Oral Answers to Questions

Debate between Jeremy Hunt and Clive Lewis

Tuesday 19th March 2024 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

2. What recent assessment he has made of the strength of the economy.

[Clive Lewis (Norwich South) (Lab)]

19. What recent assessment he has made of the strength of the economy.

[The Chancellor of the Exchequer (Jeremy Hunt)]

The economy is beginning to turn a corner after a series of unprecedented shocks. Inflation has more than halved, GDP grew in January and the economy is on a path to long-term growth.

[Jeremy Hunt]

It is not, because we have grown faster than Spain, Portugal, France, Italy, Germany and multiple other countries since 2010. With respect to the north-east in particular, the hon. Lady is absolutely right to say that our vision is to spread growth into every corner of the country. That is why, in the last three months alone, both the Prime Minister and I have been to the Nissan factory in Sunderland to mark its decision to make two electric car models in the UK. Just last week, we announced the opening of a massive new film studio in Sunderland that will bring more than 8,000 jobs to the north-east.

[Clive Lewis]

According to the LSE’s Grantham Research Institute, the Government’s current programme for investment to mitigate the worst effects of climate change will still see climate change damage to the UK increase from 1.1% of GDP to 3.3% by 2050 and 7.4% by the end of the century. To put it into context, that is the United Kingdom’s entire social care budget of around £25 billion. The Climate Change Committee has said that the current approach to adaptation

“falls far short of what is required.”

Has the Treasury made any attempt to assess the cost to GDP, the public finances and jobs of failing to invest for climate adaptation?

[Jeremy Hunt]

We listen very carefully to what the Climate Change Committee says, and we are absolutely committed to net zero. In fact, a Conservative Government passed the law requiring Governments to commit to net zero. The hon. Gentleman will know that we have just become the first major industrialised country to decarbonise by more than 50% since 1990. As well as the costs, we are also mindful of the economic opportunities, which is why we are investing billions of pounds in our clean energy transformation.