Economic Update

Kevin Hollinrake Excerpts

Monday 17th October 2022 Commons Chamber

[Jeremy Hunt]

We have an absolute responsibility as a Government to do everything we can to hold increases in mortgage rates down as much as is possible, insofar as the Government have an influence on them through their actions. That is why I have taken, I think, very strong and quick steps to demonstrate the Government’s commitment to fiscal balance, but we are in a world in which, unfortunately, interest rates are going up everywhere and everyone is having to deal with increases in mortgage rates. We are thinking about the challenge for people who have those mortgages, but I want to make sure that that does not happen as a result of actions by this Government.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I welcome all the measures in the Chancellor’s statement. It is absolutely right that we look for better value for the taxpayer through spending restraints, but will he confirm that any cuts to spending will not impact on capital expenditure—infrastructure expenditure, particularly across the north—and that we will fully deliver on projects that we have already committed to, such as Northern Powerhouse Rail?

[Jeremy Hunt]

As my hon. Friend will know—sorry; my voice is a bit croaky at the moment, because I have probably been talking too much over the last few days—there are very important projects that we all care about a great deal, but given the severity of the situation at the moment, we are not taking anything off the table, whether that means tax increases or spending reductions. But I do not believe that it is possible to have a long-term, credible economic growth strategy that does not recognise the vital importance of capital spending.