Public Finances: Borrowing Costs

Gregor Poynton Excerpts

Thursday 9th January 2025 Commons Chamber

[Gregor Poynton (Livingston) (Lab)]

Will the Chief Secretary to the Treasury confirm that the Government’s No. 1 mission is still growth? That is the only way that we can break out of the Tory inheritance of low growth, high borrowing, high taxes and squeezed living standards for people in my constituency in Livingston, and across the UK.

[Darren Jones]

My hon. Friend is absolutely right. His constituents will know from their family finances that they cannot just put the bills on the credit card every month without having a plan for how to pay it off. That is not a sustainable way to manage household finances, and it is the same for the country. One of the reasons why we have such a mess left to us by the Conservative party is that it did just that—borrow money every month to pay for the day-to-day bills, and stack up the promises. That is why in the end there were so many promises and not enough pounds to pay for them. That is not a way to run the economy or family finances. That is why fiscal responsibility is at the heart of the approach taken by the Chancellor and the Government. We will never play fast and loose with the nation’s finances, as the Conservative party did.

Financial Assistance to Ukraine Bill

Gregor Poynton Excerpts

Committee of the whole House
Wednesday 18th December 2024 Commons Chamber

[James MacCleary (Lewes) (LD)]

I thank the hon. Member for Leeds Central and Headingley (Alex Sobel) for outlining some of the things in the new clause we have tabled. I want to outline in some detail what is in new clause 1 and what we hope to achieve with it, and hopefully the Minister will be able to respond and outline some of his thoughts around reporting in particular.

New clause 1 would impose a reporting requirement on the Secretary of State to keep Parliament informed about three critical aspects of our support to Ukraine under the scheme. The reports would detail the monetary support provided to Ukraine, including the amounts disbursed and how that fits into the broader multilateral agreement. That ensures transparency and allows Members and the public to understand the precise scale of our financial commitment. The reports would also provide clarity regarding our share of the principal loan amount and any interest accrued. Such information is vital for proper scrutiny and public trust, ensuring that funds allocated are achieving their intended purpose.

Finally, and most importantly, the reports would shed light on any extraordinary profits arising from immobilised Russian sovereign assets under the scheme. While we cannot legislate here to seize those assets directly, the provision ensures that the question does not simply fade away. By requiring regular reports, we maintain focus on the issue and keep pressure on the Government to engage with our G7 partners. If, at some future point, there is an opportunity to use Russian state assets more directly for Ukraine’s recovery, Parliament will be fully informed and ready to act.

The reports must highlight any discussions the UK Government have had with other G7 countries about future steps, including expanding the range of assets considered or using them in new ways. That ensures ongoing diplomatic transparency and accountability. Parliament will know if the Government are pushing for more ambitious measures internationally or if they are hesitating while others lead. In practice, the first report would appear within six months of the Bill’s passage, with subsequent reports every six months until one year after the relevant international arrangements cease to operate.

The structured timeline guarantees sustained oversight, rather than just a one-off glance. Given the complexity and duration of the challenges Ukraine faces, such ongoing engagement is critical. It sets a framework for continued scrutiny, encourages more ambitious future action and underscores that, despite the Bill’s limited scope, our resolve to hold Russia accountable remains unwavering. Through those measures, we would ensure that Parliament remains fully informed and ready to stand by our Ukrainian allies when the opportunity to take bolder steps arises.

[Gregor Poynton (Livingston) (Lab)]

It is a pleasure to speak in support of the Bill. The battle for Ukraine is one of the defining issues of our age. In February 2022, Putin launched an illegal and reckless invasion of a sovereign European democracy. Seeing that happen in the third decade of the 21st century was a sobering moment; we had seen nothing like it on European soil since world war two. It put beyond any doubt the revanchist and irredentist ambitions of the Russian regime, and the need for all freedom-loving democratic peoples to resist those ambitions at all costs.

The Ukrainian people are fighting not just for Ukraine, but for all of us—for the values we hold dear: democracy, human rights, the rule of law, and freedom from global gangsters like Putin. By helping Ukraine to stand strong against Russian aggression, we are sending a clear message to dictators and autocrats around the world that we will not tolerate violations of national sovereignty or the use of force to change borders.

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

Last week I met Ukrainian refugees in my constituency who conveyed not just their gratitude for our country’s steadfast support for their war action against Russia, but their sense of desperation because many of their visas run out early next year. Does my hon. Friend agree that the Government should act quickly to give those people the certainty that they will continue to be welcome in the UK for the foreseeable future?

[Gregor Poynton]

I agree with my hon. Friend about visas. We need to do everything we can to support the Ukrainian people, whether here in the UK or abroad.

Our support for Ukraine is an investment not just in its future but in the security and stability of Europe and the world. Russia’s war against Ukraine has not only devastated the lives of millions, but challenged the very foundations of the international rules-based order. The brutality of Russia’s actions, the targeting of civilians and the displacement of more than 8 million Ukrainians are stark reminders of the atrocities that war brings to ordinary people. This is a tragedy for the Russian people, too. Many tens of thousands of Russian troops have been needlessly killed in Ukraine—victims of the vainglorious and deranged ambitions of their leader. Our quarrel is not with ordinary Russians; it is with the regime that oppresses and lies to them.

Ukraine, meanwhile, has shown resilience, courage and an unwavering determination to protect its land, its people and its freedom. President Zelensky and the Ukrainian people have stood firm in the face of adversity. As I have said before, they are fighting not just for Ukraine, but for all of us. Let us make no mistake: if we do not send the weapons and financial support that the Ukrainians need to fight this war, we will one day have to send our sons and daughters to confront Putin and his regime.

I am proud to say that our unwavering support for Ukraine unites Members on both sides of the House, and it has united our country, too. I am very proud to walk around my Livingston constituency and see Ukrainian flags in windows and gardens as a sign of our solidarity. From providing military aid to offering humanitarian assistance, and from imposing sanctions on Russia to offering refuge to those fleeing war, we have acted with purpose and resolve, and many British people, including individuals in this House, have opened their doors to Ukrainian refugees.

The UK has provided £450 million in humanitarian assistance since the start of this full-scale invasion, including £20 million to double this year’s support for Ukraine’s energy system, and £40 million for stabilisation and early recovery, which the Foreign Secretary announced in Kyiv in September. The Labour Government have stepped up for Ukraine. The UK will deliver £3 billion of military aid to Ukraine every year for as long as it is needed—their fight is our fight. The UK’s military, financial, diplomatic and political support for Ukraine is ironclad. The Bill provides the Government with the spending authority to enable the UK to provide the Ukrainians with financial assistance, as part of the G7 extraordinary revenue acceleration loans to Ukraine scheme, which is an important part of this effort. It represents an advance of approximately $50 billion, repaid from the extraordinary profits made on immobilised Russian sovereign assets held in the UK.

We must continue to stand with Ukraine, confront Russian aggression, and pursue Putin for his war crimes. Our response must be one of strength, resilience and unity for as long as it takes.

[Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)]

At a time of existential threat to Ukraine, I have been heartened by the tone from across the House towards the Ukrainian people. It is critical at this moment in history that this House and all European Governments step up and do not give up. While I welcome the details of this short Bill, we should be focusing on the untapped countermeasure and counter-offensive that is at our disposal. Like a number of colleagues, I gently say to the Minister that we should think about the use of frozen Russian assets to support Ukraine in its non-violent economic and political reconstruction. The UN General Assembly has already endorsed an international mechanism for compensating Ukraine, but we cannot wait for the war to be over before we enact that countermeasure. Back in 2022, Ukraine lost 29% of its GDP, so if it only receives its compensation at the end of the war, that will be far too late.

Financial Services: Mansion House Speech

Gregor Poynton Excerpts

Monday 18th November 2024 Commons Chamber

[Gregor Poynton (Livingston) (Lab)]

Before the election, Labour set out plans to grow the mutual sector in our “Financing Growth” report, which was welcomed across the sector. In fact, my local credit union, the Caledonian Credit Union, welcomed the report—I declare an interest, because I am now a member of that credit union after I visited. I welcome the setting up of the mutuals and co-operative business council. Will the Minister explain how that will drive growth in the sector?

[Tulip Siddiq]

As my hon. Friend knows, the Mansion House speech set out multiple new measures to unlock the full potential of the mutual sector. As he says, we welcome the establishment of an industry mutuals and co-operative business council, alongside our delivery of legislation to support the building societies sector last month. We want to ensure, through those measures, that the sector can grow, and to support inclusive growth across the UK. In the few months that I have held this position, the main complaint in the mutual and co-operative sector seems to be that it is difficult to operate within the current regulatory framework, as it is not set up to support mutuals and co-ops in the way it supports other businesses, so I am looking at that. I am very happy to continue that conversation, but this is about considering the regulatory framework to ensure that it is for fit for purpose in doubling the mutual sector, which was a commitment in our manifesto.

Public Spending: Inheritance

Gregor Poynton Excerpts

Monday 29th July 2024 Commons Chamber

[Rachel Reeves]

There is nothing pro-growth about making unfunded spending commitments. There is nothing pro-growth about a lack of respect for taxpayers’ money. We will continue to provide the winter fuel payment for the poorest pensioners, those in receipt of pension credit.

[Gregor Poynton (Livingston) (Lab)]

I thank the Chancellor for her statement today and for being straight with the public about the state of our finances—I know my constituents want a Government who tell it to them straight. Does she agree that ducking tough decisions and hiding bad news, as the Conservative party has done, just makes a bad situation even worse?

[Rachel Reeves]

The previous Government and the previous Chancellor should hang their heads in shame for the inheritance they have left for this Government to fix, but I will fix this mess: I will put our public finances and our public spending on a firmer footing. That is the responsible thing to do, and that is what I will do.