Oral Answers to Questions

James Murray Excerpts

Tuesday 29th October 2024 Commons Chamber

[Mr Will Forster (Woking) (LD)]

7. What fiscal steps she is taking with Cabinet colleagues to help support households with energy bills.

[The Exchequer Secretary to the Treasury (James Murray)]

Household energy bills have fallen by 30% since their peak, and are now around £800 lower for a typical household. This Government are committed to improving the quality and sustainability of our housing stock through our warm home plan, further details of which will be set out through the spending review. That will be vital in making sure that the UK is more energy-resilient, in lowering household bills and in meeting our 2050 net zero commitment.

[Mr Forster]

Given that many constituents of mine in Woking and across the country live in fuel poverty and are fearful of losing their winter fuel allowance, does the Minister or the Chancellor agree that targeted support for low-income families and households should be included in tomorrow’s Budget or in the warm home plan, so that no one has to decide between eating and heating this winter?

[James Murray]

The hon. Gentleman can see our commitment to supporting vulnerable households with the cost of energy and food in our extension of the household support fund, at a cost of half a billion pounds, from the end of September to the end of March. That will allow local authorities to help low-income families with the cost of essentials, such as food and energy.

[Dr Jeevun Sandher (Loughborough) (Lab)]

This nation experienced the highest rise in energy bills of all G7 countries after Putin invaded Ukraine, because the Conservatives left us dependent on natural gas and with the worst-insulated homes in western Europe. Can the Minister assure me that we will invest in the clean energy and home insulation that we need to lower energy bills for good?

[James Murray]

My hon. Friend is absolutely right to say that while it is essential that we tackle high energy bills now, it is also essential that we invest for the future to bring energy bills down for good. Critical to that is investing in our housing stock, as I have mentioned, but also, through GB Energy, in sustainable energy sources to make sure we improve our energy security and bring bills down for families across the country.

[John Grady (Glasgow East) (Lab)]

8. What steps she is taking to help ensure sustainable public finances.

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[Mr James Frith (Bury North) (Lab)]

16. What steps she is taking to minimise taxes on working people.

[The Exchequer Secretary to the Treasury (James Murray)]

As hon. Members know, any changes to tax policy will be set out in tomorrow’s Budget. Members will also know that our approach to fixing the foundations of the economy will be one that protects working people. This Labour Government will honour our commitment to protect working people by not increasing national insurance, basic, higher or additional rates of income tax, or VAT.

[Blake Stephenson]

The Government have got into an absolute pickle over the definition of working people. People deserve certainty. In Mid Bedfordshire, we are proud of the hard work of the owners of nearly 5,000 small businesses. They are working people creating jobs and growing our economy, and all while providing for their families. They are lying awake at night worrying about yet higher taxes. Will the Chancellor give them a peaceful night’s sleep ahead of tomorrow’s Budget and confirm that she will honour her manifesto commitment not to raise taxes on them?

[James Murray]

I do not think I am pre-empting anything tomorrow by confirming that the Chancellor will absolutely stick to our commitment not to raise taxes on working people through national insurance, the basic, higher or additional rates of income tax, or VAT. And I might add that what people and businesses in the hon. Gentleman’s constituency might want is stability in the economy, a Government who support investment in the economy, and a Government who will get the economy growing and make people across Britain better off.

[Mr Frith]

In Bury North, child poverty rates are at 43%, densely populated in three of our nine wards: Bury East, Redvales and Moorside. Does the Minister agree with me that minimising tax rises for working people is just the starting point, and that tackling the crippling level of impoverishment for those in work requires a laser focus and intervention from this mission-driven Government?

[James Murray]

My hon. Friend is absolutely right that, while keeping taxes on working people as low as possible is crucial, the way to make people better off in the long run is through boosting public and private investment, and delivering sustained economic growth. That is the focus of this Labour Government, and that will guide the choices we make.

[Mr Speaker]

I call the shadow Minister.

[Laura Trott (Sevenoaks) (Con)]

During the election campaign, I held a press conference at which I outlined the glaring funding gaps in Labour’s plans and the taxes they might raise to pay for them. One of those taxes was employer national insurance contributions. The right hon. Member for Bristol North West (Darren Jones)—now Chief Secretary to the Treasury—responded at the time by arguing that this was a list of things that “Labour isn’t doing.” Is it correct that raising employer national insurance contributions is something Labour isn’t doing?

[James Murray]

The right hon. Member will have to wait for the Budget tomorrow. She was a Minister not that long ago, so she might still remember that the Budget is the time when such announcements are made. Let me restate our commitment, so it is crystal clear, that we will protect working people by not increasing national insurance, income tax or VAT. Might I add, very briefly, that I note the Conservatives suddenly have a new-found interest in the livelihoods of working people? It is a shame, frankly, that they never prioritised that during their 14 years in office, during which, time and again, they made working people pay for their mistakes.

[Anna Dixon (Shipley) (Lab)]

17. What steps she is taking to help ensure value for money in public spending.

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[Adam Jogee (Newcastle-under-Lyme) (Lab)]

T2. My constituency’s beer and pub sector makes a significant contribution to the economy, both locally and nationally. Our 76 pubs and two breweries generate £23 million in tax receipts each year. Will the Chancellor work with the sector to unlock its growth potential, in Newcastle-under-Lyme and across our country?

[The Exchequer Secretary to the Treasury (James Murray)]

I know that Newcastle-under-Lyme and, indeed, the whole county of Staffordshire have a proud brewing tradition, and my hon. Friend will be an excellent champion of breweries in his constituency. Supporting pubs and breweries is very important for me as a Minister. Indeed, on my first day in the Treasury’s Darlington economic campus, I visited Durham brewery—it was a work visit—where I heard from the Society of Independent Brewers and associates about the huge contribution that breweries make to British society. Further details will be set out by the Chancellor tomorrow.

[Mr Tom Morrison (Cheadle) (LD)]

T4.   The Chancellor recently announced an extra £550 million for the school rebuilding programme. Can she now confirm that all the schools on that programme, including Bramhall high school, are fully funded and will get their repairs soon?

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[James Murray]

I thank my hon. Friend for his question. He is absolutely right to say that pubs make an enormous contribution to our society and economy. The current alcohol duty system supports pubs through draught relief, which ensures that eligible products served on draught are charged less duty. The Government are committed to delivering a fairer business rates system for high streets, including hospitality. Any decisions on future tax policy will be announced by the Chancellor at a fiscal event, the next of which is tomorrow.

[Mr Richard Holden (Basildon and Billericay) (Con)]

Eighty-two per cent of those who have seen Labour take away their winter fuel payment are either below the poverty line or within £55 a week of it. How can the Government justify this, when they are not even allowing a freedom of information request from the Financial Times to be responded to? They are hiding the figures from the people.

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[Mr Speaker]

Order—[Interruption.] No, these are topical questions and I decide.

[James Murray]

My hon. Friend will have to wait for the Budget tomorrow, but he will know that we have committed to closing some loopholes, including VAT on private schools, the non-dom loophole and cracking down on tax avoidance.

[Caroline Voaden (South Devon) (LD)]

In South Devon, the average house price is now 14 times the average salary, at £425,000. What measures is the Chancellor taking to ensure that rural and coastal areas, such as the South Hams, which face huge digital and transport connectivity problems, will be included in measures to boost economic growth?