Living Standards
(Hexham) (Lab)
1. What steps she plans to take to help improve living
standards.(900917)
Ms (St Helens South and Whiston)
(Lab)
5. What steps she plans to take to help improve living
standards.(900922)
(Bathgate and
Linlithgow) (Lab/Co-op)
13. What steps she plans to take to help improve living
standards.(900930)
Ms (East Thanet) (Lab)
24. What steps she plans to take to help improve living
standards.(900941)
The Chancellor of the Exchequer ()
This is likely to be the last time that the shadow Chancellor,
the right hon. Member for Godalming and Ash (), is up against me at the
Dispatch Box. We have had the privilege of these exchanges for
just over two years now, and I have a huge amount of respect for
him. He steered our country through a very difficult time after
the mini-Budget, and I wish him well in whatever he chooses to do
next.
If UK living standards, as measured by real household disposable
income per capita, had grown by the same amount between 2010 and
2023 as they did between 1997 and 2010, the amount would have
been over £4,000 higher in 2023. We are committed to boosting
economic growth to turn that around. Although it will have been
welcome news for millions of families that inflation is now below
2%, there is still more to do. Earlier this month, we delivered
our first international investment summit, announcing over £60
billion of investment and unlocking nearly 38,000 jobs in the UK,
all focused on creating and spreading opportunities to lift
living standard.
The Conservatives oversaw a living standards disaster. In places
such as Hexham, Prudhoe and Throckley in my constituency, people
saw hardly any improvements to their incomes in over 14 years.
Surely the clearest sign of whether government is working is
whether working people feel better off. Does the Chancellor agree
that papering over Tory failure is not enough, and that in
tomorrow's Budget we must reset the foundations of our
economy?
My hon. Friend is right: the previous Parliament was the worst
ever recorded for living standards. Tomorrow's Budget is an
opportunity to fix that and turn the page so that we can start
delivering for families in Hexham and all around the country.
Ms Rimmer
The bottom 50% of the population owned less than 5% of wealth in
2021, while the top 10% stacked up 57% of it—up from 52.5% in
1995. In our communities, the less well-off are struggling with
energy prices and other costs. What will the Government do to
ensure that the gap closes?
We have already announced the child poverty taskforce, which is
working to publish a comprehensive strategy to tackle child
poverty. We will publish that strategy in spring next year. We
have also provided £500 million, including the Barnett impact, to
extend the household support fund in England until the end of
March next year, which will help the most vulnerable households
to cover the costs of essentials such as food, energy and
water.
Shamefully, under the last Conservative Government, the need for
food banks soared to levels even higher than during the pandemic.
Recent research shows that in my Bathgate and Linlithgow
constituency, the number of food parcels distributed has risen by
77% over the past five years, and that in 2022-23, 27% of
children were living in poverty after housing costs. What steps
are the Government taking to reduce the need for food banks in
the context of child poverty?
I thank my hon. Friend for her question and congratulate her on
her great work on the Co-op's food justice policy. As she knows,
we are right behind her in our commitment to raise living
standards across the country. We made a manifesto commitment to
update the remit of the Low Pay Commission so that, for the first
time ever, it will take into account the cost of living when
making recommendations about the minimum wage.
Ms Billington
As my right hon. Friend will be aware, coastal communities such
as mine struggle with a low-pay, low-skill economy. Does she
acknowledge the importance of the minimum wage in tackling this
problem and supporting our communities and local economies?
My hon. Friend is absolutely right. It is why we will ensure that
the Low Pay Commission takes into account the cost of living, and
why we will close the gap between the youth rate of minimum wage
and the overall rate, so that all adults can be paid a fair wage
for their work.
Dame (West Worcestershire)
(Con)
The living standards of a 90-year-old pensioner on a £13,500
income are falling sharply this winter as a result of the
Chancellor's decision to take away the winter fuel allowance.
Tomorrow, she has the chance to increase the threshold. Will she
take it?
As the hon. Lady knows, because of our commitment to the triple
lock, the basic state pension and the new state pension will
continue to rise. This winter, the new state pension is worth
£900 more than it was a year ago, and it is likely to rise by a
further £450 next April. Indeed, during the course of this
Parliament, because of the triple lock, the new state pension is
likely to be worth £1,700 more—much more than the value of the
winter fuel payment.
(Chichester) (LD)
I am sure that the Treasury was pleased to receive £1.5 billion
in a windfall tax from Octopus Energy. Would the Chancellor
consider using that money to reinstate the winter fuel allowance
for one year until the Treasury has had the opportunity to find a
better system of means-testing, so that my vulnerable residents
and pensioners in Chichester are not falling off a cliff edge
this winter?
I can understand the hon. Member's concern, but of course, that
£1.5 billion was already baked into the forecast—it is not new
money to spend on initiatives. As she knows, we inherited a £22
billion black hole in the public finances; we will set out the
detail of that at the Budget tomorrow, but because of that, we
have had to make very difficult choices. Even in those difficult
circumstances, though, we have protected the winter fuel payment
for the most vulnerable pensioners who are on pension credit. We
have also boosted the uptake of pension credit, so that people
get the support they are entitled to.
(Beverley and Holderness)
(Con)
Residents of Joseph Rowntree's St Ellens Court all gathered
recently to tell me about the devastating impact that the cut in
the winter fuel payment will have on their living standards, and
people in Withernsea gathered Saturday last to demonstrate
against it. Tomorrow, the Chancellor can do the right thing; will
she?
I am sure the right hon. Gentleman told them about the £22
billion gap in the public finances that his Government left,
which has required the difficult decisions this Government have
had to make to clean up the mess left by the Conservative
party.
(Hamble Valley) (Con)
With the promised £300 cut in energy bills not materialising, the
winter fuel payment scrapped for pensioners, and now the bus cap
lifted for working people—whatever definition of that term the
Chancellor is using today—can she honestly say that living
standards will improve for everybody under this Government?
On the bus price cap specifically, the hon. Member will know that
the previous Government put no money in to extend that cap. We
have put money in to ensure that the bus price cap remains at an
affordable level for people, unlike the previous Government, who
just had short-term gimmicks.
Pension Credit: Processing of Applications
Dr (Hinckley and Bosworth)
(Con)
2. What estimate she has made with Cabinet colleagues of the
additional funding needed to process pension credit applications
within target timescales.(900918)
The Parliamentary Secretary, His Majesty's Treasury ()
The Department for Work and Pensions has deployed 500 additional
staff to process pension credit applications as quickly as
possible, and I encourage all pensioners who might be eligible to
apply by 21 December. As the hon. Gentleman knows, that benefit
can be backdated by three months, and can passport pensioners to
other benefits.
Dr Evans
I am very grateful for the Minister's answer. I put in a written
question to find out how long this would take, and almost one in
four people who apply for pension credit are waiting longer than
50 working days for their application to be picked up, which
takes us past Christmas and into the new year. That is before the
150% increase in applications referred to in the data released by
the Government, so although I am pleased to hear that there are
500 more staff, could we hear how much extra funding is going in
immediately to make sure those applications are processed this
side of Christmas? Otherwise, pensioners are really going to
struggle.
I am very pleased to say that there has been a 152% increase in
the number of pensioners who are applying for pension credit.
That is good news, and is a result of the pension credit
awareness campaign that we have been running since early
September. We are putting in place all the resources we can to
process claims as quickly as possible.
Mr Speaker
I call the shadow Minister.
(Droitwich and Evesham)
(Con)
We on the Conservative Benches are deeply concerned about all
those who will lose their winter fuel payments under Labour. Some
pensioners will keep the winter fuel payment if they claim
pension credit, but we know that some will not apply or will have
difficulty applying. Can the Minister confirm how many people the
Treasury assumes are eligible for pension credit but will not
claim it, therefore losing their winter fuel payment, and what is
the Treasury doing to close that gap?
As the hon. Gentleman will understand, the estimates of how many
people might be eligible for pension credit are an imperfect
science—they are based on a survey. Means-testing what is a very
complex benefit, as all means-tested benefits are, requires an
assessment of not only people's income but their savings; it is
about pensioner household units, too, so it is a complex set of
procedures. All I can say is that I am glad we are targeting
support at those most in need, something that was outlined in the
2017 Conservative party manifesto, which stated:
“we will means-test Winter Fuel Payments, focusing assistance on
the least well-off pensioners, who are most at risk of fuel
poverty.”
Mr Speaker
I call the Liberal Democrat spokesperson.
(St Albans) (LD)
As the newly appointed Treasury spokesperson for the Liberal
Democrats, this is my first opportunity to welcome the Chancellor
and Ministers to their places. Notwithstanding that, on the
winter fuel payment, the Government need to think again. I
recently spoke with representatives of Citizens Advice in St
Albans, who are deeply concerned that letters from the Department
for Work and Pensions will be sent out only in December to people
that it believes are eligible, meaning that many people may lose
out. We have urged the Government to either reverse the cut and
make it taxable or look at, for example, raising the pension
credit limit. Could the Government confirm whether they are going
to look again at any of the measures that we have suggested?
I welcome the hon. Lady to her place. I reassure her that we are
writing to all pensioners—I do not know where she got that
misinformation from—about the change in policy. For the first
time, we are also writing to all pensioners in receipt of housing
benefit to encourage them to claim for pension credit.
We have also made a steadfast commitment to the triple lock,
which will mean that the new full state pension will be worth
around £1,700 more over this Parliament. We have extended the
household support fund, which local authorities can use to help
people who are on low incomes and struggling with their fuel
bills. We have also ensured that the warm home discount scheme
will provide £150 for low-income households, including
pensioners.
Economic Investment and Growth
(Makerfield) (Lab)
3. What steps she is taking to increase long-term investment in
the economy.(900920)
Ms (Carlisle) (Lab)
10. What progress she has made on increasing economic
growth.(900927)
(Lichfield) (Lab)
11. What progress she has made on increasing economic
growth.(900928)
(Chelsea and Fulham) (Lab)
14. What progress she has made on increasing economic
growth.(900931)
The Chancellor of the Exchequer ()
The Government's growth mission will counteract 14 years of
sluggish economic growth, kick-starting a decade of national
renewal. We have wasted no time in getting to work: we have
already launched the national wealth fund, introduced reforms to
the planning system, and hosted the international investment
summit, securing more than £63 billion of investments across the
United Kingdom. Work continues, and I look forward to updating
the House on our next steps for growth in tomorrow's Budget.
As co-chair of the Labour Growth Group, I welcome the
Chancellor's decision to unleash a revolution in investment in
Britain, but the capital we must invest in is not just physical
but digital. For years, Conservative Members cut capital
investment in technology, depressing productivity and leaving
workers with less money in their pocket. What steps is the
Chancellor taking to boost long-term investment, especially in
digital and technology?
I thank my hon. Friend for his excellent work as co-chair of the
Labour Growth Group. I know that he is passionate about how we
can use data to boost productivity and improve public services,
and he is working with Wigan council and his local NHS trust to
build data-driven tools to better deliver preventive
healthcare.
The Government recognise that attracting private investment into
digital and technology is crucial for driving growth, which is
why we have already prioritised them in the modern industrial
strategy to ensure that we are creating the right conditions for
investment. Since the Government took office, we have been
pleased to welcome more than £25 billion of investment into UK
data centres, helping to create thousands of jobs and meet the
growing demand for data, artificial intelligence and machine
learning.
Ms Minns
Does the Chancellor agree that a modern NHS that is fit for the
future is essential to our country's economic growth? Will she
find time to visit the new Pears Cumbria School of Medicine when
it opens in Carlisle next year?
I thank my hon. Friend for that question. I absolutely recognise
the important role of the NHS and the health of our nation in
getting people back to work and in boosting the economy. That is
why in tomorrow's Budget we will set out further detail of how we
will increase the number of elective appointments per week,
delivering one of the Government's first steps in office to
reduce waiting times in the NHS.
I was delighted to meet Professor Hugh Brady from Imperial
College London at the international investment summit. He shared
the detail of important plans to partner with the University of
Cumbria to help the next generation of medical professionals in
my hon. Friend's constituency and to address staffing shortfalls
and healthcare needs in the area. I commend her work in this
important area.
High streets in Lichfield and Burntwood in my constituency were
let down as, for 14 years, the Conservative party fiddled while
our high street economies burned. Can the Chancellor assure me
that regenerating high streets, as the physical manifestation of
how well our economy is doing, is a priority for this
Treasury?
I welcome my hon. Friend to his place, and he is doing a great
job for the people of Lichfield. This Government are committed to
delivering a decade of national renewal and ensuring that growth
and prosperity are felt everywhere in our country. We will work
in partnership with businesses and local communities to
rejuvenate our high streets, which are the lifeblood of our local
communities, including those in Lichfield and Burntwood. As part
of this, we plan to introduce new powers to help fill vacant
properties through high street rental auctions. We know that this
is such an important issue for so many of our constituencies.
Thousands of my constituents in Chelsea and Fulham come from
European Union countries, and they are all passionate about the
UK economy doing well. Does the Chancellor agree that, for the UK
to achieve its full economic growth potential, we need to deepen
our trading links with the European Union? If she does, will can
she say how the Treasury is working with other Government
Departments to achieve this?
I thank my hon. Friend for his question. Since taking office,
this Government have been working to reset our relationship with
our European friends and neighbours. The Prime Minister recently
met the President of the European Commission and agreed to
strengthen the UK-EU relationship to address global challenges
such as the economic headwinds, geopolitical competition,
irregular migration, climate change and energy prices. Improving
our relationships will be good for business and good for
consumers.
(Gordon and Buchan)
(Con)
I am not going to ask the Chancellor to pre-empt tomorrow's
Budget, although I might actually have some luck if I did, based
on current form. Instead, can she confirm to me that she fully
appreciates how important agricultural property relief and
business property relief are to the farmers and family businesses
that do so much to grow local economies across the country?
I recognise the importance of being able to pass on to the next
generation the assets people have built up, and we will be
setting out more details on all of our tax policies in the Budget
tomorrow.
(North East Fife)
(LD)
Shared prosperity funding has been used by local authorities such
as Fife council to drive economic growth, particularly through
support for small businesses. That funding is due to end in April
2025. Can we get a commitment from the Government that funding
for these kinds of schemes will continue?
We will set out more details in the Budget tomorrow, including
the consequentials that will go to the Scottish Government.
Sir (New Forest West) (Con)
Investment requires a measure of optimism, not the collapse in
business confidence that the Chancellor has engineered. She would
have done better to stress some of the positives that she
inherited, wouldn't she?
It is good to have an explanation of how to do my job from one of
the Conservative Members who crashed our economy. Some £63.5
billion of investment into the UK was announced at our
international investment summit—investment in life sciences,
investment in data centres and digital, investment in clean
energy—because businesses have confidence that this Government
are bringing stability back to our economy and working with
businesses to seize the opportunities. I am really excited about
doing that in all parts of our country and working with business
to do so.
(Angus and Perthshire Glens)
(SNP)
Can the Chancellor tell us, to the nearest £10 billion, how much
extra would be available for long-term investment were it not for
the fire sale of UK Government bonds by the Bank of England,
costing the taxpayer dearly?
I started my career as an economist at the Bank of England, and
unlike Conservative Members, I think it is incredibly important
to recognise the independence of our economic institutions,
including the Bank of England and, indeed, the Office for Budget
Responsibility.
Mr Speaker
I call the Liberal Democrat spokesperson.
(St Albans) (LD)
Small businesses are the engine of our economy, but many of them
are penalised for investing in their businesses because of the
broken business rates system. Will the Chancellor ensure that
investment is exempted from business rates, and will she ensure
that the Budget tomorrow is the final Budget in which business
rates are a permanent feature?
I thank the hon. Lady for her question, and I too welcome her to
her place.
Small businesses and high street businesses are the lifeblood of
all of our communities, including hers in St Albans, and it is
important that we support them. In our manifesto, we committed to
reform of our business rates system. I will be setting out more
details in the Budget yesterday tomorrow, as well as a business
tax road map, which will give businesses certainty about the tax
environment they will be working with for the next five
years.
Northern Powerhouse
Mr (Cheadle) (LD)
4. What fiscal steps she is taking to encourage investment in the
northern powerhouse.(900921)
The Chief Secretary to the Treasury ()
Investment—[Interruption.] I am delighted to be welcomed by those
on the Opposition Benches, and am pleased to see them in their
place as well. Investment is a key part of the Government's
growth mission, alongside stability and reform. By ensuring
adherence to robust fiscal rules and respect for our economic
institutions, we are building the confidence needed to deliver
greater investment across the country.
Mr Morrison
I thank the Minister for that response. A key part of the
northern powerhouse agenda was investment in our rail
infrastructure, and residents in my constituency were excited
that Cheadle train station finally got planning approval
recently. However, recent talk of cuts to infrastructure
investment has caused concern. Can the Minister assure us that
Cheadle train station is safe and will go ahead?
The Government are fully committed to ensuring that investment in
all parts of the UK, including the north of England, creates
growth and impact for working people. The north of England is
home to crucial levers to achieve this, as evidenced by our
recent announcements on Teesside and Merseyside, which will
create thousands of jobs and secure long-term futures. The detail
of individual projects will be confirmed in due course.
(Sefton Central) (Lab)
The creation of the national wealth fund, and the record success
of the £63 billion of investment announced at the investment
summit, comes on top of investments that Ministers have just
announced in carbon capture in the north-west. Those are examples
of the success—
Mr Speaker
Order. The hon. Gentleman is a very good Member who has been here
a long time. Please try to look at me occasionally; it would be
helpful.
The successful investments announced are a great example of this
Government delivering jobs and economic growth, in the north of
England and across the country. Does my right hon. Friend agree
that this is in stark contrast to the abysmal record of the
Conservative party in its 14 years in government?
My hon. Friend rightly points out that this country faces a
choice: investment or decline. As we saw at the general election,
it chose investment, and that is what the Government will
deliver.
Economic Productivity
(Stevenage) (Lab)
6. What steps she is taking to increase economic
productivity.(900923)
(Dudley) (Lab)
20. What steps she is taking to increase economic productivity in
the Black Country.(900937)
The Economic Secretary to the Treasury ()
Increasing economic productivity is a key mission in the Labour
Government's growth agenda. After 14 years of weak productivity,
depressed living standards and unfunded spending commitments, we
are adamant about bringing our country into an upward trajectory,
using the national wealth fund and the significant planning
reforms that we are bringing together to ensure a decade of
national renewal for our country.
Across the UK, the hospitality sector generates £93 billion per
year. In my constituency, there are many examples of local
entrepreneurs, including on the old town's High Street and in our
neighbourhood centres, who provide an excellent service for
residents and visitors alike. What can my hon. Friend do to help
our hospitality services grow in Stevenage and across the UK?
I am fully aware of the assets of my hon. Friend's constituency,
including the neighbourhood centres that he mentions, and the
surrounding villages, which host amazing music festivals. I
recognise the contribution of the hospitality sector in Stevenage
to the UK economy, and I know he is a great champion of the
borough business club. I am confident that our Government's
growth mission will ensure that hospitality businesses in
Stevenage continue to grow. The Government look forward to
working with organisations such as UKHospitality to facilitate
that.
“Invest 2035: the UK's modern industrial strategy” identifies
advanced manufacturing as a growth-driving sector. Manufacturing
in Dudley accounts for 40.4% of jobs; that is double the national
average. What steps are the Government taking to support and
revitalise the manufacturing sector in Dudley, given its
historical significance to the local economy, and its potential
contribution to the UK's overall industrial strategy?
As my hon. Friend rightly says, we identified advanced
manufacturing as a growth-driving sector in the recently
published industrial strategy Green Paper. I know how important
manufacturing centres such as the Very Light Rail National
Innovation Centre are to Dudley and the UK economy. We are
committed to supporting advanced manufacturing through the
industrial strategy, which, alongside sector plans, will be
developed in partnership with businesses and stakeholders ahead
of publication in spring 2025. I hope that she will contribute to
that. Jobs will be at the heart of our industrial strategy,
backed by employment rights that are fit for a modern
economy.
(North West Norfolk) (Con)
Investing in transport infrastructure will boost productivity, so
is the Chancellor listening to Members from across the east of
England and across the House, and will she back the Ely junction
rail upgrade, which delivers benefits of £5 for every £1
invested?
As the hon. Member will know, the Chancellor listens carefully to
everything that is said in the Chamber, and I am sure that she
has noted what he has said.
(North Antrim) (TUV)
We in Northern Ireland were told that, as a result of having dual
access to the EU market and the United Kingdom market, we would
see an increase in inward investment and economic productivity.
Recently, Invest NI has had to admit that there has been no
uptick in investment, because access to the EU market is
counteracted by barriers from the GB market—that is clear. Do the
Government now recognise that that was a mis-sold
proposition?
I think we were mis-sold a lot of things by the previous
Government, if that is what the hon. Member is talking about. I
remind him that we had the investment summit recently, where we
secured £63 billion of private investment, creating more than
38,000 jobs. That is more than double what the previous
Government secured in 2023.
Energy Bills: Support for Households
Mr (Woking) (LD)
7. What fiscal steps she is taking with Cabinet colleagues to
help support households with energy bills.(900924)
The Exchequer Secretary to the Treasury ()
Household energy bills have fallen by 30% since their peak, and
are now around £800 lower for a typical household. This
Government are committed to improving the quality and
sustainability of our housing stock through our warm home plan,
further details of which will be set out through the spending
review. That will be vital in making sure that the UK is more
energy-resilient, in lowering household bills and in meeting our
2050 net zero commitment.
Mr Forster
Given that many constituents of mine in Woking and across the
country live in fuel poverty and are fearful of losing their
winter fuel allowance, does the Minister or the Chancellor agree
that targeted support for low-income families and households
should be included in tomorrow's Budget or in the warm home plan,
so that no one has to decide between eating and heating this
winter?
The hon. Gentleman can see our commitment to supporting
vulnerable households with the cost of energy and food in our
extension of the household support fund, at a cost of half a
billion pounds, from the end of September to the end of March.
That will allow local authorities to help low-income families
with the cost of essentials, such as food and energy.
Dr (Loughborough) (Lab)
This nation experienced the highest rise in energy bills of all
G7 countries after Putin invaded Ukraine, because the
Conservatives left us dependent on natural gas and with the
worst-insulated homes in western Europe. Can the Minister assure
me that we will invest in the clean energy and home insulation
that we need to lower energy bills for good?
My hon. Friend is absolutely right to say that while it is
essential that we tackle high energy bills now, it is also
essential that we invest for the future to bring energy bills
down for good. Critical to that is investing in our housing
stock, as I have mentioned, but also, through GB Energy, in
sustainable energy sources to make sure we improve our energy
security and bring bills down for families across the
country.
Sustainable Public Finances
(Glasgow East) (Lab)
8. What steps she is taking to help ensure sustainable public
finances.(900925)
The Chancellor of the Exchequer ()
In July, a Treasury assessment of public spending showed that
this Government inherited a £22 billion black hole in the public
finances. I took immediate action—[Interruption.] Those on the
Opposition Benches may not like it, but it is true.
[Interruption.]
Mr Speaker
Order. I cannot hear the Chancellor, and I will hear the
Chancellor.
There are not many Conservative Members, but they still make
quite a lot of noise.
I took immediate action by identifying savings and making reforms
to the spending and fiscal framework to ensure that never again
can a Government be allowed to make unfunded commitments, and to
leave their successors with a massive black hole, as the Leader
of the Opposition and the previous Chancellor did. As my right
hon. Friend the Chief Secretary to the Treasury said to the House
yesterday, the Budget will confirm the detail of the robust
fiscal rules—this was set out in our manifesto—and will set out
tax and spending plans, alongside an updated forecast from the
independent Office for Budget Responsibility.
Does my right hon. Friend agree that being honest and transparent
about the state of public finances is the right thing to do, and
that having a long-term plan to fix the foundations of our
economy and the public finances is preferable to the short-term,
chaotic approach taken by the SNP in Scotland, which has led to
three consecutive years of emergency in-year budget cuts?
This Government are committed to sustainable public finances,
unlike two of the Opposition parties. A stable economy built on
stable public finances is a key foundation for growth, which is
why Labour is on the Government Benches, and the SNP and the
Tories are on the Opposition Benches. The robust fiscal rules set
out in our manifesto will put the public finances on a
sustainable path, so that we can move the budget into balance,
with day-to-day costs being met by revenues, and get debt falling
as a share of our economy. Given our challenging inheritance,
that will require difficult choices, but this Government will
make them to fix the foundations of our economy.
(Eastbourne) (LD)
The last Government left Eastbourne borough council in a position
in which it spends 49p in every pound it collects in council tax
on temporary accommodation. We need a solution, because that is
not sustainable for councils or families. Will the Chancellor
commit to supporting councils with the cost of temporary
accommodation, and to investing in preventing homelessness in the
first place?
The hon. Member is absolutely right: the number of people housed
in temporary accommodation is a scandal, and the amount that
costs taxpayers in Eastbourne and around the country is a double
scandal. We made a commitment in our manifesto to building 1.5
million homes during this Parliament. Conservative Members oppose
that, but we are determined to do it, because that is the way to
bring down the cost of temporary accommodation and ensure that
all families have a safe and secure roof over their heads.
Dame (Hackney South and Shoreditch) (Lab/Co-op)
My right hon. Friend is right about the challenge it will be for
the Government to balance the public finances. A stiff target of
2% in-year efficiency savings has been set for Departments. What
is she doing to make sure that the target is robustly applied,
and that Departments do not game it by putting off decisions,
which will end up costing more?
I thank the Chair of the Treasury Committee for that question.
She is absolutely right that in our July statement, we set a 2%
productivity target, not just for the Department of Health and
Social Care, as the previous Government did, but for all
Departments. Ministers are absolutely determined to deliver
against those targets, because that is the way to ensure that we
have resources for the frontline public services—our schools,
hospitals and police—that we all rely on.
(West Suffolk) (Con)
Under the last Government, the Chancellor said that interest
rates and gilt yields were driven by Government policy. Will the
Chancellor guarantee that neither will rise higher than they did
under the Conservatives?
The last Government crashed the economy with a mini-Budget and
sent interest rates and mortgage rates soaring, putting huge
pressure on the costs borne by families and businesses. We will
set out our Budget tomorrow, including robust fiscal rules on
paying for day-to-day spending through tax receipts and borrowing
only to invest, whereas the previous Government borrowed for
day-to-day spending, which is why we are in the mess we are in
today.
Mr Speaker
I call the shadow Minister.
(Havant) (Con)
Last Wednesday, in Washington, the Chancellor announced changes
to the debt rules to allow Labour to borrow more. However,
published Treasury advice says that increasing borrowing risks
interest rates staying higher for longer. Does the Chancellor
agree with her Treasury civil servants?
Last week, when I was in Washington, I was very pleased to hear
the International Monetary Fund say how important it is that
countries, including the UK, borrow to invest in their capital
infrastructure. Under the plans we inherited from the previous
Government, capital spending as a share of GDP is due to fall
from 2.6% to 1.7%. If those decisions were to go forward, it
would mean plans delayed and cancelled. We will set out our plans
tomorrow in the Budget, but it is crucial that we have rules
ensuring that we pay for day-to-day spending through tax
receipts, and that we borrow only to invest, unlike the previous
Government.
Investor Confidence
(Macclesfield) (Lab)
9. What assessment she has made of the potential impact of recent
fiscal events on investor confidence in the UK.(900926)
The Chancellor of the Exchequer ()
The Conservative party oversaw years of chaos, which cost not
only families but businesses. The Government are committed to
delivering the economic stability needed for investor confidence.
Our commitment to a credible Budget, strong institutions and
robust fiscal rules are at the heart of that plan. Earlier this
month, we announced a record-breaking £63.5 billion of investment
at our international investment summit. That shows that the UK
can attract investment from around the world, to boost jobs and
growth here in Britain, through serious, stable Government
policy.
When does the Chancellor think that the Conservative party lost
its fiscal credibility? Was it with the mini-Budget? [Interruption.] Was it when national debt
rose from 65% to nearly 100% of GDP? Or was it when they made the
farcical promise to abolish national insurance?
Mr Speaker
Order. Who wants to go for that cup of tea? Normally this happens
at Prime Minister's questions; I do not want it starting in
Treasury questions.
All of the above. That is why my hon. Friend is in his place and
Conservative Members are on the Opposition Benches.
(Strangford) (DUP)
If the Chancellor wants to increase investor confidence, the
thing to do is help small and medium-sized enterprises. Tomorrow
she will have the opportunity to do that. What will be done to
help them? In Northern Ireland, 85% of businesses employ 10 or
fewer employees. If she helps the SMEs in Northern Ireland, that
will increase employment.
I know that the hon. Gentleman is a proud supporter of businesses
big and small in his constituency and across Northern Ireland. I
will set out more detail in tomorrow's Budget, including on
business rates, but I recognise how important it is for us to
support small businesses, so that they can grow and create jobs
right across the United Kingdom.
Mr Speaker
I call the shadow Minister.
(Grantham and Bourne)
(Con)
Clearly, the Chancellor is desperately trying to raise old
ghosts, along with debt and taxes, but her own broken promises
are coming back to haunt her and are frightening investors. It
does not have to be Halloween for socialists to spook British
business. Why does she think that business confidence has fallen
faster in the past three months than at any point since the
pandemic?
I would judge this Government on their record: we secured £63.5
billion of investment right across the United Kingdom, creating
nearly 40,000 jobs in constituencies up and down our country—good
jobs that pay decent wages. That is more than twice the
investment that the previous Government secured at their
international investment summit. That shows how important it is
to return stability to economy and work in partnership with
businesses—something that the Conservative party might want to
learn a lesson from.
Cost of Living: Support for Pensioners
(Sutton and Cheam) (LD)
12. What fiscal steps she is taking to support pensioners with
the cost of living.(900929)
The Parliamentary Secretary, His Majesty's Treasury ()
More than 12 million pensioners will be protected by this
Government's commitment to the triple lock, with the new full
state pension expected to increase by around £1,700 over the
course of this Parliament. Pensioners also benefit from free eye
test, free NHS prescriptions and free bus passes.
We know that no impact assessment was carried out prior to the
decision to cut the winter fuel payment, but was any
consideration given to the burden that the daunting application
form places on the elderly, and the extra burden on charities
such as Age UK, which advise them on completing it? Evidence of
that daunting burden is the 60% limit to uptake over the past
decade. Will she work with her colleagues to simplify the
application process, ease the burden on those who are losing the
winter fuel payment, and help them receive the broad benefits
that pension credit provides?
Mr Speaker
I think the Minister got it in the first two minutes, never mind
the last three.
The Government did an equality analysis on the change, which was
published in September. I recommend that the hon. Gentleman take
a look at it. It was such a long question that I have forgotten
what he asked. On application forms—
Mr Speaker
Order. Let's move on.
rose—
Mr Speaker
Order. What is the hon. Gentleman standing for? I hope he is not.
I call .
Taxes on Working People
(Mid Bedfordshire)
(Con)
15. What taxes she classes as taxes on working
people.(900932)
Mr (Bury North) (Lab)
16. What steps she is taking to minimise taxes on working
people.(900933)
The Exchequer Secretary to the Treasury ()
As hon. Members know, any changes to tax policy will be set out
in tomorrow's Budget. Members will also know that our approach to
fixing the foundations of the economy will be one that protects
working people. This Labour Government will honour our commitment
to protect working people by not increasing national insurance,
basic, higher or additional rates of income tax, or VAT.
The Government have got into an absolute pickle over the
definition of working people. People deserve certainty. In Mid
Bedfordshire, we are proud of the hard work of the owners of
nearly 5,000 small businesses. They are working people creating
jobs and growing our economy, and all while providing for their
families. They are lying awake at night worrying about yet higher
taxes. Will the Chancellor give them a peaceful night's sleep
ahead of tomorrow's Budget and confirm that she will honour her
manifesto commitment not to raise taxes on them?
I do not think I am pre-empting anything tomorrow by confirming
that the Chancellor will absolutely stick to our commitment not
to raise taxes on working people through national insurance, the
basic, higher or additional rates of income tax, or VAT. And I
might add that what people and businesses in the hon. Gentleman's
constituency might want is stability in the economy, a Government
who support investment in the economy, and a Government who will
get the economy growing and make people across Britain better
off.
Mr Frith
In Bury North, child poverty rates are at 43%, densely populated
in three of our nine wards: Bury East, Redvales and Moorside.
Does the Minister agree with me that minimising tax rises for
working people is just the starting point, and that tackling the
crippling level of impoverishment for those in work requires a
laser focus and intervention from this mission-driven
Government?
My hon. Friend is absolutely right that, while keeping taxes on
working people as low as possible is crucial, the way to make
people better off in the long run is through boosting public and
private investment, and delivering sustained economic growth.
That is the focus of this Labour Government, and that will guide
the choices we make.
Mr Speaker
I call the shadow Minister.
(Sevenoaks) (Con)
During the election campaign, I held a press conference at which
I outlined the glaring funding gaps in Labour's plans and the
taxes they might raise to pay for them. One of those taxes was
employer national insurance contributions. The right hon. Member
for Bristol North West ()—now Chief Secretary to the
Treasury—responded at the time by arguing that this was a list of
things that “Labour isn't doing.” Is it correct that raising
employer national insurance contributions is something Labour
isn't doing?
The right hon. Member will have to wait for the Budget tomorrow.
She was a Minister not that long ago, so she might still remember
that the Budget is the time when such announcements are made. Let
me restate our commitment, so it is crystal clear, that we will
protect working people by not increasing national insurance,
income tax or VAT. Might I add, very briefly, that I note the
Conservatives suddenly have a new-found interest in the
livelihoods of working people? It is a shame, frankly, that they
never prioritised that during their 14 years in office, during
which, time and again, they made working people pay for their
mistakes.
Public Spending: Value for Money
(Shipley) (Lab)
17. What steps she is taking to help ensure value for money in
public spending.(900934)
The Chief Secretary to the Treasury ()
The Government have launched a multi-year spending review to set
out our long-term plans for public spending and to ensure that
every pound of taxpayers' money is spent effectively. The first
phase of the spending review is due to report this week,
alongside the Budget, and phase 2 will begin shortly after the
Budget.
I thank my right hon. Friend for his response. Recent National
Audit Office reports have revealed the extent of the Tories'
economic mismanagement over the past 14 years. That has put
capital projects such as Bingley pool in my constituency at risk.
As a member of the Public Accounts Committee, I will ensure that
taxpayers' money delivers value. Will the Minister assure me and
my constituents that tomorrow's Budget will be based on an honest
assessment of the public finances, so that this Government can
deliver on their promises?
I thank my hon. Friend for her question. I can confirm that the
Budget tomorrow will be an honest assessment of the mess left to
this country by the Conservative party, but crucially our plans
for clearing up the mess and then delivering the change we
promised.
(Westmorland and Lonsdale) (LD)
Given that, I assume, everyone in the Chamber has eaten at some
point today, do we think that backing Britain's farmers is a good
use of public money, and given that there is a £2.4 billion
budget for British farming, which the last Government underspent
foolishly, recklessly and carelessly, will the Chief Secretary
guarantee that at the very least the farming budget will be
protected so that our farmers can carry on looking after our
nature and feeding us?
Actually, I did not have breakfast today, so I am looking forward
to lunch, and I therefore welcome that short question from the
hon. Member. This Government are committed to farming and rural
affairs, and to the production of the food that they provide for
us, which is important for security of supply as well as, in due
course, for my lunch.
Topical Questions
(Salford) (Ind)
T1. If she will make a statement on her departmental
responsibilities.(900942)
The Chancellor of the Exchequer ()
Tomorrow I will present my first Budget. It will be a Budget that
fixes the foundations of our economy and delivers on the promise
of change. It will turn the page on low growth and will be the
start of a new chapter towards making Britain better off. It will
mean more pounds in people's pockets, an NHS that is there when
they need it, and businesses creating wealth and opportunity for
all.
I commend the Chancellor for recently outlining investment in
social housing, but in the interim the Joseph Rowntree Foundation
has stated that the previous Government's decision to freeze
local housing allowance rates will push 80,000 private renters on
housing benefit, including 30,000 children, into deep poverty
during this Parliament. Will the Chancellor now consider
unfreezing the allowance and relinking it to the actual cost of
local rents, so that those families can keep their heads above
water?
My hon. Friend makes a really important point, which I think is
familiar to all of us in our communities, about the cost of
housing outstretching people's incomes. In our manifesto we
committed to building 1.5 million new homes, including social
housing, which is so important and can give security to people
who would otherwise be left in insecure housing in the private
rented sector.
Mr Speaker
As this is his farewell question time, let us now come to the
shadow Chancellor.
(Godalming and Ash) (Con)
This are indeed our final exchanges in the House, so before
tomorrow's fireworks I wish the Chancellor well for the future in
her role. There has been a lot of common ground between us. For
example, before the election she said that raising employers'
national insurance was a jobs tax that would take money out of
people's pockets. I very much agree with her on that; does she
agree with herself?
The right hon. Gentleman knows better than almost anyone else
that there a was £22 billion black hole in the public finances.
That will require difficult decisions, but even in those
circumstances we will do everything in our power to protect the
incomes of ordinary working people, so we are committed to
ensuring that no working people will see higher taxes in their
payslips after the Budget.
We all know why the Chancellor is inventing this fictitious black
hole. Thirty times this year, before the election, she promised
not to raise tax, and now she is planning to present the biggest
tax-raising Budget in history. More consensually, however, as
this is our final exchange, I welcome her announcement last week
of a £2.3 billion loan for Ukraine. Does she agree that the
strongest signal of resolve that we can send to Putin is a
commitment to spending 2.5% of GDP on defence, and does she
understand why so many people are worried by the fact that she
has yet to do so?
I have always respected the right hon. Gentleman, but I think it
is important for us not to deny the seriousness of the situation
that we face with the black hole in the public finances. Combined
with the lashing out at independent economic institutions, it
suggests that he has more in common with and than perhaps we thought. I
watched my party lurch towards an ideological extreme and deny
reality, and we spent years in opposition as a result. The shadow
Chancellor risks taking his party down the same path.
(Newcastle-under-Lyme)
(Lab)
T2. My constituency's beer and pub sector makes a significant
contribution to the economy, both locally and nationally. Our 76
pubs and two breweries generate £23 million in tax receipts each
year. Will the Chancellor work with the sector to unlock its
growth potential, in Newcastle-under-Lyme and across our
country?(900943)
The Exchequer Secretary to the Treasury ()
I know that Newcastle-under-Lyme and, indeed, the whole county of
Staffordshire have a proud brewing tradition, and my hon. Friend
will be an excellent champion of breweries in his constituency.
Supporting pubs and breweries is very important for me as a
Minister. Indeed, on my first day in the Treasury's Darlington
economic campus, I visited Durham brewery—it was a work
visit—where I heard from the Society of Independent Brewers and
associates about the huge contribution that breweries make to
British society. Further details will be set out by the
Chancellor tomorrow.
Mr Tom Morrison (Cheadle) (LD)
T4. The Chancellor recently announced an extra £550 million for
the school rebuilding programme. Can she now confirm that all the
schools on that programme, including Bramhall high school, are
fully funded and will get their repairs soon?(900945)
I thank the hon. Gentleman for his question. I went to school in
the '80s and '90s, and I was taught in portacabins because there
was not enough room in my school. I know how important it is that
children are taught in proper facilities. We will set out more
details of our capital investments at the Budget tomorrow.
(Bristol North East) (Lab)
T3. I would like to ask a question that comes out of local
government. One of the frustrations that I found after 14 years
in local government was that short-term cuts can often end up
costing more in the long run—an example that always comes to mind
is youth services. What does the Chancellor make of the Local
Government Association's call for spending on prevention to be
routinely considered in both Treasury and departmental spending
decisions, and for better tracking of long-term
outcomes?(900944)
The Chief Secretary to the Treasury ()
My hon. Friend is right to point out the opportunities for
improvement. As the Chancellor set out in her July statement,
prevention will be at the heart of this Government's new approach
to public service reform. That will be set out in the spending
review in the coming months.
(Epsom and Ewell) (LD)
T5. Many households are facing homelessness due to increasing
household costs. What support can the Chancellor provide to
them?(900946)
Building the homes that our country needs is a top priority for
this Government. In our manifesto, we committed to build 1.5
million homes in this Parliament, including social housing, so
that people have access to secure and affordable accommodation
and that every family have a roof over their heads. We will set
out more details on all of this in the Budget tomorrow.
Mr (South Ribble) (Lab)
T7. Prior to being elected to this place, I was the leader of
South Ribble borough council in Lancashire, where we continually
struggled to set meaningful budgets due to the fragmented,
short-term policies of the previous Tory Government. Will
Ministers please assure me that the proposals being considered in
tomorrow's Budget will see an end to the fragmented annual public
sector funding allocations and a reintroduction of meaningful,
forward-thinking, multi-year settlements?(900948)
The Government recognise the significant pressures that all
councils are facing. We are looking at consolidating funding
streams for local authorities into the local government finance
settlement, and we will work towards implementing our commitment
to a multi-year financial settlement.
(North Cornwall) (LD)
T6. During my SEND summit in Bodmin on Saturday, teachers and
parents revealed the shocking extent of our broken special
educational needs system in North Cornwall and across the county.
Thousands are struggling to get the support to which they are
entitled. What are Treasury Ministers doing to ensure that local
councils and schools are properly resourced to deliver an
effective SEND system, so that families finally get the support
they need and deserve?(900947)
I thank the hon. Gentleman for his question. This is an issue
that resonates right across the House, with so many of us hearing
terrible stories at our surgeries about the lack of support for
some of the most vulnerable children in society. I know that it
is a priority for the Education Secretary too, and we will set
out more detail on departmental settlements in the Budget
tomorrow.
(North West Cambridgeshire)
(Lab)
T8. There are over 50 pubs and breweries in my constituency,
supporting more than 1,500 jobs and contributing millions of
pounds to our economy. Whether it is the Mulberry Tree Farm in
Hampton or the Windmill in Orton Waterville, these are valued
businesses that have earned their place in our local community.
Does the Chancellor agree that they deserve to be supported, and
that this Labour Government will give hospitality the tools it
needs to thrive?(900949)
I thank my hon. Friend for his question. He is absolutely right
to say that pubs make an enormous contribution to our society and
economy. The current alcohol duty system supports pubs through
draught relief, which ensures that eligible products served on
draught are charged less duty. The Government are committed to
delivering a fairer business rates system for high streets,
including hospitality. Any decisions on future tax policy will be
announced by the Chancellor at a fiscal event, the next of which
is tomorrow.
Mr (Basildon and Billericay)
(Con)
Eighty-two per cent of those who have seen Labour take away their
winter fuel payment are either below the poverty line or within
£55 a week of it. How can the Government justify this, when they
are not even allowing a freedom of information request from the
Financial Times to be responded to? They are hiding the figures
from the people.
The Parliamentary Secretary, His Majesty's Treasury ()
We are not hiding the figures. If I had had the chance, I would
have said that 455,000 pensioners are paying the higher rate of
tax and that 39,300 are paying the additional rate. Many wealthy
pensioners have said to me that they do not need the winter fuel
payment—[Interruption.] The right hon. Gentleman says that, but
there are a number of—
Mr Speaker
Order. I think the Minister has answered the question. I call
.
(Cramlington and Killingworth)
(Lab/Co-op)
T9. Residents in my constituency are still feeling the pinch in
their pockets and pay packets from Liz Truss's disastrous
mini-Budget. It is vital that this Government fix the foundations
of our economy to deliver proper public services and a rise in
living standards. Can the Chancellor tell me how she will deliver
this for the north-east and for people across the
country?(900950)
My hon. Friend is right to draw attention to the disastrous
impacts of the Conservative mini-Budget just over two years ago,
which is still having an impact on people's lives as they pay
higher mortgage bills. This Government have committed to return
sustainability to the economy and to working with business to
reform our planning system, our pensions system and our skills
system. We have already brought in £63.5 billion of private
sector investment to grow our economy in all parts of the country
and deliver the jobs and better wages that constituents in
Cramlington and right across the country need to see.
(Meriden and Solihull East)
(Con)
Small business owners are working people, and they are some of
the hardest-working people that I know. The Labour party
struggled to define them over the weekend, but does the
Chancellor agree that any rise in fuel duty, which the
Conservatives froze or cut for 14 years, would be a tax on those
hard-working people or those hard-working small business
owners?
The previous Government factored into their forecasts an increase
in fuel duty this year. I will set out our plans in the Budget
tomorrow.
(Reading Central) (Lab)
T10. Can the Minister update the House on how the Government will
help to secure better returns for pensioners while also unlocking
the opportunities for pension savings to help generate
growth?(900951)
The Chancellor launched the landmark pensions review in July,
which I am leading and which is looking at measures to drive more
UK pension investment into the UK economy, boosting growth but
also improving pension savers' outcomes. I know that there is
interest in this agenda across the House.
Greg (Mid Buckinghamshire) (Con)
Countryside Alliance research shows that rural households spend
up to £800 a year more on fuel than urban households, so further
to the question from my hon. Friend the Member for Meriden and
Solihull East (), will the Chancellor protect
rural communities in the Budget tomorrow?
The hon. Gentleman is urging me to comment on the Budget, but he
will have to wait until tomorrow.
(Poole) (Lab)
This Government have inherited a Britain that is now the most
unequal country in the G7 bar America. The UK's 50 richest
families own 50% of the country's wealth, and our tax system
exacerbates this inequality with unfair loopholes that benefit
those who have wealth rather than those who go to work. What
steps—
Mr Speaker
Order—[Interruption.] No, these are topical questions and I
decide.
My hon. Friend will have to wait for the Budget tomorrow, but he
will know that we have committed to closing some loopholes,
including VAT on private schools, the non-dom loophole and
cracking down on tax avoidance.
(South Devon) (LD)
In South Devon, the average house price is now 14 times the
average salary, at £425,000. What measures is the Chancellor
taking to ensure that rural and coastal areas, such as the South
Hams, which face huge digital and transport connectivity
problems, will be included in measures to boost economic
growth?
Our commitment to build 1.5 million homes is about ensuring that
all our constituents get the chance to have a roof over their
head, including in rural areas, with more social housing as well
so that people can have a secure tenancy. The hon. Lady is also
right to raise the issue of digital connectivity, and we will be
setting out more details on infrastructure investment in the
Budget tomorrow.
(Cumbernauld and
Kirkintilloch) (Lab)
“Buy now, pay later” is attractive to young people who are trying
to survive on zero-hours contracts with irregular hours. What
assurances can the Chancellor give me that the coming regulations
will protect this group from problematic debt?
The Economic Secretary to the Treasury ()
The proposed regulations will drive high standards of conduct
among “buy now, pay later” firms, ensuring that consumers receive
clear information and have access to strong protections. Our
proposals will also allow the Financial Conduct Authority to
require “buy now, pay later” firms to carry out affordability
checks, ensuring that firms lend only to borrowers who can afford
to repay.
Sir Ashley (Bridgwater) (Con)
During the last election campaign, Labour candidates across
Somerset said that a Labour Government would cut energy bills by
£300. Will the Chancellor set out the timescale for fulfilling
that promise?
I thank the hon. Gentleman for his question, and I note the
number of Labour MPs we now have in Somerset and across the
south-west of England. We will set out more detail in the Budget
tomorrow, but our commitment to investing in home-grown energy
will boost our energy security, create good jobs here in Britain
and begin to reduce people's bills, as will our programme to
better insulate homes, which the previous Government failed to
do.
(Uxbridge and South Ruislip)
(Lab)
A hundred councils in England have come together to call for five
key changes to unlock much-needed investment in new council
homes. They will welcome the news of £500 million of additional
grant and changes to the right-to-buy rules, but one issue they
also raise is housing revenue account debt and finance. Will
Treasury Ministers look specifically at debt allocations and how
HRA debt is accounted for, to unlock much-needed investment in
council homes?
Councils' housing revenue accounts are a significant part of
local authority finances, and it is therefore not right to
exclude them from our fiscal rules, but I reassure my hon. Friend
that this Government's commitment to deliver 1.5 million new
homes will be delivered.
Mr (East Londonderry)
(DUP)
However “working people” is defined, does the Chancellor not
accept that people on low incomes and part-time employees who
earn up to £300 a week should be exempt from paying income
tax?
We will set out details of our tax policy in the Budget tomorrow,
but this Government have made a commitment to working people that
we will not increase their income tax, their national insurance
or the value added tax they pay.
