Economy Update

Debate between Gareth Davies and Steve Barclay

Wednesday 16th June 2021 Commons Chamber

[Steve Barclay]

The hon. Gentleman raises a perfectly legitimate point about how acutely that sector in particular has been affected, as I think everyone in government recognises, but I do not think it fair to say that the Government have not announced any measures that reflect those challenges. Indeed, on commercial rent, he will have heard in my statement today’s specific announcement that applies to the sector. There are also other things, such as the furlough going long, the restart grant and a number of things within the comprehensive package, that are obviously of benefit to nightclubs.

[Gareth Davies (Grantham and Stamford) (Con)]

This morning’s ONS inflation report highlights the risk we face of rising rates, given the amount of debt that we have incurred during the pandemic. Does my right hon. Friend agree that it is important we focus on sustainable public finances, and that one way we can help is by mobilising more private capital investment?

[Steve Barclay]

I absolutely agree, and I think that the importance of securing private investment is a very good note on which to end. My hon. Friend will know that in May, on the consumer prices index, inflation rose to 2.1% and the Monetary Policy Committee judged:

“Inflation expectations remained well anchored.”

However, with debt at nearly 100% of GDP, we need to pay close attention. To finish on a more sobering note, perhaps, a sustained increase in inflation by one percentage point would increase debt interest spending by £6.9 billion in ’25-26, so my hon. Friend raises—as did the hon. Member for Leeds West (Rachel Reeves)—an important point that the House needs to keep under review.

Oral Answers to Questions

Debate between Gareth Davies and Steve Barclay

Monday 18th May 2020 Commons Chamber

[Gareth Davies (Grantham and Stamford) (Con)]

What fiscal steps he is taking to improve local transport infrastructure.

[The Chief Secretary to the Treasury (Steve Barclay) [V]]

My hon. Friend the Member for Keighley (Robbie Moore) has, I know, been working hard to highlight the important pedestrian crossing issues in his constituency, and I am committed to working with him on that. He can benefit from the significant funding for cycling and walking included in the £2 billion announced recently.

[Steve Barclay]

I am happy to continue to liaise with my hon. Friend on this important issue. He will know that, in addition to the £2 billion for walking and cycling, we also announced at the Budget £4.2 billion for long-term local transport. His authority, West Yorkshire Combined Authority, will be able to benefit from that.

[Gareth Davies]

I thank the Treasury team for their leadership throughout this crisis. As they look at ways to stimulate our economy, will they consider issuing a UK green gilt as a specific way to fund local transport infrastructure and to affirm this Government’s commitment to climate change?

[Steve Barclay]

My hon. Friend raises an important point. Although at present we have no plans to do as he suggests, he will be well aware, from the green finance strategy, that the Government remain open to the introduction of new debt instruments, and I am happy to continue to discuss the issue with him.