Food Inflation

Debate between Kerry McCarthy and Angela Eagle

Thursday 15th January 2026 Westminster Hall

[The Minister for Food Security and Rural Affairs (Dame Angela Eagle)]

It is a pleasure to serve under your excellent chairmanship, Dame Siobhain. I too enjoyed being a member of the Treasury Committee—as the right hon. Member for Salisbury (John Glen) still does—to which you always make a trenchant and relevant contribution. I congratulate my hon. Friend the Member for Hornsey and Friern Barnet (Catherine West) on successfully securing this debate—I think she is on the Treasury Committee as well. There seems to be a preponderance of current or ex-Treasury Committee members in this debate, which perhaps suggests that the issue before us, food inflation, is, as anyone who has listened with an open mind to all the excellent contributions will realise, quite a complex issue.

There is no single cause for the fact that, in the UK, food inflation for the last period has been running about 1% above CPI inflation rates. Many Members, from all parts of the House, have talked about the effect that that has had on their constituents. This debate reflects real concerns about food inflation and cost of living pressures that are affecting millions of households across our country. Those pressures have been building for years, and too many families were left to face them alone under the previous Government. Tackling the cost of living remains at the heart of what this Labour Government hope to achieve in our time in office.

Food poverty is not an abstract issue, as many of us who visit food banks in our constituencies know; nor is food insecurity, which now touches more than 14 million people in our country—not a small number, and a very sobering one when we think about it. In my constituency, I see parents skipping meals so that their children can eat. I see many others relying on food banks to get by. When I was first elected, we did not have any food banks in Wallasey; we now have too many. All are doing a fantastic job; I pay tribute to the work that Wirral food bank does, and to the many volunteers who run social supermarkets and food clubs in the constituency, which have grown up to meet need as it has arisen.

I also pay tribute to Feeding Britain, which was started by Frank Field, who was my constituency neighbour. He perceived this issue and how much it was growing, and in his usual way he decided that he was going to do something practical and see what he could do to help. He did, and Feeding Britain now makes an important and interesting contribution to the work we are all doing to bring about this Labour Government’s manifesto commitment to ending the mass use of emergency food parcels by the end of this Parliament.

[Kerry McCarthy]

I echo what the Minister said about Frank Field. Quite a long time ago now, he approached me about setting up Feeding Bristol as an offshoot of Feeding Britain. Feeding Bristol has gone from strength to strength, particularly with its holiday hunger programme, which provided tens of thousands of meals for children who would otherwise have gone hungry during the school holidays. We all owe Frank a debt of gratitude for that.

[Dame Angela Eagle]

I was thinking, when I attended his funeral a few years ago, what an effect he had at a grassroots level with his vision for getting stuff done. There are many hundreds of thousands of people up and down the country who, even though they might not know it, owe him a debt of gratitude.

The actions we have taken start with easing cost of living pressures and raising living standards. It is obvious, as many colleagues on the Government side of this Chamber have said, that one of the basic causes of food insecurity is the price of food, but it is also people’s inability to have enough income to do one of the most basic things in life: putting food on their family’s plates—or their own. Analysis demonstrates that that difficulty particularly affects those with children and those who have disabilities or other issues around being able to earn a reasonable amount of money if they are in work, so that they can cover basic costs. The Trussell Trust demonstrated, as my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman) said, that a third of those who attend food banks for emergency food parcels are in work.

I found it interesting to hear Opposition Members say that increases in the national minimum wage or in the money that people earn for working were actually part of the problem. Those who do low-wage work also have to eat. Although the increases add a cost, we have to appreciate that maintaining a very low-pay society will not help us get out of this problem.

Budget Responsibility and National Audit Bill [Lords]

Debate between Kerry McCarthy and Angela Eagle

Monday 14th February 2011 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

This has been an interesting, if somewhat truncated debate. My hon. Friend the Member for Edinburgh East (Sheila Gilmore) is probably right that the relatively few number of people in the Chamber and the fact that the debate will finish a couple of hours early is not evidence of a lack of interest in the subject under discussion, but proof that romantic hearts beat beneath our tough and cynical exteriors. [Interruption.] I mean some of our tough and cynical exteriors.

We support much that is in the Bill, but I will turn first to the contributions of hon. Members. My hon. Friend the Member for Wirral South (Alison McGovern) said that the establishment of the Office for Budget Responsibility was an attempt to separate politics from economics. I suspect that that will be difficult to achieve, but as she said, it is important that we at least try. She also talked about rules-based economic policies, how they were introduced under the previous Government, and how the establishment of the OBR entrenches that approach. She also spoke at the end of her speech about something that I know is a great passion of hers: the problem of youth unemployment and what we can do to tackle it. I am sure that she will return to it on many other occasions in the Chamber.

As ever, my hon. Friend the Member for Stretford and Urmston (Kate Green) made an excellent speech and talked about how it is important that, when discussing such issues that are technical and very much about structures, we focus not just on the numbers, but on the outcomes that we want to achieve. This is not just a dry discussion about the fiscal mandate and the mechanisms that we put in place to monitor it or to forecast the future trajectory of Government economic policy; it is about the underlying policies brought in to achieve that mandate. She spoke passionately about intergenerational fairness and the importance of considering how we can better model imputed behaviour, and she suggested that departmental evidence was very thin on behavioural change and that the OBR might have a role in fleshing that out. That was a valid point.

My hon. Friend the Member for Edinburgh East talked about how the OBR, if it does not totally instil caution in the actions of Ministers, will at least act as a brake on Governments’ over-optimism and the wishful thinking that leads them to think that things are rosy, or will be rosier than the evidence suggests. She made the point that we cannot divorce the question of reducing the deficit from the question of how we go about doing it and the policies we implement to achieve that end. My hon. Friend the Member for Glasgow North East (Mr Bain) warned of the dangers of complacency, and of thinking that the recovery is secure, that we are out of recession and that the country is out of the danger zone. He also talked about the fiscal mandate for eliminating the deficit and warned of the dangers of pursuing that in too rapid a fashion.

The hon. Member for Cities of London and Westminster (Mr Field) has had to leave to go to a black-tie event. I suspect that he has rather more black-tie events than most of us in the House. The sorts of events I attend usually involve the St George Labour club and beer at 99p a pint. However, he obviously leads a more exalted existence than many of us. Both he and the hon. Member for Elmet and Rothwell (Alec Shelbrooke) were fairly political—dare I say it—in their comments. They made references to the previous Government living beyond their means. The hon. Member for Elmet and Rothwell denied that the banks were responsible for the recession and again mentioned the country living beyond its means. At this time of night, and perhaps with better things to do, we do not want to rehearse those arguments. However, it is important that rather than trying to score political points, we look at the details of the Bill and the seriousness of what it is trying to achieve in introducing a more evidence-based approach to economic forecasting.

The hon. Member for Macclesfield (David Rutley) made a very good and thoughtful speech. He quoted J. K. Galbraith, which I suspect my hon. Friend the Member for—

[Ms Angela Eagle]

Wallasey.

[Kerry McCarthy]

I knew it began with a W. Anyway, she is probably very familiar with this quote:

“The only function of economic forecasting is to make astrology look respectable.”

The hon. Member for Macclesfield said that he was not a great fan of J. K. Galbraith. I happen to be a great fan, although I had not heard that quote before. His “A Short History of Financial Euphoria” ought to be required reading for anyone who takes up a job in the City these days. The hon. Gentleman resisted the temptation to resort to political point scoring. His point that the OBR can in time become a respected and trusted reference point is valid—I certainly hope it will be achieved.

What the hon. Member for Macclesfield said about greater powers being given to the Treasury Committee was interesting. I was a member of the Committee for a couple of years when first elected to Parliament in 2005, and I remember spending many sittings seeking assurances from the Financial Services Authority and the Bank of England about regulation, the risks that derivatives trading imposed, and so on. I remember receiving blithe assurances that it was difficult for Committee members— with their limited resources—to challenge on an ongoing basis. If increased powers are given to the Treasury Committee to vet appointments, to scrutinise the work of the OBR, particularly its funding, and to ensure that it has the necessary resources to do its job, thought needs to be given to whether the Committee has the resources necessary to do that job.

The hon. Member for Bristol West (Stephen Williams) slightly lost me at the beginning with his talk about Disraeli and fridge magnets, but then moved on to talk about Bank of England independence, which he claimed was a Liberal Democrat manifesto—