Oral Answers to Questions

Rachel Reeves Excerpts

Tuesday 20th May 2025 Commons Chamber

[Graham Stuart (Beverley and Holderness) (Con)]

3. What assessment she has made of the potential impact of the autumn Budget 2024 on costs for businesses.

[The Chancellor of the Exchequer (Rachel Reeves)]

The Government considered all the policies in the autumn Budget carefully, in the context of the difficult fiscal inheritance that we had received from the Conservative party. The decisions to increase employers’ national insurance contributions and reduce the secondary threshold were taken to stabilise the public finances and ensure that money was available for our crucial public services, especially the national health service.

[Graham Stuart]

Johnson’s of Hedon, a DIY store, has traded successfully for 56 years, but its owner Mike Brooke, who has run it throughout that time, says that the national insurance hike introduced by the Chancellor has finally made the business unviable. Was the cruel destruction of Johnson’s of Hedon, and the jobs that it provides, deliberate or an accident?

[Rachel Reeves]

The money from national insurance—which, of course, only came in last month—is being used to fund investment in the national health service. Since the general election we have delivered 3 million additional NHS appointments, which benefits constituents in East Yorkshire and throughout the country. As for supporting business, the trade deal that we secured with the European Union was welcomed yesterday by the Confederation of British Industry, the Food & Drink Federation, the Institute of Directors and others, because it will add about £9 billion to the size of the UK economy.

[Mr Speaker]

I call the shadow Chancellor of the Exchequer.

[Sir Mel Stride (Central Devon) (Con)]

Only last week the right hon. Lady was trumpeting that the economy had turned a corner, but, as she has just said, it is barely a month since her disastrous jobs tax started to bite. May I ask her precisely which business confidence survey—just one—she can point to which supports her assertion that everything is coming up roses?

[Rachel Reeves]

According to PwC’s global CEO survey—that is just one of the surveys—Britain is the second-best place in the world in which to invest, and that is what this Government are doing. The shadow Chancellor simply is not serious, and his party is becoming completely irrelevant. He talks about jobs; 200,000 jobs have been created since the general election. He talks about economic growth; the UK is now the fastest-growing economy in the G7. He talks about business; we have secured three trade agreements which are backed by British businesses and British trade unions, and the Conservative party opposes every single one of them. No wonder even George Osborne has said that the shadow Chancellor has “no credible economic plan”. While the Conservative party plummets into irrelevance, this Labour Government will deliver in the national interest.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Daisy Cooper (St Albans) (LD)]

In the Budget the Government reduced business rates relief, which is hitting small businesses hard. Under current plans, in the next financial year small independent businesses could see their rates go up by 80% and chains could see theirs go down by 40%. I have shared that analysis with Ministers; will the Chancellor please promise that she will look at it personally to ensure that this—I think—unintended consequence does not come to pass and independent businesses do not close, leaving even more of our high streets looking the same?

[Rachel Reeves]

The hon. Lady will know that in the Budget, at a cost of about £1.5 billion, we were able to extend business rates relief, which was due to end entirely under the plans we had inherited from the Conservative party. As she will also know, we are reforming the way in which business rates work so that there are permanently lower rates for hospitality and retail sectors, particularly on our high streets.

[Lisa Smart (Hazel Grove) (LD)]

4. What progress she has made on updating the Green Book.

[The Chancellor of the Exchequer (Rachel Reeves)]

In January, I announced a review of the Green Book to ensure that it is supporting fair, objective and transparent advice on public investment across the country, and I am working closely with our mayors, particularly Steve Rotheram, who has championed this issue. Since January, the Treasury has been in conversation with over 70 different organisations and individuals regionally and nationally to identify areas where we can make changes to the Green Book and champion investment in the north of England.

[Lisa Smart]

Bear with me on this, Mr Speaker. The previous Conservative Government did not get absolutely everything wrong. They rightly identified that Treasury spending was a powerful tool to rebalance our economy in favour of areas like ours in the north of England. They then failed to deliver, and voters delivered their verdict at the ballot box. This Government have the opportunity to use this powerful tool and ensure that regional disparities are not further entrenched when they look at the Green Book. What reassurance can the Chancellor give my constituents that projects such as repairing Stepping Hill hospital, or bringing the tram-train to Marple, will get a fair crack of the Treasury spending whip?

[Rachel Reeves]

I totally agree with the hon. Lady. The plans that we inherited from the Conservative party saw capital spending decline as a share of GDP, which is totally the wrong decision if we want to grow the economy and improve prospects in towns and cities across the north of England. Over the course of this Parliament, we are putting £113 billion more into capital spending so that we can build the road and rail infrastructure, the energy infrastructure, the digital infrastructure and the housing that our country desperately needs. Under our reforms to the Green Book, we will make sure that we get more investment to the places that need it, including towns and cities in the north of England.

[Markus Campbell-Savours]

I am grateful to have secured Thursday’s Adjournment debate on the A66 road improvement project—a key transport link between Cumbria, the north-east and North Yorkshire. Cumbria is a long way from Westminster, and many of us fear that the economic case for major projects is stacked in favour of the economically active south-east. Can the Chancellor reassure me that Cumbria will not be disadvantaged when key public spending decisions are taken?

[Rachel Reeves]

My hon. Friend is a staunch defender of his constituency and region. We will make decisions at the spending review, which we will publish on 11 June, but as a proud northern MP, I am absolutely determined that the north gets its fair share of investment.

[Jessica Toale (Bournemouth West) (Lab)]

5. What steps she is taking with Cabinet colleagues to support growth in the night-time economy.

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[Nick Timothy (West Suffolk) (Con)]

6. What assessment her Department has made of the potential impact of the double contributions convention in the UK-India free trade agreement on levels of tax revenue.

[The Chancellor of the Exchequer (Rachel Reeves)]

The trade deal that we have secured with India adds around £5 billion to the UK economy. On social security contributions, if somebody who works for an Indian business is posted to the UK, or someone from a UK business is posted to India, they will not pay two lots of contributions: if you are paying into the Indian provident fund in India, you will not be paying national insurance contributions here; and if you are paying national insurance contributions here, you will not be paying into the Indian provident fund. On top of that, to come to the UK to work from India you will need to pay just over £3,000 for the NHS surcharge to be able to access those services and £769 in visa fees, contributing to the UK Exchequer.

[Nick Timothy]

I note that the Chancellor did not actually address the point of the cost to the Exchequer of the double contributions convention, which the Government has agreed with India. Indian workers sent here by their employers on intra-company transfers cost more in taxes than British workers, but that flips under this deal: Indian workers will be taxed less and cost less to employ than British rivals for doing the same jobs. That will not only cost the Treasury lost revenue, which the Chancellor did not admit, but displace British workers, suppress wages and increase immigration. Will the Chancellor commit now to monitoring the effects of the agreement and, if the data shows any of that happening, promise to scrap this charter for immigration with India?

[Rachel Reeves]

This deal is worth £5 billion to the UK economy, and it also benefits British workers being posted by their company to work in India. The Conservatives are now in the absurd situation of opposing the US deal, the India deal and the deal with the EU. They are simply not serious. The India deal reduces tariffs on Scotch whisky by more than half and brings into the UK more good jobs paying decent wages—the Conservatives seem to be against that.

[Chris McDonald (Stockton North) (Lab)]

Special steels business Paralloy in Billingham, in my constituency, has told me that uncertainty on international trade has recently left its customers running for the hills. Does the Chancellor of the Exchequer agree that now we have trade deals coming along like buses—with India, the US and the EU—we can offer reliability and confidence to important local businesses such as Paralloy that want to export to the world?

[Rachel Reeves]

Steel is one of the sectors that will benefit particularly from the trade deals this Government have secured, freeing ourselves of tariffs on steel going into the US. Indeed, the deal we secured with the EU yesterday means that we avoid tariffs on steel being sold into European markets, as well as now being exempt from the European carbon border adjustment mechanism, which is good for steel and good for jobs right across Britain.

[Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)]

8. What steps she is taking with Cabinet colleagues to ensure cross-departmental planning in the development of the spending review.

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[Andy MacNae (Rossendale and Darwen) (Lab)]

9. What steps she is taking to increase levels of funding for northern towns.

[The Chancellor of the Exchequer (Rachel Reeves)]

I was pleased to go with my hon. Friend to Darwen to visit the 100th banking hub, which was rolled out just a few months ago. We also visited the thriving Darwen market in one of his local towns. We will set out at the spending review how we will spend the £113 billion extra that we are putting in to capital spending, compared with the plans we inherited from the Conservatives. Of course, we will ensure that towns and cities, including across the north of England, benefit from that investment.

[Andy MacNae]

I thank the Chancellor for that answer—the Government’s commitment to the north is absolutely clear. We very much enjoyed our visit to Darwen market. At the same time, however, history tells us that small towns, like those that make up Rossendale and Darwen, can far too easily get left behind and not feel the benefits of major infrastructure investment, despite being the very communities that need to see and feel change the most. Does the Chancellor agree that as we implement our investment and growth strategy, and deliver the review of the Green Book, we must put our left-behind communities first? As part of every major investment decision, we should ask the question: what does this do for our most deprived and left-behind neighbourhoods? It is only by targeting investment where it is needed most that we can ensure that every community feels the benefit of the growth that this Government will bring.

[Rachel Reeves]

My hon. Friend is a proud champion of the towns and villages of Rossendale and Darwen. We will make sure that we use our Green Book review to properly assess the benefit of all this Government’s investments. On top of that capital investment, the people of Rossendale and Darwen are benefiting from the 3 million additional appointments that we have delivered, which have led to reductions in NHS waiting lists, and also the increase in the national living wage, which will make working people in his constituency and across the country better off.

[Tim Farron (Westmorland and Lonsdale) (LD)]

The towns and villages of the lakes and the dales in Cumbria are proud to host 20 million visitors every single year—we are the UK’s biggest visitor destination outside of London—yet we get almost no support whatsoever for the costs incurred by those visitors on our highways and other infrastructure, health services and police. Will the Chancellor look at funding allocations to make sure that those services that support the residents and the visitors are properly funded?

[Rachel Reeves]

The Green Book reforms will ensure that we properly assess the benefits of investments in different parts of the UK, but the people of Cumbria and the lakes will benefit from the record investment in the NHS, the roll-out of nurseries and free breakfast clubs at primary schools, as well as the increase in the national living wage, from which many workers in sectors such as hospitality and retail in the hon. Member’s constituency will directly benefit.

[Mr Paul Foster (South Ribble) (Lab)]

One way to get Treasury officials to start focusing more on northern towns would be to move the Treasury up north. After experiencing our rail networks and our infrastructure, they may very quickly invest more money in the area. Are there any plans to move any Treasury offices to the north?

[Mr Speaker]

No. 11 Market Street, Chorley? [Laughter.]

[Rachel Reeves]

This Government have committed to increasing the proportion of civil servants who work in the north of England. But we already have a hub that we are expanding in Darlington, where eight Departments work, including officials from the Treasury. The Treasury is very mindful of the importance of investing right across the north of England—in Darlington, Leeds, Cumbria, Rossendale and Darwen and many other constituencies beside.

[Martin Vickers (Brigg and Immingham) (Con)]

The prosperity of northern towns is very much dependent on good transport connections. Will the Chancellor ensure that National Highways is adequately funded, so that it can improve access to the port and town of Immingham through improvements to the A180, and also that the Department for Transport has adequate funds to meet the modest amount that is needed to fund an extension of the King’s Cross to Lincoln train service through to Grimsby and Cleethorpes?

[Rachel Reeves]

I shall make sure that the Transport Secretary hears those requests, but the hon. Gentleman knows that our investment in British Steel, which will save that company, is set to increase the number of jobs there. That will make a massive difference to his constituents, as will the investment in renewable energy in the North sea, particularly around Immingham, creating good jobs and paying decent wages in his constituency and in many others, too.

[Patrick Hurley (Southport) (Lab)]

10. What steps she is taking through the spending review to help increase levels of economic growth.

[Gill German (Clwyd North) (Lab)]

14. What steps she is taking through the spending review to help increase levels of economic growth.

[The Chancellor of the Exchequer (Rachel Reeves)]

I know that my hon. Friend is working closely with the local Labour council in Southport to regenerate the local town centre, and we will make sure that this Government back him every step of the way.

[Patrick Hurley]

Whether it is the Marine Lake Events Centre, the Enterprise Arcade or the new Market Quarter in my Southport constituency, my town has benefited from state-led investment in neighbourhoods and the public realm. Does the Chancellor agree that investment policies of this sort are essential to driving economic growth in our regions and nations and will help us to finally turn the page on the failed austerity policies of the Conservative party?

[Rachel Reeves]

I absolutely agree, and that is why we have reversed the Conservatives’ decisions to cut capital spending. Instead, we are preserving that capital investment, which means spending £113 billion more on road, rail, energy, homes and digital infrastructure than would have been spent in the plans we inherited. We are also spending on day-to-day things, such as making sure that we have police on our streets, and working with our mayors, including Mayor Steve Rotheram, to ensure we get investment into the places that most need it.

[Jas Athwal]

Small businesses are the backbone of our economy. In Ilford South we have many small businesses, ranging from restaurants like Delhi O Delhi, Mr Bunns Bakery, tea shops like Mi Chaii to local shops like the Chopra convenience stores. They make Ilford an amazing place to eat, shop and do business. Will the Chancellor join me in commending the local businesses that make the high street the beating heart of Ilford South, and will she lay out what steps she is taking to support these entrepreneurs?

[Rachel Reeves]

At the Budget, we more than doubled the employment allowance to £10,500 to take many small businesses out of paying national insurance altogether. On corporation tax, we have maintained the small profits rate to help smaller businesses, and to help entrepreneurs raise finance and grow, the Government have extended the enterprise investment scheme and the venture capital trust scheme. I very much add my words of support to businesses across Ilford, and I commend the work my hon. Friend does to champion them.

[Gill German]

Clwyd North is a proud coastal constituency, home to a dedicated hospitality sector with many small businesses, including the recently opened Bobcats Coffee, where young entrepreneur Bobby is an example to us all. Economic circumstances have been tough after a decade of neglect by the Tories. Will the Chancellor outline the Treasury’s plans to support the small businesses that are such a vital part of our local economy?

[Rachel Reeves]

From the next financial year, this Government will introduce permanently lower rates for high street, retail, hospitality and leisure properties with rateable values below £500,000, and we are doing that exactly to support the sort of businesses that my hon. Friend champions.

[Harriet Cross (Gordon and Buchan) (Con)]

I draw attention to my entry in the Register of Members’ Financial Interests. Earlier this month, Harbour Energy announced that it would be cutting 25% of its onshore workforce, blaming the Government’s punitive fiscal position and challenging regulatory environment. When the news was announced, the Chancellor said that this was just a commercial decision by one company, so how does she explain the other energy sector jobs that have been lost in north-east Scotland in just the last few weeks? Belmar Engineering is entering liquidation, with 48 job losses. Well-Safe Solutions faces 45 job losses. Beam, a subsea technology company, has made all 200 staff redundant. With Harbour Energy’s cut of 25% of its workforce—250 jobs—we are talking about 600 jobs in total. How can the Chancellor explain that, and how will she support the industry in the spending review?

[Rachel Reeves]

My hon. Friend the Exchequer Secretary to the Treasury is working closely with businesses right across the energy sector. The previous Government increased the rate of tax on energy companies to 75%, and we increased it by three percentage points to 78%, reflecting the fact that energy companies have enjoyed huge profits since Russia’s illegal invasion of Ukraine. When people’s bills have gone up, it is right that we ask the energy companies making those profits to contribute a little more.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

What changes will the Chancellor introduce in the spring statement to compensate for the growth-threatening sword of Damocles she has just placed over the Scottish fishing industry? She should know, but probably does not, that 70% of revenue from fishing and aquaculture comes from Scotland, and she should know, but probably does not, that the fishing industry in Scotland is 50 times larger for Scotland’s economy than for the UK’s. Can she explain what discussions she had with the Scottish Fishermen’s Federation or the Scottish Government before making this damaging decision?

[Rachel Reeves]

I was very pleased that the Scottish salmon association welcomed the trade deal that we secured with the EU yesterday. Some 70% of the fish that is caught in UK waters is sold into European markets. That will now benefit from the sanitary and phytosanitary deal that we have secured within that deal. We have rolled over the deal that the previous Government secured, giving certainty to fishermen in Scotland and across the UK. We have made it easier for them to export into European markets. We have ensured that we can sell shellfish again into European markets, and we announced yesterday the £360 million package of measures to support coastal and fishing industries. The Scottish National party is now in an absurd situation where it supports Reform and the Tories in opposing the deal with the EU.

[Calum Miller (Bicester and Woodstock) (LD)]

I welcome the Chancellor’s answers on growth. She has been a strong champion of the Oxford-Cambridge growth corridor, but my constituents are concerned to know that she will lend her support to Lord Vallance’s efforts to join up across Departments and ensure that there is the social infrastructure to support the growth. My constituents worry that hospitals, schools and roads will not keep up with the ambitious pace that Lord Vallance is proposing.

[Rachel Reeves]

That is an opportune question, because I will be meeting Lord Vallance this afternoon to discuss the work he is taking forward on the Ox-Cam corridor to bring more good jobs, paying good wages, not only to Oxford and Cambridge, but, crucially, to the towns and cities in between. Some of the extra money we are putting into capital investment will absolutely be going to support the huge growth opportunities in that part of the world.

[Mr Speaker]

I call the shadow Minister.

[Richard Fuller (North Bedfordshire) (Con)]

Of course, the best way to improve economic growth is for this Chancellor to stop punishing businesses with higher taxes. Within the spending review, the key is to improve public sector productivity. As the Chancellor knows, one of the key aspects in doing that is the use of technology. This Government have substantial advantages over the next few years with major advances in artificial intelligence technology, but those can only be captured if the Treasury sets clear directions for Departments, including incentives and penalties. What directives has His Majesty’s Treasury given to Departments to improve productivity through the adoption of artificial intelligence? Specifically, does that advice include a requirement for the use of agentic AI during the multi-year spending period?

[Rachel Reeves]

I thought the hon. Gentleman was going to welcome the investment of Universal Studios in Bedfordshire, which will be a massive boon to the county’s economy.

On supporting the adoption of AI, we are doing two key things. First, we are supporting that sector investing in the UK, and the deal we secured with the US will help bring more investment into our digital sector. Secondly, and crucially, we are improving the productivity of our public services. The hon. Gentleman will see more about that when we publish the spending review on 11 June. We are absolutely determined to boost productivity in the public sector, after the mess in which it was left by the Conservatives.

[Munira Wilson (Twickenham) (LD)]

13. What steps she is taking through the tax system to support vulnerable families.

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[The Chancellor of the Exchequer (Rachel Reeves)]

Kick-starting economic growth is this Government’s No. 1 mission. From the next financial year, South Yorkshire combined authority will receive a single flexible funding pot through its integrated settlement, and the East Midlands combined authority will benefit from a new advanced manufacturing and logistics park, unlocking up to £1 billion of investment. Both areas will benefit from £240 million of investment towards trailblazers to tackle economic inactivity.

[Dr Tidball]

The speciality steel site at Stocksbridge in my constituency has a strategically significant, highly specialist capability to produce world-leading steel that is crucial to our national defence, aerospace and energy industries. The site employs 650 people and has an excellent skills training centre. I welcome the Government’s £2.5 billion commitment to our UK steel industry. What discussions has the Chancellor had with the Department for Business and Trade to ensure that the Government do everything they can to secure the British steel industry by using our domestic steel assets productively, and in particular the Stocksbridge speciality steel site?

[Rachel Reeves]

Although I will not get into detailed discussions about one individual company, last year the Government set out the £2.5 billion steel fund in the Budget to preserve and grow steel manufacturing in the UK. In the trade deals we have secured with the US and with the EU in the last couple of weeks, we have reduced tariffs on steel exports, which will be good for the British steel industry.

[Baggy Shanker]

Shockingly, in Derby South 62% of adults in the community are financially vulnerable, which is far above the national average of 38%. To lift people out of this vicious cycle, we need a growing economy, but for those who are worried about how they will make it to the next payday, dreading an unexpected bill or struggling to feed their family, the benefits of growth can feel miles out of reach. Will the Chancellor outline how her plan for growth will put money in people’s pockets and deliver change for those in our struggling communities?

[Rachel Reeves]

We will shortly publish a financial inclusion strategy, as well as extending the household support fund to support some of the most vulnerable. There are huge opportunities in Derby, as my hon. Friend knows. I was at Rolls Royce in Derby just last week. What we are doing on trade deals, particularly with the US, hugely supports our aerospace sector, along with the increased spending on defence to 2.5% of GDP, which helps to invest in Great British firms and, indeed, in Great British steel.

[Josh Babarinde (Eastbourne) (LD)]

I am aware that Derby’s economy was blighted last November by a foul smell said to be emanating from its local water treatment works. Similar is true of my constituency, due to the failure of Southern Water’s air scrubbing system. Will the Chancellor ensure that the spending review grants the Environment Agency the resources it needs to crack down on smell nuisances so that the water companies get a grip on the matter, for the benefit of local growth and our economy?

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[Rosie Duffield (Canterbury) (Ind)]

T1. If she will make a statement on her departmental responsibilities.

[The Chancellor of the Exchequer (Rachel Reeves)]

This Government are securing economic growth. Last week, the numbers published showed that the economy grew by 0.7% in the first quarter of this year, including an 8% increase year on year in investment spending. We are now the fastest-growing economy in the G7. Since the general election, there have been four cuts in interest rates, 200,000 jobs created and three trade deals secured. Britain’s economy is stronger, but I will continue to do everything in my power to ensure that working people are better off.

[Rosie Duffield]

Westminster is once again buzzing with the latest U-turns, speculation and briefings over the Chancellor’s policies on the winter fuel allowance and the two-child benefit cap. There is less of a buzz for the visitors to Canterbury food bank, however, which last month distributed enough food to make 13,545 meals, in a 47% rise on the same period last year. Will the Chancellor end the serious anxiety of those experiencing fuel and food poverty now and reverse those policies?

[Rachel Reeves]

The only reason that we have been able to grow the economy and get those cuts in interest rates, which help working families in Canterbury and right across our country, is because we have returned stability to our economy. That means never making a policy commitment without being able to say where the money comes from, which is what got our country into a mess under the previous Government. We have set out the policies that we needed to put investment into the NHS and secure our public finances.

[Tracy Gilbert (Edinburgh North and Leith) (Lab)]

T2. Last month, Firth Ports officially opened the Charles Hammond berth at the port of Leith, in a £100 million private investment to create Scotland’s largest renewables hub. Will my right hon. Friend join me in welcoming that investment in Leith and set out how she is working with Cabinet colleagues to ensure that green manufacturing and supply chain jobs are created in Scotland?

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[Sir Mel Stride (Central Devon) (Con)]

Will the Chancellor explain what the Economic Secretary to the Treasury meant last week when she said that there will be no tax rises on individuals at the autumn Budget? Will the Chancellor similarly confirm that there will be no tax increases on businesses?

[Rachel Reeves]

In our manifesto, we set out that we would not increase taxes on working people—that is, the income tax, national insurance or VAT that they pay. That is why we also reversed the previous Government’s decision to increase fuel duty, which would have had a disastrous effect on working people in our country. We will set out all other tax policy at the Budget.

[Sir Mel Stride]

What many up and down the country are asking is why that manifesto pledge not to impose taxes on working people was broken. Last week the Pensions Minister confirmed to the House that the Government would never interfere with the fiduciary duty of pension trustees to get the best return for their members, but when the Chancellor was questioned on that topic by Bloomberg the very same day, she said:

“I am never going to say never”.

This is chaos. The Government cannot even speak with one voice. It is clear that the right hon. Lady and the Pensions Minister cannot both be right, so will she now put the record straight?

[Rachel Reeves]

We have secured an agreement with the biggest pension companies to invest on a voluntary basis in UK unlisted equities and infrastructure, which is something the Conservatives never achieved. We are getting investment into British infrastructure and British businesses because that is the way to grow the economy and support working people.

[Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)]

T4. Will my right hon. Friend outline the steps being taken in the forthcoming spending review to ensure that increased defence spending will stimulate economic growth, so that supply chain companies, such as Collins Aerospace in my constituency, can continue to strengthen national defence capabilities while boosting our local economies, jobs and quality apprenticeships?

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[Daisy Cooper (St Albans) (LD)]

Yesterday the Chancellor said that she understands the concerns that some people have about the limit at which the winter fuel payment is removed. Does she therefore now agree that restricting the eligibility so tightly was a mistake?

[Rachel Reeves]

As the hon. Lady knows, when I became Chancellor last year, we inherited a £22 billion black hole in the public finances—not in some year in the future, but in the financial year that we were already three or four months into. This meant that we had to make difficult and urgent decisions to put our public finances back on a firm footing—because, unlike the Conservatives, I will never play fast and loose with the public finances.

[Jack Abbott (Ipswich) (Lab/Co-op)]

T6. Labour-led Ipswich borough council recently announced investment to reopen the iconic Grimwades building in our town centre, which has been left vacant for more than a decade. This local ambition matches the Government’s national initiatives, but challenges remain, so what steps are the Government taking to go even further and reform the unfair business rates system for good?

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[Deirdre Costigan (Ealing Southall) (Lab)]

T7. Does the Chancellor agree that four interest rate cuts, three trade deals, two successive quarters of growth and almost 1% of growth announced last week show that our plan for change is working? Does she also agree that it is now essential that this House supports the Government’s Planning and Infrastructure Bill and other efforts to boost growth and put money in the pockets of my constituents in Ealing Southall?

[Rachel Reeves]

I very much agree, but what is truly extraordinary is that the Conservatives, Reform and the Scottish National party have voted against or abstained on the Planning and Infrastructure Bill, and they do not support any of the trade deals that we have secured to support working people in our country.

[Lisa Smart (Hazel Grove) (LD)]

T5. My Hazel Grove constituents are content to pay their fair share of tax, but they are understandably disappointed when His Majesty’s Revenue and Customs overcharges and then ghosts them. Gail from Romiley is a foster carer who was owed a tax repayment. She repeatedly contacted HMRC over a nine-month period, but it was only when my superstar casework team got involved that she got a £1,200 rebate. What assurance can Ministers give my constituents that HMRC is adequately resourced to give them the support they need to pay their fair share of tax?

[Graham Stringer (Blackley and Middleton South) (Lab)]

T8. The European emissions trading scheme has a carbon price that is 50% higher than the UK’s. What assessment has the Chancellor made of the impact of joining the scheme on inflation in this country?

[Rachel Reeves]

As my hon. Friend knows, sometimes the UK carbon price has been higher, but sometimes it has been lower than in the EU. This deal will ensure a bigger market that, on average, brings prices down. We are confident that the deal secured yesterday will bring more good jobs and bring down bills for consumers.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Scottish councils now have the power to introduce a tourism levy. That has gone down extremely badly with the hospitality sector. In particular, they fear a tax on a tax—that would be VAT. Will the Government look at zero rating that in the event that a tourism levy is introduced?

[Rachel Reeves]

I want to welcome tourists to Great Britain and Northern Ireland. That is why we are securing trade deals with countries around the world, showing that we as a country are open for business. In the end, it is up to the Scottish Government which additional taxes they introduce, but as with income tax, the SNP never takes the side of ordinary working people.

[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

Last week I raised with the Minister for Social Security and Disability the case of a local disability charity being hit by increased bank charges, and the Minister committed to work with me on the issue. Will Treasury Ministers do the same so that we can take these banks to task and support fantastic local organisations?

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[Esther McVey (Tatton) (Con)]

I am sure that the Chancellor subscribes to the basic principle that if the cost of something is put up, we will see less of it. That is why Governments have, over many years, put taxes on things like smoking. Does she accept that the principle also applies to employing people—that the more expensive the Government make employing people, with their jobs tax increasing NICs for employers, the less we will see of that?

[Rachel Reeves]

The Conservative party is a good example of that. The cost of the Conservative party went up, and its number of MPs shrank.

[Chris Webb (Blackpool South) (Lab)]

The recent report by the independent commission on neighbourhoods shows that 98% of Blackpool’s population is living in high-need neighbourhoods. With 34 mission-critical neighbourhoods in my constituency, Blackpool is desperate for investment and economic growth. Will the Chancellor outline what the Government are doing to improve growth in our forgotten coastal towns?

[Rachel Reeves]

Yesterday we announced £360 million of investment in coastal and fishing communities. That will be vital to ensure that those communities continue to thrive.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

Dorset and Wiltshire fire and rescue service has suffered a real-terms funding cut, partly because the majority of firefighters are on call so the employer national insurance contributions were not sufficiently compensated. Will Ministers commit to reviewing the funding formula to fit the needs of communities, and to undertaking a local impact assessment on the effect of the funding cuts on public and firefighter safety?

[Brian Leishman (Alloa and Grangemouth) (Lab)]

To alleviate grinding penury for millions of people, the Chancellor could introduce an annual wealth tax on multimillionaires, which would raise approximately £24 billion per annum, yet she refuses to entertain the idea and considers cuts to welfare acceptable. Why do “tough political choices” always seem to impact the most vulnerable?

[Rachel Reeves]

At the Budget last year, we increased the rate of tax on non-doms, we increased capital gains tax, we increased the carried interest on bonuses and we introduced VAT on private schools. This Government are ensuring that the wealthiest pay their fair share, because that is a basic Labour principle.