Living Standards: East of England

Emma Reynolds Excerpts

Wednesday 3rd September 2025 Westminster Hall

[Wera Hobhouse (in the Chair)]

I will call Clive Lewis to move the motion, and I will then call the Minister to respond. I remind other Members that they may make a speech only with prior permission from the Member in charge of the debate and the Minister. There will not be an opportunity for the Member in charge to wind up, as is the convention for 30-minute debates. A Liberal Democrat Member has just requested to make a speech. I am happy with that. Minister, are you happy with that as well?

[The Economic Secretary to the Treasury (Emma Reynolds)]

indicated assent.

[Clive Lewis (Norwich South) (Lab)]

I beg to move,

That this House has considered living standards in the East of England.

It is a pleasure to serve under your chairmanship, Mrs Hobhouse. As I will be discussing nature, water and the far right, I would like to declare interests that meet the relevant test. The first is my role as vice-chair of the climate and nature crisis caucus. The second is that I have received donations from Compass and Betterworld Ltd, which have supported my work on water. The third is support I have received from the Friedrich-Ebert-Stiftung—try saying that after a few pints—to attend their parliamentarian forums on the far right. I have written about issues touched on in this debate—climate, water, the far right and economic growth—for The Guardian and Byline Times, which I have been paid for.

If we take an honest look at life in the east of England today, and in my city of Norwich, we do not see the prosperity that Governments have often boasted about. We see a region where too many people are running faster and faster just to stand still. In Norwich, wages remain below the national average. One in five workers earns less than the real living wage. One in six is trapped in insecure work—zero hours, agency or short-term scraps dressed up as jobs. Meanwhile, rents have risen by more than 20% since 2021. A quarter of private renters are handing over half or more of their income just to keep a roof over their heads. That is not prosperity; that is daylight robbery with a tenancy agreement.

--- Later in debate ---

[The Economic Secretary to the Treasury (Emma Reynolds)]

It is a pleasure, as ever, to serve under your chairmanship, Mrs Hobhouse. I thank my hon. Friend the Member for Norwich South (Clive Lewis) for securing this debate and the opportunity to have a constructive discussion about living standards in the east of England. I thank other hon. Members who have contributed, including the hon. Members for Chelmsford (Marie Goldman), for North East Hertfordshire (Chris Hinchliff), for Strangford (Jim Shannon)—he is on form, as ever—and for North Norfolk (Steff Aquarone), and my hon. Friend the Member for Dunstable and Leighton Buzzard (Alex Mayer). I do not have an enormous amount of time, so I will crack on with my speech.

This Government are committed to raising living standards for everybody across the UK and, of course, in the east of England, but it is worth pointing out that that is no small task. When we came to power, we took over from a Government who had dropped the ball on living standards—the last Parliament was the weakest on record for living standards. We were elected to turn that around, and through our Plan for Change we are delivering policies to kickstart growth that will boost living standards in every part of the UK. Indeed, according to the Office for Budget Responsibility, we can expect living standards, measured by real household disposable income per capita, to rise by 2.6% over the course of this Parliament.

I will focus on a number of measures that we have taken to strengthen household income, particularly for those on low incomes. The first is that we have increased the national living wage, which will benefit around 3 million of the lowest paid workers and make them up to £1,400 better off. We are investing more than £0.5 billion in the Best Start family service over the 2026 to ’29 spending review period, making sure that every local authority has a family hub that is open to all, and focusing—this was mentioned by one of my hon. Friends—on areas with higher proportions of children from disadvantaged backgrounds. We are putting early years back at the heart of how we deliver stronger outcomes for our children, as it has ever been with Labour Governments, including this one and the previous Labour Government, with half a million children benefiting from the roll-out of the new 30 hours free childcare entitlement that we brought forward this week.

We will be investing £410 million per year by 2028-29 to expand free school meals in England to all children with a parent receiving universal credit, lifting 100,000 children out of poverty by the end of this Parliament. We are providing £1 billion a year to reform crisis support, including the first ever multi-year settlement to transform the household support fund into a new crisis and resilience fund. We have frozen fuel duty, saving drivers about £3 billion this year, while extending the £3 bus fare cap until March 2027, keeping prices low on some 5,000 routes across England.

We are also protecting the pension triple lock and, in doing so, gave 1.2 million pensioners in the east of England a 4.1% increase to their basic or new state pension in April this year. At the recent spending review, we confirmed funding for our affordable homes programme; my hon. Friend the Member for Norwich South spoke passionately about council houses. The 10-year affordable homes programme will involve £39 billion during that period. We have also committed to local transport priorities for some our larger city regions via the transport for city regions settlements.

For the east of England, we have confirmed £14.2 billion for Sizewell C, which, at peak construction, will create 10,000 jobs, including 1,500 apprenticeships, and wider economic benefits in Suffolk and the wider region. We have also made significant progress in creating the conditions for growth, with reforms to the national planning policy framework, which the Office for Budget Responsibility concluded will permanently increase the level of real GDP by 0.4% over the next 10 years—the biggest positive growth impact that the OBR has ever forecast for a policy with no fiscal cost.

We are going forward with the introduction of the Planning and Infrastructure Bill and, in the east of England, with support for the Oxford to Cambridge corridor, which will bring many benefits to local communities. That approach will drive growth in city regions, towns and communities and make the most of the opportunities in each part of the country to make people better off. We are already seeing the results of our plan working, with the Bank of England having reduced interest rates five times since we came to office, which will put downward pressure on mortgage payments.

However, we recognise, of course, that challenges remain. We must support those in immediate need while making the structural changes necessary to give our cities, towns and rural and coastal communities the resources and powers that they need to succeed. Through our plan for neighbourhoods, we are providing long-term funding directly to communities, delivering visible improvements on people’s doorsteps, championing local leadership and fostering stronger communities. Of the 75 places already announced in the plan for neighbourhoods, seven are in the east of England; each will receive up to £20 million over the next 10 years.

We are also driving forward devolution, pushing power down, as my hon. Friend the Member for Norwich South discussed, giving local leaders the powers and resources to shape their own futures. The devolution priority programme will see two new mayoral strategic authorities established in the east of England, both in Greater Essex and in Norfolk and Suffolk, with inaugural mayoral elections in May next year. We have established the Cambridge Growth Company, which will work with local partners to unlock key developments and deliver an “infrastructure first” strategy for sustainable growth in the area.

The Government are providing certainty and stability through our commitment to in-flight local growth projects, including freeports and investment zones. Those programmes can and should be key tools for driving growth across the UK, including the east of England. We are committed to bringing them together as part of our modern industrial strategy.

I do not have very much time left, Mrs Hobhouse. The Government are committed to sustainable and secure economic growth, and we are bringing that about in three major ways: restoring stability, as we did in the Budget last year by introducing non-negotiable fiscal rules, to put the public finances back on a stable path; secondly, investment in renewal, within the fiscal rules made in the autumn, supporting the step change needed, as confirmed in our plans in the spending review period; and changing the economy to prioritise long-term growth through key reforms.

Every investment, reform and partnership is focused on one goal: raising living standards in the east of England and across the country, creating opportunities in every community. I know that we are all passionate about that. I thank my hon. Friend the Member for Norwich South again for bringing this important debate to the House.

Question put and agreed to.