Economy Update

Debate between Rachel Reeves and Steve Barclay

Wednesday 16th June 2021 Commons Chamber

[Rachel Reeves]

Not just “hopeless”. People have given up so much over the last year. We have pulled together and shown the best of our country. People have done everything that was asked of them and much, much more. We should not be in this position today. Businesses and workers do not deserve to have the rug pulled from under their feet at the eleventh hour. We want to see businesses make it through the pandemic and thrive again, because they are an important part of what makes our country so great and they are essential for our economic recovery. We need them and they need us today. That is why the economic support we have should match the health restrictions that are still in place, and that is what the Government have failed to deliver today.

[Steve Barclay]

May I first echo the remembrance by the hon. Lady and colleagues across the House of Jo Cox? I also pay tribute to the hon. Lady for the work that she has done, including with my friend Seema Kennedy, through the loneliness commission.

Let me turn to the various points raised by the hon. Lady. She said that she is not calling for support forever, but suggested that the Government were withdrawing support. The package announced by my right hon. Friend the Chancellor was designed deliberately to go long, until September. Measures such as furlough were extended to anticipate the fact that there were no guarantees on the covid road map. That was very much designed into the support, so there is no question of withdrawing support; it was in the very plan announced by the Chancellor.

The hon. Lady’s question about the delta variant was addressed comprehensively by the Prime Minister during Prime Minister’s questions, where he pointed out the timing. One can look back with hindsight now, but the issue was the timing of the delta variant becoming a variant of concern. I will not repeat the points made by my right hon. Friend the Prime Minister.

I am grateful to the hon. Lady for recognising the announcement regarding commercial rents. I hope that that is appreciated across the House. I know that it speaks to a very real concern that many Members will have seen through their constituency emails and post bags, and that it will provide some extended support.

The hon. Lady questioned whether the Government are doing whatever it takes. Again, I remind the House that the Government have spent £352 billion to date. By any definition, I think that is a comprehensive package. More to the point, the plan is working. We see that in the plan for jobs, in the fact that the unemployment projections have improved and in the number of jobs there have been since November. My right hon. Friend the Chancellor’s plan is working. He has done whatever it takes to protect our NHS and public services, putting a further £63 billion into the NHS for covid support measures last year. The plan is having clear benefits.

The hon. Lady asked specifically about the furlough taper. Labour market conditions have improved substantially since the turn of the year and will continue to do so. Indeed, demand for staff has increased at the quickest rate for more than two decades. With unemployment falling in the last four releases, there is clear evidence that the labour market is beginning to recover, but we went long in the first place to anticipate any slippage in the covid road map.



The hon. Lady had a query on business rates. Again, it is worth reminding the House just how comprehensive the support on business rates has been, with 100% business rates relief last year for many businesses, and those businesses now paying 75% over the course of this year. There is a comprehensive package of support for businesses. There is no question but that many businesses will feel strain as result of the further extension, and it is not a decision that my right hon. Friend the Prime Minister took lightly, but the package of support announced by the Chancellor anticipated this scenario. It went long in order to provide support and it continues to do so in a way that the evidence and the data shows is working.

EU Withdrawal Agreement: Legal Changes

Debate between Rachel Reeves and Steve Barclay

Monday 7th January 2019 Commons Chamber

[Stephen Barclay]

My hon. Friend is right that we have had a vote, and I think his constituents want that vote to be respected, just as mine do. That is what the Government are committed to doing, but we should do so in a way that gives businesses and citizens the certainty that they need. That is what the Prime Minister’s deal offers, and I commend it to the House.

[Rachel Reeves (Leeds West) (Lab)]

The no-deal planning is clearly a total shambles. It has included giving a contract to run ferries to a firm that does not have any ferries. When the Government lose the vote on their deal next week, as they surely will, will the Secretary of State really contemplate risking leaving the EU without a deal—knowing all the chaos that that would create—rather than extending article 50 or, indeed, going back to the people and asking them whether they would rather remain in the EU or accept the half-baked deal that the Government have agreed?

[Stephen Barclay]

The hon. Lady should be much more candid with the electorate about the fact that she is actually calling for revocation. Extending article 50 is not a unilateral decision for the UK Government; it requires the agreement of all 27 member states. She is, in essence, calling on us to revoke article 50. That goes against the commitment in the Labour party’s manifesto, on which she stood, and goes against what people voted for. If that is her position, that is fine; she is entitled to it, but she should be clear with the electorate that that is what she is calling for. Members who voted to trigger article 50 also need to explain why they have changed their minds.

Oral Answers to Questions

Debate between Rachel Reeves and Steve Barclay

Tuesday 18th July 2017 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

Personal contract purchase plans for financing cars have gone up by 394% in the past five years, and the Governor of the Bank of England has said that we are failing to learn the lessons of the past when it comes to easy credit. What action is the Chancellor taking to ensure that lending is affordable and does not pose a risk to the wider economy?

[The Economic Secretary to the Treasury (Stephen Barclay)]

May I first congratulate the hon. Lady on her appointment as Chair of the Business, Energy and Industrial Strategy Committee? As she will be aware from her Bank of England days, this is a matter for the Financial Policy Committee. Indeed, the FPC noted in its recent report that consumer credit is growing at a lower rate than it was under the previous Labour Government, but loss rates on lending remain low, as they are at present.