Oral Answers to Questions
Debate between Kwasi Kwarteng and Rushanara Ali(2 years, 2 months ago)
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Rushanara Ali (Bethnal Green and Bow) (Lab)
The Chancellor was warned that unfunded tax cuts would force the Bank of England to increase rates and that is exactly what has happened. The Bank of England has said today that, in effect, the mini-Budget has caused a material risk to Britain’s financial stability. Can the Chancellor explain how people are supposed to pay their mortgages, which have gone up by £500 on average and £900 in London? What is he going to do about it, because it is not acceptable that his incompetence is risking people’s livelihoods?
Kwasi Kwarteng
I have two points to make on that. First, the Bank of England certainly did not say that the mini-Budget increased risk. Secondly, as rates are rising throughout the world, there is exposure. That is precisely why we thought that it was absolutely right to have the energy intervention, which is for two years—let us not forget that the Labour plan was for only six months —and to reduce the burden on people by reducing taxes.
The Growth Plan
Debate between Kwasi Kwarteng and Rushanara Ali(2 years, 2 months ago)
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Kwasi Kwarteng
I am grateful to my hon. Friend, whose policy prescriptions are always interesting and valuable. I have only been in post for two and a half weeks, but I should be happy to discuss with him how we can simplify our tax system.
Rushanara Ali (Bethnal Green and Bow) (Lab)
We know that inflation is way off target, and today’s announcement of £45 billion of tax cuts will make that worse. It will force the Bank of England to continue consistently to raise mortgage rates, which will hammer homeowners and mortgage holders. The Chancellor has not published the OBR analysis. Is it not time he did, and is not his reason for not publishing it the fact that it reveals that he has broken the fiscal rules for which he voted and will not achieve the growth target that he set himself?
Kwasi Kwarteng
As I reminded my right hon. Friend the Member for Central Devon (Mel Stride), and as I said in my statement, the OBR will be coming up with a forecast, certainly before the end of the calendar year, and I shall be very interested to see and hear what it has to say.