Jim McMahon (Oldham West, Chadderton and Royton) (Lab/Co-op)
The Chancellor of the Exchequer (Rachel Reeves)
I am grateful to my hon. Friend for raising this important issue. While the approved mileage allowance payment rates have not changed since 2011, I recognise that motoring costs have evolved significantly, and it is an important issue for many people who claim motoring expenses. We are, therefore, looking at the issue and will consider the matter further in the usual way, as part of a future fiscal event. Through steps such as freezing fuel duty, we are taking wider action in the meantime to ensure that people pay the lowest price possible at the pump, whether or not they use the approved mileage allowance payment.
Jim McMahon
I thank the Chancellor for that response; I welcome it, and so will millions of working people. This has been a long-standing campaign for Unison, and I am grateful to it and the RAC Foundation for taking on this case and to the Mirror for the coverage it has given to the campaign. The 45p a mile rate, set 15 years ago, is nowhere near the true cost of running a vehicle today, which was recently assessed at 67p a mile—and that was before fuel costs rocketed in the last week. Gemma, a social worker for over two decades, travels around 400 miles a month for work, which means she is paying over £1,000 a year just to do her job and care for other people. Gemma and the millions of working people like her will welcome the Chancellor’s statement today, but can this work be expedited, given the cost of living crisis?
Rachel Reeves
I genuinely thank my hon. Friend for all he has done to draw attention to this important issue. I am also grateful for representations from the trade union Unison, given that this particularly affects low-paid workers, including care workers like Gemma. We have a standard Treasury policy of keeping all taxes under review ahead of fiscal events, but as I say, this is one area that I will be keeping a very close interest in.
Dame Harriett Baldwin (West Worcestershire) (Con)
The Chancellor will review mileage rates, but with her fuel duty freeze coming to an end in September and the next fiscal event not happening until later in the year, will she commit to review that decision at the end of this parliamentary Session if petrol prices are significantly higher than they are today, for the sake of people’s cost of living?
Rachel Reeves
The price of petrol today is 8p per litre lower than if I had followed the plans that were left to me by the previous Conservative Government. From April, it will be 11p per litre lower. Of course, we keep these things under review, but oil prices today are 24% lower than they were yesterday, so things are very volatile at the moment. That is why, as I said yesterday, the most important thing we can do to address the cost of living challenges people face is to de-escalate the conflict in the middle east, which is exactly what this Government are attempting to do.
Sir Ashley Fox (Bridgwater) (Con)
Dr Danny Chambers (Winchester) (LD)
The Exchequer Secretary to the Treasury (Dan Tomlinson)
On business rates, the Government have announced a support package for all businesses worth £4.3 billion over the next three years. We have introduced permanently lower multipliers for eligible retail, hospitality and leisure businesses, including those on the high street. In addition, every pub and live music venue will get 15% off its new bill from April. The Government will also bring forward a high streets strategy later this year.
Sir Ashley Fox
Many retail, hospitality and tourism businesses in my constituency traditionally give young people their first job, but with the Chancellor’s jobs tax, the unemployment rights Act and now huge increases in rates, many of those businesses are struggling to survive, so they just cannot afford to take on those young people. Does the Minister accept that his Government are the reason that youth unemployment is now higher in the UK than in the EU for the first time since records began?
Dan Tomlinson
One reason we have a challenge with youth participation in the labour market is the broken welfare system and the broken support system that we inherited from the previous Government. The proportion of young adults who are not in education, employment or training is broadly unchanged since the general election. It is too high, and it has to come down. That is why we are reforming our system and providing more support through actions such as our jobs guarantee. That is the right approach, as is the approach we are taking on business rates.
Wendy Chamberlain
I recently hosted a hospitality roundtable in North East Fife. In an area that boasts such attractions as St Andrews and the East Neuk, one would expect to find an industry in rude health, but that was not the case. Indeed, one business could not attend because it was taking difficult decisions in relation to the business that day. The Minister has outlined a number of things that are in the purview of the devolved Government, and I will be taking those up with the Scottish Government. As a Scottish MP and a Scot representing Scottish businesses, however, I am looking for things that the Government can do on a UK level. The Liberal Democrats have been proposing an emergency VAT cut for hospitality businesses for some time, so why will the Government not consider that?
Dan Tomlinson
Business rates are a devolved matter. The changes that we have announced and the support that we have put in will have consequentials for funding for the Scottish Government. VAT is a broad-based tax that raises a significant amount of revenue for the Treasury. That is important in ensuring that we can manage our public finances and bring in the revenue to be able to get borrowing down, which this Government are doing and previous Governments failed to do. When the Liberal Democrats last had the chance, their choice was to put up VAT rather than cut it.
Dr Chambers
Many businesses in Winchester that I speak to on a regular basis talk about higher energy costs and national insurance rises, and many bring up the increased red tape that has resulted from the Conservatives’ failed Brexit project. Businesses in Winchester say that they want growth, not continued red tape. About two weeks ago, I spoke to one such business, RJM International, located just off the high street. For some reason, the Government refuse to even consider reducing trade barriers to the EU by having a bespoke customs union, but industry wants it and the public are increasingly supportive. Why will the Government not even assess the economic case for a customs union and why are they clinging to a failed ideology at the expense of growing our economy?
Dan Tomlinson
This Government are fully committed to resetting our relationship with the European Union. As the hon. Gentleman highlighted, the previous Government did as much as they could to damage that relationship, damage our productivity and damage our working relationship with our nearest partners. We are seeking to change that: we are negotiating a sanitary and phytosanitary agreement; we are looking at electricity and energy; and we are looking at what more we can do to deepen our trading relationship, which will be good for productivity and jobs. People said that we could not make progress with both the EU and the United States, but we did not have to choose: instead, we are making progress with trading partners across the world.
Rachael Maskell (York Central) (Lab/Co-op)
Property valuations in York are particularly high, making it very difficult for businesses, not least this year and certainly over the next three years. Will the Minister say exactly when he will launch his consultations on pubs, on hotels, on business rates and on high streets? Would he be willing to come and meet businesses in York to hear why they are struggling with the decisions made by this Government?
Dan Tomlinson
We will be working across Government on the high streets strategy. Treasury Ministers will be working with colleagues in the Ministry of Housing, Communities and Local Government and the Department for Business and Trade. We will make progress on that in the coming weeks, with the strategy to report by the end of the year. We are in the process of working on the details of plans for the review of the pubs and hotels valuation methodology, and I will be happy to engage with my hon. Friend and Members from across the House to get that on a firmer footing for the future.
Lauren Edwards (Rochester and Strood) (Lab)
The Government’s business rate relief package for pubs has been hugely welcome, but other high street businesses in the retail, leisure and hospitality sectors are struggling. Will the Minister consider increasing the small business rate relief threshold to encourage growth and hiring? Over half the high street small businesses surveyed by the Federation of Small Businesses said that they would be in position to invest in or grow their businesses if the threshold were increased.
Dan Tomlinson
Around one in three businesses continue to benefit from the small business rates relief and do not pay any business rates at all, with an additional 85,000 benefiting from reduced relief as that is tapered away. At the Budget, we also announced changes to small business rates relief so that we can provide an additional two years of support for those businesses seeking to expand into a second property, to support those businesses to grow and to support their communities and jobs.
Sonia Kumar (Dudley) (Lab)
Traders like Sukibinder Singh, who owns Little Italy in Dudley, tell me how low footfall, empty shops and shoplifting are putting people off coming to the town centre. Will my hon. Friend set out what action he is taking on business rates and targeted reliefs to help bricks-and-mortar businesses to compete and prosper?
Dan Tomlinson
I thank my hon. Friend for her representation of Little Italy in her fantastic constituency. We are working on the high streets strategy. She is right to highlight that with long-term trends, whether the impact of the pandemic or of the shift to online retail, we need to look at this as a whole. On taxation and business rates in particular, we have for the first time provided a wedge in the tax system so that the rate that online giants pay for their warehouses is a third higher than the rate paid by the smallest businesses on the high street. There is a significantly higher multiplier for the larger businesses on my hon. Friend’s high street than for the smaller ones, but we will keep looking at the issue and at what more we can do to support businesses across the tax system.
Daisy Cooper (St Albans) (LD)
Small businesses are the backbone of our economy, but the Federation of Small Businesses is warning that they will face a cost cliff edge in April because of the cumulative impact of all the new taxes and responsibilities put on them at the same time. During the course of the Finance Bill, we Liberal Democrats have repeatedly called for an assessment of the cumulative impact of taxes on hospitality and small businesses, including business rates. When the Government bring forward their high streets strategy, will it include an assessment of the cumulative impact of all tax changes—yes or no?
Dan Tomlinson
When we bring forward the high streets strategy, it will look in the round at what more we can do on regulation, licensing and the decisions that are made in the Treasury to continue to support small businesses and those on our high streets. That is incredibly important, and we will continue to look at that closely.
Preet Kaur Gill (Birmingham Edgbaston) (Lab/Co-op)
The Chief Secretary to the Treasury (James Murray)
Through the English Devolution and Community Empowerment Bill, the Government are introducing a strong, new community right to buy. That will empower communities to take ownership of and protect local assets. Alongside those new powers, the Pride in Place programme will provide up to £5.8 billion over 10 years to support 284 neighbourhoods, enabling local people to choose to fund a range of activities, including developing or restoring important community assets.
Preet Kaur Gill
After 14 years of Conservative austerity, many communities like mine have seen the assets that matter most to them hollowed out. I welcome the Government’s community right to buy, because putting local people in control of local assets is simply common sense. In my constituency, Woodgate and Bartley Green will receive £20 million through Pride in Place funding over the next decade thanks to this Government. Does the Minister agree that tackling barriers such as access to finance will help communities to take ownership of local assets and rebuild neighbourhoods?
James Murray
My hon. Friend is absolutely right. Pride in Place funding can be used for communities to take ownership of and support local assets, from youth centres to libraries and cultural venues. I am very glad to hear that the funding will make such a positive difference to her constituents in Woodgate and Bartley Green, and I am proud that this Government are putting people in control of what happens in their local area.
Calum Miller (Bicester and Woodstock) (LD)
Across my constituency, there are three things that small villages tend to have: a pub, a church and a village hall. The community asset policy will support community ownership of the pubs, but I am hearing from those who run large faith buildings that they are deeply concerned about the changes to VAT relief on listed buildings. Will the Minister agree to meet me and others who are literally trying to repair the church roof to discuss that uncertainty?
James Murray
As the hon. Gentleman will be aware, this scheme is operated by the Department for Culture, Media and Sport, so I am happy to ask colleagues in that Department to come back to him.
Michael Wheeler (Worsley and Eccles) (Lab)
The Chancellor of the Exchequer (Rachel Reeves)
Stability is the most important thing that we can do to get interest rates and inflation down, and tackling the cost of living—especially given the global headwinds—is my top priority. At the Budget, we took money off energy bills and froze prescription charges and train fares. The Government’s cheaper fuel finder scheme is now online, and it shows petrol prices at forecourts across the country. Yesterday, some petrol retailers charged almost 180p per litre, while others were charging less than 130p per litre. This Government will not tolerate price gouging, and I will be meeting with petrol retailers this week to raise concerns and to get prices down at the pumps for all our constituents.
Bell Ribeiro-Addy
The Trussell Trust’s recent “Hunger in the UK” report highlights the startling reality of food insecurity. It has found that rates are higher for private renters in receipt of housing benefit, either through local housing allowance or through the housing element of universal credit. Private renters on the lowest incomes cannot keep up with the rising cost of living, and maintaining the freeze on local housing allowance risks driving even more people into hunger and homelessness, because private renters receiving LHA will likely see an average shortfall of £243 a month. The Government have taken meaningful steps towards tackling food insecurity, but will the Chancellor build on this by lifting the freeze on local housing allowance?
Rachel Reeves
The Renters’ Rights Act 2025, which will come into force in the next month or so, will make a big difference to my hon. Friend’s constituents and to all our constituents who are contending with living in the private rented sector—particularly with issues such as evictions, but also with mid-term rent increases. At the same time, we have put £39 billion into our social and affordable homes programme so that more people can get a council house or a social home rather than living in the private rented sector. We are also getting rid of the two-child limit, which the Trussell Trust says will reduce demand for food banks.
Michael Wheeler
While cost of living pressures are affecting people across my constituency of Worsley and Eccles, young families face a perfect storm. Whether it is housing costs, expensive childcare or student loans, many young families are struggling, and research shows that the cost of living crisis is holding people back from even starting a family. Will the Chancellor outline what measures the Government are taking to alleviate the financial burdens on young families, in addition to their welcome moves to expand free childcare?
Rachel Reeves
We absolutely recognise the pressures facing families. Bringing stability back to the economy is the No. 1 thing that we can do for working families. There have been six cuts in interest rates since the general election, which has seen the average cost of servicing a mortgage come down by about £1,300 a year. The Renters’ Rights Act will come into force shortly to give greater rights to people in the private rented sector. The free childcare offer, which is now fully funded, ensures that parents with children aged between nine months and five years get free childcare if they are in work. From next month, the end of the two-child benefit limit will lift 450,000 children out of poverty.
Graham Stuart (Beverley and Holderness) (Con)
Richard from Beverley tells me that he paid £304 for his last tank of heating oil, yet if he orders it again now—and he needs to do so within four weeks—it will cost him £862. Families across rural areas such as Beverley and Holderness rely on heating oil to keep warm, yet because they are off-grid, they get no protection from the energy price cap. Some 1.5 million people across the country are affected, so what steps can the Chancellor take to alleviate the situation for rural families such as Richard’s, who are facing a huge spike in the cost of living through no fault of their own?
Rachel Reeves
First, everybody gets support with their electricity bill, regardless of how they heat their home. However, I do recognise the unique issues around heating oil; we had representations from the Labour group of rural MPs over the weekend, and my colleague the Financial Secretary to the Treasury is going to meet all MPs with an interest in this area tomorrow. I very much urge the right hon. Gentleman to come to that meeting, but the most important thing this Government are doing is trying to de-escalate the crisis in the middle east, because that is the way to get prices down for all our constituents, whether for heating oil or at the pumps.
Kirsty Blackman (Aberdeen North) (SNP)
Inflation might be lower than projected, but prices are still rising. Fuel prices at the pumps might be lower than the Tories promised, but they are still higher than they were, and energy costs are still not down to what the Government promised in their manifesto. Will the Chancellor recognise that families are really struggling at the moment and put in an emergency package of measures to support them through the cost of living crisis?
Rachel Reeves
In April, people will get £150 off their energy bills and prescription charges in England will be frozen as will rail fares. At the same time, we are getting rid of the two-child benefit cap, which will lift 450,000 children out of poverty, but the most important thing we can do for the price of petrol, diesel and heating oil is de-escalate the conflict in the middle east and get vessels moving again through the strait of Hormuz. That is why this Government are putting such efforts into de-escalating this crisis.
Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
The level of poverty that 14 million people in the UK face is not inevitable; it is the result of political choices, and it damages our economy, costing around £75 billion each year. Will my right hon. Friend consider equalising capital gains tax with income tax and introducing a 2% wealth tax on assets over £10 million to lift people out of poverty and strengthen public finances?
Rachel Reeves
In my first Budget, I changed a number of taxes to ensure that the wealthiest are paying their fair share. We increased capital gains tax, reduced the number of tax loopholes, introduced VAT and business rates on private schools, extended the energy profits levy and got rid of the exemptions for private equity. In the Budget last year, I did more than any Chancellor has ever done to take children out of poverty. In the course of this Parliament alone, more than half a million children will be lifted out of poverty. I am proud to be the Chancellor who has delivered that.
Pippa Heylings (South Cambridgeshire) (LD)
With tensions in the middle east pushing up global oil and gas prices again, households are understandably worried that yet another international crisis will mean higher energy bills and a higher cost of living at home. In my South Cambridgeshire constituency, like in others we have heard about today, many rural and semi-rural households have to use oil for heating, and they have seen prices double over the past week. I have heard that the Chancellor is considering measures to support them. Will she support the Liberal Democrats’ call to zero rate VAT on heating oil for three months for all those residential homes, and will she consider other measures to protect them from massive spikes in their bills?
Rachel Reeves
There are two things going on with heating oil. First, we have the conflict in the middle east, which we are trying to de-escalate, and secondly, we have price gouging. The way to deal with that is to ensure that customers are treated fairly and companies are not ripping off their customers. That is why we have asked the Competition and Markets Authority to look at the issues around heating oil, but we have to get to the root of the problem, which is that vessels are not flowing through the strait of Hormuz, and some businesses are using this crisis as an opportunity to rip off consumers. Rather than throwing public money at something when that is not the solution, let us deal with price gouging and getting the oil flowing.
James Wild (North West Norfolk) (Con)
The Chancellor promised in her first Budget that she would not extend the freeze on income tax thresholds, because it
“would hurt working people. It would take more money out of their payslips.”—[Official Report, 30 October 2024; Vol. 755, c. 821.]
In her second Budget, the Chancellor broke her promise with a £23 billion tax rise, bringing a million more people into paying higher rate tax. When people are set to struggle with the cost of living over this Parliament, why are the Government choosing to make their lives harder?
Rachel Reeves
Some people have short memories, haven’t they, Mr Speaker? I remember the Conservatives freezing those thresholds on a number of occasions. We said in our manifesto that we would not increase the headline rates of national insurance, VAT and income tax that working people pay, but I did say clearly at the Budget last year that we would have to ask everyone to make a greater contribution, because of the downgrade in productivity, which is a result of the mismanagement of the economy by the last Government over 14 failed years.
John Glen (Salisbury) (Con)
The Chief Secretary to the Treasury (James Murray)
At the spring forecast last week, my right hon. Friend the Chancellor showed that we have the right economic plan. Our plan has lowered inflation, borrowing, debt and debt interest payments. Our approach means that investment is up, helping to create the conditions for growth across the UK. Our firm approach to public spending is helping to keep public finances on a sustainable path.
John Glen
Given that the Chancellor has pencilled in 0.3% real-terms growth in public spending in 2029-30, and assuming that health spending is at its historical average, the special educational needs and disabilities spend is as per the proposals, and defence is at 3%, that will leave a 2.5% real-terms cut in unprotected Departments. What plans do the Chancellor and Chief Secretary to the Treasury have to fill that £13 billion gap in the 2029-30 envelope?
James Murray
If the right hon. Gentleman looks at the plans that we set out through our spending review, he will be clear that we are increasing spending by £50 billion a year by 2028-29 compared with the previous Government’s plans. At the same time, we are ensuring that taxpayers get value for money. We are making £3.9 billion of efficiency savings by 2029-30, rising to £5 billion by 2030-31.
Richard Fuller (North Bedfordshire) (Con)
The Government’s spending plans look very, very iffy. The Minister has a chance of fitting in with the Chancellor’s fiscal rules—if there is no further downgrade on economic growth, which seems unlikely; if the Government have the backbone to rein in public spending and to increase taxes in the last years of the Parliament, which seems very unlikely; if the Government do not have to step in with any significant energy support because no money has been set aside; and if the Government can get £4.8 billion in salary sacrifice in 2029-30 revenues, which the industry says is a pipe dream. So here is another “if”. If the Minister’s spending plans start to fall apart, will he prioritise cuts in public spending over tax increases?
James Murray
I will give the hon. Gentleman an “if”. If he were honest and remembered his time in Liz Truss’s Government, he might not have the gall to make comments like that across the Dispatch Box—
Mr Speaker
Order. All Members are honest. Please think about what you are saying. You cannot individually attack a Member for not being honest. We are all honourable Members, as you well know. I call the honourable Minister.
James Murray
Thank you very much, Mr Speaker. I apologise unreservedly for the implication about the hon. Gentleman: I know that he is a very decent and honourable man, and I withdraw that comment. He may have unintentionally misled the House by failing to declare his part in the Liz Truss Government and the impact that that had on public spending. As he will know, we have stuck to the fiscal rules that this Chancellor introduced at the beginning of this Government in every fiscal event that we have had. Those fiscal rules are ironclad. We have sustainable plans for public spending, and we are ensuring that we are managing the economy in a way that the hon. Gentleman’s party could only dream of.
Catherine West (Hornsey and Friern Barnet) (Lab)
The Economic Secretary to the Treasury (Lucy Rigby)
We became inured to the presence of food banks under Tory Governments over the last 14 years, but we should always remember that despite the incredible work done by those who run them, food banks should not need to exist, and this Government are committed to ending mass dependence on food parcels. That is why we have extended free school meals to children in families receiving universal credit and removed the two-child limit, which will lift 450,000 children out of poverty, and—according to the Trussell Trust, as the Chancellor said earlier—will significantly reduce the number of families using food banks.
Catherine West
Does the Minister agree that everyone—including financial institutions such as the mutual sector, which often outperforms the private banking sector in access to finance and branch closure issues—needs to play their part in helping families and households at this critical juncture?
Lucy Rigby
As my hon. Friend knows, we are a strong supporter of the mutual sector, for exactly the reasons that she has given. As part of our financial inclusion strategy, we are backing the sector with initiatives such as the new £30 million credit union transformation fund and reform of the common bond, which I look forward to introducing shortly.
Alex Easton (North Down) (Ind)
Will the Minister join me in paying tribute to the work of the food banks, not only in my constituency but across the United Kingdom, in stepping up to plug gaps for families? Does she accept that urgent improvements in respect of benefit transitions and deductions are needed to prevent households from being pushed abruptly into crisis?
Lucy Rigby
As I have said, food banks should not need to exist, which is why this Government are committed to ending mass dependence on food parcels. I have also mentioned the importance of lifting the two-child limit on universal credit, which will result in the largest expected reduction in child poverty in a single Parliament since records began.
Nick Smith (Blaenau Gwent and Rhymney) (Lab)
The Parliamentary Secretary to the Treasury (Torsten Bell)
Payments of both the basic pension and the new state pension will increase by 4.8% in April, in just a few weeks’ time, boosting pensioners’ incomes by up to £575 a year. The yearly amount of the full new state pension is projected to rise by about £2,100 over the current Parliament, reflecting this Government’s commitment to the triple lock for its duration.
Nick Smith
That is great news. Our pensioners deserve the best support, and will be glad of the extra income. I will shortly be organising events in my constituency promoting pension credit take-up. Some of my pensioner constituents, however, have lost money to the Safe Hands funeral scheme when trying to prepare for the worst of times. Will the Minister please meet me to discuss their case?
Torsten Bell
I am glad to hear that my hon. Friend is organising events to drive pension credit take-up, as he did last year. I know that Members on both sides of the House will be doing that throughout the year.
On my hon. Friend’s question about the failure of Safe Hands, he is a powerful advocate for his constituents. He will know that the Serious Fraud Office has recently announced that two individuals have been charged in relation to the case, and there are live criminal proceedings ongoing, but I know that my hon. and learned Friend the Economic Secretary, who is responsible for this matter, is always happy to meet him.
Wera Hobhouse (Bath) (LD)
Nearly half a million pensioners living abroad will miss out on the state pension increase because we do not have reciprocal agreements with countries such as Canada and Australia. Several former Bath constituents have raised this issue with me. What discussions has the Minister had with departmental colleagues to rectify this injustice?
Torsten Bell
The hon. Member will know that it is a long-standing Government policy that the uprating of pensions is prioritised for residents in the UK, not least because the uprating levels reflect the path of earnings and prices in the UK. She will know that that was the Government’s policy under the Liberal Democrat-Conservative coalition Government, and it remains the case today.
Mark Garnier (Wyre Forest) (Con)
Thanks to this Government’s policies on pensions, which actively disincentivise saving into private pension schemes, people will increasingly rely on the support of the state. This is not sustainable. I asked the Minister about this yesterday, and he dodged the question, so I will ask him again: will the Government cancel pension fund mandation and abandon salary sacrifice caps—yes or no?
Torsten Bell
This Government have set out our policy. On the question of salary sacrifice, any responsible Government should look at the effectiveness of all tax reliefs. If salary sacrifice for pensions had not been reformed, the cost would have risen to £8 billion over the course of this Parliament. That is the cost of the entire Royal Air Force. If the Conservative party wants to be treated like a serious party that is committed to fiscal discipline, as it claims to be, it is time to grow up.
Claire Hanna (Belfast South and Mid Down) (SDLP)
The Exchequer Secretary to the Treasury (Dan Tomlinson)
The Government recognise the important contribution that hospitality businesses make to communities across the UK, including in Northern Ireland. Reducing VAT rates, or applying different VAT rates within the UK, would add complexity and come at a significant cost to the Exchequer.
Claire Hanna
As well as the business pressures, a majority of households in Northern Ireland and many businesses use heating oil as their main heating source, so they are particularly exposed to shocks such as that which we are experiencing due to the wrong-headed conflict in the middle east, and they are not protected by the energy price cap. The Stormont Executive have failed to regulate in this area, or to make any meaningful progress towards a transition to sustainable and secure energy. What interventions against extreme price fluctuations can the Treasury make for those not on the grid?
Dan Tomlinson
I thank the hon. Member for her representation of her constituents. The Chancellor has already said today, as she said yesterday, that we understand that there are particular pressures facing households that use heating oil for their heating. A meeting has been arranged for tomorrow with the Financial Secretary to the Treasury, which I hope the hon. Member will be able attend to discuss this issue in more detail. We are also going to be in conversations with the Competition and Markets Authority to make sure that we have a fair market that provides a fair price for her constituents.
Carla Lockhart (Upper Bann) (DUP)
I support the call for a cut in VAT for the hospitality sector from the hon. Member for Belfast South and Mid Down (Claire Hanna). She is right to say that oil prices are rising sharply. The fuel price at the pumps is rocketing, and families are struggling with the cost of living. In Northern Ireland, 60% of homes rely on heating oil. What steps will the Treasury take to cut fuel duty and remove VAT on domestic heating oil? Will it finally recognise the damage being done by the Energy Secretary’s net zero zeal in blocking further oil and gas licensing in the North sea?
Dan Tomlinson
We have made sure to freeze fuel duty since we have been in office. That has saved the average driver 8p per litre at the pump, and it will rise to 11p when the increase does not go ahead in a few weeks’ time.
If heating oil is an issue that affects the hon. Lady’s constituents, I hope she will be able to attend tomorrow’s meeting. We are looking very closely at this issue, and at the changes that we can see in oil and gas prices at the moment. As the former Chancellor of the Exchequer, the right hon. Member for Godalming and Ash (Sir Jeremy Hunt), said yesterday, it is too early to tell how things will pan out. We have seen significant increases, and today we have seen decreases. We will keep looking closely at what we can do.
Tracy Gilbert (Edinburgh North and Leith) (Lab)
A number of hospitality businesses in my constituency have raised with me that the UK rate of VAT is much higher than it is in France and Germany. Will my hon. Friend ask the Office for Budget Responsibility to model the impact of VAT cuts, as studies have previously suggested that cuts—
Sorcha Eastwood (Lagan Valley) (Alliance)
I thank the Minister for his response. I have to declare an interest because I started a parliamentary petition exactly on a VAT cut for hospitality in Northern Ireland, the reason being that we have the Republic of Ireland with its very competitive VAT rate right up against us. Businesses saw the official Government response, because that petition got over 10,000 signatures, and they felt very despondent. I am sure that Treasury Ministers and the Chancellor will want to join me in trying to do everything we can to protect our hospitality sector. The Minister says this is complex to do, but would he agree with me that it is worth revisiting that idea?
Dan Tomlinson
This is a complex change to implement, but the Government’s position is that it is right to have the same rate of VAT across our country. During the pandemic, there was a cut—a temporary cut—to the rate of VAT and that came at the significant cost of £8 billion. We have to make sure that we can raise revenue from across the country in a fair and consistent way to support the public finances.
Freddie van Mierlo (Henley and Thame) (LD)
Brian Mathew (Melksham and Devizes) (LD)
The Parliamentary Secretary to the Treasury (Torsten Bell)
Last week, the Office for Budget Responsibility set out its updated forecast for the UK economy, including for unemployment to peak this year before falling in each and every year thereafter. Longer-term problems for young people have been building in our labour market for far too long, with employment rates that are too low and levels of those not in education, employment or training soaring in the last Parliament. We will not allow a generation of young people to be left behind, which is why the Government have committed £820 million for the youth guarantee, strengthening employment support and guaranteeing jobs for the long-term unemployed.
Freddie van Mierlo
I first entered the job market in the wake of the 2008 financial crisis, and it was a difficult time for young people, yet today they face even more difficult and uncertain times. The Chancellor’s jobs tax is bearing down on opportunities, and AI is making this worse by potentially pulling up the ladder on graduate jobs that previously included things such as note taking and supporting senior employees in meetings. Will the Chancellor correct course on the unemployment of young people and do more to support their career progress?
Torsten Bell
The hon. Member’s phrasing of his question was very telling about the challenges we all face in our labour market, because while we have seen more jobs created over the last year, there is a longer-term challenge with youth unemployment. If we look at the last Government, we never saw youth employment rates recover to the level seen under the previous Labour Government after the financial crisis, which was exactly the experience he mentioned.
It is important that we grapple with that long-term challenge, and there is the newer challenge with the huge increase in NEET rates in the last Parliament specifically. We absolutely need to focus on both of those, which is why we are focusing apprenticeship funding on young people in particular, why we are introducing the youth guarantee, and why we have the independent review led by Alan Milburn to focus on the root causes of these challenges.
Brian Mathew
The Government’s changes to employer national insurance contributions have made it more expensive for employers to take on staff, particularly in the hospitality sector, which employs a high proportion of young people and part-time workers. Does the Minister agree that these changes have made it more difficult for young people in Melksham and Devizes and across the country to get a foot on the career ladder and start their working lives?
Torsten Bell
I think all of us recognise that our hospitality and retail sectors have had a difficult time in recent years. For retail, that goes back before the pandemic, with the growth of online shopping. The squeeze on energy costs in the outrun of the pandemic has squeezed how much people are spending on hospitality.
Specifically on the hon. Member’s question about national insurance, I am sure he is aware that those under the age of 21 and on youth apprenticeships are exempt from national insurance entirely. I would gently point out that the youth employment pattern we see in the labour market long predates the changes to national insurance last year.
Torsten Bell
My hon. Friend has rightly been raising this issue for some time, predating the election. I will take the two parts of her question in turn. The impact of AI is something that is being looked at across countries—there is a unit inside Government looking at exactly that. More importantly, though, she mentions the crisis happening now, with some young people unable to get the job opportunities that we all want them to have, which they have not had for some time. We will bring forward further measures to strengthen the youth guarantee, which is an important measure to increase the employment support available to our young people and to ensure that a job guarantee is there for those who are long-term unemployed.
Jon Trickett (Normanton and Hemsworth) (Lab)
The unemployment situation in my constituency and across the Yorkshire coalfield is becoming a crisis. There are 1,980 people out of work in my constituency and 70 job vacancies—that is almost 30 unemployed people pursuing every single job. No Labour Minister would ever say that employment is a price worth paying, but will the Minister tell the House that he will equally prioritise tackling unemployment and reassuring the bond markets?
Torsten Bell
My hon. Friend and I have discussed these issues on many occasions, particularly as they are specific to his constituency and other coalfield communities. There are challenges, particularly with youth employment, which goes back to the last decade in particular, and we absolutely need to prioritise that. However, I would also say a word of warning on the view of the overall labour market. Looking at the employment level last year, which was around 75%, there have been only two years in peacetime in the past 100 years when Britain has had a higher employment rate. I think we should be a bit careful about talking down the resilience of the UK economy or, as in this case, the resilience of the labour market. We have had only two years in the past 100 in peacetime when Britain has had a higher employment rate than last year.
Richard Fuller (North Bedfordshire) (Con)
Last month, The Times reported that the Government may drop their pledge on minimum wage equalisation over fears of youth joblessness, and the BBC reports that the Government are considering a delay. Can the Minister advise whether the Government have considered any such delay or policy changes, and if so, what decision has been reached?
Torsten Bell
I want to offer my condolences to the hon. Gentleman for the recent loss of his father. It is something we all have to face at some point in our lives, but it is a lot to deal with. All our thoughts are with him at this time.
In answer to the hon. Gentleman’s question, no, there is no change in Government policy. Our view is that we should see alignment of the national minimum wage and national living wage rates, but that should happen in the right way, which is with the guidance of the Low Pay Commission, which will continue to play an important role.
Daniel Francis (Bexleyheath and Crayford) (Lab)
The Chancellor of the Exchequer (Rachel Reeves)
The conflict in the middle east affects all of us, and I understand the anxiety felt by families and businesses. Rapid de-escalation in the middle east is the best way to protect businesses and working people from rising costs, which is why I continue to work closely with G7 colleagues to call for immediate de-escalation and to guarantee the security of vessels moving through the strait of Hormuz. I am clear-eyed about the situation we face. I will be both responsive to a changing world and responsible in the national interest to protect public finances and to help families and businesses with the cost of living.
Daniel Francis
I thank my right hon. Friend for her comments and support and echo what she has said about the situation in the middle east. The charity Shelter has long campaigned for people with no fixed address to be able to access bank accounts, including without ID. Which groups of people might benefit the most from the leadership shown by the Labour Government and from banks on this issue?
Rachel Reeves
I thank my hon. Friend for his question and pay tribute to my hon. and learned Friend the Economic Secretary to the Treasury for all the excellent work that she has done to take this agenda forward. The lack of a bank account does make it harder for people to secure stable employment and stable housing. That is why our financial inclusion strategy secured a commitment from the major banks to work with Shelter directly to make it easier for people without standard ID to access a bank account. This partnership with Shelter will particularly help to break the cycle of homelessness and support people to rebuild their lives, which we all want to see.
Sir Mel Stride (Central Devon) (Con)
For every single year of the last Conservative Government, we froze fuel duty, and we did so to stand up for hard-working families. Given that petrol prices are surging at the pumps, why has the right hon. Lady chosen now to put up fuel duty?
Rachel Reeves
As the right hon. Gentleman knows, the plans that we inherited from the previous Government would have seen fuel duty go up just a few months after the general election. We did not think that was the right approach, so we reversed the Conservative plans that we inherited to freeze fuel duty and to keep the 5p discount introduced during the pandemic. In April this year, under the plans that I inherited, fuel duty would have gone up again, but we do not think that is the right thing to do. Therefore, in a staggered approach from the autumn this year, the 5p cut introduced during the pandemic will begin to be unwound. At the same time, we have just introduced the cheaper fuel finder, which yesterday showed the divergence in prices paid by customers on petrol forecourts. Some paid 130p a litre and others 180p per litre, so it is really important that people use that cheaper fuel finder to shop around. I shall be meeting petrol retailers later this week to make it clear that we will not accept price gouging.
Sir Mel Stride
Given the rapidly rising cost of oil and gas, why does the right hon. Lady believe that it is better to import it than to extract it from the North sea?
Rachel Reeves
The price of oil and gas is particularly volatile at the moment, given the conflict in the middle east. My understanding, as we came into the Chamber today, was that prices of oil were down by something like 25% on the day. The most important thing that all of us can do to deal with what is happening to prices at the moment is to support de-escalation. That is the Labour party’s policy, but I am not sure what the policy of the Conservative party is. None the less, that is the best way to get down both the price of petrol at the pumps and of heating oil. The North sea will play an important part of our energy mix for many years to come, which is why I met North sea oil and gas companies just last week to talk about what more they can do and how we can help.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
Mr Speaker
Many Back Benchers did not get in earlier, so, please, it would help me if we could try to speed up.
The Exchequer Secretary to the Treasury (Dan Tomlinson)
I thank my hon. Friend for his representations on this matter here today and over many months, and in Westminster Hall just a few weeks ago. The rural fuel duty relief scheme does provide that 5p discount and it will benefit his constituents on the islands and in the communities he represents. We will of course keep all our taxes under review. I will be happy to meet him to talk about this one.
Daisy Cooper (St Albans) (LD)
In times of crisis, the UK Government have often had to spend more on energy support for households and small businesses than other comparable countries, because our energy market is so broken. Hospitality and small businesses tell me that some suppliers simply refuse to supply hospitality businesses at all. If the Government are determined to refuse Liberal Democrat calls for an emergency VAT cut, can I please ask them whether, at the very least, they will consider our call to instruct the Competition and Markets Authority to investigate bad practices in the energy market affecting hospitality and small businesses, so that we can drive down bills through greater competition?
The Parliamentary Secretary to the Treasury (Torsten Bell)
The hon. Lady is right to talk about the long-term answer here, which is more domestic energy security. That is why we are getting on with building nuclear power—whether it is in Wylfa, Suffolk or Somerset. On her specific question, the Chancellor and Ministers have been very clear with the CMA that, particularly at times such as these, we need to ensure that no companies are taking advantage of customers—whether they are customers filling up their domestic heating oil or hospitality businesses.
Damien Egan (Bristol North East) (Lab)
Rachel Reeves
I am proud to be the Labour Chancellor who has overseen the biggest uplift in defence spending since the end of the cold war. Just last week we announced a £1 billion helicopter deal with Leonardo, based in Yeovil, just down the road from my hon. Friend. Yesterday I confirmed to the House that the Ministry of Defence has access to the special reserve. That means that the added costs of deploying additional capabilities in the middle east will be funded entirely by the Treasury special reserve.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Rachel Reeves
I thank the right hon. Gentleman for raising the important issues with heating oil that his constituents are facing. I very much hope that he will be able to attend the meeting tomorrow. There are two key issues: making sure that vessels can again flow through the strait of Hormuz, which requires a de-escalation of the crisis; and stopping the price gouging that some businesses are engaged in at the moment. That is why I have asked the CMA to look at that too.
Paul Davies (Colne Valley) (Lab)
The Economic Secretary to the Treasury (Lucy Rigby)
I thank my hon. Friend for highlighting the important work of Co-operative Care Colne Valley, which is an excellent example of how co-operatives can deliver high-quality community-owned care for elderly and disabled people. His constituency is home to a number of other fantastic co-operatives, including the Green Valley Grocer and the Handmade Bakery. The Government are committed to doubling the size of the co-ops and mutuals sector, exactly because we recognise the very positive role that it plays.
Liz Jarvis (Eastleigh) (LD)
The Chief Secretary to the Treasury (James Murray)
Businesses in the hon. Lady’s constituency, and indeed across the country, can know that, whatever instability we face in the world in the months and weeks ahead, the Government have done the right thing for the economy by bringing down inflation, interest rates, borrowing, debt and debt costs. All that puts us in the strongest possible position to be resilient going into the future.
Sam Carling (North West Cambridgeshire) (Lab)
Lucy Rigby
I know how passionate my hon. Friend is about the Government’s priority to get more first-time buyers on to the housing ladder. As he and I have discussed before, people looking to buy a home can build their credit history through rent payments by using third-party services that report these things to credit reference agencies. I think that he and I would agree that better awareness of such services and the mortgages available that take account of tenants’ rental payments would be a good thing.
John Milne (Horsham) (LD)
Rachel Reeves
While only 4% of people in Great Britain use heating oil, I recognise that this is a particular issue for many constituents, and in Northern Ireland the figure is more than 60%. I am keen for the hon. Gentleman to take these issues to the meeting with the Financial Secretary to the Treasury tomorrow. We are working closely with the Competition and Markets Authority to stop price gouging. There is no reason why a company should be charging twice as much as it was for heating oil; we need to put a stop to those practices.
Jessica Toale (Bournemouth West) (Lab)
The junction of Surrey Road and Prince of Wales Road; Wimborne Road, between Kinson library and Bear Cross; and Hankinson Road, around Winton rec—these are some of the more than 35 roads in Bournemouth West where residents have told me potholes are out of control. Lib Dem-led Bournemouth, Christchurch and Poole council has been given £7.5 million to maintain our roads and fix potholes. I will be writing to BCP council later today, but in the meantime, will the Minister join me in urging it to get its act together and finally fix our roads?
James Murray
As my hon. Friend makes clear, we need to ensure that our extra funding for local roads maintenance is spent effectively, and that local residents can hold councils like Bournemouth, Christchurch and Poole to account. The Liberal Democrats have typically not been shy about mentioning potholes in their leaflets; now is their time to deliver.
Sir Desmond Swayne (New Forest West) (Con)
Rachel Reeves
Alongside the Budget last year, we published the new North sea oil and gas strategy, which, for example, allows tie-backs, so that more use can be made of existing fields. The previous Government brought in the energy profits levy when energy companies’ profits went through the roof after Russia’s invasion of Ukraine. That is still in place, so that when prices are high, we can bring money in to help people with their bills.
Lloyd Hatton (South Dorset) (Lab)
I welcome the Chancellor of the Exchequer’s work to get the Leonardo helicopters contract over the line, as that will help protect defence jobs right across Dorset, Somerset and the wider south-west. Will the Treasury and Ministers continue to work with the Ministry of Defence to secure investment in the defence sector in Dorset and across the west country?
Rachel Reeves
I thank my hon. Friend for what he said about the Leonardo contract at Yeovil, which supports many thousands of jobs in Somerset, and indeed Dorset. I am proud to be the Chancellor who has overseen the biggest uplift in defence spending since the end of the cold war; that has enabled us to support this investment and many others.
Freddie van Mierlo (Henley and Thame) (LD)
Torsten Bell
I thank the hon. Member for his second question, and his enthusiastic volume of questions today. The Government balance the needs of public services with tax revenues. I gently point out that Liberal Democrat Members come to the House day in, day out, and call for more spending—we have heard that happen today—but then oppose every single tax rise or tax change required to make that happen. That is not what serious politics looks like. We need to take tax seriously, and it is time for some serious politics from the Liberal Democrats.
Emily Darlington (Milton Keynes Central) (Lab)
The loan charge was a scandal that affected tens of thousands of people across this country, some of whom were on very low pay and not given a choice by their employers. At the last Budget, the Government put forward changes. What assessment has the Minister made of how those changes will impact people at the lowest end, including social care workers across the country?
Dan Tomlinson
I thank my hon. Friend for the question, and for the representation she has provided for her constituents and, through her work on the loan charge and taxpayer fairness all-party parliamentary group, for many across the country who have been affected by the loan charge. At the Budget, we made the decision to write off £5,000 from the liabilities of everyone who has been affected by the loan charge, so about a third of those affected will have their liabilities written off entirely. I look forward to continuing to engage with her and Members across the House on this important issue.
Greg Smith (Mid Buckinghamshire) (Con)
Following on from that last question, the loan charge and taxpayer fairness APPG, which I co-chair, wrote to Ministers on 1 July, 22 September and 25 November last year, with questions about the 2005 preferential deal with the large banks. Does the Minister feel that it is acceptable that we have not had a reply to those letters? When will we get one?
Dan Tomlinson
The letters that were sent will receive a reply very shortly. A decision was made that in the run-up to the announcement of the independent loan charge review, it would not be appropriate for the Government to set out in detail their views on a live issue that an independent reviewer was looking at. That review was published alongside the Budget. I apologise for the fact that the response has not come in the weeks since; it will be with the hon. Member and the APPG very shortly.
Chris Webb (Blackpool South) (Lab)
Two weeks ago, I held an emergency cost of living summit in Blackpool, after record numbers of families, particularly single mums, contacted us in food crisis. They could not access the council’s discretionary fund. Will the Minister outline how the new crisis and resilience fund will ensure that families in my constituency can get the support that they need, especially over the weekend?
James Murray
My hon. Friend is right to point to the crisis and resilience fund as an important lifeline for families across this country. We work with local authorities to make sure that the funding gets to the frontline, because local councils best understand where the most acute pressures are in their areas. I am, however, happy to discuss this with him later.
Claire Young (Thornbury and Yate) (LD)
Heat batteries are the only clean heat technology certified by the microgeneration certification scheme that is excluded from VAT relief under the energy-saving materials framework. This penalises smaller homes and lower-income households that cannot accommodate a heat pump. Will the Chancellor commit to removing that anomaly, and meet me and representatives of the UK heat battery industry to discuss it?
Dan Tomlinson
The Government regularly assess whether to add energy-saving materials, including heat batteries, to the list of items covered by the current VAT relief, which is set to continue until March 2027. Any decisions would have to be announced by the Chancellor at a fiscal event, but I am happy to discuss the matter.
Antonia Bance (Tipton and Wednesbury) (Lab)
Given the global situation, what discussions has the Chancellor had with Cabinet colleagues on helping to keep industrial energy costs manageable? Will she work with colleagues to bring in the British industrial competitiveness scheme, which would cut manufacturing energy costs by 25%, as soon as possible?
Rachel Reeves
My hon. Friend is a powerful advocate for the energy-intensive industries, and for manufacturing more widely. The supercharger is being extended from April this year. That will help 500 of the most energy-intensive businesses, and increase their discount from 60% to 90%—and next year, the BIC scheme comes in. Given what is happening in the middle east, we will continue to look closely at what we can do to help our energy-intensive industries.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Over 50% of properties in the Scottish Borders are not on the mains gas grid and are completely dependent on heating oil. They are being hammered by the increase to the price of heating oil over the last week or so, and they need to see concrete action from this Government to stop the excessive prices and the profiteering. What are the Government going to do?
Rachel Reeves
I agree with the hon. Gentleman. We are trying to de-escalate the conflict in the middle east, because if we can get vessels moving again through the strait of Hormuz, we will deal with a lot of these problems. I am working closely with both Lloyd’s of London—I met its representatives yesterday—and my G7 colleagues to ensure that those vessels can get moving again. At the same time, I think that everybody has heard the stories in this Chamber and from our constituents about the problems of price gouging. We have to address that, and I have asked the CMA to look at it. Members across the House will have a chance tomorrow to set out their case to the Financial Secretary to the Treasury in more detail, so that we have all the information needed to make the case.
Adam Jogee (Newcastle-under-Lyme) (Lab)
My constituents in Newcastle-under-Lyme are sick and tired of poor-quality, dangerous roads. The county council has resources from this Government, and must stop being missing in action. What message does the Minister have for Staffordshire county council?
James Murray
My hon. Friend is right that we need councils across the country to use the extra funding that the Government have made available for local road maintenance to fill those potholes. Councils will have to publish their data online, so that local people can monitor, through a traffic light system available on gov.uk, how their council is performing.
Caroline Voaden (South Devon) (LD)
Every year, the UK loses £33.4 billion in tax revenue, as multinational corporations and the super-rich choose tax havens over tax payments. However, the UN tax convention has the potential to solve this problem, so will the Minister show leadership, not ambivalence, and commit to securing an ambitious UN tax convention in this Parliament?
Dan Tomlinson
I am always happy to show leadership, and this Government—and, I may say, previous Governments—have worked hard with international partners, both in the OECD and the UN, to do all we can to reduce tax avoidance and evasion by multinational companies. We continue to work with our partners in the UK and abroad to clamp down on tax dodging.
Paul Waugh (Rochdale) (Lab/Co-op)
My constituent in Rochdale, Louise Marshall, wrote to me this weekend because she is worried sick about the massive price rise she is facing for heating oil. Can the Chancellor assure me, notwithstanding the meeting we are all going to have with the Financial Secretary to the Treasury, that we can be absolutely crystal clear that under this Government, we will not tolerate price gouging or war profiteering from oil companies that try to rip off their customers?
Rachel Reeves
I absolutely agree with my hon. Friend. The price gouging that we see is totally unacceptable, which is why we have already asked the Competition and Markets Authority to look at this. Whether we are talking about petrol at the pumps or heating oil, there is no excuse for any business to use this as an opportunity to rip off customers.
Sir Jeremy Hunt (Godalming and Ash) (Con)
One of the things that makes our economy less resilient is high levels of debt. The Chancellor and I have both followed fiscal rules that allowed us to claim that debt was falling, when in fact it continued to rise, both in absolute terms and as a proportion of GDP. Does she think it is time to consider a new fiscal rule that actually reduces debt—for example, a rule that public spending will not increase faster than economic growth?
Rachel Reeves
Debt is lower in every year of the forecast that I published last week than it was in the plans that I set out in the Budget just back in November. The fiscal rules that I introduced in the October after I became Chancellor said, first of all, that we had to balance day-to-day spending with tax receipts, and that is important. They also stated that, subject to getting debt down as a share of GDP, we could invest in the things that can actually grow the economy. The right hon. Gentleman and I both know that growth is the best way to ensure that our public finances are sustainable, and that we improve living standards for working people.
Perran Moon (Camborne and Redruth) (Lab)
The Government’s new industrial strategy has signposted a path to further economic growth and prosperity. There are certain regions of the UK that can play a significant role in this growth, so would Treasury Ministers consider working with the Department for Business and Trade to make Cornwall an industrial strategy zone?
Rachel Reeves
In the Budget last year, we introduced the Kernow growth fund to support the Cornish economy because of its specific strengths around critical minerals, defence and clean energy. The National Wealth Fund and the wider Government will do everything we can to unlock the huge opportunities that we know exist in Cornwall.
Dr Ellie Chowns (North Herefordshire) (Green)
Given the recent Institute for Fiscal Studies report that says that the Treasury’s excessively narrow focus on fiscal rules leads to dysfunctional policy making, and given recent global events showing the uncertainty of fiscal forecasting, does the Chancellor recognise that it is time to move to a more flexible and strategic approach to fiscal rule-making and fiscal policymaking?
Rachel Reeves
I totally reject the premise of that question. The fiscal rules that I introduced as Chancellor have unlocked £120 billion for capital investment. We will be spending £50 billion more on day-to-day spending by the end of this Parliament, but at the same time, we are bringing debt down, bringing the deficit down, bringing inflation down, and bringing interest rates down for all our constituents. Economic stability is the way to grow our economy and make working people in all our constituencies better off, and if we forget that, it is ordinary working people who pay the price.