Oral Answers to Questions

Kerry McCarthy Excerpts

Tuesday 19th December 2023 Commons Chamber

[Bim Afolami]

Mortgage costs and interest rates have gone up throughout the world, and we are in more or less the middle of the pack—they are higher in the United States, for example—but what will definitely make things harder for the hon. Lady’s constituents, and indeed all our constituents, is borrowing an extra £28 billion that will only serve to increase inflation and keep rates higher for longer.

[Kerry McCarthy (Bristol East) (Lab)]

12. What recent assessment he has made of the potential impact of the OBR’s growth forecasts on living standards.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

13. What recent assessment he has made of the potential impact of the OBR’s growth forecasts on living standards.

--- Later in debate ---

[The Chief Secretary to the Treasury (Laura Trott)]

The OBR revised up its growth figures after data revisions by the Office for National Statistics indicated the economy had recovered more fully from the pandemic than had been expected, which means that the current level of real GDP is nearly 3% higher than was predicted in March forecasts.

[Kerry McCarthy]

The Government put a positive spin on the provisional local government finance settlement yesterday, but the Local Government Association said that it did not provide enough funding to meet the severe cost and demand pressures on councils, and assumed that all councils would increase their tax bills by the maximum allowed next year. What will that do for my constituents’ living standards?

[Laura Trott]

As the hon. Lady will know, we put billions of pounds into councils this year, and the provisional settlement is above what is expected to be the inflation rate next year. If she has specific issues with her local council, I shall be happy to take that up with her.