Budget Resolutions

Lucy Rigby Excerpts

Thursday 29th October 2026 Commons Chamber

[The Economic Secretary to the Treasury (Lucy Rigby)]

I thank all right hon. and hon. Members for their contributions to this Budget debate. It is an honour to respond on behalf of the Government.

Yesterday, the Chancellor delivered a Budget that will steer Britain through a period of global volatility and the economic storm that has increased pressures on families and firms across this country. It is a Budget that doubles down on our fiscal discipline, and that strengthens our economic resilience and national security, making responsible choices in an uncertain world. It is a Budget that offers households and businesses breathing space from cost pressures in the here and now, and one that makes critical structural changes that will drive our future prosperity.

Over the course of the debate, the Defence Secretary and Labour Members, including my hon. Friends the Members for Buckingham and Bletchley (Callum Anderson) and for Blaydon and Consett (Liz Twist), have rightly emphasised the importance of our commitment to fiscal responsibility, which underwrites every promise this Government make to the British people. As was made clear yesterday, in this Budget the Chancellor has met his fiscal rules, and for the first time this Government are meeting them in the third year of the forecast. The headroom against the stability rule is £15 billion, rising to £22 billion in 2030-31. Last year, we cut borrowing to its lowest level in six years, and the OBR’s economic and fiscal outlook confirms that borrowing will fall over the forecast.

Madam Deputy Speaker, you will forgive Government Members for taking the advice of the shadow Chancellor, the hon. Member for Arundel and South Downs (Andrew Griffith), with not so much a pinch of salt, but a whole bucket of it, because not only is he the architect of the mini-Budget, but he maintained just a few weeks ago that the mini-Budget, as the Defence Secretary said, contained lots of good things. Perhaps the shadow Chancellor would like to tell us what those good things were. Were those good things the sky-high mortgages for millions of people right across this country, including in my constituency, the disastrous market impact, or the cratering of our international reputation?

Britain’s economic reputation was so badly damaged under the Conservatives that the IMF publicly warned them to change course. [Interruption.] You can tell that they do not like to be reminded of it, Madam Deputy Speaker. The shadow Armed Forces Minister, the right hon. Member for Rayleigh and Wickford (Mr Francois), does not like that either, because he was one of the mini-Budget’s chief architects and, indeed, one of its most ardent fans. The reality is that the contrast between their approach and ours could not be clearer.

[Dr Luke Evans]

Talking about structural problems and difficulties, a press release has just come out from the Labour party that says: “Exclusive. Chancellor tells Krishnan Guru-Murthy that Labour will not bring welfare bills down in this Parliament”. Does the Minister stand by that?

[Lucy Rigby]

We are reforming welfare, and the Prime Minister has made it clear today—[Interruption.] The welfare Budget ballooned under the Conservative party. The Prime Minister has been very clear today that the welfare bill will come down.

As I have said, the contrast between our approach and the Conservatives’ could not be clearer. The IMF forecast earlier this month that our deficit would be the lowest in the G7 by 2029. Fiscal strength matters because our economic security and our national security are inseparable. That is why this Budget strengthens Britain’s capacity to withstand global volatility. It funds the defence investment plan by reprioritising capital budgets, so that Britain can respond to a more dangerous world. It also strengthens our defence industrial base and supports skilled jobs across the country. As has been pointed out by the right hon. Member for Maldon (Sir John Whittingdale) and the hon. Member for Edinburgh West (Christine Jardine), it also—

[Steve Barclay]

On a point of order, Madam Deputy Speaker. The Economic Secretary has just said at the Dispatch Box that the welfare bill will come down. The BBC has been reporting, following the Chancellor saying the same thing this morning, that No. 10 and the Treasury have informed the media that that is not the case, and the welfare bill will not be coming down. How do we ensure that the House gets the true position, because it is rather hard to keep up when the message keeps changing?

--- Later in debate ---

[Lucy Rigby]

Let me talk now about energy security, because it is part of our national security, too. We are reforming our energy system so that Britain is less exposed to volatility. We will freeze new policy costs on bills, pending a comprehensive cost control framework. We are accelerating investment in the grid and we are procuring clean power only where it lowers bills and can connect properly.

When it comes to our public services, this Government have stabilised spending after years of under-investment by the Conservative party.

[Mr Francois]

I am sure the right hon. and learned Lady can confirm to the House that she is a Treasury Minister. I have here the press release issued by—the Treasury—which says, “Exclusive. Chancellor John Healey tells Krishnan Guru-Murthy Labour will not bring welfare bill—”

[Mr Francois]

I apologise, Madam Deputy Speaker. I was reading the press release, but I accept your admonition.

Anyway, it says that the bloke who is in charge of the Treasury has told Krishnan Guru-Murthy that Labour will not bring the welfare bill down in this Parliament and the Economic Secretary to the Treasury—to give the right hon. and learned Lady her correct title—has just said that it will. Who is right? Is it the right hon. and learned Lady, or is it her boss? They cannot both be, can they?

[Lucy Rigby]

The Prime Minister confirmed earlier today that we will bring the welfare bill down as soon as possible. I am very happy to confirm that.

As the Chancellor said yesterday, when it comes to public services we will insist on reform, prioritisation and value for money. That is what resilience looks like: sound public finances, secure energy, strong defence and a state that is able to act when the country needs it to.

As hon. Members have made clear, including my hon. Friends the Members for Gloucester (Alex McIntyre), for Shipley (Anna Dixon) and for Leeds South West and Morley (Mark Sewards), the measures in the Budget will provide breathing room for families and businesses now, while also helping to bring bills down over the long term. We know that energy pressures are not just felt by families but by businesses, too. That is exactly why we are increasing the small business rate relief threshold for retail hospitality and leisure properties, taking around 70,000 more businesses out of business rates altogether. For other businesses in the sector, rates will be frozen in real terms for two years.

We are supporting high streets and the businesses that give them life. We are backing pubs, clubs and music venues. We are reducing the supply-side barriers that firms repeatedly tell us hold them back: energy costs, slow infrastructure decisions, red tape and access to finance. And because of our commitment to fiscal responsibility, all those measures are fully funded.

[Anna Dixon]

I thank my right hon. and learned Friend for her closing remarks and for responding to the points raised during the debate. Will she confirm that business rates relief will not apply to the vape shops that are popping up on our high streets and blighting them?

--- Later in debate ---

[Lucy Rigby]

I can.

On that commitment to sound finances, our plan is to double down on the conditions that will allow for the growth that will drive this country’s future prosperity. We are determined that Britain will be an even better place to start a business, to scale it and then to stay. A new founders’ relief will offer a 10% capital gains tax rate on eligible lifetime gains of up to £10 million for founders of high-growth companies. We are doubling the CSOP—company share option plan—limits and we are tripling the trading allowance, too.

Recognising that artificial intelligence is the defining technology of our time—it is already turbocharging productivity—we are putting more than £700 million behind making it safer, more secure and easier to adopt. I am pleased to confirm to the hon. Member for North Cotswolds (Sir Geoffrey Clifton-Brown) that we will continue to safely adopt AI within the public sector, improving public services and productivity while securing better value for taxpayers.

The Chancellor also talked yesterday about significant change to our energy policy, because we know that affordable, secure energy is a platform for growth. By accelerating grid connection, controlling costs and lowering electricity bills, we will strengthen industrial competitiveness and unlock investment across the country.

We are putting our public finance institutions at the heart of Britain’s growth mission with an additional £20.4 billion of capital for the national wealth fund and the British Business Bank.

To conclude, in the first half of this year, our economy was the joint fastest growing in the G7, alongside the United States. The OBR has raised its forecast for growth this year. Whole economy investment, business investment and productivity are all up. That progress is being tested by global pressures, which is exactly why the Chancellor has delivered a Budget that will steer us through the storm. It is a Budget underpinned by fiscal discipline, it provides support to families and firms now, it will strengthen our resilience, and it will put this country on the better, more secure and more prosperous course that the British people deserve.

Ordered, That the debate be now adjourned.—(Liam Conlon.)

Debate to be resumed on Monday 2 November.

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