Oral Answers to Questions

Tommy Sheppard Excerpts

Tuesday 28th February 2017 Commons Chamber

[Simon Kirby]

I can reassure my hon. Friend that the Treasury is very much in listening mode. We definitely want the best possible deal and we are clear that it is the end result, rather than the mechanism, that is important.

[Tommy Sheppard (Edinburgh East) (SNP)]

17. Whether his Department has made an assessment of the effect of the depreciation of the pound on levels of disposable income.

[The Economic Secretary to the Treasury (Simon Kirby)]

I am pleased to say that the Government are taking action to support the level of real disposable income per head, which is forecast to be 2.8% higher by 2021 than it was in 2016.

[Tommy Sheppard]

There can be few things more tragic than a Treasury in denial. As sure as night follows day, the collapse of the pound will lead to higher prices, particularly for food and household technology, so when will the Minister’s Department get its head out of the sand and bring forward proposals to boost disposable income, to help people to meet these rising costs?

[Simon Kirby]

Average earnings growth has now outstripped inflation for 27 consecutive months, and the Office for Budget Responsibility has forecast that real disposable income will be 2.8% higher in 2021 than it was in 2016.