Spring Forecast

Debate between Rachel Reeves and Katie Lam

Tuesday 3rd March 2026 Commons Chamber

[Rachel Reeves]

My hon. Friend is a strong advocate for his constituents in Rossendale and Darwen, and he was also a big advocate for the reforms to the Green Book that we managed to bring in at the Budget last year. Because of those changes, we will now look more favourably at investment opportunities in rural areas, coastal communities and places that have been left behind. I welcome any suggestions for specific investments in his constituency, either through the British Business Bank, UK Export Finance or the National Wealth Fund, all of which have had their budgets expanded under this Labour Government.

[Katie Lam (Weald of Kent) (Con)]

The Chancellor stands there and says that living standards are up and the economy is growing, but people can see the reality in their everyday lives: unemployment up month on month and energy bills higher than when Labour came to power. The latest figures in fact show that per person, our economy is shrinking, yet she stands there and says she has

“the right economic plan for our country”.

Does she have any idea how that sounds to people out there who are working harder than ever, with less and less left over at the end of every month?

Spring Statement

Debate between Rachel Reeves and Katie Lam

Wednesday 26th March 2025 Commons Chamber

[Rachel Reeves]

At the Budget, we set out £40 billion-worth of tax increases; we got rid of the non-dom tax status, increased capital gains tax, put VAT on private schools and tightened the rules around inheritance tax. We made those decisions so that we could invest more in our public services, including in our schools and our hospitals. Indeed, we have now committed to lifting defence spending within the next two years to 2.5% of GDP. On welfare spending, there is nothing progressive about writing off a generation of young people, so our targeted, personalised support will help people get back into work, lift them out of poverty, and help them to contribute both to their family finances and to our nation’s finances.

[Katie Lam (Weald of Kent) (Con)]

The right hon. Lady talks of financial responsibility, but will she please tell us when Government bond yields hit their highest levels since the global financial crisis, and who was the Chancellor of the Exchequer then? If she needs a clue, we can bring her a mirror.

[Rachel Reeves]

If we look at financial markets and follow them closely, we can see that the increases in bond yields in the UK, France and Germany have closely tracked each other. Global financial instability has affected countries around the world, and that is why it is so important that we continue to meet our fiscal rules, as I have set out today.