UK-China Economic and Financial Dialogue

Nick Timothy Excerpts

Tuesday 14th January 2025 Commons Chamber

[Rachel Reeves]

This is the first economic and financial dialogue between our two countries since 2019. Since then, other countries around the world have continued to engage with China, securing tangible benefits for their economies. I do not want UK businesses and the people working in our country to miss out, which is why this weekend we secured £600 million-worth of tangible benefits for businesses that export to China, thereby helping to create more good jobs paying decent wages in our country.

[Nick Timothy (West Suffolk) (Con)]

I am slightly worried that investors will be watching this statement and wondering what planet the Chancellor is on. She just said that she is investing in transport infrastructure, but she is actually cutting transport capital budgets. She has previously said that she wants only one Budget a year, and the March statement is billed only as a fiscal forecast. Can she rule out any new tax rises or departmental spending cuts in the March statement, or will the fiscal forecast become an emergency Budget?

[Rachel Reeves]

We have committed to having just one Budget a year to provide businesses with the certainty they need to invest, so we will have an update from the Office for Budget Responsibility in March. I also give the commitment that, as I have already said, the fiscal rules mean we will balance day-to-day spending with tax receipts, and we will get debt down as a share of GDP within the forecast period. We will continue at all times to meet those fiscal rules.