Oral Answers to Questions

Emma Reynolds Excerpts

Tuesday 8th September 2026 Commons Chamber

[Perran Moon (Camborne and Redruth) (Lab)]

16. What assessment he has made of the potential impact of changes to regional funding arrangements on the economies of local communities.

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

The Government will support good growth in every postcode, including in Cornwall and Gloucester. We have already established No. 10 North to work in partnership with local leaders, businesses and communities, and at the Budget next month we will publish plans for further fiscal devolution, including greater retention of business rates revenue for local councils and strategic authorities.

[Alex McIntyre]

I thank the Minister for her answer. I fully support the Government’s exciting agenda of devolution, which takes power out of Whitehall and puts it into the hands of residents and communities like mine. However, my constituency of Gloucester does not have a metro mayor, and we are not part of a combined authority. I am determined to ensure that Gloucester is not left behind and is included in these important plans going forward. Can the Minister confirm how we can work together to ensure that Gloucester feels the benefits and investment from the Government’s devolution agenda?

[Emma Reynolds]

My hon. Friend is a great champion for his constituency. The Cabinet statement on devolution set out the Government’s ambitions to accelerate devolution across the country by establishing a strategic authority for every area in England that wants one by the end of 2028. All strategic authorities, including those without a mayor, will benefit from greater powers over skills, transport and housing.

[Perran Moon]

As the furthest southerly Labour MP in the UK, I note several recent announcements of funding going to the north of England and mayoral strategic authorities. I have been very encouraged by the Prime Minister’s comments on Cornish devolution, and there is no requirement for Cornwall to join a mayoral strategic authority, but can the Minister elaborate on how changes to regional funding arrangements will support the Cornish economy?

[Emma Reynolds]

My hon. Friend is a doughty champion for his area. As he said, the Prime Minister has been engaging with Cornwall—including, importantly, with its six MPs, including my hon. Friend—on a devolution agreement. This will support the Cornish economy through stronger statutory powers on transport and housing, and the ability to introduce an overnight visitor levy, which can be invested in projects that drive growth in the region. As he will know, the Government are already investing in Cornwall’s high potential sectors with the £30 million Kernow industrial growth fund.

[John Glen (Salisbury) (Con)]

I welcome the Chief Secretary to her new position, but what words of comfort could she give the residents of Salisbury in Wiltshire, a unitary authority? We are not part of a combined authority and we do not have a metro mayor. Since this Government came in, we have seen the lowest settlement or one of the lowest three settlements on police funding and local government funding, and we have seen the withdrawal of funding for our road network in the south of Wiltshire. There is a concern that, with the focus elsewhere in big urban metropolitan areas, rural England will be forgotten. Is that not likely to be the case?

[Emma Reynolds]

I thank the right hon. Gentleman, in whose footsteps I am again following by taking on another job that he did in government. As a former Environment Secretary, living in a rural area of Buckinghamshire myself and representing a semi-rural seat, I reassure him that this Government of course care about driving growth in rural areas. There is great potential there, which is why we are supporting our farmers through a £2.7 billion a year sustainable farming budget, and we are also improving connectivity in rural areas.

[Andrew George (St Ives) (LD)]

Notwithstanding the Minister’s response to the hon. Member for Camborne and Redruth (Perran Moon), my constituency neighbour, does the Minister not need to reflect on the fact that Cornwall, being the poorest region in the country and therefore entitled to EU objective 1 aid, is now receiving no regional funding whatsoever? That is simply not sustainable for a region that really does need additional support to get growth happening.

[Emma Reynolds]

I thank the hon. Gentleman for his question, but I disagree with his assessment. As I said to my hon. Friend the Member for Gloucester (Alex McIntyre), there are opportunities for areas that do not opt to have a mayor, but set up as foundation strategic authorities to gain the benefit of retaining more business rates and of greater powers over skills, transport and housing.

[Christine Jardine (Edinburgh West) (LD)]

6. What assessment he has made of the potential impact of reducing fuel duty on the cost of living for working families.

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[Sir Jeremy Hunt (Godalming and Ash) (Con)]

7. What steps he is taking to improve public sector productivity.

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

Public sector productivity is improving, with the NHS delivering 3.5% productivity growth in 2025-26, beating its 2% target. The Government will continue to drive public sector efficiency so that taxpayers’ money delivers the best possible public services. In addition, we are investing in AI adoption across the public sector to help realise the overall target of £14 billion of efficiencies by 2028-29, as agreed at the last spending review.

[Sir Jeremy Hunt]

May I welcome the Chief Secretary to the Treasury to her new role? If she has any questions, may I recommend an excellent book by a former Chancellor, which has a number of tips? [Laughter.] The public sector is 20% of our national output, so it offers a major opportunity for the Government to improve our national productivity. Was it wise to give the ASLEF train drivers on the Avanti West Coast route an above-inflation pay rise without any apparent productivity quid pro quo? With the public finances so tight, should the rule not be that above-inflation increases must have productivity gains sitting alongside them?

[Emma Reynolds]

We in the Treasury Front-Bench team are wondering when the third book in the trilogy will come along and what it might be called. We have a guess for the title of the next book. I thank him for his advice in his books and in his recent Financial Times article. On train drivers and their pay, I am proud to be part of a Government who have avoided strikes that impact on public spending.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Public sector productivity is improving, with the latest Office for National Statistics figures showing output continuing to grow faster than inputs, and Departments being challenged to improve efficiency and modernise outdated processes. Can the Minister confirm that the Government expect that will have a positive impact for residents in Feltham and Heston and people across the country, ensuring that Government services are faster, better and easier to access?

[Emma Reynolds]

I could not agree more with my hon. Friend. Driving public sector productivity is extremely important in two ways: first, because we get better value for money for taxpayers for the tax that people are putting in, including taxpayers in our own constituencies; and secondly, as she says, we are driving efficiencies, faster service delivery and using AI in the NHS to really drive improvements in care, as well as delivering more bang for buck.

[Mr Speaker]

I call the shadow Minister.

[Mark Garnier (Wyre Forest) (Con)]

Many commentators have commented about public sector productivity underperformance. EY tells us that the public sector has underperformed to the point where it has cut GDP growth by 3% since 2019. The Institute for Government highlights an average of nearly 1% underperformance every year for that same period. Morgan Stanley reminds us that in the last year private sector productivity was up 1.8%, but public sector underperformance dragged it back into negative territory. Despite that, public sector pay was up over 6% last year, against private sector pay up just 2.8%. Why are the Government rewarding poor performance and does the Chancellor think that is sustainable?

[Emma Reynolds]

I can reassure the hon. Gentleman that we are focused on driving public sector productivity to reach the efficiency targets I talked about. We are holding each Department to account on that. As I said earlier, we are seeing great progress in the NHS, which is making a huge contribution to our productivity gains as a Government.

[Steff Aquarone (North Norfolk) (LD)]

T1. If he will make a statement on his departmental responsibilities.

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[Rosie Duffield (Canterbury) (Ind)]

T7. This week, Professor Susan Ayers launches her report, “The Cost of Birth Trauma”, in Parliament. It is a first, as it goes beyond the more obvious health and social care implications, and follows the 2024 inquiry by the all-party parliamentary group on birth trauma. Lifelong care, litigation and the impact on the workplace come at a high price, as, of course, do many other women’s health scandals, such as the sodium valproate issue. Will the relevant Minister or the Chancellor read Susan Ayers’ report and meet me and the professor to discuss it?

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

I thank the hon. Lady for raising this important issue. I would be very happy to meet her.

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[Clive Jones (Wokingham) (LD)]

T8. Given the chronic underfunding of Wokingham borough council, which is facing difficult choices and placing increasing pressure on local services, what steps will the Government take to ensure that Wokingham receives a fairer settlement and can provide the services that residents deserve?

[Emma Reynolds]

We are improving funding for local government as a result of the spending review, and I would be happy to meet the hon. Gentleman to discuss that further. It is also obviously a question for the Ministry of Housing, Communities and Local Government.

[Amanda Hack (North West Leicestershire) (Lab)]

When CoalWorks in my constituency fundraised for a defib, the charity London Hearts reached out to it. Because it is a charitable organisation, there was no VAT on the purchase, meaning that CoalWorks could afford to buy two. However, when the Kings Arms in Coleorton recently fundraised, it had to pay VAT because it did not go via a charity partner. Will the Minister make an assessment of the potential impact of removing VAT on defibs for community-based purchases?

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[Robin Swann (South Antrim) (UUP)]

The Northern Ireland Executive have been without a budget this year, and in the last six months the Secretary of State for Northern Ireland has been engaging with the Executive parties. What latitude or support has the Chancellor given the Secretary of State for Northern Ireland to enable a budget to be agreed in Northern Ireland, and what steps will the Government take if the Northern Ireland Executive are unable to set a budget?

[Emma Reynolds]

I can reassure the hon. Gentleman that I am working extremely closely with the Secretary of State for Northern Ireland who, as he will know, is in discussions with all the parties in the Northern Ireland Executive. We need to make sure that a budget is set for Northern Ireland so that the Executive can continue to deliver vital local public services.

[Sureena Brackenridge (Wolverhampton North East) (Lab)]

I was pleased to see that the Chancellor was in the west midlands yesterday meeting manufacturing apprentices alongside Mayor Richard Parker. What conversations has he had with the mayor about using new devolution powers to invest in local skills and employment, and what will he do to make sure that young people in Wolverhampton North East get more local opportunities to benefit from?

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[Mrs Sharon Hodgson (Washington and Gateshead South) (Lab)]

What conversations has the Chancellor had with the Department of Health and Social Care on providing compensation to those harmed by valporate and vaginal mesh, as per the Hughes report, which was published over two years ago?

[Emma Reynolds]

I reassure my hon. Friend that I am working extremely closely with the Health Secretary and discussing overall levels of NHS spending—of course, the Department has the biggest budget across the Departments. The NHS is performing well, but I will take back the specifics that she mentioned.

[Lara Bird (Arbroath and Broughty Ferry) (SNP)]

Monifieth in my constituency is home to over 9,000 people and is the central connection point for a vast rural community across Angus. Despite an application in 2023, a banking hub was denied because the regulations are not fit for rural communities. Will the Minister commit to meet me to discuss how those regulations impact rural communities and see if we can finally get Monifieth the banking hub that it needs?