Live Debate: Commons Chamber

Commons Chamber

Tuesday 9th December 2025

(began 1 hour, 28 minutes ago)

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11:34

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Right. Right. Order, Right. Order, order! Right. Order, order! Start Right. Order, order! Start with questions. Chancellor of the Exchequer. David Williams.

11:34

David Williams MP (Stoke-on-Trent North, Labour)

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Question number one, please, Mr. Speaker.

11:34

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Chancellor of the Exchequer. approach in the Budget provides significant support for low income households, taking an average £150 off people's energy bills from April next year, freezing rail fares and prescription fees for a year and expanding the free childcare offer. The steps I've taken as Chancellor, including the removal of the two child limit and the expansion of free school meals, will also lift around 550,000 children out of poverty.

11:34

David Williams MP (Stoke-on-Trent North, Labour)

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Gavin Williamson. >> Thank you, Mr. Speaker. Poverty rates remain far too high in my constituency of Stoke-on-Trent North and Kidsgrove. Can the North and Kidsgrove. Can the Chancellor please outline what assessment she has made about how the fair decisions taken in the Budget will address poverty amongst low income working families in my constituency and across the country?

11:35

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Chancellor. >> Thank you, Mr. Speaker, hon. Gentleman might know that around 4000 children are in constituency of Stoke on Trent constituency of Stoke on Trent North will benefit from the removal of the two child benefit. That means 4000 more children being able to go to bed in a house that is not cold and damp, and waking up in the morning and being able to have a breakfast, and the parents being able to afford things that currently they can't. This government is also providing funding for free school meals in England, delivering free breakfast clubs in every state funded primary school in England, and also extending the warm homes discount to 3 million more children.

I am proud to be the Chancellor that has led the to the largest expected reduction in child poverty over a parliament since records began.

11:36

Rt Hon Esther McVey MP (Tatton, Conservative)

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Esther McVey Mr. Speaker, the biggest issue for those on low biggest issue for those on low incomes is losing their jobs. Just the Chancellor believe there is any link at all between her increase in employers National insurance contributions, her job tax and employment levels slumping to a 14 year low.

11:36

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Yeah, Chancellor. >> Yeah, Chancellor. >> Thank you, Mr. Speaker. Well, the number of jobs has increased by the number of jobs has increased by 329,000 this year. That is the record of this government getting people back into work, and also through the Youth Guarantee, dealing with the fact that when we took office last year, 1 in 8 young people were not education, employment or training. That is your record. This government are addressing it.

11:37

Gareth Thomas MP (Harrow West, Labour )

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Gareth Thomas. Speaker, I commend the steps that my right hon. commend the steps that my right hon. Friend took to support those on low incomes in the Budget and through the Financial Inclusion Strategy strategy that was recently published as well. But can I encourage her to go further on the issue of savings, given that a quarter of people in the UK have little by way of savings, and indeed 1 in 7 have no savings at all? So will she encourage employers to work with local credit unions to help those who want to save automatically earn, to earn, to to save even a small amounts from their pay packets to do so.

Chancellor.

11:37

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Thank you, Mr. Speaker. Through the financial inclusion strategy the financial inclusion strategy led by my hon. Friend, the Economic led by my hon. Friend, the Economic Secretary to the Treasury, we are extending help to save within the Universal Credit system and also working with banks and building societies. And I know that as a Labour and Co-operative MP, my hon. Friend works closely with the co-op movement and building societies to ensure that more people from low income backgrounds can save for the future.

11:38

Rt Hon Sammy Wilson MP (East Antrim, Democratic Unionist Party)

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Sammy Wilson Mr. speaker, low income families have been hit by being dragged into tax bands, which being dragged into tax bands, which they weren't in before, facing energy costs. And now the chief executive of Aldi has said that unless the Chancellor reviews her raid on firm inheritance tax, that there's going to be rising food prices hitting low income families as well. If she doesn't listen to the farmers, will she at least show some concern for consumers? And look again at this tax? The Chancellor.

11:38

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Thank you, Mr. Speaker. Well, if you look at what's happened since the Budget, the co-op has cut or frozen the prices on 2700 essential products at a cost of £1 billion. Recognising the impact that the cost of living still poses to families, but also reflecting the Budget package which supports our

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high streets, including our supermarkets. Stephen Gethins. Mr Speaker.

11:39

Q2. What assessment she has made of the potential impact of leaving the EU on economic growth. (906785)

>> Mr Speaker. >> Yes is doing to folks. >> Chancellor.

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Chancellor. Thank you, Mr. Speaker. The OBR have estimated that productivity

11:39

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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have estimated that productivity will be 4% lower than it would have been had the UK not withdrawn from been had the UK not withdrawn from the EU. But alongside trade deals struck with the US, India, the government is also resetting our relationship with the EU to get better deals, for example on food and farming and also on electricity trading. But the hon. Member's party talks about how leaving the European Union has been costly and disruptive, but somehow thinks that Scotland leaving the UK and its internal internal market would be magically effortless and cost free.

I must say that the SNP are no better than those who promised the public an extra £350 million a week for the NHS. It's all talk, but no delivery.

11:40

Stephen Gethins MP (Arbroath and Broughty Ferry, Scottish National Party)

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Stephen Gethins thank you, Mr. >> Stephen Gethins thank you, Mr. Speaker. Now I'm going to try and strike a more a note. That's maybe a little bit better in terms of a little bit better in terms of when we were when we worked together with the Prime Minister, the Chancellor and others to ensure that we overcame Tory secrecy with their analysis of what would be like to be outside the single market and the customs union. We worked together on that. So if we could overcome the secrecy on analysis about what it's like to leave the EU, with it now costing an estimated £250 million a day, when will the Labour Party release their analysis?

11:40

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Yeah. Chancellor. >> Yeah. Chancellor. >> The Office of Budget Responsibility produced their independent analysis. They have independent analysis. They have confirmed that they believe that that 4% number is the correct number, and it's the one that they continue to maintain in their forecasts.

11:40

Torcuil Crichton MP (Na h-Eileanan an Iar, Labour)

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Mr. speaker. >> Mr. speaker. >> Can I ask the Chancellor if the Treasury made any assessment of the SNP's plans to separate Scotland SNP's plans to separate Scotland from its main market? The rest of the UK, which is 60% of its trade? And while I'm at it, can I thank the Chancellor for 820 million extra Scottish Budget?

11:41

Daisy Cooper MP (St Albans, Liberal Democrat)

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Order, order! Sorry, sorry. The good news for the Chancellor. She's no responsibility for the SNP. no responsibility for the SNP. Right. Let us move on to Daisy Cooper. The Liberal Democrat spokesperson for.

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spokesperson for. Thank you, Mr. Speaker. The botched Brexit deal has wrapped up British businesses in red tape and British businesses in red tape and has blown a hole in the public finances to the tune of £90 billion a year. The Chancellor insists that her number one mission remains to get economic growth. So if that is the case, could I ask the Chancellor whether she and her Ministers will be voting with the Liberal Democrats this afternoon to make sure that we can get rid of that red tape and deliver on a new UK EU customs union.

11:42

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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The Chancellor. >> Thank you, Mr. Speaker. Since we came into office last year, we've reset our relationship with the EU, which is why last May we agreed with the EU and expansive, expansive set of changes to our relationship, including on food and farming, on electricity and energy trading and also on youth mobility and Erasmus. And we're taking all of that forward. But at the same time, we're also taking opportunities to trade more with fast growing economies around the world, including India, and also by getting the first and the best trade deal that anybody has secured with the US.

That's how we are going for growth alongside the planning and infrastructure bill place.

11:42

Q3. What assessment she has made of the potential impact of extending the freeze on Income Tax thresholds on working people. (906786)

Thank you. number three. >> Yes. >> Minister. >> With permission, Mr. Speaker, I should like to answer this question together with question number 18. The Chancellor was clear at the Budget that we're taking the fair and necessary decisions on tax to do all we can to ensure that the contribution of working people is kept as low as possible. We have kept as low as possible. We have reduced the gap between taxes on income from assets and income from work. We've stopped the unfairness work.

We've stopped the unfairness that £10 million property can pay less council tax than a typical terraced house in much of England, and much more.

11:43

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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John Lamont Mr Speaker. There seems to be only one word that the

11:43

John Lamont MP (Berwickshire, Roxburgh and Selkirk, Conservative)

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Chancellor understands tax. Her decision to continue the freeze on income tax thresholds is a hammer blow to working people. In fact, even one of the Chancellor's favourite unions, unison, has said that freezing personal income tax thresholds disproportionately impacts lower and middle income workers. So does the Chancellor agree with Labour Party's union paymaster, Mr.

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paymaster, Mr. I was a bit confused by that question there. You have to forgive me, Mr. Speaker, but the the hon.

11:43

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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Member said that there was one word that was important. Let me give the member one figure. Mr. speaker, £150 member one figure. Mr. speaker, £150 That's the amount we're taking off energy bills next year to help people deal with the cost of living people deal with the cost of living in the here and now, supporting people because of the mistakes that previous governments made, not investing in our energy investing in our energy infrastructure and not investing in our future. We are. We're picking up the pieces where they didn't

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make the decisions necessary. To Ashley Fox here. Mr. Speaker. Extending the freeze.

11:44

Sir Ashley Fox MP (Bridgwater, Conservative)

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On income tax thresholds will cost working families £900 a year. It will also drag many pensioners into paying income tax for the first time. Why is he hitting these low income families to pay more for welfare?

11:44

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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Yes, Minister. suggest to the hon. Member that he asks the he asks his frontbench why 75%, 75% of the impact of people being paying more tax at the lower end is result of the decisions made by the previous government, who spent seven years freezing income tax thresholds. It's a bit rich to

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talk about this government doing it for three when they did it for seven Martin Rhodes. Thank you, Mr. Speaker. What

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Thank you, Mr. Speaker. What assessment has the Minister made of the impact for working people from

11:45

Martin Rhodes MP (Glasgow North, Labour)

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the impact for working people from the historic increase in the living wage? Minister. >> Thank you, Mr. Speaker, and I thank my hon. Friend for his

11:45

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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thank my hon. Friend for his question. Yes, we have chosen to uplift the National Living Wage and the national minimum wage, Mr. the national minimum wage, Mr. Speaker, so that those on low incomes are properly rewarded for their hard work. This will benefit 2.7 million people, including many people in his constituency and across the whole country. And I thank him and members, particularly on this side of the House, for their support, for making sure we can make work, pay up and down this country.

11:45

Mr Jonathan Brash MP (Hartlepool, Labour)

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Jonathan Brash Mr. speaker, pensioners in my constituency of Hartlepool who rely solely on the Hartlepool who rely solely on the state pension have shared their concerns with me that freezing the tax threshold will draw them into tax. Can the Minister confirm what the Chancellor has already said publicly, that pensioners who rely solely on the state pension will not be taxed in this Parliament?

11:46

Richard Fuller MP (North Bedfordshire, Conservative)

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Yeah. >> Mr. speaker, yes. >> Richard Fuller, the conservative spokesperson. Thank you.

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spokesperson. Thank you. Thank you, Mr. Speaker. The Minister said fair. No, no, no. Perhaps breaking the election promise on tax thresholds may be the reason why by 2 to 1, the public view the Budget as unfair. Just 3% think it will make them better off and two out of three think things will get worse. So does the Minister want to tell the public they are wrong, or will he explain to the House why this Budget has been received so badly by the British people?

11:46

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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Mr. >> Mr. >> Thank you, Mr. Speaker. The shadow spokesperson talks about fairness. Let me just identify one fairness. Let me just identify one element of unfairness that he left in the tax system that this government is correcting. And that is a popular measure when we look at the the views of the public of the country, we don't think it's fair on this side of the House, Mr. Speaker, that someone in a £10 million property can pay less council tax than someone in a typical terraced house in his constituency and my constituency and constituencies across the whole of England.

We are making that change to make, to make things fairer in this country.

11:47

Q4. What assessment she has made of the potential impact of the Autumn Budget 2025 on levels of incentives to work. (906787)

Kettering number four, please, sir. >> Mr. Thank you, Mr. Speaker. The forecasts accompanying the Budget set out that that the office for Budget Responsibility expect employment levels to rise in every year of this parliament. They also set out that employment is forecast to be higher in every year than previously expected. Back in March, Jack Rankin. Jack Rankin.

11:47

Torsten Bell MP, The Parliamentary Secretary, HM Treasury (Swansea West, Labour)

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1 million young people not in work, education or training and 2.8 million out of work on long term sickness benefits is both a financial catastrophe and a moral financial catastrophe and a moral failure. The Prime Minister has rightly said it is his moral mission to get young people into work. But how does he square this? work. But how does he square this? This with two budgets that have hiked taxes on working people by £66 hiked taxes on working people by £66 billion, whilst giving a pay rise to those on benefits?

11:48

Jack Rankin MP (Windsor, Conservative)

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Yeah.

11:48

Torsten Bell MP, The Parliamentary Secretary, HM Treasury (Swansea West, Labour)

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Thank you, Mr. Speaker. The hon. Member is right to call those things a moral and economic disgrace. Do you know who created them? The party opposite. Who who saw a 50% in neat numbers? The party opposite? Who created the benefit system that is failing today? The party opposite? Who failed to reform the benefit system? The party opposite.

11:48

Lucy Rigby KC MP, The Economic Secretary to the Treasury (Northampton North, Labour)

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Katrina Murray. >> Mr. Number five, Mr. speaker. >> Mr. >> Mr. speaker, we publish the Financial Inclusion Strategy last Financial Inclusion Strategy last month outlining ambitious measures that will improve financial inclusion right across this country. I am very grateful to my hon. Friend for her advocacy on this issue through the APPG for Debt and Financial Inclusion, and in line with the priorities outlined by that APPG, the strategy champions inclusive design to make products more accessible, increases debt advice capacity, and supports financial independence for survivors of economic abuse.

11:49

Katrina Murray MP (Cumbernauld and Kirkintilloch, Labour)

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Katrina Murray. Minister's response. I am a long standing member of the NHS Credit Union, which is one of the credit unions affected by the withdrawal of the Family Protection Plan by mutual on the 30th of November. Policyholders over the age of 70 who have paid premiums well in excess of what they would have expected to have paid out, have been left in the lurch with no alternative provision given. I thank the Minister for what she has done so far in pursuing peace of mind.

For those who have tried to do the right thing for their for their funeral and planned for their funerals. But in the interim, can I ask the Minister to bring all the stakeholders to the table to try and reach a solution that benefits, particularly those policyholders?

11:49

Lucy Rigby KC MP, The Economic Secretary to the Treasury (Northampton North, Labour)

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Mr. speaker, as my hon. Friend knows, I have been very sorry to hear of the difficulties of those hear of the difficulties of those affected by the withdrawal of this product, and I want to pay tribute to her for all of her efforts, and indeed those of her other colleagues as well, who are doing everything possible to assist constituents on this. My officials are monitoring this matter very closely, and we are encouraging anyone with information relevant to the FCA's investigation to go straight to the FCA.

However, Mr. Speaker, I would be more than happy to do as she suggests and get stakeholders together.

11:50

Tim Farron MP (Westmorland and Lonsdale, Liberal Democrat)

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Tim Farron. >> Tim Farron. >> Thank you, Mr. Speaker. Access to banking is. Surely a key part of financial inclusion. The high financial inclusion. The high street banks save £2 billion a year from having abandoned our high street and our town centres and our post offices. Pick up the tab and we're glad that they do. But they are not funded by the banks anywhere near enough to be able to maintain their presence. In Westmorland, we have lost Hawkshead, Staveley and Grasmere post offices, and we're set to lose Shap and Tebay, largely because the banks don't fund the post offices for doing their jobs properly.

What's the chance they're going to do to make them do that? Mr. Hall.

11:50

Lucy Rigby KC MP, The Economic Secretary to the Treasury (Northampton North, Labour)

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Mr. Speaker, I thank the hon. Member for his question. We very much understand the importance of in-person banking, including to rural communities and indeed beautiful communities like that that he represents. But that's exactly why we're committed to rolling out 350 banking hubs across the UK. By the end of this Parliament, over 240 hubs have been announced so far, and more than 190 are already open.

11:51

Mark Garnier MP (Wyre Forest, Conservative)

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Mark Garnier Shadow Minister. Mr. speaker, in the recently published Financial inclusion strategy, the government says, and I quote, our aim is to create a culture in which everyone is supported to build a savings habit, building their financial resilience in the long term. Mr. speaker, what's not to like about that? But that makes the Chancellor's political decisions in the Budget even more confusing. And just look at what was announced, reducing the cash Isa limit to £12,000, scrapping a lifetime Isa, capping salary sacrifice schemes at £2,000.

Increasing tax on dividends by two percentage points. Increasing savings income tax by two percentage points. Freezing the repayment thresholds for student loans. Freezing income tax thresholds for working people. Freezing personal allowances. Thresholds for pensioners.

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Oh no no no please just sit there. No, no, don't challenge me. It's not a good idea. I'm just going to say we did do quite a few days on the Budget. I think we can all quite remember every point you making. Is there anything you'd making. Is there anything you'd like to add? If you've carried on the list, forget it. Minister.

11:52

Lucy Rigby KC MP, The Economic Secretary to the Treasury (Northampton North, Labour)

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the list, forget it. Minister. >> Mr. speaker, the the shadow spokesperson makes reference to a spokesperson makes reference to a number of changes in the Budget which were pragmatic, responsible and fair. And I contrast that with their approach, which would return us to austerity, which would be both irresponsible and unfair.

11:52

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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So Julian Smith. >> Minister. >> Thank you, Mr. Speaker. With permission, I would like to answer this question together with question number 20. Small and question number 20. Small and medium sized businesses are vital to our economy and our communities. And the government's Small Business Strategy, published in July this year, sets out our approach to supporting them as temporary pandemic business rates, relief ends and the new revaluation comes into effect. We are supporting the high street with £4 billion worth of support through transitional relief and our supporting small business schemes, as well as our long term reforms to permanently lower the multipliers for eligible retail, hospitality and leisure properties and support them with a significant package that will cap most of the increases.

For those who've seen large increases since the pandemic this year.

11:53

Rt Hon Sir Julian Smith MP (Skipton and Ripon, Conservative)

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Sir Julian. >> Sir Julian. >> Thank you, Mr. Speaker. Last week, Skipton was voted the happiest town to live in Britain happiest town to live in Britain and one of the reasons for this, Mr. Speaker, is, is. Is its hospitality sector. And that hospitality sector, through Covid and then through energy cost rises and then NI and other challenges, is facing massive challenges. Can I urge the government to look again at the issue of reliefs and multipliers? Because over the weekend there have been so many pubs and hotels raising with me the fact they're not going to to invest.

We need the growth, we need the jobs. Can they just look at how they make things easier for the pub and hospitality industry?

11:54

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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Yeah. >> Yeah. >> Thank you, Mr. Speaker. I think if I had such a charming member of Parliament, I would also be as happy as as his constituents in Skipton. I thank him for his question. Look, we we considered the support really carefully in advance of the Budget decisions that were announced last month. There is a challenge that the revaluation that was instigated by the previous government has carried out independently by the Valuation Office Agency, does mean that some businesses have seen their values increase significantly since the pandemic.

That's why this government is putting in £4 billion of support over the coming years, with around half of that coming next year to support businesses. Many will see that increases capped Mr Speaker at either £800 or 15%. We do think that that support is is going, going to provide significant help to those businesses as well as the underlying reform that we're making to the system, Mr. speaker, to rebalance the system in favour of the high street.

11:55

Wera Hobhouse MP (Bath, Liberal Democrat)

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Wera Hobhouse. Can I give another example where the numbers simply do not stack up? Mr. B's simply do not stack up? Mr. B's independent bookshop in Bath will see their business rates will rise by over 70% after factoring in changes to rateable value. These changes were packaged as a move away from short term fixes, yet vital discounts have been scrapped and replaced with less generous support and an unclear transitional relief system. How can he justify such a stark increase in business rates and really challenge our cherished bookshops? We have got three of them in Bath that we so support.

11:55

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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Mr. it is really important for all of us to make sure that we're communicating to the small businesses in our constituency, as I was doing this weekend, that I was doing this weekend, that there is a difference between the increase in the rateable value. And it may be that the business that she's referring to, and I like all good small, independent bookshops myself, has seen a large increase in its value since the pandemic. But precisely because that has happened in some cases, we are implementing a very significant support package this year.

That will mean that no business that has a rateable value of less than £100,000 will see an increase in its bills of more than either 15% or £800. There's a bit of a technical detail there which I'd be happy to go into with with the member, but the important thing is there are significant protections in place this year on bills, even if rateable values have increased significantly since the pandemic.

11:56

Clive Lewis MP (Norwich South, Labour)

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Lewes Speaker in Norwich. >> Lewes Speaker in Norwich. There's a saying there's a church every Sunday and a pub for every day of the week. After 14 years of day of the week. After 14 years of austerity, that's reduced down a lot lower. I think after this Budget, I have many pub landlords, small and medium sized businesses who tell me that we're not going far enough, that actually many of them will go under. They need more support, they need it soon. And if these changes go through, I fear that Norwich will not have that saying at all.

Will have few, hardly any pubs at all. And the point I will make is this can we not put more of the burden on the pub companies, the big corporations who should be paying their fair share, rather than the small and medium sized businesses and the small pub Lords pub landlords who can't pay what's coming.

11:57

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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Out of them have gone. Come on Minister. >> Thank you, Mr. Speaker. One of the things that we have announced at the Budget is a rebalancing in the system, away from those the system, away from those properties that have large rateable values towards the small businesses on our high street. That's worth almost £1 billion. That shift from the large to the smaller properties supporting them within the business rate system, as part of our work to reform business rates, to support our high street Ruth Cadbury.

11:58

Ruth Cadbury MP (Brentford and Isleworth, Labour)

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Thank you very much, Mr. Speaker. I also welcome the government's I also welcome the government's support for our high street and also the consultation that the Treasury launched on the 25th of November around the business rates system. But it's not just high streets that are suffering until now. Under the current system, major transport infrastructure owners face crippling bills. Eurotunnel face a tripling of their business rate valuation from 2017 to now, so they have cancelled investment in their international rate international freight hubs and under the current system, Heathrow Airport business rates bill currently will increase by millions of pounds.

So will the Treasury's

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consultation on the 25th of predictability? Order, order, order! I think

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Order, order, order! I think we've got to get it. I think it's the hospitality sector that might be using the rail industry

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be using the rail industry somewhere with the freight, and I'm sure we can get something in there. Thank you. Yes, Mr. Speaker, I'm sure that

11:59

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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>> Yes, Mr. Speaker, I'm sure that many of us do jump on the train to then go and support our hospitality businesses. The the consultation businesses. The the consultation that my hon. Friend mentions is actually a very important piece of work that we've published on the day of the Budget. Chapter four of our call for evidence on how we can reform business rates to support investment will be really important, because we do recognise that airports, large infrastructure, they are valued in a different way, Mr.

Speaker, than the rest of the business properties. And we do want to look at the changes that we can make to support those businesses who have seen very significant increases in their rateable values. They, of course, will be capped as announced.

11:59

James Wild MP (North West Norfolk, Conservative)

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James Wild shadow Minister. The Chancellor promised. >> A new golden era. >> Of hospitality, but the reality of her business rates raid, as the of her business rates raid, as the British Beer and Pub Association has said, is sleepless nights, pay cuts and staff layoffs for publicans who will be paying an extra £13,000 on average. Why did the Chancellor last week tell businesses their taxes were going down when they're going up, and will she think again and change the multipliers? Mid Ulster.

12:00

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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Thank you, Mr. Speaker. The >> Thank you, Mr. Speaker. The multipliers are are a product of the change in the valuation. And the change in the valuation. And they did come down. And then we brought them down even further for businesses. I would say to the hon. Member that without intervention this year, the bills paid by pubs would have increased by 45% as a result of the increase in value since the pandemic. Because of the significant intervention that this government is making this year that are going up by 4%, that's that that is the impact of the changes that this government has made.

12:01

Daisy Cooper MP (St Albans, Liberal Democrat)

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Daisy Cooper Liberal Democrat spokesman. street hospitality businesses are on a knife edge and this is a disaster in the making. The government says that it has rebalanced business rates, but that is not the case. UK hospitality says that the average increase for hospitality will be 76% over the next three years, compared to warehouses, offices, offices and large supermarkets, which will only go up by 16%, 7% and 4%. The reality is, Mr. Speaker, that the government repeatedly said it was going to introduce permanently lower business rates and businesses heard that and made decisions based on what they heard.

Now their bills are going up. So can I please implore the Minister, in the spirit of constructive opposition, please look again. Please use powers to reduce the multiplier to -£0.20 and also look at emergency VAT cut two.

12:01

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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The NHS Budget. >> The NHS Budget. >> Thank you, Mr. Speaker. Look, we have set out our plans to reduce the multipliers for retail, hospitality and leisure properties. That is a rebalancing in the system. It is. It does mean that they face the lowest tax rates, particularly the smallest RH properties in the system, than since 1991. At the same time there is a re. She shakes her head, but they are. The tax rate is the lowest it has been since 1991.

At the same time, Mr. Speaker, because of the unwinding of the reduction in values going into the pandemic that are now because we're seeing a recovery, because businesses are bouncing back and their properties are worth more. There has been an increase in the values, and we're spending £2 billion this year capping, capping those increases at either 5 or 15% for many of the businesses up and down the country,

12:02

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Gower. Mr Speaker Chancellor. >> Gower. Mr Speaker Chancellor. >> Thank you, Mr. Speaker. Transport costs represent 14% of Transport costs represent 14% of household spending. And so the government took the decisive action in the Budget to freeze all regulated rail fares in England for one year from March 2026. That is

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the first time in 30 years that that has happened. Keir Mather. Thank you, Mr. Speaker.

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Thank you, Mr. Speaker. Chancellor. And the. Transport Secretary for freezing rail fares next month, which will help ease commuting costs, help ease commuting costs, especially for constituents in mind, using Stevenage and Knebworth stations. However, affordability stations. However, affordability alone is only part of the railway jigsaw regeneration schemes like Stevenage Station gateway,

12:03

Kevin Bonavia MP (Stevenage, Labour)

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Stevenage Station gateway, supported by the government's Towns Fund, are part of a wider £1 billion regeneration programme for our town and that's a real opportunity to modernise transport hubs and improve connectivity, helping commuters get to work more easily. So will my right hon. Friend ensure that infrastructure investment for projects like these are prioritised so commuters can get to work and local economy?

12:03

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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I'm sorry. Sorry. The Chancellor >> I'm sorry. Sorry. The Chancellor is ready now. Your season tickets run out. Come on. >> I just want to talk about

**** Possible New Speaker ****

I just want to talk about Stevenage. Mr. speaker, the government action is saving government action is saving commuters in Stevenage £285 a year on, the cost of a five day season ticket. The government is also committed with the uplift of £120 billion in capital spending, to the sorts of projects that my hon. Friend mentions, particularly around transport hubs, and I will arrange for my hon. Friend to have a meeting with the relevant Transport Minister.

12:04

Rt Hon Tom Tugendhat MP (Tonbridge, Conservative)

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Let's try another ticket. Tom Tugendhat. Thank you, Mr. Speaker. just made. Do I take that as an assurance that she will speak to her right hon. Friend the Transport Secretary, and make sure that rail fares in Tonbridge do not increase when a second peak time service is introduced, when contactless is rolled out. As far as Tonbridge, because that, of course, would be a sleight of hand and she would never want to do that.

12:04

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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I thank my hon. Gentleman for that question. In Tonbridge as well, that question. In Tonbridge as well, the regulated fares will be capped and will be frozen for a year from March next year. I know that many of his constituents are commuting to central London every day, and that will mean that people in Tonbridge and in all of our constituencies, if they commute, pockets.

12:05

Lucy Rigby KC MP, The Economic Secretary to the Treasury (Northampton North, Labour)

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Jack Abbott question. >> With permission, Mr. Speaker, I should like to answer questions eight and 13 together. The recent Budget backs British innovation and Budget backs British innovation and aspiration by supporting businesses to start scale and list. In the UK. We have put in place a three year listing tax relief for firms that list here, and we're expanding enterprise tax relief to incentivise investment in scaling firms. This means more jobs, more growth and more British companies competing globally.

12:05

Jack Abbott MP (Ipswich, Labour )

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Jack Abbott. months, I've been working hard to drive investment into my town, county and region and was proud to unveil the East of England's £4 billion investment prospectus at UK relief earlier this year. However, I'm also keen to encourage our own home grown entrepreneurs in Ipswich and Suffolk so we can better support innovative and high growth businesses. So could the Minister outline how the three year stamp duty exemption on shares, alongside other measures in the Budget, will seek to do this?

12:06

Lucy Rigby KC MP, The Economic Secretary to the Treasury (Northampton North, Labour)

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Mr. Mr Speaker a Budget we introduced the UK Listing Relief, which incentivises companies to which incentivises companies to list in the UK. The UK raised more equity capital in 2024 than the next three European exchanges combined, and I look forward to seeing the brilliant entrepreneurs in my hon. Friend's constituency benefit from these deep pools of capital.

12:06

John Slinger MP (Rugby, Labour)

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John Slinger Mr. speaker, in my. >> Constituency I. >> Can combine Rugby. >> And gin. So I'm grateful to the Chancellor for the measures in her Budget to help the hospitality, trade and small businesses. But following my visit to family owned Rugby Distillery, Brandon flavoured around the game. Could I ask what steps her department could try to level the playing field, such as extending small producer relief to above the 8.5 ABV limit 8.5%. Because small scale producers find it harder to compete fairly with big producers, and we must help them tackle their challenges and convert their entrepreneurial spirit into greater success.

Hear, hear.

12:07

Lucy Rigby KC MP, The Economic Secretary to the Treasury (Northampton North, Labour)

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Mr. >> Mr. speaker, someone who enjoys both rugby and gin. Sometimes both, sometimes both at the same time. I sometimes both at the same time. I pay tribute to my hon. Friend's support for the businesses in his constituency to support spirits producers, the government has put in place a range of measures. And as the small producer relief, I know that the Exchequer Secretary is open to the evidence of the operation of the new system. I should add that the government plans to evaluate the reforms in late 26, three years after they took effect.

12:07

Rt Hon Sir Roger Gale MP (Herne Bay and Sandwich, Conservative)

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I presume you mean rugby league >> I presume you mean rugby league as well, sir. Roger Gale. >> Thank you, Mr. Speaker. In East Kent there is an entrepreneurial chain of coffee bars, 25 coffee bars employing young people who otherwise would probably be unemployable. The profit margin on those 25 coffee bars for the last year was £12. The hospitality industry is on its knees. Will the Chancellor recognise the need to cut VAT on hospitality to 10%? Hear, hear.

12:08

Lucy Rigby KC MP, The Economic Secretary to the Treasury (Northampton North, Labour)

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Minister. place a support package, as has been already covered by my colleagues, £4 billion worth of support package and we are continuing to engage with the hospitality sector. I should also add, Mr. Speaker, that we're easing licensing to help venues offer payment drinks and one off events as well.

12:08

Rt Hon John Glen MP (Salisbury, Conservative)

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Claire. >> I welcome the changes to the listing review, but would the Minister look at what's happening with R&D tax credits and the efficiency of the delivery of those tax credits? Because before businesses can get to listing, they are struggling when that doesn't work well enough. Yes, Minister.

12:08

Lucy Rigby KC MP, The Economic Secretary to the Treasury (Northampton North, Labour)

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Mr. speaker, I'm grateful to the hon. Member for his question. As I as I always am, I think we are as I always am, I think we are doing an awful lot. Mr. Speaker, including many measures announced at Budget to support R&D in this country, including an additional £7 billion into specific areas within the Industrial Strategy.

12:09

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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Euan Stainbank. Mr. speaker, question number nine, Mr. question number nine, Mr. >> Mr. speaker, as my hon. Friend will know, last year the government signed a £100 million Falkirk and Great Yarmouth growth deal with the Great Yarmouth growth deal with the Scottish Government and the Budget this year. We further recognise Grangemouth centuries of history as a key UK industrial site by announcing additional investment of up to £14.5 million to support industrial projects that can create wealth, create jobs. Alongside this, the National Wealth Fund is ready to invest £200 million alongside the private sector to help unlock Grangemouth full potential and secure our clean energy future.

12:09

Euan Stainbank MP (Falkirk, Labour)

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Euan Stainbank National £40. >> Euan Stainbank National £40. >> Million to get new industry delivered quicker in Grangemouth and the £25 million finalised the Freeport in the Budget two weeks ago is welcome. Forth Valley College is vital to giving local, working class kids the skills they need to grasp the new opportunities that must come to Grangemouth, but it has been failed by the SNP. Scottish Government staggering 20% cut to colleges since 2021 and Alloa campus now faces closure. Will the Minister consider stepping in with direct skills support for this vital college?

12:10

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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Minister Mr. speaker, Education >> Minister Mr. speaker, Education and skills policy, including the funding and operation of colleges, is fully devolved to the Scottish Government and that means it is a Government and that means it is a Scottish Ministers to decide how to support Forth Valley College with an overall settlement. Now, Mr. Speaker, as my hon. Friend will know, the Spending Review provided the Scottish Government with the largest settlement in real terms since devolution in 1998, and the Budget provided an additional £820 million for Scotland through the Barnett formula.

Mr. speaker, we will be campaigning in the months ahead to make sure decisions about how to invest that funding in Scotland's future are taken by Anas Sarwar and a Scottish Labour Government.

12:10

Dave Doogan MP (Angus and Perthshire Glens, Scottish National Party)

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Thank you, Mr. Speaker. Forth Valley is the highest industrial energy prices in the G7. It's Labour's farm tax. Labour's family business tax. Labour's £26 billion raid on the cost of employing people and Labour's fiscal drag on everybody, earning the Potemkin support for Grangemouth, the ambivalence to Mossmorran and the funding of the Acorn project. How long does the Chancellor think Scotland should Westminster?

12:11

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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Yeah, Minister. >> Mr. speaker, he's very happy to criticise tax decisions taken by this government. But where does he think the largest spending review settlement since devolution began settlement since devolution began came from? Where does he think the £820 million announced at the autumn Budget came from? He needs to support tax decisions that we take. If he wants the investment to go into Scotland.

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Liam Conlon. Question number ten, Mr. Speaker. Yes, Minister.

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Mr. Speaker. Yes, Minister. Sorry, Mr. Speaker, with permission, Mr. Speaker, I would like to answer this question with question number 19. Mr. speaker, the Spending Review 2025 provided record investment in the NHS, including the largest ever health including the largest ever health capital Budget. That investment has enabled a reduction in waiting lists of 230,000, with an extra 5.2 lists of 230,000, with an extra 5.2 million NHS appointments at autumn Budget 2025. The Chancellor protected NHS investment by allowing it to retain and reinvest efficiency savings in 2829, as well as making available upfront funding to abolish NHS England and move that will unlock £1 billion in savings by the end of the Parliament, which can instead be used to support front line care.

12:12

Liam Conlon MP (Beckenham and Penge, Labour)

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Lincoln his response when I was >> Lincoln his response when I was in sixth form, I became one of the. At the end of the last Labour government, I became one of the youngest people in Britain to have youngest people in Britain to have a hip replacement. And I will always be grateful to the incredible NHS staff who cared for me. But between 2011 and 2024, because of savage Tory cuts, the waiting list for hip replacements at King's College Hospital Trust, which serves my constituency of Beckenham and Penge, more than doubled.

The Tories left thousands of people waiting months on end with thanks to record investment from this Labour government. Those waiting lists started to fall. Will the Minister commit to continue this investment in the NHS?

12:13

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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Yeah, excellent. hon. Friend for his question and like him, I will always be grateful to the incredible NHS staff who got me back fighting strong after I was diagnosed with a neuromuscular condition in my 20s. Mr. speaker, people across the country have stories like ours, and that is because we all depend on the NHS, and that is why it is such a priority for us as a government to invest in our health service, to get it back on its feet and to future.

12:13

Dr Simon Opher MP (Stroud, Labour)

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Simon Opher thank you, Mr. Speaker. Can I thank the Chancellor Speaker. Can I thank the Chancellor for investing in our community care in Stroud? The two beating hearts of our community, our GP surgeries and our village pubs which actually provide and reduce social isolation. So today the publicans are meeting in Stroud Brewery discussing the impacts of business rates. So could I invite the Minister to perhaps discuss with a pint over a pint how we can help our pub pub landlords? There we are, Minister.

12:14

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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I thank my hon. Friend for his >> I thank my hon. Friend for his question. He's right to point to the role that pubs play in the heart of local communities. So I heart of local communities. So I assume the pub and GP surgeries are separate in the example that he gave there. Mr. speaker, as my hon. Friend the Exchequer Secretary set out earlier, we're in a situation where temporary pandemic business rates relief is coming to an end, and the new revaluation, which is post-pandemic, comes into effect.

In that context, we're supporting the high street, including pubs with permanently lower tax rates for eligible retail, hospitality and leisure, as well as the support package. That means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest Bob Blackman.

12:14

Bob Blackman MP (Harrow East, Conservative)

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One of the. >> Faces is dealing with. and. >> Then have to go into hospital. >> Obviously for treatment.

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Obviously for treatment. They then discharged and it's almost like a rotating saw. Unfortunately, what what is needed Unfortunately, what what is needed now is targeted funding to make sure that the NHS discharges people into somewhere. They have a safe place to live. Will the Minister take that challenge up, particularly at this time of year? Minister.

12:15

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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I thank the hon. Member for his question, and he's absolutely right to point to the fact that people showing up in hospital can often reflect other social issues, whether that be homelessness, child poverty or other challenges that people face. As a government, we take tackling homelessness, by which I mean temporary accommodation and rough sleeping incredibly seriously and will be

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publishing a homelessness strategy shortly. Bishop Auckland Mr Speaker Ashford and Saint Peter's Hospital, which. Serves my Woking constituency.

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Serves my Woking constituency. Has an £80 million repair backlog When will the government allocate

12:15

Mr Will Forster MP (Woking, Liberal Democrat)

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When will the government allocate sufficient funding to fix our crumbling hospitals, including Ashford and Saint Peter's? >> Mr.

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Mr. Well, Mr. Speaker, as the hon. Gentleman will know, the coalition government which his party was part

12:15

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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government which his party was part of, slashed capital investment in our health service. We've restored capital investment in our health service, which is critical to getting it back on its feet. And I hope that if he is making the request for greater investment in the NHS, he will change his mind and correct the record and support the tax changes we made to make that possible.

**** Possible New Speaker ****

John Milne question number 11. Mr. Speaker. Minister.

12:16

Q11. What fiscal steps she is taking to help increase growth in rural areas. (906794)

>> Minister. >> Me again. Mr. Speaker, growth is the number one mission of this government and we are committed to unlocking growth in every corner of

12:16

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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unlocking growth in every corner of this country. We have committed £2.7 billion per year to support sustainable farming, £2.3 billion of transport funding for places beyond city regions, through the local transport grant, and more than 1.9 transport grant, and more than 1.9 billion for gigabit broadband and 4G connectivity. This funding will help tackle key blockers to growth in rural areas, helping to unlock the opportunities and benefits of UK.

12:16

John Milne MP (Horsham, Liberal Democrat)

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John Milne thank you, Mr. Speaker. Later today, I'll be chairing a meeting of the APPG for Rural Business, which has a focus Rural Business, which has a focus on generating rural growth. If we could push rural productivity closer to Western European averages, it would fix the government's budgetary blackhole all by itself. So will the Minister agree to set a measurable target for increasing rural productivity, so we can hold the government to account on progress? Minister.

12:17

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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Well, Mr. Speaker, I welcome the hon. Gentleman for drawing hon. Gentleman for drawing attention to the importance of productivity in the UK economy and our prospects for growth, because, as we know, Mr. Speaker, the Office of Budget Responsibility reviewed the productivity impact of the previous government's record in office, and they found that the decisions the previous government had taken over their 14 years meant we had a £16 billion revenue hit at public finances over this in the target year of the scorecard.

Now, Mr. Speaker, we know that that means productivity has been downgraded as a result of decisions taken by the previous government, but that gives us an opportunity. It gives us an opportunity not to be held back by the failures of the previous government and to exceed those forecasts in the future.

12:17

Noah Law MP (St Austell and Newquay, Labour)

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Noah Law thank you, Mr. Speaker. Cornish communities and SMEs and the supply chains of Cornwall's most promising industries alike, will have been delighted at the Chancellor's announcement of the Industrial Growth Fund in the recent Budget. But does the Chief Secretary agree with me that these funds should be invested prudently, sustainably? And are the proceeds recouped to the Cornish public coffers so that they can be invested again in future projects?

12:18

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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Well, I thank my hon. Friend for >> Well, I thank my hon. Friend for his question, and he and many of his neighbouring MPs are excellent advocates for Cornwall and for the advocates for Cornwall and for the benefits that Cornwall can bring to growth, both in the region where they represent and right across the country. I know that in the Budget, the Chancellor is very keen to support investment in future industries in Cornwall. For the local council to deliver that, we'll be working closely with them to make sure that money is well spent.

But the key thing for us, Mr. Speaker, is to ensure that we are enabling people in Cornwall to be part of the economic growth mission of this government.

12:18

Richard Fuller MP (North Bedfordshire, Conservative)

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Richard Fuller shadow Minister. >> Yeah. >> Thank you. Thank you, Mr. Speaker, as this is my last question before Christmas, I want to ask my counterpart a nice and constructive question. As he will know. Rural residents and businesses already pay more on fuel than their urban counterparts, and there are fewer public transport options. So can he advise what were the results of his assessment of the relative impact on rural compared to urban areas of the budget's introduction of road pricing? Mr.

12:19

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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Mr. speaker, I think the hon. Gentleman was referring to the changes we announced in the Budget around electric vehicles and their contribution towards public finances. Mr. speaker, if people drive electric vehicles wherever in the country they drive them, they benefit from investment in roads and maintenance alongside those of us who drive petrol cars. So it's important to make sure that we make the tax system fit for the future. Mr. speaker, this is a decision which people have talked about for many years.

His party ducked that alongside many other difficult decisions. We are taking them head on to make sure we are fit and stable for the future.

12:20

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Dawn Butler Lorraine Beavers. >> Thank you, Mr. Speaker. Question number one. >> Chancellor.

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Chancellor. Thank you, Mr. Speaker. Covid fraud and error under the previous government's mismanagement costs the taxpayer £10.9 billion. They played fast and loose with the public purse and left the front doors wide open to fraud. That is why I've appointed a Covid corruption commissioner to carry out the independent review. This government is doing everything to recover taxpayers money. We have already got back around £400 million with more to come. That money belongs to British people in our communities and in our NHS.

We welcome the publication of the Commissioner's Independent report and we will respond fully in the new year.

12:20

Lorraine Beavers MP (Blackpool North and Fleetwood, Labour)

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Lorraine Beavers. >> Lorraine Beavers. >> Thank you, Mr. Speaker. British people are paying the bill for criminal Covid fraud. Yeah. Under criminal Covid fraud. Yeah. Under the Conservatives, waste and corruption exploded and taxpayers money was stolen. Will the Chancellor make sure that the Labour government continues to go after those who stole from the British taxpayer and make sure we get every penny back?

12:21

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Chancellor. >> I couldn't agree more with my hon. Friend. The previous government failed to protect public money. While the government, this money. While the government, this government has generated around £400 million in getting money back, we all know what happened. The Tories dished out contracts to their friends and their donors, money that never belonged to them. This government will leave no stone unturned because that money belongs to taxpayers, not with cronies or crooks.

12:21

Rt Hon Sir Mel Stride MP (Central Devon, Conservative)

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We come to the Shadow Chancellor, Sir Mel Stride. Sir Mel Stride. >> Thank you, Mr. Speaker. >> Mr. speaker, the process surrounding the Budget was utterly surrounding the Budget was utterly chaotic. We had months of damaging speculation, fuelled by briefings and leaks from the Treasury itself, that included briefings on the 14th of November, which moved markets and gave the appearance at least, of being deliberately inaccurate. Which is why we need the FCA to investigate. But can I ask the Chancellor a simple question? Did she, at any point authorise or allow confidential details of the Budget or the forecasts to be

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Chancellor? No, sir.

12:22

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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>> No, sir. >> Mel Stride. Mr. speaker, the Obr's own guidance says, and I

12:22

Rt Hon Sir Mel Stride MP (Central Devon, Conservative)

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quote, the interim rounds are transmitted to the Chancellor in confidence. Yet the Chancellor confidence. Yet the Chancellor repeatedly stated before the Budget that the OBR had downgraded their productivity forecasts. In her statement in Downing Street on the 4th of November, she said in relation to the obr's forecast and I quote, it is already clear that the productivity performance is weaker than previously thought. Why did the Chancellor breach the confidentiality of the OBR? The Chancellor.

12:23

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Well, in the spring statement, >> Well, in the spring statement, the OBR were clear that productivity was coming in lower than forecast, and they were clear than forecast, and they were clear that they were reviewing that over the summer. The numbers that the OBR have previously published showed that in the final pre measures forecasts, the fiscal headroom was just over £4 billion. I was clear in my speech on the 4th of November, I didn't want to reduce the headroom, I wanted to increase it.

I increased it to bring back the stability that's much needed in our economy. After 14 years of conservative government.

12:23

Josh Fenton-Glynn MP (Calder Valley, Labour)

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Thank you, Mr. Speaker. Having worked on child poverty for over a decade, I've seen first hand the damage to health, education damage to health, education prospects and life chances that poverty can cause. But at £40 billion a year by Child Poverty Action Group, can the Chancellor assure me that the child poverty strategy will build on the historic Budget announcement on the two child cap, and do more to reverse the appalling rise in poverty that we saw from the benches opposite.

12:24

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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The Minister. Strategy, published last week sets out the steps we are taking to support families now as building blocks we are putting in place for the long term. We will lift 550,000 children out of poverty, both by removing the two child limit and through other measures, including the expansion of free school meals.

12:24

Sir Ashley Fox MP (Bridgwater, Conservative)

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Ashley Fox. higher today than on the day the Chancellor took office. Would she tell the House why that is the case? Yes, Chancellor.

12:24

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Employment is up since we we took office. And part of the reason for the disparity between those numbers is that people who were economically inactive are now seeking work. That's exactly what we want for people to be seeking work and to get back into work. But there are more jobs in the economy today than when we took office.

12:25

Sureena Brackenridge MP (Wolverhampton North East, Labour)

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Thank you, Mr. Speaker. As a >> Thank you, Mr. Speaker. As a former deputy head teacher, I and other school leaders knew of the pressures faced by having to turn pressures faced by having to turn libraries into classrooms due to underfunding by the Tories, disproportionately affecting children in our deprived areas. Does the Chancellor agree her £5 million commitment for libraries and books for secondary schools is an example of how increasing opportunity for all children is good for our future economy.

12:25

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Yes, Chancellor. hon. Friend will know that when I was at secondary school, my school library was turned into a classroom because there were more students than there was space. We have put £10 million into primary schools to get a library at every single primary school in this parliament, and next year, to celebrate the national Year of Reading. We're putting £5 million into having more books at secondary schools, and I'm really proud to be doing that.

12:26

Matt Vickers MP (Stockton West, Conservative)

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Matt Vickers 10,000. hospitality sector since this government came to office, and eight pubs are closing every week, but the Chancellor has made it worse. Jonathan at the at the Devonport has told me that his business rates are set to treble. Does the Chancellor realise that her Budget will cost people their jobs, landlords, their businesses and communities, their pubs? Yes, Minister.

12:26

Dan Tomlinson MP, The Exchequer Secretary (Chipping Barnet, Labour)

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Let's be clear, nobody's business rate. Bills are tripling. It's important, as members of Parliament, if we have businesses coming to us to talk about the increases in their rateable values because of the unwinding of the effect of the pandemic, that we are clear on all sides of this House that the government has put in support to make sure that pubs and those who've seen their values go up will not increase next year. If pubs rateable value is more than £100,000, they'll be capped at a 30% increase.

If it's less, they'll be capped at 15% or 800. That's £4 billion of support, Mr. Speaker, that this government is providing.

12:27

Tom Hayes MP (Bournemouth East, Labour)

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Tom Hayes thank you, Mr. Speaker. An independent and effective OBR is critical for our country, but it critical for our country, but it needs to do better. Why can't the OBR count? Why can't it forecast accurately, given the economy grew 50% faster than they predicted in March? And why can't it even publish the Budget document without making a dog's breakfast of it? So isn't it time for the OBR to properly price pro growth measures and get behind our growth mindset?

12:27

Rt Hon James Murray MP, The Chief Secretary to the Treasury (Ealing North, Labour )

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Yeah. we are committed to the Obr's independence as a forecaster and to the core role it plays within our fiscal framework. The Chancellor has also been clear, however, that forecasts are not our destiny. We will not let Britain be held back by the failures of the previous government. At the Budget, the OBR revised upward its growth estimate for this year and we are determined to exceed forecasts again.

12:27

Chris Coghlan MP (Dorking and Horley, Liberal Democrat)

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Scotland. growth that US patents funded by it generate 12 times more growth than those that are not there. Does the Chancellor accept the judgement of the OBR that UK public R&D will generate no additional incremental growth, because we are not increasing it enough?

12:28

Lucy Rigby KC MP, The Economic Secretary to the Treasury (Northampton North, Labour)

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Mr. speaker, the government, of course, recognises that innovation course, recognises that innovation is key to our long term economic growth, to higher productivity and indeed to living standards as well. And that's exactly why we're investing more in R&D. And we've made other incentives available to them.

12:28

Dame Meg Hillier MP (Hackney South and Shoreditch, Labour )

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Meg Hillier. >> Meg Hillier. >> Thank you, Mr. Speaker. Mr. speaker, it's been a rocky week for the office for Budget Responsibility, so I'm glad that Responsibility, so I'm glad that the Chief Secretary recognises and has reiterated the value of an independent regulator in this space. Nevertheless, a lot of swirling around and criticism of the OBR. Would the Chief Secretary or Chancellor like just to remind people about the role of the Fiscal Risks and sustainability report, which does look longer term at the economy and the importance this has in the planning? And as the Chief Secretary said, the Chancellor has pointed out that we it is not a destiny just because of the figures, but that this report is particularly useful in this respect.

12:29

Rt Hon Rachel Reeves MP, The Chancellor of the Exchequer (Leeds West and Pudsey, Labour)

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Chancellor. >> Thank you, Mr. Speaker. I have huge respect for the office for Budget Responsibility, and I Budget Responsibility, and I reappointed Richard Hughes for a second term earlier this year. We deeply regret the publication of the Budget document ahead of the Budget. Richard Hughes has apologised for that and he's resigned. But I thanked him for his

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