Economy Update

Debate between Robert Jenrick and Rishi Sunak

Thursday 26th May 2022 Commons Chamber

[Robert Jenrick (Newark) (Con)]

There were two tasks for the Chancellor today. The first was to provide support for the poorest households, who are facing a period of extreme hardship, and on that front I think he has made all the right judgments. Direct payments are simple, easy to administer and non-recurring; the experience of doing something not dissimilar in the United States was generally positive. The second task, however, is to inject some confidence into the economy, which is facing a recession or a long period of stagnation. On that front, does he agree that we need a steady hand from the Bank of England, so that there is no further quantitative easing, with its inflationary pressures? We urgently need the supply-side reforms that he alluded to, we need delivery of the energy plan he and the Prime Minister have set out and we need to think about the tax burden in the years ahead. The Chancellor’s announcement today is heavily redistributive; that is a good thing for hard-working families and the vulnerable, but it is being paid for by higher taxes on higher earners and businesses, and in the long term we need to address that.

[Rishi Sunak]

I agree wholeheartedly with my right hon. Friend. He makes excellent points, and he can expect me and this Government to deliver on all the things he thinks are important.

Financial Statement

Debate between Robert Jenrick and Rishi Sunak

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

I think it wrong to suggest that there has been a VAT windfall. If the hon. Lady looks at the numbers in the OBR forecast, she will see that its projection for VAT receipts in the forthcoming year is lower than its previous projection in October. We are helping working families, with a £6 billion tax cut which will put £330 into the pockets of 30 million workers across the United Kingdom.

[Robert Jenrick (Newark) (Con)]

I think that when my right hon. Friend gets back to his office, that portrait of Nigel Lawson will be looking down at him admiringly. This is a Conservative plan that we can all get behind. It rewards work, it gets the deficit down, and it incentivises investment from businesses rather than penalising them with windfall taxes.

As my right hon. Friend knows, energy prices are very volatile, so he is right to stand by the £9 billion package that he introduced previously and wait until the next update on the energy price cap in the late summer. If it does indeed show that energy prices are going to rise substantially, that will have a big impact on the poorest households. Will my right hon. Friend assure us that he will keep this matter under review, and will consider further measures if necessary to protect those households?

[Rishi Sunak]

I thank my right hon. Friend for his warm words of support, and I can reassure him that we keep everything under review. We have stood by the British people over the past few years, and we will continue to stand by them. It is thanks to the responsible decisions of this Government that we are able to provide the support that is required when the times call for it.