Oral Answers to Questions

Lisa Smart Excerpts

Tuesday 20th May 2025 Commons Chamber

[Rachel Reeves]

The hon. Lady will know that in the Budget, at a cost of about £1.5 billion, we were able to extend business rates relief, which was due to end entirely under the plans we had inherited from the Conservative party. As she will also know, we are reforming the way in which business rates work so that there are permanently lower rates for hospitality and retail sectors, particularly on our high streets.

[Lisa Smart (Hazel Grove) (LD)]

4. What progress she has made on updating the Green Book.

[Markus Campbell-Savours (Penrith and Solway) (Lab)]

12. What comparative assessment she has made of the potential impact of rules for assessing value for money in public spending on levels of funding allocated in the south-east and the north of England.

[The Chancellor of the Exchequer (Rachel Reeves)]

In January, I announced a review of the Green Book to ensure that it is supporting fair, objective and transparent advice on public investment across the country, and I am working closely with our mayors, particularly Steve Rotheram, who has championed this issue. Since January, the Treasury has been in conversation with over 70 different organisations and individuals regionally and nationally to identify areas where we can make changes to the Green Book and champion investment in the north of England.

[Lisa Smart]

Bear with me on this, Mr Speaker. The previous Conservative Government did not get absolutely everything wrong. They rightly identified that Treasury spending was a powerful tool to rebalance our economy in favour of areas like ours in the north of England. They then failed to deliver, and voters delivered their verdict at the ballot box. This Government have the opportunity to use this powerful tool and ensure that regional disparities are not further entrenched when they look at the Green Book. What reassurance can the Chancellor give my constituents that projects such as repairing Stepping Hill hospital, or bringing the tram-train to Marple, will get a fair crack of the Treasury spending whip?

[Rachel Reeves]

I totally agree with the hon. Lady. The plans that we inherited from the Conservative party saw capital spending decline as a share of GDP, which is totally the wrong decision if we want to grow the economy and improve prospects in towns and cities across the north of England. Over the course of this Parliament, we are putting £113 billion more into capital spending so that we can build the road and rail infrastructure, the energy infrastructure, the digital infrastructure and the housing that our country desperately needs. Under our reforms to the Green Book, we will make sure that we get more investment to the places that need it, including towns and cities in the north of England.

--- Later in debate ---

[Rachel Reeves]

I very much agree, but what is truly extraordinary is that the Conservatives, Reform and the Scottish National party have voted against or abstained on the Planning and Infrastructure Bill, and they do not support any of the trade deals that we have secured to support working people in our country.

[Lisa Smart (Hazel Grove) (LD)]

T5. My Hazel Grove constituents are content to pay their fair share of tax, but they are understandably disappointed when His Majesty’s Revenue and Customs overcharges and then ghosts them. Gail from Romiley is a foster carer who was owed a tax repayment. She repeatedly contacted HMRC over a nine-month period, but it was only when my superstar casework team got involved that she got a £1,200 rebate. What assurance can Ministers give my constituents that HMRC is adequately resourced to give them the support they need to pay their fair share of tax?

[James Murray]

I am sorry to hear about the experience of the hon. Lady’s constituent. To reassure her and her constituent, one of my priorities as chair of the HMRC board is to improve HMRC’s day-to-day performance. We have seen the percentage of telephony adviser attempts handled go from 59% last March to 80% this March. It will remain a priority for me to modernise and digitise the service.