Oral Answers to Questions

John Grady Excerpts

Tuesday 23rd June 2026 Commons Chamber

[Lucy Rigby]

Nothing was snuck out. A third runway at Heathrow means more than 60,000 good local jobs, and more than £40 billion for the British economy. The hon. Lady’s question rather highlights the Lib Dems’ curious approach to growth. When they were in government, they decimated our economy with austerity, and now they oppose all the investment in infrastructure needed for growth. This Government are taking a wholly better approach.

[John Grady (Glasgow East) (Lab)]

17. What progress she has made on strengthening the economy since July 2024.

[The Chancellor of the Exchequer (Rachel Reeves)]

Since I became Chancellor, our economy has grown by 2.3%—the fastest growth among European G7 economies in that period. Over that time, we have progressed our strategy for stronger and more secure growth through fiscal stability by bringing in an additional £120 billion in public investment, by crowding in private investment through the National Wealth Fund and the British Business Bank, because I changed our fiscal rules; and by removing structural barriers to growth, including through big reforms to our planning and pensions systems and through progress on reducing regulatory burdens, particularly on smaller businesses.

[John Grady]

The long-term strength of the economy depends on long-term investment in the UK. UK growth companies still struggle for capital, while UK savers’ money flows to trackers, which are concentrated on a small number of US stocks. That is bad news for our future. My right hon. Friend the Chancellor has made brilliant progress on reforming pensions, but can she reassure me that the Treasury is looking at further reforms, to increase the amount of UK savers’ money that is invested in our future?

[Rachel Reeves]

I thank my hon. Friend for his question and his work on the Treasury Committee. On pensions reform, through the Mansion House accord and Sterling 20, we have got pension funds to commit to investing more in British businesses, both through British venture schemes and in British infrastructure. Those changes were secured by the Pension Schemes Act 2026 taken through Parliament by the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Swansea West (Torsten Bell). That, for the first time ever, requires investment in UK businesses and in infrastructure. We are also making reforms to how our ISA system works so that for people under the age of 65, after investing £12,000 in cash, any additional money has to be invested in stocks and shares, helping start-up and scale-up businesses grow and stay in Britain.