Mortgage Market

Debate between Louie French and Andrew Griffith

Tuesday 13th June 2023 Commons Chamber

[Andrew Griffith]

I did not hear fully what the Member for Richmond Park aligned with Mid Bedfordshire was saying, but I am sure that residents in Mid Bedfordshire have welcomed the stability that we have brought to the economy and the fact that we have supported householders through the past two difficult years, making tough decisions and supporting households to the tune of about £3,300. They will also have welcomed the fact that we have the sort of responsible stewardship of the economy that means that we are not a Government who have historically left power with unemployment higher than when we arrived, leaving notes saying, “There is no money left.”

[Mr Louie French (Old Bexley and Sidcup) (Con)]

My hon. Friend is correct to highlight that we are facing international challenges and that monetary policy is the responsibility of the independent Bank of England. However, does he agree that Labour’s £90 billion-worth of unfunded spending commitments would make inflation and the cost of borrowing even worse?

[Andrew Griffith]

I thank my hon. Friend the Member for wonderful Old Bexley and Sidcup (Mr French) for that. I recall that last October Opposition Members were never shy of citing the Institute for Fiscal Studies, but they do so much less today, because the IFS has said that Labour’s £28 billion borrowing plan would cause both interest rates and inflation to rise. I do not see how that would help the nation’s mortgage holders.

Oral Answers to Questions

Debate between Louie French and Andrew Griffith

Tuesday 9th May 2023 Commons Chamber

[Andrew Griffith]

My hon. Friend is a doughty champion for his constituents. The Office for Budget Responsibility this year does expect food, tobacco and alcohol inflation to fall significantly, and that is not all. The Government recognise the challenges facing households due to the elevated cost of living in general, including food, so we took action at the spring statement to support struggling families. Taken together with previous action, support to households to help with bills is worth an average of £3,300 a year across this year and next.

[Mr French]

The Government are absolutely right to prioritise reducing inflation given the significant impact it is having on families and businesses across the country. I welcome the support that the Minister has just outlined for families in my constituency of Old Bexley and Sidcup. Can he confirm what assessment has been made by the Treasury of the impact of more than a decade of abnormal monetary policy following the global financial crisis?

[Andrew Griffith]

As my hon. Friend knows, monetary policy is the responsibility of the independent Monetary Policy Committee and the Bank of England. We will continue to work closely with them to ensure that monetary and fiscal policy are well co-ordinated. The Chancellor reconfirmed the inflation target of 2% at the autumn statement and confirmed that this Government will not change the target.

Silicon Valley Bank

Debate between Louie French and Andrew Griffith

Monday 13th March 2023 Commons Chamber

[Andrew Griffith]

The Government are always committed to steadying the ship. That is why we take a prudent approach to running the economy and why the Prime Minister’s priorities are to reduce inflation, to pay down debt and to grow. To grow requires capital. That is why we have a long-term commitment to good regulation, which will minimise the prospect of events like this happening again. It is also why, with the expertise on the Government Benches, we are so focused on ensuring that we have the right ecosystem to allow our brilliant entrepreneurs, our scientists and our innovators the fertile capital with which to grow to their potential.

[Mr Louie French (Old Bexley and Sidcup) (Con)]

For transparency, I draw hon. Members’ attention to my former career in the City, as per my entry in the Register of Members’ Financial Interests. I welcome the swift and decisive action by His Majesty’s Government in solving this issue and in reducing the risk of potential contagion to the wider economy. Will my hon. Friend ensure that sufficient regulatory work is taking place to stress-test the liquidity of UK banks and the Government bond markets, given the clear risk highlighted by this case and by the leverage in recent liability-driven investment cases?

[Andrew Griffith]

Yes, I can give my hon. Friend and the House that commitment. We will learn lessons if there are lessons that need to be learned, but we should not look past the fact that today we have protected customers, protected the taxpayer and protected the security of the financial system. That is so important to our businesses. Many, many people will go home from work today much more confident, with the jeopardy of the weekend having been removed as a result of the decisive action that this Government have taken.