Budget Resolutions and Economic Situation

Debate between Graham Stuart and Seema Malhotra

Wednesday 28th October 2026 Commons Chamber

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

It is a pleasure, I think, to follow the right hon. Member for New Forest West (Sir Desmond Swayne), but may I challenge a couple of his points? He talked about the risk of higher mortgages. I might remind him that there have been six interest rate cuts since 2024, which will have supported his constituents by bringing down their mortgage bills. He also mentioned productivity. I remind him that the upgraded growth forecast from the OBR is due to productivity gains from investment in AI. There is positive news, and I am sorry that he has missed it so far, but he may want to spend a bit more time looking.

I welcome today’s Budget, because in these tough times we need to put in place the foundations to build the base for a competitive future and prosperity for all. I was surprised by the rather extraordinary response from the Leader of the Opposition, who almost denied the impact of the Liz Truss mini-Budget. Perhaps it may be worth reminding the House that the unfunded £45 billion of tax cuts led to bond prices plunging, sterling falling and the Bank of England having to intervene to prevent a financial stability crisis. It is important that we recognise what happened. That, alongside the fact that the welfare bill rose by £33 billion in the years to 2024, might help bring some honesty to the debate.

Let me speak about today’s Budget from the point of view of three key tests, because it needs to be a Budget for stability, growth and easing the cost of living. The Budget comes amidst unprecedented economic shocks, with conflict in the middle east and Europe, which has disrupted international energy and commodity supplies. The Bank of England identified the energy shock from the middle east as a major source of uncertainty in July 2026, so I welcome the Budget and, in particular, the Chancellor’s determination to combine fiscal discipline with a relentless focus on growth and tackling the cost of living.

Fiscal discipline matters. It is not simply about an accounting exercise at the Treasury; it is about credibility and national economic security. Indeed, the bond markets matter. In 2022 we saw what happens when investors lose confidence in the sustainability of public finances. However, fiscal discipline and growth are not competing objectives. Ultimately, having sustained economic growth, higher productivity, higher investment and more people in good employment is the surest foundation for sustainable public finances.

I am pleased that the UK economy has shown resilience, for which I pay tribute to my right hon. Friend the Chancellor and to the stewardship of the former Chancellor, my right hon. Friend the Member for Leeds West and Pudsey (Rachel Reeves). It is important not to talk Britain down, because we were the joint fastest-growing economy in the G7 in the first half of this year, alongside the US. Borrowing last year fell to the lowest level for six years, the IMF has upgraded our growth to 1.3% for this year, and the IMF’s chief economist has said that we “stand out” on deficit reduction. I know that the Opposition may be disappointed by the OBR’s revision of the forecast.

I welcome the Government’s commitment as a priority to get energy costs down not just today, but for the future. I would welcome more clarity from the Government on whether they are reconsidering the expansion of the British industrialisation competitiveness scheme, which I believe may be coming forward in the 10-year plan. However, with global headwinds from the conflict in the middle east impacting us here and economies throughout the world, it is vital that we have our own plan for growth and for tackling the cost of living.

On growth, I will briefly speak about fiscal devolution and entrepreneurship. Business and industry must be at the heart of our plans for growth. It is important that we have a plan for building the principles of stability, partnership and innovation, with unleashing potential in every corner of the economy in the UK at the heart of our plans. That is why I was pleased to welcome the fiscal devolution road map, which is bold, ambitious and game changing. It recognises that we need to deal with the challenges of today and address the structural challenges to achieve higher growth tomorrow.

For too long Britain has been one of the most centralised major economies in the developed world, with only 5% to 6% of total tax revenue raised locally, while the OECD average is closer to 11%. However, fiscal devolution means more than devolving spending decisions; it is about enabling greater responsibility and stronger incentives to expand local economies and tax bases.

[Graham Stuart]

We have had devolution since the Blair Government, and Wales has become one of the poorest parts of the whole of Europe, although it has had serious and real fiscal devolution. If it has been so spectacularly painful for the residents of Wales to have such devolution, why does the hon. Lady think it will be so marvellous for people in other parts of the United Kingdom?

[Seema Malhotra]

I think there is an important debate to be had about how we make sure that fiscal devolution is successful and what the enabling factors are, but it has been successful elsewhere. As the right hon. Member will recognise, I was pleased as a London MP to see today’s commitments to establish a successor to the Elizabeth line business rate supplement and to support transport infrastructure in the future through some of the new mechanisms. It is important that we look at how fiscal devolution can accelerate projects that will unlock homes, create jobs and generate economic growth not just in the capital, but across the UK.

As we devolve—and I am putting this to the Treasury team—it will be important to confront another economic challenge, which is co-ordination. Economies do not stop at administrative boundaries; there are cross-regional economic spillovers. If we do not design institutions to take account of them, ensure appropriate accountability and evaluation, and help successful innovations in one region spread to others, what appears optimal for each region individually may not be optimal for Britain collectively. I look to the Treasury team to update the House on what can be learned from elsewhere about having co-ordination as well as devolution.

I was extremely pleased to see the measures supporting young entrepreneurs and also women entrepreneurs. I championed that in my previous work as chair of the APPG for entrepreneurship. Entrepreneurship is oddly absent from debates about youth unemployment. We celebrate success when people have an initial public offering or attract a big investment, but we do not talk about the preceding journey or the inequality that often characterises it. So I am looking forward to the Government’s measures having an impact in encouraging entrepreneurship among young people across the country.

Let me say a few words on opportunity and the cost of living. I believe that the Your First Home scheme will make a huge difference not just to my constituents in Feltham and Heston, but also across the country. It is vital to have measures such as the 20% equity loan scheme to help first-time buyers, with a minimum deposit requirement of just 2.5%, to ensure the scheme is accessible to those who have a regular income, but have been unable to save for a large deposit. The council tax rebate, removing VAT from domestic electricity bills and the reforms to standing charges, alongside the first rail fare freeze in 30 years that was announced earlier this year and the freeze in prescription charges, are all important measures.

In conclusion, this is a Budget for stability and growth, and one that eases the cost of living. It is designed to raise Britain’s productivity and investment, and to spread opportunity to every part of our country by investing to save and investing to grow. Taken together, fiscal credibility, empowered regions, effective co-ordination and investment in human potential will lead to better growth that is productive, inclusive and sustainable. This is the time and the challenge that we as a nation must rise to.

British Indian Ocean Territory

Debate between Graham Stuart and Seema Malhotra

Wednesday 28th January 2026 Commons Chamber

[Seema Malhotra]

I thank the shadow Defence Secretary for his intervention. It is a long-standing policy, as he will know this from having been in government, that we do not comment on operational matters or the location of nuclear weapons.

The Opposition know—[Interruption.] Perhaps I may make some comments on the Pelindaba treaty—

[Graham Stuart]

On a point of order, Mr Speaker. The Minister said that she would address the issue of whether nuclear weapons could go to Diego Garcia, and now she says that she cannot comment. Is that—

Prepayment Meters: Ofgem Decision

Debate between Graham Stuart and Seema Malhotra

Monday 6th February 2023 Commons Chamber

[Graham Stuart]

I thank my learned hon. Friend for his typically erudite question, and I agree with him. That is why, two weeks ago, we said that we would work with the Ministry of Justice to look into this and ensure that the processes were suitably robust. It is clear—not only, potentially, from court proceedings but from evidence given to the regulator—that some suppliers did not provide evidence on which we could rely.

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

The Minister will know that prepayment customers, many of whom are the least well off in society, are charged a higher rate for their energy; that has been mentioned by Members on both sides of the House. Does he recognise the injustice of thousands more families being forced on to prepayment meters, on his watch, and on to higher rates at a time when so many are facing severe cost of living pressures? Does he not accept that it is time for him to step up and act further and faster, because this country needs that?

[Graham Stuart]

As I have said, that situation has obtained since the Labour Government introduced the current regime, and it is that cost-reflective principle which leads to prepayment meter customers being charged more. That was the position when the right hon. Member for Doncaster North was Secretary of State, and it still exists today. However, I agree with the hon. Lady, which is why, within the existing system, I have asked Ofgem to seek to ensure that not a penny extra goes beyond what is necessary to reflect cost. We are undertaking to look again at the whole system to ensure that it is fair to all, and most of all to the most vulnerable.