Fiscal Rules

Zarah Sultana Excerpts

Monday 28th October 2024 Commons Chamber

[Darren Jones]

I thank the hon. Member for his question. He and his constituents will know, as much as mine do, that the problem for this country before the election was that the last Government had to borrow each month to pay for bills that they did not have the money to pay for, and that they made a whole list of promises across the country that they knew they could not pay for. That is why we have the £22 billion black hole, and why our first fiscal rule is that day-to-day spending will be paid for from tax receipts by the Exchequer. We will put the public budget back into surplus so that we are not in a doom loop of borrowing and borrowing just to keep ahead of ourselves each month. Where the Government do borrow, we will do so for productive investment to modernise our public services and to get growth back into our economy.

[Zarah Sultana (Coventry South) (Ind)]

New research published this month by the Institute for Fiscal Studies shows that reversing the two-child benefit cap would lift 540,000 children above the absolute poverty line. There are no fiscal rules, only fiscal choices. While taskforces meet, more and more children in Coventry South and across the country are consigned to avoidable poverty. Will the Government acknowledge that, prioritise ending child poverty and finally scrap the pernicious two-child benefit cap?

[Darren Jones]

I share my hon. Friend’s commitment to wanting to tackle child poverty in this country—this party had a proud record on that when we were in government previously. That is why we have set up the child poverty taskforce, which reported last week, and our ambition is to reduce child poverty over the course of this Parliament. We will set out further measures in the Budget on Wednesday on how we intend to deliver that.