Oral Answers to Questions

James Murray Excerpts

Tuesday 9th December 2025 Commons Chamber

[Euan Stainbank (Falkirk) (Lab)]

9. What fiscal steps she is taking to support industry in the Forth valley.

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

As my hon. Friend will know, last year the Government signed a £100 million Falkirk and Grangemouth growth deal with the Scottish Government. At the Budget this year, we further recognised Grangemouth’s centuries of history as a key UK industrial site by announcing additional investment of up to £14.5 million to support industrial projects that can create jobs. Alongside that, the National Wealth Fund is ready to invest £200 million alongside the private sector to help unlock Grangemouth’s full potential and secure our clean energy future.

[Euan Stainbank]

I welcome the additional £14 million-plus to get new industry delivered quickly in Grangemouth and the £25 million to finalise the freeport in the Budget two weeks ago. Forth Valley college is vital to giving local working-class kids the skills they need to grasp the new opportunities that must come to Grangemouth, but it has been failed by the SNP Scottish Government’s staggering 20% cut to colleges since 2021. The Alloa campus now faces closure. Will the Minister consider stepping in with direct skills support for this vital college?

[James Murray]

Education and skills policy, including the funding and operation of colleges, is fully devolved to the Scottish Government. That means that it is for Scottish Ministers to decide how to support Forth Valley college with the overall settlement. As my hon. Friend will know, the spending review provided the Scottish Government with their largest settlement in real terms since devolution in 1998, and the Budget provided an additional £820 million to Scotland through the Barnett formula. In the months ahead we will be campaigning to ensure that decisions about how to invest that funding in Scotland’s future will be taken by Anas Sarwar and a Scottish Labour Government.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

The challenges experienced by the businesses of Forth valley are the highest industrial energy prices in the G7, Labour’s farm tax, Labour’s family business tax, Labour’s £26 billion raid on the cost of employing people, Labour’s fiscal drag on everybody’s earnings, the Potemkin support for Grangemouth, the ambivalence to Mossmorran and the defunding of the Acorn project. For how long does the Minister think Scotland should put up with this chaos from Westminster?

[James Murray]

The hon. Member is happy to criticise tax decisions taken by this Government, but where does he think the largest spending review settlement since devolution began came from? Where does he think the £820 million announced at the autumn Budget came from? He needs to support the tax decisions we take if he wants the investment to go into Scotland.

[Liam Conlon (Beckenham and Penge) (Lab)]

10. What fiscal steps she is taking with Cabinet colleagues to support patients in the NHS.

[Dr Simon Opher (Stroud) (Lab)]

19. What fiscal steps she is taking with Cabinet colleagues to support patients in the NHS.

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

The spending review 2025 provided record investment in the NHS, including the largest ever health capital budget. That investment has enabled a reduction in waiting lists of 230,000, with an extra 5.2 million NHS appointments. At autumn Budget 2025, the Chancellor protected NHS investment by allowing it to retain and reinvest efficiency savings in 2028-29, as well as making available up-front funding to abolish NHS England: a move that will unlock £1 billion in savings by the end of the Parliament, which can instead be used to support frontline care.

[Liam Conlon]

I thank the Minister for his response. When I was in sixth form at the end of the last Labour Government, I became one of the youngest people in Britain to have a hip replacement. I will always be grateful to the incredible NHS staff who cared for me. But between 2011 and 2024, because of savage Tory cuts, the waiting list for hip replacements at King’s College hospital trust, which serves my constituency of Beckenham and Penge, more than doubled. The Tories left thousands of people waiting months on end, but thanks to record investment from this Labour Government, those waiting lists are starting to fall. Will the Minister commit to continuing that investment in the NHS?

[James Murray]

I thank my hon. Friend for his question. Like him, I will always be grateful to the incredible NHS staff who got me back fighting strong after I was diagnosed with a neuromuscular condition in my 20s. People across the country have stories like ours because we all depend on the NHS, and that is why it is such a priority for us as a Government to invest in our health service to get it back on its feet and build an NHS that is fit for the future.

[Dr Opher]

I thank the Chancellor for investing in our community care. In Stroud, the two beating hearts of our community—GP surgeries and our village pubs—reduce social isolation. Today, the publicans are meeting at Stroud Brewery to discuss the impacts of business rates. May I invite the Minister to discuss how we can help our pub landlords—perhaps over a pint?

[James Murray]

My hon. Friend is right to point to the role that pubs play at the heart of local communities—I assume that the pubs and GP surgeries in his example are separate. As my hon. Friend the Exchequer Secretary set out earlier, we are in a situation where the temporary pandemic business rates relief is coming to an end and the new revaluation, which is post pandemic, comes into effect. In that context, we are supporting the high street, including pubs, with permanently lower tax rates for eligible retail, hospitality and leisure, as well as a support package that means most properties seeing increases will see them capped next year at 15% or less, or £800 for the smallest properties.

[Bob Blackman (Harrow East) (Con)]

One of the challenges that the NHS faces is dealing with people who are street homeless and who have to go into hospital for treatment. They are then discharged, and it is almost like a rotating saw, unfortunately. What is needed now is targeted funding to ensure that the NHS discharges people to somewhere they have a safe place to live. Will the Minister take up that challenge, particularly at this time of year?

[James Murray]

The hon. Member is right to point to the fact that people showing up in hospital can often reflect other social issues, whether homelessness, child poverty or other challenges. As a Government, we take tackling homelessness—by which I mean temporary accommodation and rough sleeping—incredibly seriously and we will publish a homelessness strategy shortly.

[Mr Will Forster (Woking) (LD)]

Ashford and St Peter’s hospital, which serves my constituency, has an £80 million repair backlog. When will the Government allocate sufficient funding to fix our crumbling hospitals, including Ashford and St Peter’s?

[James Murray]

As the hon. Gentleman will know, the coalition Government, of which his party was a part, slashed capital investment in our health service. We have restored capital investment in our health service, which is critical to getting it back on its feet. If he is requesting greater investment in the NHS, I hope that he will change his mind, correct the record and support the tax changes that we have made in order to make that possible.

[John Milne (Horsham) (LD)]

11. What fiscal steps she is taking to help increase growth in rural areas.

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

Growth is the No. 1 mission of this Government, and we are committed to unlocking growth in every corner of this country. We have committed £2.7 billion per year to supporting sustainable farming, £2.3 billion of transport funding for places beyond city regions through the local transport grant, and more than £1.9 billion for gigabit broadband and 4G connectivity. That funding will help to tackle key blockers to growth in rural areas, unlocking the opportunities and benefits of growth for people right across the UK.

[John Milne]

Later today I will chair a meeting of the all-party parliamentary group for rural business and the rural powerhouse, which focuses on generating rural growth. If we could push rural productivity closer to western European averages, it would fix the Government’s budgetary black hole all by itself. Will the Minister agree to set a measurable target for increasing rural productivity so that we can hold the Government to account on progress?

[James Murray]

I welcome the hon. Gentleman drawing attention to the importance of productivity in the UK economy and our prospects for growth. As we know, the Office for Budget Responsibility reviewed the productivity impact of the previous Government’s record in office and found that the decisions they had taken over those 14 years meant that we had a £16 billion revenue hit to the public finances in the target year of the scorecard. We know that means that productivity has been downgraded as a result of decisions taken by the previous Government, but that gives us an opportunity—an opportunity to not be held back by the failures of the previous Government and to exceed those forecasts in future.

[Noah Law (St Austell and Newquay) (Lab)]

Cornish communities and small and medium-sized enterprises in the supply chains of Cornwall’s most promising industries alike will have been delighted by the Chancellor’s announcement of the Kernow industrial growth fund in the recent Budget. Does the Chief Secretary to the Treasury agree that those funds should be invested prudently and sustainably and that the proceeds should be recouped for the Cornish public’s coffers so they can be invested in future projects?

[James Murray]

My hon. Friend and many of his neighbouring MPs are excellent advocates for Cornwall and for the benefits that Cornwall can bring to growth, both in the region and right across the country. I know that, in the Budget, the Chancellor was keen to support investment in future industries in Cornwall. For the local council to deliver that, we will work closely with it to make sure that money is well spent. The key thing for us is to ensure that we enable people in Cornwall to be part of the economic growth mission of this Government.

[Mr Speaker]

I call the shadow Minister.

[Richard Fuller (North Bedfordshire) (Con)]

As this is my last question before Christmas, I want to ask my counterpart a nice and constructive one. As he will know, rural residents and businesses already pay more on fuel than their urban counterparts and there are fewer public transport options. Can he advise what were the results of his assessment of the relative impact of the Budget’s introduction of road pricing on rural, compared with urban, areas?

[James Murray]

I think the hon. Gentleman is referring to the changes we announced in the Budget in relation to electric vehicles and their contribution towards public finances. If people drive electric vehicles, wherever in the country they drive them, they benefit from investment in roads and maintenance alongside those of us who drive petrol cars, so it is important to ensure that we make the tax system fit for the future. This is a decision that people have talked about for many years. The hon. Gentleman’s party ducked it, alongside many other difficult decisions, but we are taking them head-on to ensure that we are fit and stable for the future.

[Lorraine Beavers (Blackpool North and Fleetwood) (Lab)]

T1.   If she will make a statement on her departmental responsibilities.

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[Josh Fenton-Glynn (Calder Valley) (Lab)]

T5. Having worked on child poverty for over a decade, I have seen at first hand the damage to health, education prospects and life chances that poverty can cause, put at £40 billion a year by the Child Poverty Action Group. Can the Chancellor assure me that the child poverty strategy will build on the historic Budget announcement on the two-child cap, and do more to reverse the appalling rise in poverty that we saw under the Conservatives?

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

The child poverty strategy published last week sets out the steps that we are taking to support families now, as well as the building blocks that we are putting in place for the long term. We will lift 550,000 children out of poverty by removing the two-child limit and through other measures, including the expansion of free school meals.

[Sir Ashley Fox (Bridgwater) (Con)]

T2.   Unemployment is higher today than it was on the day the Chancellor took office. Will she tell the House why that is the case?

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[Tom Hayes (Bournemouth East) (Lab)]

An independent and effective OBR is critical for our country, but it needs to do better. Why can the OBR not count? Why can it not forecast accurately, given that the economy grew 50% faster than it had predicted in March? Why can it not even publish the Budget document without making a dog’s breakfast of it? Is it not time for the OBR to properly price pro-growth measures and get behind our growth mindset?

[James Murray]

I can be clear that we are committed to the OBR’s independence as a forecaster and to the core role it plays within our fiscal framework. The Chancellor has also been clear, however, that forecasts are not our destiny. We will not let Britain be held back by the failures of the previous Government. At the Budget, the OBR revised upward its growth estimate for this year, and we are determined to exceed forecasts again.

[Chris Coghlan (Dorking and Horley) (LD)]

T4. Public research and development is so powerful for economic growth that US patents funded by it generate 12 times more growth than those that are not. But does the Chancellor accept the judgment of the OBR that UK public R&D will generate no additional incremental growth because we are not increasing it enough?

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[Edward Morello (West Dorset) (LD)]

T6. The cost of delivering public services in rural Britain is higher than in urban areas. The cost to access services is higher for communities in rural places like West Dorset than it is for those in urban Britain. Will the Treasury commit to reviewing the funding formula, so that local government, integrated care boards, fire services and all our vital community services get the funding that rural communities deserve?

[James Murray]

The Ministry of Housing, Communities and Local Government recently published “English indices of deprivation 2025”, which included the supplementary report on how deprivation manifests in rural areas. I can assure the hon. Gentleman that the Government will further consider those assessments of deprivation, as well as other inputs, when deciding funding models for local areas.

[Dave Robertson (Lichfield) (Lab)]

Constituents across Lichfield, Burntwood and the villages will be pleased to see the Government taking action on the cost of living by reducing energy bills, but they want the benefits to be fair and felt by all bill payers. What steps will the Chancellor take with Cabinet colleagues to ensure that reductions in energy bills are reflected in standing charges, not just in unit prices?

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[Gill German (Clwyd North) (Lab)]

I warmly welcome the second rise in the national minimum wage under this Government. Some 160,000 workers in Wales have already benefited since the rise in April. Many of them are younger workers, particularly in the retail and hospitality sector, which is so important to my constituency at Christmas and beyond. What assessment has been made of the impact of the national minimum wage rise on younger workers, and what progress has been made on equalising the national minimum wage with the national minimum wage for under-21s?

[James Murray]

About 300,000 young workers are expected to benefit from the national minimum wage increases in April 2026. The Low Pay Commission was given a remit to develop its preferred path and pace for the equalisation of the 18-to-20 national minimum wage and the national living wage. The 18-to-20 national minimum wage rate from April 2026 makes steps towards that commitment.

[Alison Bennett (Mid Sussex) (LD)]

T9.   The Government seem set on pushing on with the family farm tax, despite opposition from the Liberal Democrats—and indeed from Labour Members. Will the Minister at least revisit the forestalling clause, which would help older farmers in Mid Sussex and across the country to avoid the consequences of backdating the legislation?

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[Alison Hume (Scarborough and Whitby) (Lab)]

Alexander Dennis is a British electric bus manufacturer employing more than 700 people in Scarborough. Major bus contracts are due to go live in early 2026. Will the Minister confirm that this Government are backing British-built buses over Chinese imports, and can he confirm that the changes to public procurement processes will be implemented in time for taxpayers’ money to be spent on buying British buses?

[James Murray]

We have a proud history of manufacturing in this country, including in my hon. Friend’s constituency, and we will capitalise on that history as we drive our future growth. The UK is a leader in bus manufacturing, and the Government are committed to supporting the sector, including through the Department for Transport’s UK bus manufacturing expert panel. As a Government, we want to back British buses, unlike the SNP.

[Olly Glover (Didcot and Wantage) (LD)]

T10. The Government created the National Wealth Fund to encourage investment in innovation in critical sectors, such as clean energy and sustainable aviation fuel. How will the Chancellor make sure that the wealth fund uses different, and maybe even better, risk criteria than commercial banks and financial entities?

[James Murray]

The National Wealth Fund is at the forefront of public investment, investing in early-stage companies and projects to support innovation, boost jobs and create growth. It will work closely and collaboratively with other public financial institutions such as the British Business Bank, Innovate UK and UK Research and Innovation to support innovative companies across the UK.

[Sarah Owen (Luton North) (Lab)]

Removing the two-child benefit cap means that 5,000 children in Luton North will be lifted out of poverty. Many live in households where parents work but ends still do not meet. Does the Chancellor agree that action like this and the youth guarantee scheme will end the vicious cycle of poverty for good?