-op)]

5. What steps she is taking to increase economic growth in the north-east.

[The Economic Secretary to the Treasury (Emma Reynolds)]

Securing economic growth across the country is the Government’s No. 1 mission. We are working in partnership with the Mayor of the North East, providing the North East combined authority with an integrated funding settlement from ’26-27, and working with it on its local growth plan.

[Emma Foody]

The combined authority has identified a key growth corridor sweeping across my constituency, but a historical lack of investment to upgrade the Moor Farm and Seaton Burn roundabouts causes relentless disruption and holds back growth, investment and opportunity. There is a business plan in the north-east growth plan and in the road investment strategy. Does the Minister agree that that is exactly the sort of scheme that this Labour Government should support to boost economic growth in every region?

[Emma Reynolds]

The Government are committed to improving roads. We agreed a £4.8 billion settlement for National Highways and funded a £500 million uplift for local roads in this financial year. Funding for the RIS3 programme, which my hon. Friend mentioned, will be considered in phase 2 of the spending review, and I encourage her to continue to engage with the Minister for roads on this issue.

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[John Lamont]

This Government decided to cancel the A1 upgrade, which will harm the economy not just in the north-east of England, but in the south of Scotland. What economic impact assessment did the Government make before deciding to cancel that vital road link?

[Emma Reynolds]

Nice try. In terms of north-east growth, I have already said that we are working very closely with the Mayor of the North East combined authority. I suggest that the hon. Gentleman asks questions about roads relevant to his part of the country at Transport questions.

[Mr Speaker]

I now call the Minister to answer Alistair Carmichael’s question on the potential impact of changes to agricultural property relief and business property relief on farmers, which was omitted in error from earlier versions of the Order Paper.

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[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.

[The Economic Secretary to the Treasury (Emma Reynolds)]

We have heard from UK businesses that our regulatory system often holds back growth and investment. We recently published a regulation action plan, and committed to cutting the administrative costs of regulation for businesses by 25% by the end of this Parliament. We are going further, faster than ever before to streamline regulation and make Britain the best place in the world to do business.

[Callum Anderson]

The Minister will know that both domestic and international investors are often influenced by decisions taken by multiple agencies, regulators, and indeed Government Departments, which is why consistency is key. Can the Minister update the House on how the Treasury is supporting a whole-of-Government and whole-of-regulator approach to delivering coherent UK regulatory frameworks that strike a balance between protecting consumers and boosting the global competitiveness of the UK economy?

[Emma Reynolds]

This is a whole-of-Government approach, and we have secured 60 commitments from key regulators to improving the business environment. The Government are streamlining regulation and stripping back its duplication, to ultimately deliver a regulatory system that encourages new investment, innovation and growth.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

Inward investment projects in Scotland grew by 12.7% in 2023, compared with 6% across the rest of the United Kingdom. 2023 saw record investment in Scotland, which maintained its position as the top-performing area of the UK for the ninth year running. International businesses want to locate in Scotland because they understand that GDP per person in Scotland has grown by 10.5%, compared with 6.5% in the rest of the UK, since 2007. What impact does the Chancellor think her fiscal interventions since October will have on the attractiveness of Scotland as a destination, and what discussions has she had with the Scottish Government about the jeopardy that she has placed our economy in?

[Emma Reynolds]

The Chancellor delivered the biggest ever settlement for Scotland in October 2024, and I think the answer is “thank you”.

[Mr Speaker]

I call the shadow Minister.

[Mark Garnier (Wyre Forest) (Con)]

There is a great deal of speculation about the future of the cash individual savings account. As we know, it is an important savings mechanism for many savers across the country, all of whom will be dismayed at the loss of a significant cash savings opportunity. Just as importantly, cutting cash ISAs will deprive building societies of important funds for their balance sheets, reducing the amount of capital available for the residential mortgage market. This point has been raised with me by the mutual societies. Given that the loss of the cash ISA would have a profound effect on mutuals’ ability to raise debt capital, what research have the Government undertaken to establish the extent of the damage that such a measure might inflict on the residential mortgage market, which is not just important for all our constituents, but crucial for the 1.5 million new homes that the Government propose building?

[Emma Reynolds]

I work closely with the mutuals and other financial services firms, and I think the hon. Member is slightly jumping the gun, if he does not mind my saying so. We are considering options to reform ISAs, but we need to get the balance right between cash and equities. We know that many people have investments in cash ISAs who could think about investing in our capital markets, which would be a win for them through higher returns, and also for the economy. However, we absolutely understand the role that cash savings play in people having money for a rainy day.

[Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)]

13. What steps she is taking with Cabinet colleagues to support people on the lowest incomes following the spring statement 2025.

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[Lewis Cocking (Broxbourne) (Con)]

16. What steps she is taking to help protect in-person banking.

[The Economic Secretary to the Treasury (Emma Reynolds)]

The Government understand the importance of in-person banking to communities and are working closely with the industry to roll out 350 banking hubs across the UK. More than 220 hubs have already been announced, of which more than 135 are already open.

[Sir Julian Smith]

Rural communities such as Settle in North Yorkshire are really struggling with the loss of face-to-face banking services. Link hubs are one route for them to replace the banks that are closing. I urge Ministers to do what they can with Link—I accept that it is an independent organisation—to help it to relax the criteria for rural communities, allowing them more face-to-face banking services.

[Emma Reynolds]

I would be very happy to meet the right hon. Gentleman if he wanted to discuss a specific banking hub that is being considered. We work very closely with Link. As he will know, his Government passed the Financial Services and Markets Act 2023, under which the Financial Conduct Authority, Link and the financial services sector ultimately have power over the criteria, which is not something we are planning to change.

[Lewis Cocking]

How does the Minister plan to make it easier to establish banking hubs in communities that have lost all of their banks? I did have a meeting set up with the previous Minister, but she left Government before that meeting could take place. Will this Minister agree to meet me so that I can discuss the establishment of a banking hub in the town of Cheshunt in my Broxbourne constituency?

[Emma Reynolds]

I am always happy to meet colleagues and will be happy to meet the hon. Gentleman.

[Clive Efford (Eltham and Chislehurst) (Lab)]

The criteria applied by Link are too strict, and banks are being able to walk away from their customers. In Eltham, we have had a salami-slicing process of banks gradually leaving the high street, but, because we have a building society, we cannot ask for a hub. Will the Minister undertake to review Link’s approach, because it is making it difficult for customers to carry out their banking business?

[Emma Reynolds]

As I said in my previous answer, we do not have any plans to change the Link criteria; those are a matter for Link. However, there are some flexibilities in the way that it applies the criteria, depending on the local population, travel times to nearby bank branches and, indeed, the number of small businesses in an area. I would be happy to meet my hon. Friend if that is of concern to him.

[Douglas McAllister (West Dunbartonshire) (Lab)]

T1. If she will make a statement on her departmental responsibilities.