Oral Answers to Questions

Imran Hussain Excerpts

Tuesday 11th September 2018 Commons Chamber

[Imran Hussain (Bradford East) (Lab)]

12. What assessment he has made of recent trends in the level of wage growth and inflation.

[Paul Blomfield (Sheffield Central) (Lab)]

13. What assessment he has made of recent trends in the level of wage growth and inflation.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

Today’s data show regular wages growing at the fastest rate for three years. The Office for Budget Responsibility forecast that wages will continue to grow, reaching 3.5% by 2021, while consumer prices index inflation will continue to fall, reaching the target of 2% by the end of this year. That is welcome news for everybody. Nevertheless, the Government recognise the pressure on household budgets, which is why we introduced the national living wage, delivering a 7% pay rise in real terms for the lowest, paid from April 2015 to April 2017. It is why we raised income tax thresholds, saving the average taxpayer more than £1,000 this year and, at the last Budget, froze fuel and alcohol duties for a further year.

[Imran Hussain]

Under the current business rates system, city centre-based businesses are paying more in rates than large out-of-town-based warehouses, severely restricting the amount that they can put towards wages and hampering wage growth for employees. Will the Chancellor today commit to reforming this outdated business rates system so that businesses are able to pay their staff higher wages while boosting our high street economy?

[Mr Hammond]

I have already acknowledged the pressure that the high street is under, and it is certainly something that the Government are extremely concerned about. I do not think that we can hold back the tide of changing consumer behaviour, but it is certainly right that we seek to facilitate high streets as they evolve. I remember, when I came into this House 21 years ago, that there was a similar angst among our electorates about the growth of out-of-town supermarkets and the impact that that was having on high streets. High streets evolved and survived and, in many cases, prospered. Now they are facing another challenge and we must help them again to rise and meet it.