Regional Growth

Debate between Lindsay Hoyle and Darren Jones

Wednesday 4th June 2025 Commons Chamber

[The Chief Secretary to the Treasury (Darren Jones)]

With permission, I shall update the House on the Government’s work to boost growth across the United Kingdom.

As the Prime Minister set out in the plan for change, economic growth is the No. 1 mission of this Government. It is key to achieving the Government’s goals: higher wages for working people; delivering economic and national security; and investing in our public services. We are already making progress. The most recent figures show that the United Kingdom was the fastest growing economy of any G7 country in the first quarter of the year and that real wages have risen more since July 2024 than over the first 10 years of the previous Conservative Government. But we are keenly aware that this progress must be widely felt in every part of the country. As such, our plan for regional growth will be hardwired into the spending review and infrastructure strategy, which will be set out in more detail in the coming weeks. This investment will be targeted squarely at the renewal of Britain and fixed on the priorities of working people, delivering on the promise of change and improving lives and communities across the country.

This morning, the Chancellor set out her next steps for nationwide growth in a series of speeches across the north and the midlands, and I am pleased to update the House on those announcements now. A key part of the Government’s growth mission is the view that growth relies on dynamic, interconnected city regions, creating clusters of activity where people can get around, communicate, share ideas, commute, find good work, and earn wages that flow back into strong local economies. As most Members know, the majority of our city regions have poor public transport systems, holding back growth and improvements to air quality and making it harder to get around. Stronger transport links are therefore crucial. They create opportunities for individuals to access a wider pool of jobs, for employers to access a wider labour market, and for businesses to expand the market for their goods and services.

If we were to increase the productivity of our largest city regions outside London just to match the national average, it would grow the economy by £86 billion. So I am pleased to say that this Government are making the biggest investment in intra-city transport connectivity that this country has ever seen. The spending review will allocate funding for ambitious local transport programmes across England, including the new transport for city regions fund launched by the Government today. This will give nine city region mayors a share of £15.6 billion in long-term transport for city region settlements running until 2032. The benefits and opportunities will be felt in the cities and towns across these combined authorities and by those who commute to work from outside those city regions.

The previous Government said that they would do some of this but, as was always the case, they never put the money aside to pay for it. As a result of our reforms to the fiscal rules and decisions to increase investment in the 2024 autumn Budget, this Labour Government are delivering.

The funding announced today will mean that the Mayor of West Yorkshire can now fully commit to delivering the West Yorkshire mass transit system, which will be fully integrated with cycling, walking, bus and rail, making journeys quicker, more accessible and more reliable across the region. The Mayor of the West Midlands can extend the metro from Birmingham city centre to the new sports quarter, unlocking more than £3 billion of private investment, and bringing benefits and opportunities to those living in the constituency of my right hon. Friend the Member for Birmingham Ladywood (Shabana Mahmood) and all who travel there.

It will mean that the Mayor of Greater Manchester can grow and transform the Metrolink tram network, building new tram stocks in Bury, Manchester and Oldham, which will help drive up living standards for the constituents of my hon. Friends the Members for Bury North (Mr Frith), for Bury South (Christian Wakeford) and for Oldham East and Saddleworth (Debbie Abrahams), and for others in the north-west region. The Mayor of the Liverpool city region can deliver three new rapid bus routes linking up the city centre, John Lennon airport, the new Everton stadium on Bramley-Moore dock, and new homes built on the Central Docks redevelopment and Anfield.

The Mayor of the North East will now be able to extend the Tyne and Wear Metro, linking Washington with Newcastle and Sunderland, connecting those living in the constituency of my hon. Friend the Member for Washington and Gateshead South (Mrs Hodgson) to new jobs and opportunities. I pay particular tribute to my hon. Friend, who has campaigned for this project for years and years, and it is now being delivered by a Labour Government.

This investment will also mean that the Mayor of South Yorkshire can renew the existing and now publicly owned Supertram network with track replacements, overhead line maintenance, and rolling stock renewal, yielding a fleet of new vehicles by 2032, linking jobs and homes in Sheffield and the constituency of my hon. Friend the Member for Rotherham (Sarah Champion).

We are backing the Mayor of the West of England’s plans for mass transit development across the region, with improved rail infrastructure to help unlock more services between Brabazon and Bristol city centre, meaning shorter journey times to Bristol Temple Meads across the wider area and providing greater opportunities for those in the constituency of my hon. Friend the Member for Filton and Bradley Stoke (Claire Hazelgrove) and—declaring my own interest—in my own.

After years of the Mayor of Tees Valley trying to persuade his Conservative colleagues to fund these important projects, I am delighted to confirm today that this Labour Government are now backing the region to invest in, for example, the Middlesborough station in the constituency of my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald), unblocking local networks and increasing capacity on local lines. I pay particular thanks to my hon. Friends the Members in the Teesside region who have lobbied hard to see this investment in their region—now being delivered by a Labour Government.

The Mayor of the East Midlands can now forge the Trent Arc, linking Derby and Nottingham to create tens of thousands of new jobs and homes, connecting Infinity Park investment zone and the east midlands freeport with sites including Ratcliffe-on-Soar clean energy and advanced manufacturing and east midlands intermodal park—home of Toyota in the region—along the Trent Arc corridor.

This funding is substantial, marking a 2.4 times real-terms increase in spending on city region connectivity, funding the priorities that matter to hard-working people across the country. These announcements were only made possible today because at the autumn Budget 2024 the Chancellor took the necessary action to reform the fiscal rules to improve stability after years of chaos from the Conservative party, and to unlock investment. This means the Government can now provide greater investment in Britain’s economic revival as, for the first time, the Treasury takes account of the value of financial assets and not just the costs of investment. That has enabled us to increase investment by over £113 billion more than the previous Conservative Government, while keeping debt on a sustainable path—only made possible by the credibility of our fiscal rules, which require day-to-day spending to be funded with revenue.

It is more important than ever to have a robust fiscal framework. I am pleased to note that the Office for Budget Responsibility confirmed at the spring statement that the Government will meet their stability and investment rules two years ahead of schedule. In addition to her announcements today regarding transport for city region settlements, the Chancellor will set out further detail on this allocation of additional funding at next week’s spending review.

In January, the Chancellor announced a review of the Green Book, the Government guidance on appraising options for investment. Since then, we have consulted extensively with stakeholders from across the country, considering potential problems with the Green Book guidance itself and how the guidance is being applied in practice. I thank and pay tribute to many hon. Members across the House for engaging on this important issue.

We will publish the full conclusions of the review next week. It will mark a new approach to Government decision making that puts an end to siloed Whitehall thinking and takes account of the reinforcing economic effects of infrastructure, housing, skills and jobs to ensure that investment takes place in every part of the country.

These announcements reflect just a fraction of our plans to supercharge growth across the United Kingdom. We are focused on investing across all parts of the country to boost prosperity and deliver the change the British people voted for at last year’s election, and there is more to come. The spending review, which we will publish next week, will set out in further detail how an active Government will continue to deliver growth, empowering all regions and nations of the UK to reach their full potential and making working people across the country better off, no matter where they choose to live and work.

Unlike the Conservatives, who will tell us that they would have delivered on their false promises after 14 years of failing to do so, this Labour Government, in our first year in office, are delivering: a country that people will see is being set up for success that they can take part in. That is the change we promised, and that is the change this Labour Government are delivering. I commend this statement to the House.

[Mr Speaker]

I think you missed a couple of railway stations out of your statement, Minister, but not to worry. I call the shadow Chief Secretary to the Treasury.

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[Darren Jones]

I am pleased to see the shadow Chief Secretary to the Treasury back in his place today; I always enjoy our exchanges. I welcome the fact that he supports our plans and sees the good value in them. I will respond to one particular question, and then answer the rest in the round: all the Green Book details will be published next week at the spending review, so we will be able to share them with him and the House at that time.

The shadow Chief Secretary said that we were imitating the Conservative party’s promise to level up the country, but I think the British people voted and gave their verdict on the Conservatives’ success in delivering that at the last election. Whereas their version of levelling up was a set of false promises, this Labour Government are delivering real change.

The shadow Chief Secretary—rightly, given his role—asked how we will fund the announcements we have made today. As I explained in my statement to the House, it is because of the Chancellor’s decisions to amend the fiscal rules and invest in Britain, instead of continuing with decline, that we have been able to do so.

The shadow Chief Secretary and the Conservative party have not said what they would do differently. They were against the change in the fiscal rules, against our increasing of taxes on the wealthiest people at the Budget and against every single measure we have taken to be able to pay for today’s announcements. Whether it is the Conservatives, Reform or any other party, they need to recognise that the Conservatives’ false promises led to their decline and their unfunded promises are disrespectful to the British people, and that this Labour Government promised change at the election and we are delivering it. These are fully funded promises, unlike the unfunded promises of the Conservatives, which posed a risk to the economy and a risk to family finances. The sooner the Conservatives learn from their lessons, apologise to the British people, and come forward with some serious proposals, the better for the debate in this House.

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I warmly welcome this investment in Britain, and I hope that the Treasury will be fully evaluating the impact of this vital transport infrastructure on growth in regions, which we know has always lagged, except for in London and the south-east. Although these figures are fully funded now, with all the global shocks we are seeing, it is important that we are aware that there could be additional costs on some of the raw materials being used, and any delay obviously adds costs too. Will the Chief Secretary tell the House the Government’s plans if costs do go higher—will the figures be fully funded regardless, or will they have to go back to the drawing board if there are challenges?

[Darren Jones]

My hon. Friend the Chair of the Treasury Committee rightly alludes to the fact that the Chancellor’s speech today makes the case for this Government investing in every part of the country and ensuring that growth is felt widely. My hon. Friend asks me about the supply chain and costs for building infrastructure. The House will know that Britain has unfortunately become a country where most of our infrastructure projects go over time and over budget as a failure of poor industrial and infrastructure policy and erratic decision making over many, many years. Alongside the spending review, we will be publishing the infrastructure strategy, at a slightly later stage, and that will answer many of my hon. Friend’s questions on Government policy, recognising the problem she has raised and the solutions that will be set out to support the supply chain to be able to deliver for Britain.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

Oral Answers to Questions

Debate between Lindsay Hoyle and Darren Jones

Tuesday 20th May 2025 Commons Chamber

[Darren Jones]

I thank my hon. Friend, who is a champion for his constituency and for industry. As he has alluded to, the Government have already made hundreds of millions of pounds available through the national wealth fund for the company in question. We are working to ensure a just transition, harbouring the skills of people in Scotland and across the country. We are now in active discussions as the spending review comes to an end, and we will be able to present more detail to the House on 11 June.

[Mr Speaker]

I call the shadow Minister.

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[The Chief Secretary to the Treasury (Darren Jones)]

I join my hon. Friend in welcoming the official opening of the Charles Hammond berth. As she knows, we set up Great British Energy in Scotland, bringing forward £300 million of investment ahead of the spending review to secure jobs and supply chains. Funding for the Port of Cromarty Firth, announced in March, is expected to support up to 1,000 highly skilled jobs, while our uplift to the clean energy bonus will support offshore wind supply chains across the country. That is yet another example of the Government working with business and of a Labour Government delivering for the people of Scotland.

[Mr Speaker]

I call the shadow Chancellor.

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[Darren Jones]

As my hon. Friend knows, the Government are committed to increasing spending on defence to 2.5% of GDP, with an ambition to go further to 3% in the next Parliament when economic and fiscal conditions allow. As part of that increase in spending, we are making sure that UK companies and UK workers get the benefit, including in places such as Wolverhampton, through apprenticeships, good jobs and good growth.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

Oral Answers to Questions

Debate between Lindsay Hoyle and Darren Jones

Tuesday 8th April 2025 Commons Chamber

[Darren Jones]

We recognise how important this issue is for the hon. Member’s constituency, the region and, indeed, the national economy. My ministerial colleagues in the Department for Business and Trade are in discussions on this particular issue, but in our infrastructure strategy we are considering, as he would expect, the best value for aligning investments between housing, rail, energy and other types of infrastructure to deliver growth for everyone, in every region of the country.

[Mr Speaker]

I call the shadow Minister.

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[Jim Shannon]

The Minister’s response is key. He is right to highlight the issues, whether they are in Liverpool, Everton, Cardiff, Edinburgh, Belfast or Strangford. In Northern Ireland, we have made the most of over-the-shops apartment conversions as opportunities for housing. Does the Minister agree that the possibilities for the regeneration of high streets and town centres also include housing opportunities?

[Darren Jones]

We have a shared ambition to ensure that our high streets are thriving communities for the people who live, shop or work there. We are delivering an integrated settlement for combined authority mayors in England, and have delivered a real-terms increase in funding for the Northern Ireland Executive—the largest since devolution began—to invest in exactly those types of local projects.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

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[The Chief Secretary to the Treasury (Darren Jones)]

Mr Speaker, you shocked me by moving to topical questions so quickly, but I have now found my page and am ready to answer them.

[Mr Speaker]

You need to get a new watch!

[Darren Jones]

From ferries to the National Care Service, we have seen failure after failure from the SNP in Scotland, including a track record of waste. In contrast, this Labour Government are tackling waste and investing in frontline services such as our national health service, which has seen waiting lists fall for each of the past five months in England. We hope that the people of Scotland will soon have the opportunity to experience such a transformation.

[Darren Jones]

As my hon. Friend knows, we have given the Scottish Government the largest increase in spending since devolution began. The people of Scotland expect that money to be spent well, which we are doing in England by transforming public services and improving the national health service. However, given that SNP Members are not present in the Chamber today, the people of Scotland need to know that they will have to elect a Labour Government in Scotland later next year for that to happen.

[Mr Speaker]

I call the shadow Chancellor.

[Mel Stride (Central Devon) (Con)]

It was obvious to many before the emergency Budget that the President of the United States was going to be slapping tariffs on our exports. May I therefore ask the Chancellor why it was that she came forward at the emergency Budget with a recklessly slender slither of headroom—the same headroom that she had at the time of the autumn Budget, which proved then to be entirely inadequate. She blew that headroom and more due to her disastrous economic choices.

[Darren Jones]

I am sorry to disappoint the shadow Chancellor, but I am afraid that, because of the ordering of questions, he is stuck with me. To answer his question, he will have seen at the Budget that we increased the fiscal headroom back to our agreement of £9.9 billion, which was more than the headroom that we inherited from the Conservative party. The key difference is that this is a Government who take economic and political stability seriously, because when a Government lose control of the economy, they lose control of family finances and, ultimately, end up in opposition.

[Mr Speaker]

Just to correct the record, the Order Paper has not changed at all in topicals.

Oral Answers to Questions

Debate between Lindsay Hoyle and Darren Jones

Tuesday 4th March 2025 Commons Chamber

[The Chief Secretary to the Treasury (Darren Jones)]

At autumn Budget 2024, we set out the first major steps in our approach to regional growth through devolution, investment and reform. The January growth speech regional investment package built on that. We have made clear the Government’s focus on attracting inward investment across the country and to investing in infrastructure needed to support cities and regions to grow. We have made it clear that the importance of investing in major city regions across the UK will play an important part in that endeavour. For example, if we improve the productivity gap in Manchester, Birmingham and Leeds, we estimate we can deliver an extra £33 billion in economic output.

[Mr Speaker]

I call Graham Stringer. [Interruption.]

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[Darren Jones]

I can commit to working with DFT colleagues on projects such as that and others around the country as we make decisions in the upcoming spending review. I would make an observation that it is not just about the decisions on spending; there have been problems in the past where decisions have been made and U-turned, and then made and U-turned again. That is difficult for the supply chain and difficult for investors and local communities. In our multi-year capital budgets and our 10-year infrastructure strategy, which are coming in the months ahead, we will give stability to the UK economy so that we can get on and deliver projects such as the one the hon. Lady mentions.

[Mr Speaker]

I call the shadow Minister.

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[Darren Jones]

I agree entirely that mental health services are in desperate need of investment and support across the country. The evidence is very clear that there are, for example, too many people out of work who would be like to be in work, but who are waiting at home unwell and unable to receive the support and services that they need and deserve. The Health Secretary is working hard on that at the moment. We are going into the spending review negotiations over the coming weeks and months, and we will set out further detail in due course. I look forward to being able to provide more information specifically as we go through that process.

[Mr Speaker]

I call the shadow Minister.

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[Darren Jones]

I thank the hon. Member for his tour of the scenic A9 and for telling us the importance of that road to Scotland. I am sure that I support what would have been his question. The Scottish National party Government in Scotland ought to take infrastructure seriously, as we are doing here in the UK Government.

[Mr Speaker]

The Minister gives a very good answer to a non-question.

Growing the UK Economy

Debate between Lindsay Hoyle and Darren Jones

Wednesday 29th January 2025 Commons Chamber

[The Chief Secretary to the Treasury (Darren Jones)]

With your permission, Mr Speaker, I would like to update the House on the Government’s work to unlock investment and secure economic growth. That is the No. 1 mission of this Government. Without growth, we cannot deliver on the priorities of the British people, cut NHS waiting lists, rebuild our schools or put more police on our streets. That is why the pursuit of growth is our first mission, putting our country on a new path towards a brighter future after 14 years of failure from the Conservatives. By helping businesses to invest and create wealth, we ensure they can provide jobs and opportunities that change lives, putting more pounds in people’s pockets and rejuvenating communities across the country.

We have seen progress on that already, with huge private sector investments into our country since this Government came into service, but now we must go faster and further. We must help businesses and places to achieve their potential. We do that by being an active and strategic state—one that works in true partnership with businesses, investors and local leaders to deliver for the British people in every corner of the country. That principle was at the heart of the Chancellor’s speech earlier today in Oxfordshire, where she announced the latest steps that the Government are taking to drive growth across the country. I am pleased to update the House on those announcements now.

The economic growth we are pursuing must reach into every town, city and community across the United Kingdom—inclusive growth for everyone, not just those at the top—because there is untapped talent and unrealised opportunity throughout the country and we cannot let that go to waste any longer. If we can raise the productivity of major cities like Manchester, Birmingham and Leeds just to the national average, we will deliver an extra £33 billion in economic output. So I can confirm that our plans for regional growth will be hardwired into the spending review, the infrastructure strategy, the industrial strategy and our approach to trade and investment.

We are already providing £200 million of funding to support the development of a new mass transit system in West Yorkshire, and at the autumn Budget we secured improved connections between towns and cities from Manchester through to York. We are also developing our plans to further improve connectivity in the north and across the country through our 10-year infrastructure strategy, which will set out our long-term vision for social and economic infrastructure across the country.

Today we are progressing with the Wrexham and Flintshire investment zone, focusing on the area’s incredible strength in advanced manufacturing to leverage in £1 billion of private investment and create up to 6,000 new jobs. As the Chancellor announced at Davos last week, the Office for Investment will work hand in hand with local areas to develop opportunities for international inward investment, starting with the Liverpool city region and the North East combined authority, while the national wealth fund will build on its strength and combined authority engagement to build a pipeline of investable propositions with mayors, starting with strategic partnerships in the Glasgow city region, West Yorkshire, the west midlands and Greater Manchester. Sticking with Manchester, we are giving our support to the Mayor of Greater Manchester’s plan for the redevelopment of Old Trafford, creating new housing, new commercial developments and a new stadium—but, I am advised to inform the House, not necessarily Government-wide support for the team that play there.

I am pleased to update the House on our new approach to the Oxford-Cambridge growth corridor, a hugely exciting opportunity for the UK and the British economy. For centuries these two cities have been synonymous with inspiration, invention and innovation. Economic analysis suggests that with the right support the region could bring a GDP boost of £78 billion by 2035, yet time and again Governments have failed to capitalise on this remarkable area, most recently in 2021 when the last Government dropped their commitment to what they called the Ox-Cam arc project.

Through under-investment, poor transport connections and a lack of affordable housing, the incredible growth potential of the area has been squandered as people and businesses have been forced to move and invest elsewhere. No longer: Lord Vallance will act as our champion for the growth corridor, utilising his impressive experience in life sciences, academia and Government to unlock growth opportunities across the region and promote its potential to investors across the world. We will establish a new growth commission for Oxford, to recognise and capitalise on the growth potential of this historic city.

We already know, of course, that transportation is a huge factor in the success of the country. Heathrow is the UK’s only hub airport and our largest air freight hub by volume, connecting us to emerging markets around the world, opening up new opportunities for trade and investment. But its growth has been constrained for decades. Today we are announcing that the Government support and are inviting proposals for a third runway at Heathrow airport, to be brought forward by the summer. This is an important infrastructure project expected to have positive growth impacts across the United Kingdom, and it has the backing of businesses and business groups including the CBI, the Federation of Small Businesses and British Chambers of Commerce as well as trade unions such as the GMB and Unite.

According to a recent study from Frontier Economics, a third runway could increase GDP by 0.43% over the next 25 years, with over half—60%—of that boost going to areas outside London and the south-east. It could create over 100,000 jobs in the local area and maintain Heathrow’s status both as a global passenger hub and as the UK’s largest air freight hub by volume.

Reforms this Government have introduced to speed up the planning system will ensure the delivery of the project and set it up for success. Once proposals have been received the Government will take forward a full assessment through the airport national policy statement to ensure that any scheme is delivered in line with our legal, environmental and climate obligations. We want the scheme to be value for money, and our clear expectation is that any surface transport costs associated with the project will be financed by private capital and should be sustainable and low-carbon. The Secretary of State for Transport will also set out planning decisions for further airport expansion at Gatwick and Luton shortly.

Crucially, I am pleased to announce that we are taking further steps in our transition to greener, cleaner aviation. At the start of the month, the sustainable aviation fuel mandate became law. Sustainable aviation fuel reduces carbon dioxide emissions compared with fossil jet fuel by around 70%. Today we are announcing an additional £63 million for the advanced fuels fund over the next year, and we have set out the details of how we will deliver a revenue certainty mechanism. Those measures will support investment and high-skill green jobs in plants across the United Kingdom, delivering sustainable aviation fuel here in the UK for UK consumption.

Transportation is equally important on a local level, and that is as true for the Oxford-Cambridge growth corridor as it is for anywhere else. This Government have confirmed that they will provide crucial funding for transport links, including upgrades to the A428 to reduce journey times between Milton Keynes, Bedford and Cambridge, as well as for East West Rail with new services between Oxford and Milton Keynes starting this year. We have already received submissions to the new towns taskforce to build new developments along the new railway. At Tempsford, we will accelerate delivery of a mainline station on the east coast main line so that travellers can get to London in under an hour and to Cambridge in under 30 minutes once East West Rail has been delivered.

We will ensure that the pioneering work that has long been a hallmark of the area will continue. We are today committing to a new AI growth zone in Culham. We welcome the University of Cambridge’s plan for a new flagship innovation hub in the centre of Cambridge, and a new Cambridge cancer research hospital will be delivered as part of wave one of the new hospital programme. Just yesterday, Moderna completed the build for its new vaccine production and research and development site in Harwell, while committing to invest £1 billion in the United Kingdom—proof that when we create the conditions for success, businesses can lead the way.

I am pleased to confirm for the House that the Environment Agency is lifting its objections to specific developments in Cambridge, so we will press on with plans to develop 4,500 additional homes, new schools and office, retail and lab spaces in and around Cambridge. In a further boost to the area, we have now agreed water resource management plans with water companies, unlocking £7.9 billion of investment in water resources over the next five years, including the new Fens reservoir serving Cambridge and the south-east strategic reservoir near Oxford.

This Government have come in with a purpose: to bring growth, and with it opportunity, to the country. In just six months, we have taken the tough decisions to make that possible. We are taking on the responsibility of a Government who deliver real change for people—no longer the hollow promises of the Conservative party, but change delivered under this Labour Government, working with business and local leaders to drive the growth that will lift up this country. Now we must go further and faster so that the next generation and the generation after will have the opportunities they deserve, to ensure that Britain is strong and successful once again in a fast-changing world and so that everybody in this country can have the chance to succeed. Today’s announcements will help make that a reality and show how our plan for change will build a better Britain. I commend the statement to the House.

[Mr Speaker]

I call the shadow Chancellor of the Exchequer.

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[Darren Jones]

The House is indebted to the shadow Chancellor—Mr Melmentum himself—for his lecture on the need for speed from this Government. Let me tell him that we have done more in the last six or seven months than that lot did in the last 14 years.

The shadow Chancellor asked me about our plans to work with business. The comments today from business leaders and investors speak for themselves: our plans are welcomed by businesses, and we will be working in partnership with them to deliver for this country. He also asked me about work. Those of us in the Labour party make no secret of the fact that we like to support people into work—strong, secure work with workplace rights and secure incomes to help make people’s family finances add up. That is why our party was created in the first place. The real truth from the data is that under the last Government, too many people were waiting at home sick, unable to get NHS appointments or access to mental health services so that they could be helped back into work. Too many people were waiting at home, waiting for training and unable to seize the opportunities advertised in front of them. This Labour Government will not treat those things as a luxury, but will work at speed to give people the work they deserve.

At the heart of the shadow Chancellor’s statement was a truth for the country to consider. Under the last Administration, it was promises cancelled; under this Administration, it is promises being delivered.

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

I welcome this Government’s commitment to infrastructure investment and to telling the world that Britain is open for business, but to achieve all of this, we will need a really skilled workforce to deliver on those major construction projects. May I ask my right hon. Friend to set out how the Government will ensure that we have the skills to deliver what he has promised?

[Darren Jones]

I thank the Chair of the Treasury Committee for her question. This is an important test of turning policy into real-world delivery. Through our infrastructure and industrial strategies, we are engaging right now with businesses and investors across the country so that as we bring forward our plans, we have a skills and training system that creates opportunities for people to take up the jobs that we need them to do in order to help get Britain building. That will be a crucial part of our approach to infrastructure, so that every person across the country can seize the benefits of this Government’s plans.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

Oral Answers to Questions

Debate between Lindsay Hoyle and Darren Jones

Tuesday 21st January 2025 Commons Chamber

[Darren Jones]

I thank the right hon. Gentleman, as I am sure the Chancellor does, for his kind words. A key part of the test on ODA spending in terms of fiscal circumstances requires those circumstances to improve. One of the reasons we are in this problem in the first place is because of the mess the previous Administration left this country in. We are working hard to turn that around.

[Mr Speaker]

I call Helen Maguire.

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[Darren Jones]

I thank the right hon. Member for his question, and I think “fairness” is the right word. That is why we worked in opposition to try to persuade the last Government to act on the mineworkers’ pension scheme, but we failed because the last Government did not think this was an urgent issue for them to consider. The Labour Government have implemented this change at our first Budget, and that is fairness in action. We will continue to work with trustees of the BCSSS, and we will come back with further options in due course.

[Mr Speaker]

Let us go to the Member for that well-known mining area of Strangford.

Public Finances: Borrowing Costs

Debate between Lindsay Hoyle and Darren Jones

Thursday 9th January 2025 Commons Chamber

[The Chief Secretary to the Treasury (Darren Jones)]

I am always grateful to see Conservative Members welcome me to the House.

Financial markets are always evolving, as the shadow Chancellor knows, so there is a long-standing convention that the Government do not comment on specific financial market movements, and I will not break that convention today. Financial market movements, including changes in Government bond or gilt yields, which represent the Government’s borrowing costs, are determined by a wide range of international and domestic factors. It is normal for the price and yields of gilts to vary when there are wider movements in global financial markets, including in response to economic data.

In recent months, moves in financial markets have been largely driven by data and global geopolitical events, which is to be expected as markets adjust to new information. UK gilt markets continue to function in an orderly way. Underlying demand for the UK’s debt remains strong, with a generally well-diversified investor base. The Debt Management Office’s gilt sales operations continue to see strong demand. The latest auction, held yesterday, received three times as many bids as the amount on offer.

The Chancellor has commissioned from the Office for Budget Responsibility an updated economic and fiscal forecast for 26 March incorporating the latest data. Only the OBR’s forecast can accurately predict the effect on the public finances of any changes in financial markets or the economy, and I will not pre-empt that forecast. There should be no doubt of the Government’s commitment to economic stability and sound public finances. That is why meeting the fiscal rules is non-negotiable.

May I end by saying that I am pleased that the shadow Chancellor is holding this Government to account on our stewardship of the economy? It is important that he does so. He will remember when his party crashed the economy with unfunded tax cuts, unrealistic public spending plans and a clear disregard for the consequences on family finances. Families across the country are still paying the price for the Conservatives’ disastrous performance on the economy through higher mortgages and bills. If there was one clear reason why the Conservative party suffered such an historic defeat at the last general election, it was their performance on the economy. That is presumably why the shadow Chancellor himself admitted in December that the lack of trust in the Conservative party’s management of the economy has left a “deep and painful scar” in the pockets of every person across Britain.

Let me tell the House what has changed. In our first six months, this Labour Government have exposed the £22 billion black hole in the public finances. Not only have we exposed it, but we have dealt with it: the Chancellor’s autumn Budget protects working people, wipes the slate clean of the mess the Conservative party left the country in, and invests in our NHS and schools. We have given the independent Office for Budget Responsibility enhanced powers of oversight, in law, so that we never again get into the situation where that lot left the country: a £22 billion black hole in the public finances. We have set tough new fiscal rules that are non-negotiable, with a budget settlement for public services that they must all live within. We have kick-started growth in this country—this Government’s No. 1 mission —by unlocking investment and bringing forward reforms, such as those to planning and in the Mansion House speech.

May I say to the shadow Chancellor that that work stands in stark contrast to the negligent and shameful horror of a circus performance that the Conservative party in government unleashed on this country only a few years ago? Until he can come to the House with an apology for the British people, I will not take any lectures from the Conservative party about how to run the economy.

[Mr Speaker]

I call the shadow Chancellor of the Exchequer.

[Mel Stride]

The performance we have just seen was a slightly anxious and breathless one, which leads me to the question: where is the Chancellor? It is a bitter regret that at this difficult time and given these serious issues, she herself is nowhere to be seen.

In the last 48 hours, borrowing costs have reached a 27-year high, and it is the Chancellor’s decisions that have led us here. Before the election, the right hon. Lady promised that Labour would get debt falling, would not fiddle the figures, would not raise taxes and would grow the economy, but the economy is now flatlining. Survey after survey is showing that business confidence has simply evaporated, and at the Budget, the Chancellor hiked up taxes, increased borrowing by an average of £32 billion a year across the forecast, and conveniently adjusted her fiscal rules to allow her to do so.

Higher debt and lower growth are understandably now causing real concerns among the public, among businesses and in the markets, and despite what the Chief Secretary has said about international factors, the premium on our borrowing costs compared with German bonds recently hit its highest level since 1990. With those rising costs, regrettably, the Government may now be on course to breach their fiscal rules. The Chancellor has committed to no further tax rises, so does the right hon. Gentleman stand by her commitment not to increase taxes even further? If so, does that mean that the public should expect cuts to public service spending if the OBR judges that her fiscal headroom has evaporated?

There are media reports that the Chancellor will make an emergency intervention to soothe markets, but with no confirmation that such a statement will occur in this House. Will the right hon. Gentleman confirm that any such statement will be made first to Members in this House? Rates on Government bonds ultimately feed through to the broader credit market, so what estimates has the Treasury made of how recent market movements will impact mortgage costs and lending across the economy?

I will make one final point, Mr Speaker. Every pound that we spend on debt interest is money that we cannot spend on the public’s priorities. The Government’s decision to let rip on borrowing means that their own tax rises will end up being swallowed up by higher borrowing costs, at no benefit to the British people. Far from this Government laying the foundations for a stronger economy, the Chancellor is squandering the endeavours of millions of hard-working people up and down our country, who are now having to pay the price for yet another socialist Government taxing and spending their way into trouble. Does the right hon. Gentleman not now accept that it is time to change course?

[Darren Jones]

I am pleased that the right hon. Gentleman enjoyed my performance—I have not even had my first cup of coffee yet this morning. Let me answer some of his questions. [Interruption.] Conservative Members might like to listen, if the questions are so important to them.

The right hon. Gentleman asked me about the fiscal rules. As I said in my statement, those rules are non-negotiable. As the Chancellor set out at the Budget, we have two fiscal rules: first, that day-to-day spending should be met by tax receipts, and secondly, that debt should be falling as a share of the economy.

The right hon. Gentleman talked about the debt burden that this country has. Maybe we should reflect a little on why we have so much debt—[Interruption.] From pre-pandemic, Mr Speaker. Let us look at the burden of debt inherited by this Government from the Conservatives. From 2010 onwards, why did the last Government have to borrow so much money every single month, not just to invest but to pay the day-to-day bills? Because of an absolute failure to get growth into the economy. They could not make the numbers add up. They stacked up the country’s credit card and left it to the Labour party to deal with, and we are going to deal with it. That is why those fiscal rules are non-negotiable, and it is why public spending will be within the numbers set out at the Budget.

We are starting the spending review now, and it will conclude in June. Public services will have to live within their means—the Chancellor has been very clear about that. That is why with this Government, you get economic stability and absolute clarity on public spending. That is why the British people trust this party and booted that lot out of office.

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

We all know that fiscal rules and certainty are vital for the markets and the good stewardship of the public finances, so will the Chief Secretary to the Treasury explain what process he will be going through as he conducts the spending review, and what notice he will give to Departments about extra cuts that they may have to make in order to meet the fiscal rules? In addition, when the Chancellor comes in front of the House for the OBR forecast in March, will she be making a fiscal statement at that point?

[Darren Jones]

I thank the Chair of the Select Committee for her question. As the House knows, we have started the second phase of the spending review, to set public sector budgets from 2026-27 onwards. The Chancellor confirmed in a written ministerial statement before the House rose for Christmas that there will be a forecast from the OBR and a statement on 26 March. As I said in my response, that will be the next time the OBR will give a view about the UK economy and the levels of funding for public services. Between the OBR forecast in March and the conclusion of the spending review in June, the House will be updated in the normal way.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Darren Jones]

My hon. Friend knows very well that this Government’s approach has been about stability, investment and reform: the stability we have brought following the chaos of the years under the Conservative party, as has been recognised by the British people and by the markets; the investment we have been unlocking, from our global investment summit all the way through to the work we have been doing in the Budget and since; and the reforms we are bringing forward—for example, planning reform—to make sure we can deliver infrastructure better in this country and unlock the investment that private capital has wanted to put forward in the UK for many years, but could not because of the chaos from the Conservatives when they were last in government.

[Mr Speaker]

I call the Father of the House.

--- Later in debate ---

[Mr Speaker]

Order. Mr Stuart, I need no advice from you. I think you are on the Panel of Chairs, and I need to see some better behaviour if you are going to stay on it.

[Darren Jones]

Thank you, Mr Speaker. It is important, when you are paid by the House, to act responsibly; I agree with you.

My hon. Friend the Member for Rugby (John Slinger) makes a really important point, and Conservative Members who have their head in their hands may wish to listen to him. It will be important for the Conservatives to apologise for their behaviour before the British people start listening to them again, but for as long as they wish to grunt and groan and claim that everything was wonderful, the better for us, so long may it continue.

Oral Answers to Questions

Debate between Lindsay Hoyle and Darren Jones

Tuesday 3rd December 2024 Commons Chamber

[Mr Speaker]

Minister, you’re running out of road.

[Darren Jones]

The Government will always support local authorities to deliver good value for money road enhancements to support economic growth and improved connectivity. The Norwich western link road is currently the subject of a live planning application, so I am afraid that I cannot comment further on the specifics.