Autumn Statement

Debate between Rushanara Ali and Jeremy Hunt

Thursday 17th November 2022 Commons Chamber

[Jeremy Hunt]

My right hon. Friend is absolutely right to focus on this issue, because every 1% increase in interest rates is about £850 more on the average mortgage, so it is hugely important to families up and down the country. The OBR has said that the measures that we have taken today will mean that inflation is lower than it would otherwise have been. That means that the Bank of England is under less pressure to increase interest rates, which for reasons that he knows are such a worry for so many families.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

The Governor of the Bank of England said yesterday to the Treasury Committee that the mini-Budget has damaged our reputation internationally. He told us:

“People have said, ‘We did not think the UK would do this.’”

Why does the Chancellor not accept that it is because his party has destroyed our economic credibility and crashed the economy that the British people are now having to pay, in tax rises and public service cuts, the £55 billion of consolidation that he is talking about?

[Jeremy Hunt]

I have been pretty straightforward about saying that there were mistakes in the mini-Budget, and within three weeks we reversed them. Long-term gilt yields, which are the thing that really drive the cost of borrowing for the country, are down to the levels they were at before the mini-Budget, and to try to say that all the problems we face now are a result of decisions that were reversed in three weeks does not stand any scrutiny at all.

Oral Answers to Questions

Debate between Rushanara Ali and Jeremy Hunt

Tuesday 15th November 2022 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Chancellor of the Exchequer (Jeremy Hunt)]

I will be speaking for rather a long time on Thursday—

[Jeremy Hunt]

May I start again and say that, subject to your agreement, Mr Speaker, I may be talking for rather a long time on Thursday, so I will be brief today? I will just say that, despite the difficulty of the package I will be announcing, I will sadly not be drinking any whisky as I do so.

[Rushanara Ali]

I thank the Chancellor for the work he is doing and congratulate him on his new post. We hope that he lasts the week, or maybe the fortnight. The Government scandalously allowed organised criminals and fraudsters to take billions of pounds of public money through covid loan fraud as a result of the lack of proper checks. Estimates suggest that that has cost taxpayers £33 billion. Why should hardworking people pay for the Prime Minister’s fraud failures when he was Chancellor, and for the mini-Budget fiasco of the former Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss), who crashed the—

Economic Update

Debate between Rushanara Ali and Jeremy Hunt

Monday 17th October 2022 Commons Chamber

[Jeremy Hunt]

I absolutely want to give my right hon. Friend that reassurance and I thank him, as someone who has enormous experience of how the City works, for the advice that he gave me over the weekend. One of the best things about the economic structures that we have is the interaction between institutions that have independence and that are able to give independent advice and Treasury and the Government. It has helped to create stability and I hope that what I have said today will bolster that further.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

I congratulate the Chancellor on his appointment and I hope that he lasts longer than his predecessors. Five million people will see their mortgages go up, and the mini-Budget fiasco means, on average, £500 more on payments and, in London, nearly £900. Can the Chancellor assure us that he will look at how he will take that additional Prime Minister’s mortgage premium off people’s bills and take action to protect them in these difficult times? If he cannot, should they send the bill to him?

[Jeremy Hunt]

We have an absolute responsibility as a Government to do everything we can to hold increases in mortgage rates down as much as is possible, insofar as the Government have an influence on them through their actions. That is why I have taken, I think, very strong and quick steps to demonstrate the Government’s commitment to fiscal balance, but we are in a world in which, unfortunately, interest rates are going up everywhere and everyone is having to deal with increases in mortgage rates. We are thinking about the challenge for people who have those mortgages, but I want to make sure that that does not happen as a result of actions by this Government.