Marco Longhi
Main Page: Marco Longhi (Conservative - Dudley North)Department Debates - View all Marco Longhi's debates with the HM Treasury
(2 years ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Chris Philp
The reason that, on the second day of the new Government’s term in office, we brought forward the energy price guarantee was to protect consumers and in effect lower inflation by 5% compared with where it would otherwise be. We legislated at pace yesterday to alleviate the burden of the national insurance increase, which Opposition Members enthusiastically voted for. In terms of markets, as I said, we are in regular contact with the Bank of England and have complete confidence in its ability to manage systemic financial stability.
Marco Longhi (Dudley North) (Con)
The funds made available by the Bank of England to purchase gilts were described by the shadow Chancellor as taxpayers’ money. I find that confusing. My understanding—I am not an economist—is that those funds are not taxpayers’ money and that, in fact, the Bank of England may even make a profit from the actions that it takes on the markets. Different people will have different views about whether the Bank of England’s intervention is appropriate action, but does the Chief Secretary agree that it is completely wrong for the shadow Chancellor to describe those funds as taxpayers’ money?
Chris Philp
It is not taxpayers’ money in the sense that the phrase suggests. There is a fiscal indemnity so that any profit or loss will end up flowing back to the Exchequer, but, as I said to my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami), whether that is crystallised depends on market prices. I point out that the volume of gilts so far purchased is considerably less than the limits that were set out.