Spring Statement

John Grady Excerpts

Wednesday 26th March 2025 Commons Chamber

[Rachel Reeves]

I thank the right hon. Gentleman for his question. The OBR is clear that the economy at the end of this Parliament will be bigger than it previously envisaged—bigger than the plans we inherited from the previous Government—and the average person with real household disposable income will see their income rise by £500. We are already beginning to deliver the change that we promised. At the Budget last year I was able to announce the biggest ever settlements for Scotland, Wales and Northern Ireland. That continues to be the case after today’s spring statement.

[John Grady (Glasgow East) (Lab)]

Reckless management of public finances leads to higher costs of Government borrowing. As any economist will say, that increases the cost of capital across the British economy, putting at risk and increasing the cost of the essential investments in housing and infrastructure that my constituents desperately need. Does my right hon. Friend agree that that is a very important reason why it is essential to manage public finances carefully, unlike the last Conservative Government, and unlike the Government in Scotland, who are overfamiliar with emergency Budgets?

[Rachel Reeves]

My hon. Friend is absolutely right about the importance of robust fiscal rules which, even in difficult economic circumstances, we will continue to meet through the decisions that I have set out today. The reason that economic stability is so important can be seen in what happened in the last Parliament, where a Government borrowed beyond their means. The people who lost out were not the wealthy but ordinary working people, who paid more in the shops and more on their mortgages and rents. This Government will never repeat the mistakes of Liz Truss and the Conservatives.