Government Performance against Fiscal Rules

Meg Hillier Excerpts

Monday 7th July 2025 Commons Chamber

[Darren Jones]

I think the House knows what losing control of the public finances looked like, because under the previous Conservative Government interest rates went through the roof, families were paying higher mortgage rates and the Chair of the Treasury Committee was calling out the irresponsible behaviour of Liz Truss and her Ministers in the Treasury. That is what losing control of the public finances looked like and that is why the Conservative party lost control of Government and is in opposition today. The right hon. Gentleman asked me to comment on forecasts of annually managed expenditure and on future tax decisions. He knows how this works. All of that will happen with a forecast and a Budget, which will happen in the autumn.

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

We all know why the Government want to keep their fiscal rules tight, because we know what happens when the markets go wrong, but a lot of things have rocked the country since the Labour Government were elected a year ago. Will the Chief Secretary explain to our constituents what the benefits of the fiscal rules are for them in their day-to-day lives? This can seem a very remote and distant discussion for people who are living in overcrowded conditions or who need healthcare, for example.

[Darren Jones]

I thank the Chair of the Treasury Committee for her question. The way I would describe it to the public is that when the Government lose control of the public finances, as the Conservative party did in government, it affects not only the accounts in the Exchequer and the Treasury but the family finances in every house across the country. People are still paying for the consequences of the last Government not sticking to their fiscal rules and acting irresponsibly. That is why our fiscal rules are non-negotiable, and we will stick to them.

Oral Answers to Questions

Meg Hillier Excerpts

Tuesday 1st July 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Treasury Committee.

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

The Economic Secretary is reviewing the work of the Financial Ombudsman Service. We on the Treasury Committee recognise that there have been challenges with the service, but how will she make sure that the consumer voice is central to her review?

[Emma Reynolds]

I have had meetings with Which? and other consumer representatives. I reassure my hon. Friend that we are reviewing FOS. We want to make sure that it is a simple, impartial dispute resolution service that quickly and effectively deals with complainants so that consumers can get a fair deal, but that financial services firms are not subject to a quasi-regulator in the way they are at the moment.

Spending Review 2025

Meg Hillier Excerpts

Wednesday 11th June 2025 Commons Chamber

[Madam Deputy Speaker (Judith Cummins)]

I call the Chair of the Treasury Committee.

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

I congratulate my right hon. Friend on delivering this spending review—the first zero-based review in a very long time. It is vital that as taxpayers—the citizens—are looking carefully at their spending in this cost of living crisis, that Government do that too. We look forward to having the Chief Secretary to the Treasury before the Committee in two weeks’ time to consider the review in more detail.

I note from the figures that the Chancellor has made a good fist of ensuring that Departments have more than they did under the Conservatives in many cases, and I welcome her work to deliver on tackling child poverty, a scourge on our society. I note from my brief glimpse, however, that there is a smaller increase for the Ministry of Housing, Communities and Local Government than there would have been—there is the £39 billion over a decade for affordable social housing. Children living in poverty also face poverty of situation in many cases. Will she expand on how she and the Deputy Prime Minister will deliver that money to provide the social housing that so many children in poverty desperately need?

[Rachel Reeves]

I appreciate my hon. Friend’s welcoming of the breakfast clubs, free school meals and the capping of school uniform costs, which will help families living in poverty. The free school meals will, as she knows, lift 100,000 children out of poverty. She mentions the affordable homes grant, which will have its biggest ever increase. We have set that budget for 10 years to give certainty to the sector, so that it understands what is available. In addition, we have set out some social rent changes to give certainty to the sector to invest for the future.

Regional Growth

Meg Hillier Excerpts

Wednesday 4th June 2025 Commons Chamber

[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.

Oral Answers to Questions

Meg Hillier Excerpts

Tuesday 20th May 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Treasury Committee.

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

Yesterday, there was a lot of coverage of the Chancellor’s comments about the ISA limit. She pledged to keep it at £20,000 but did not specify how much within that would be cash and how much would be investments. Can the Minister reassure me that she is seriously considering the impact on the mortgage-lending market of changing the cash ISA limit?

[Emma Reynolds]

As we announced in the spring statement, we are looking for options for ISA reform to ensure that we get the balance right between cash and equities. I can reassure my hon. Friend that we understand that cash savings are a vital tool for people and act as a financial buffer for a rainy day.

Oral Answers to Questions

Meg Hillier Excerpts

Tuesday 8th April 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Treasury Committee.

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

Since the spring statement the world has been rocked by the announcements by President Trump on tariffs last week. It is an event as significant as the financial crisis of 2008, or perhaps as covid, and in those instances the state unleashed everything it could to try to resolve those issues. Is the Chancellor considering changing any of her rules to ensure that everything that the state can throw at this problem is being done?

[Rachel Reeves]

It is incredibly important to retain cool heads at this moment. The tariffs have been imposed, and we are working closely with our friends and counterparts in the United States to reduce the impact from those, not just in the UK but around the world as well. As I said in my opening remarks, at the same time we are looking to secure better trading relationships with some of our biggest trading partners around the world. Of course, as we did yesterday, we are looking at some of the sectoral responses, including on life sciences, automotives and steel, but the fiscal rules are very important for giving our country the stability it needs. We saw what happened when the previous Government lost control of the public finances: it resulted in interest rates going through the roof, meaning higher costs for businesses and for working families. We will not make those mistakes. That is why the fiscal rules are non-negotiable and stability for this Government is sacrosanct.

Spring Statement

Meg Hillier Excerpts

Wednesday 26th March 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Treasury Committee.

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

My right hon. Friend inherited a very difficult challenge when she became Chancellor of the Exchequer last July, and she is absolutely right that the books need to balance. This is not other people’s money we are spending, but taxpayers’ money—our constituents’ hard-earned money—and she is right to be tough as Chancellor. We look forward to quizzing her at the Treasury Committee next week, and I am sure she is looking forward to it just as much.

The Chancellor announced an extra £2 billion a year in capital spending, and she talked about extra defence spending. Could she give some more detail about where she hopes that extra £2 billion a year will go?

[Rachel Reeves]

I thank my hon. Friend for that question, and I do indeed look forward to attending the Treasury Committee next week. I was pleased to serve on the Treasury Committee in the past, and it is a pleasure to give evidence to it.

We will set out in the spending review—my right hon. Friend the Chief Secretary will set out in the spending review—the allocation of the additional capital money. However, I was able to announce today the £2.2 billion for defence from next year, as well as the £2 billion as a downpayment to build the affordable and social housing that we need. Those are two examples of the priorities of this Government to get Britain building and to secure our national security.

Oral Answers to Questions

Meg Hillier Excerpts

Tuesday 4th March 2025 Commons Chamber

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

We all know how important it is to encourage savings, because so many people are a paycheque away from poverty, but there has been a lot of discussion about lazy capital in cash-only ISAs, for example, and other savings accounts. I know there is a drive by Government to see greater investment. Would the Minister like to expand on the Government’s thoughts on that? In particular, can she make any comments about the security of the cash ISA?

[Emma Reynolds]

Cash savings provide a vital source of savings for a rainy day, and we recognise that. Equally, we want to build a better investment culture in our society, so that it is not just the 8% of people who can afford financial advice who can have the opportunity of better rewards by investing in British companies and others in our economy.

--- Later in debate ---

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

It is right that the Government have put more money into defence. However, in answer to a previous question, the Chief Secretary to the Treasury said that there is an impact assessment of the overseas development budget. Does that mean that it is still in scope of the spending review and that there could be changes to that budget in June?

[Darren Jones]

Just to clarify, I did not say there was an impact assessment; I said that the impact of the changes is being considered by the Government, but we will set out the detail on that in due course.

Growing the UK Economy

Meg Hillier Excerpts

Wednesday 29th January 2025 Commons Chamber

[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.

Oral Answers to Questions

Meg Hillier Excerpts

Tuesday 21st January 2025 Commons Chamber

[Mr Speaker]

We have had the former Chair of the Treasury Committee, so let’s now have the current Chair.

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

My hon. Friend the Exchequer Secretary rightly said that small and medium-sized enterprises are a vital part of our high streets and our economy, and one of the biggest changes is, of course, the change to business rates. He was not tempted at the Select Committee last week to give more detail on the timeframe for that, but many businesses want certainty about business rates as they go forward. May I tempt him to give an indication of the Government’s thinking about how quickly this change might be introduced and whether the small business rate relief is likely to survive or to be subsumed into a new regime?

[James Murray]

I thank the Chair of the Select Committee for her questions. If she did not succeed in tempting me at the Select Committee, I doubt she will succeed today, but I can reassure her that the decisions we have set out about introducing the permanently lower business rate for RHL—retail, hospitality and leisure—properties below a £500,000 rateable value will be coming in from April 2026. Specifically in relation to small business rate relief, I can confirm that the Government are committed to retaining that. One of the options we are looking at in our “Transforming business rates” discussion paper is how to support businesses that want to expand into a second premises, thereby growing the business, because at the moment there is the cliff edge where they lose small business rate relief.