Oral Answers to Questions

Kerry McCarthy Excerpts

Tuesday 7th May 2024 Commons Chamber

[Bim Afolami]

I do not wish to comment specifically on Rotherham, but the best way of promoting co-operatives in general is to allow them to thrive as best they can, and to support their members in doing what they do best, which is to help their local economies—not necessarily through huge amounts of public subsidy, but through doing what the co-operative movement was founded to do, which is, as I have said, to support local economies and local people.

[Kerry McCarthy (Bristol East) (Lab)]

4. What recent assessment he has made of the potential impact of his tax policies on living standards.

[Paul Blomfield (Sheffield Central) (Lab)]

17. What recent assessment he has made of the potential impact of his tax policies on living standards.

[The Financial Secretary to the Treasury (Nigel Huddleston)]

Thanks to a combination of national insurance cuts and above-inflation increases to thresholds since 2010, the average worker on £35,400 will pay more than £1,500 less in personal taxes this year. In addition, maintaining fuel duty rates at their current levels represents a further £13 billion benefit to households over the three years since the introduction of the freeze.

[Kerry McCarthy]

The Minister will know that people are still really struggling with the cost of living crisis. One way that the Government could help is by seeking a bespoke veterinary agreement with the EU. That would not only cut costs for businesses but stop food prices rising even more. A future Labour Government would do that, so why will the Government not commit to it?

[Nigel Huddleston]

The hon. Lady’s first comment was correct: everyone in this House recognises the extreme cost of living challenges over the past few years, and that is precisely why the Government have adopted the strategy of a laser focus on inflation, combined with tax cuts and, recently, national insurance cuts. We have a very constructive and positive relationship with the EU, and are always engaging with it on a variety of matters.

--- Later in debate ---

[Bim Afolami]

In relation to the asset purchase facility and how that has worked over recent years, it is not His Majesty’s Government’s—or indeed the Treasury’s—intention to change the way in which that works with the Bank of England, but as with all measures, the Chancellor keeps everything under close review.

[Kerry McCarthy (Bristol East) (Lab)]

T3.   According to the Bank of England, a typical family remortgaging this year will pay £240 a year more in mortgage payments. Does the Chancellor accept that even if the Bank cuts rates, those homeowners will still be paying a penalty because the Government crashed the economy?

[Jeremy Hunt]

What I would say to those families is that the most damaging thing of all is to have inflation at 11%. Now we have reduced it to 3.2%, and indeed we expect it to go lower. Interest rates are also starting to fall. If the hon. Member is worried about families in her constituency, she might be extremely worried by the shadow Chancellor saying that if interest rates fall, it is somehow not a big deal. It really is.