Spending Review 2025

Debate between Rachel Reeves and Yuan Yang

Wednesday 11th June 2025 Commons Chamber

[Rachel Reeves]

Last week, we set out additional money for the Mayor of the West of England, and today we have announced a fourfold increase in local transport funding, which will be available for communities across the country. The hon. Member says that he wants to grow the economy—it is disappointing that the Liberal Democrats voted against the Planning and Infrastructure Bill yesterday, which will do exactly that.

[Yuan Yang (Earley and Woodley) (Lab)]

I strongly congratulate the Chancellor on the impact she has already had by reforming the way the Treasury works, in particular to unlock the capital investment that we need for the future of our economy. I also commend her for her commitment to future generations through her funding for schools and the extension of free school meals. Will she continue to work with the Treasury to change the way it appraises the benefits of human capital investment to ensure there is sufficient funding, particularly for early intervention in special educational needs and disabilities in local authorities like mine in Reading and Wokingham?

[Rachel Reeves]

I thank my hon. Friend for welcoming the reforms we have introduced at the Treasury—the reform to the fiscal rules to unlock money for investment, the reform of financial transactions to enable more money to be spent through public finance institutions, and particularly the reform of the Green Book. She is absolutely right to mention the importance of human capital, which is why we have announced in the spending review significant investment in skills and in the early years to ensure that children are ready for school.

Spring Statement

Debate between Rachel Reeves and Yuan Yang

Wednesday 26th March 2025 Commons Chamber

[Rachel Reeves]

The key point in what the right hon. Gentleman says is that cumulative growth is lower from 2023 to the end of the forecast. Of course, this Government did not come into power in 2023; we came into power in July 2024. The OBR numbers show that the economy is bigger because of the changes we have made—it is just a difference in the dates. I look forward to coming to the Treasury Committee next week, and I am sure I will take more questions from the right hon. Gentleman then.

[Yuan Yang (Earley and Woodley) (Lab)]

The Chancellor has rightly championed economic stability, in stark contrast to the previous Government—indeed, in stark contrast to the previous five Chancellors. Yet, as she has said, the world is becoming more unstable, and that global instability feeds through to rapid changes in official projections, which can constrain our room for action. Can the Chancellor reaffirm to us that she will keep her focus on fiscal stability, despite these challenges, to meet the long-term missions of this Government: to defend our country, improve living standards and protect the most vulnerable in our society?

[Rachel Reeves]

My hon. Friend is absolutely right that her constituents—all our constituents—depend on economic stability. It ensures that they know how much they will pay on their rent and mortgages; it ensures that they are not caught out, when they go to the shops, by prices constantly rising. That is why, as a Government, we have said that the No. 1 thing we need to achieve in order to grow our economy is economic stability, which is why I am so pleased that the Bank of England has been able to cut interest rates three times since the general election and the OBR has forecast that inflation will fall rapidly to 2.1% next year, and then 2% in the years after that.

UK-China Economic and Financial Dialogue

Debate between Rachel Reeves and Yuan Yang

Tuesday 14th January 2025 Commons Chamber

[Rachel Reeves]

I thought for a moment that the hon. Lady was going to apologise for Liz Truss’s mini-Budget. Maybe she will do so on another occasion.

[Yuan Yang (Earley and Woodley) (Lab)]

I thank the Chancellor for raising the case of Jimmy Lai. I hope that the Government will in future press the case of pensions owed to British national overseas constituents in Earley and Woodley, and across the UK, who have moved here from Hong Kong.

I was surprised to hear the shadow Chancellor advocate knee-jerk responses to inter-day movements in market prices. I would argue that such short-termism led to the Conservative party having five Chancellors in only four years. Will the Chancellor reassure us that she will not be misled by short-termism, and that she will instead keep her focus on our Government’s long-term ambition to raise living standards and growth?

[Rachel Reeves]

My hon. Friend is absolutely right. There have been movements in international markets in the past week or so, and they have been global in nature. In the UK, we must do what we can, which is why I have reiterated today my commitment to the fiscal rules that I set out in the Budget in October. I reiterate that growth is the No. 1 mission of this Government: growth built on stability, which will come through securing the public finances; through investment, including through the national wealth fund and GB Energy; and through reform—of our planning system to make it easier to build in Britain, getting people back to work, and of our pension system. This Government are cracking on after 14 years of failure from the Conservative party.