Office for Budget Responsibility Forecasts

Debate between Antonia Bance and James Murray

Monday 1st December 2025 Commons Chamber

[James Murray]

I recognise that there was a lot of speculation in the media in the run-up to the Budget. From the Government’s point of view, the Chancellor took a decision to set out her priorities and the challenges going into that Budget on 4 November. We set out the context around the productivity downgrade, the importance of building fiscal headroom, and the importance of cutting NHS waiting lists, cutting the cost of living and cutting Government borrowing.

[Antonia Bance (Tipton and Wednesbury) (Lab)]

It is very worrying to hear about the repeated attempts to access the statement before it was given, and I wonder why Conservative Members are not a little more concerned, given that the same situation may have affected them. Does my right hon. Friend agree that if a Government left themselves with only £4 billion of headroom, they would be taking unacceptable risks with the UK’s fiscal stability?

[James Murray]

My hon. Friend is absolutely right: imagine if I were trying to defend a Budget to the House that was delivered with just a few billion pounds of headroom—what message would that send about the UK economy? The headroom is there to reduce the cost of Government borrowing and to give us protection against future shocks that might come our way.

Oral Answers to Questions

Debate between Antonia Bance and James Murray

Tuesday 21st January 2025 Commons Chamber

[Antonia Bance (Tipton and Wednesbury) (Lab)]

7. What steps she plans to take to help protect the steel industry from high-emission steel being diverted away from the EU to the UK following confirmation of the UK carbon border adjustment mechanism for 2027.

[The Exchequer Secretary to the Treasury (James Murray)]

The UK carbon border adjustment mechanism will be introduced in 2027. It will ensure that imports face a carbon price that is comparable with domestic products, giving UK industry the confidence to invest without its decarbonisation efforts being undermined. UK steel producers will continue to benefit from high levels of free allowances in the UK emissions trading system until at least the end of 2026, protecting them against carbon leakage via high-emission imports.

[Antonia Bance]

Newby Foundries and Alucast in my constituency of Tipton, Wednesbury and Coseley have raised with me the impact of the UK CBAM coming into effect later than, and differing from, the EU CBAM. This could threaten domestic steel production and make the export of metal products to the EU more difficult. Can the Minister please support the UK’s steel and metal finishing industries by reassuring me that the UK CBAM will not be weaker than the EU CBAM, and will he meet me and other steel MPs to discuss this?

[James Murray]

As I have set out, the UK CBAM will mitigate the risk of carbon leakage by placing a carbon price on some of the most emissions-intensive industrial goods imported into the UK, including in the iron and steel sector. The UK CBAM is designed for the UK context, and in some areas, its emissions scope is wider than the EU CBAM—in respect of indirect emissions, for instance. The first CBAM industry working group was held earlier this week, and I understand that a representative of the UK steel sector attended. I will make sure that my officials continue to engage with the industry sectors most affected, and I am very happy to discuss this further with my hon. Friend.