Oral Answers to Questions

Debate between Tulip Siddiq and Noah Law

Tuesday 3rd September 2024 Commons Chamber

[Noah Law (St Austell and Newquay) (Lab)]

4. What steps she is taking to help ensure economic stability.

[The Economic Secretary to the Treasury (Tulip Siddiq)]

The Government are already taking action to fix Britain’s economic foundations, with a new approach to growth with three pillars: stability, investment and reform. Sustainable public finances are necessary for economic stability and long-term growth, and the Government will set out the difficult decisions needed to secure the public finances in the Budget on 30 October. The Government have already announced a fiscal lock to support policy stability by ensuring that fiscally significant announcements are subject to an independent Office for Budget Responsibility assessment.

[Noah Law]

Given the fiscal inheritance that we have been left, the Chancellor has already had to make some difficult decisions to ensure that economic stability. Workers and pensioners just above the personal allowance threshold have already borne much of the brunt of the previous Government’s cost of living crisis and fiscal drag, putting many in a precarious position. What steps are the Government taking to ensure that, if there is to be further fiscal drag, these groups are prevented from shouldering further burdens?

[Tulip Siddiq]

I should have welcomed my hon. Friend to his place.

It was the previous Government’s decision to maintain tax thresholds at their current levels until 2028. We have inherited an extremely difficult fiscal situation, meaning that we cannot undo everything they did, but the Prime Minister has been clear that those with the broadest shoulders should bear the heavier burden. The Government are providing £0.5 billion, including the estimated Barnett consequential, to extend the household support fund in England for another six months, to 31 March 2025. It continues to be our aim to support those who are most in need. The household support fund is specifically used by local authorities to help the most vulnerable households cover the cost of essentials such as food, energy and water.