Lindsay Hoyle
Main Page: Lindsay Hoyle (Speaker - Chorley)Department Debates - View all Lindsay Hoyle's debates with the HM Treasury
(1 day, 13 hours ago)
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Lucy Rigby
I believe the right hon. Member mentioned the British industrial competitiveness scheme. That is being expanded. He will also be aware of the British industry supercharger package, which provides additional price relief from April 2026 as well.
Mark Garnier (Wyre Forest) (Con)
The Economic Secretary to the Treasury will know that our financial services industry is a shining example of our international economic might. However, overinterpretation of rules and regulations has led to banks being nervous of taking risks, and that has slowed growth in the City and holds up international trade. For example, overinterpretation of anti-money laundering rules means that foreign inward remittances can take up to two weeks to clear into a UK bank account, while poor classification of risk-rated assets potentially starves businesses of growth debt capital. Will the Economic Secretary please assure the House that this ever-unnecessary tightening of the rules will be addressed in the financial services Bill, due to be announced in the King’s Speech?
James Murray
Investment in defence under this Government is under way—just look at the contracts. Over a thousand have been signed since the general election: I point the hon. Gentleman, and anyone else in the Chamber, to the billion-pound contract for medium helicopters in Yeovil, the half-a-billion pounds invested in state-of-the-art radar systems and the £100 million boost to support submarine-hunting aircraft. This Government are raising investment in defence to the highest sustained level since the cold war and it is at the core of ensuring that we are protecting our nation’s security.
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
What consideration has my right hon. Friend given to joining the Defence, Security and Resilience Bank to make sure that we are really pushing the investment that we need to see in defence in the current world situation?
James Murray
The UK has already signed up, with Finland and the Netherlands, to the multilateral defence budget, with this Chancellor taking a lead. I know the importance to this Government of security, which is not just something that we can achieve on our own but by working with allies to ensure that we are safer in future. I will add that we on the Government Benches are committed to remaining a core part of NATO, unlike some of the Opposition parties.
James Wild (North West Norfolk) (Con)
The Chancellor said,
“National security always comes first”,
but she delayed the helicopter contract for our industrial base and we know that she is blocking the defence investment plan. Labour’s former Defence Secretary and secretary general of NATO, Lord Robertson, said,
“We cannot defend Britain with an ever-expanding welfare budget.”
He is right, so why is the Chancellor failing to grip the benefits bill and invest in our defence?
Rachel Reeves
I thank my hon. Friend for standing up for the people of South Ribble and the issues that matter to them. Since the general election, there have been six cuts in interest rates, which is the best way to help people with the cost of living, especially if they have a mortgage. Before this conflict began, unemployment was falling, the economy was growing, the deficit was coming down and interest rates had gone down six times. I will continue to focus on the cost of living, because that is the thing that matters most to all our constituents.
Daisy Cooper (St Albans) (LD)
Australia, Italy, India and more have all slashed fuel duty in response to Trump’s idiotic war in Iran. We Liberal Democrats are calling for fuel duty to be cut by 12p per litre here. Last week, the Chancellor claimed that anyone calling for a cut in fuel duty was “economically illiterate”, because it would push up inflation. According to the Office for Budget Responsibility, the current 5p fuel duty cut has led to a 0.2% reduction in the rate of inflation. Does the Chancellor think that the OBR and all these other countries that are helping their citizens are economically illiterate, or does she accept that her Government might be in the wrong and that it is time to act?
Dan Tomlinson
When it comes to fuel duty, it is of course worth noting that it is lower today, in cash terms, than it has been in any year since 2009.
Dan Tomlinson
I thank my hon. Friend for his representations, and for the work that he is undertaking on behalf of his constituents in a rural part of our country. We are making sure that all garages are on the new fuel finder website that the Chancellor has introduced. That should drive up competition and make it easier for the people he represents to compare the cost at the pumps in different garages nearby. It is good to hear that he has been in touch with the CMA; the Chancellor, too, has been in discussion with it about making sure that we have competition in this industry. If I can help him to get a meeting with the CMA, I will happily assist.
James Wild (North West Norfolk) (Con)
Whereas the Conservatives froze fuel duty for 14 years, Labour is planning to increase it by 5p, costing families £150 a year and hauliers £2,000. When the Chancellor was asked to reverse her hike, she said she was
“loath to spend Government money”
to do so. There is no such thing as Government money; there is only taxpayers’ money. Rather than increase taxes again, will she actually help households and businesses facing higher prices and scrap this fuel hike?
Rachel Reeves
I am slightly disappointed that my hon. Friend did not mention that today is Staffordshire Day; Staffordshire oatcakes are available for Members from both sides of the House in the Tea Room. On the wider issue, we do need to buy, make and sell more in Britain, with more contracts going to firms in Staffordshire—not just for their brilliant oatcakes, but for their ceramics.
Sir Edward Leigh (Gainsborough) (Con)
Does the Chancellor agree that, post Brexit, Government Departments have much more freedom to buy British? Under the Procurement Act 2023, they can ignore EU directives. Will the Chancellor walk with us into the broad, sunlit uplands of post-Brexit Britain and use the freedoms that we obtained for this country?
Iqbal Mohamed
In my constituency, 44.4% of children are living in poverty, according to the latest Government figures. Yet Oxfam reports that just 56 billionaires in the UK now hold more wealth than 27 million people combined in our country, and their wealth rose on average by more than £230 million each last year. Does the Chancellor accept that child poverty is not inevitable but the result of political choices about who this Government want to protect? Can she explain how the child poverty taskforce can succeed without the Treasury being willing to pursue far more fair and equitable wealth distribution, through closing tax loopholes, taxing wealth and not just income, and preventing—
Rachel Reeves
Child poverty is absolutely not inevitable, which why we are lifting 550,000 children out of poverty. It is always Labour Governments who lift children out of poverty and Tory Governments who put children back into poverty. The numbers the hon. Gentleman refers to are appalling: 44% of children should not be growing up in poverty in Dewsbury and Batley. We have made the changes we have made to lift those children out of poverty and to give all of them a decent start in life.
Warinder Juss
I thank the Chancellor for her condolences. I was at the site of the tragedy on Sunday laying flowers. It is very upsetting for everyone in my constituency.
One of my favourite places for lunch is the Pomegranate Café, together with the Central Community Shop, in my constituency. It is a community-based social enterprise partnership founded by the Good Shepherd charity, the Wolves Foundation and the Labour-controlled city of Wolverhampton council. It provides affordable food, and all the profits from the café are donated to the Good Shepherd’s free-to-access services—supporting its work to end homelessness, assist recovery, provide access to services around training and employability, and provide meaningful pathways out of poverty in Wolverhampton. Will the Chancellor please join me in congratulating everyone involved with the Pomegranate Café—
Rachel Reeves
I thank my hon. Friend for raising the excellent work city of Wolverhampton council is doing to help people with the cost of living, in particular the most vulnerable people in our society. The measures we are taking to reduce child poverty, and to increase the basic state pension and the new state pension, combined with what we are doing with Pride in Place, including in Whitmore Reans and Dunstall Hill in his constituency, will improve outcomes for people in Wolverhampton West and around the country.
Dan Tomlinson
Under the previous Government, the business rates multiplier—the tax rate—paid by medium-sized businesses and the very largest businesses was exactly the same. We have implemented significant reforms to the way businesses rates work so that the system supports the high street, and the tax rate paid by small high street businesses will now be 33% lower than the rate paid by the largest properties, such as online giants. Of course, the revaluation since the pandemic has had an effect, and that is why we have stepped in to provide support.
Richard Fuller (North Bedfordshire) (Con)
This month, a comprehensive survey by UKHospitality showed that one in seven of our hotels, pubs and restaurants will close as a direct result of the Chancellor’s policies. Many of those businesses represent the hopes and dreams, hard work and savings of the people who set them up. Therefore, as I am permitted, rather than having the Minister come to the Dispatch Box, may I ask the Chancellor to come to the Dispatch Box to answer this? If it was not me standing here but one of those people who had founded a business and is now going through the gut-wrenching process of closing it because of her policies, what would she say to them?
Rachel Reeves
Just a couple of weeks ago, I hosted an event in Downing Street where I met people who are benefiting from the change in the two-child limit and people who had campaigned for that change. Mums told me that they were going to use the money to pay for their kids to go to after-school clubs with their friends, swimming lessons that they could not afford before, or a new school coat rather than a second-hand one. That is the difference that this money is making to families up and down the country. I am proud to be the Chancellor who has scrapped the two-child limit.
Sir Mel Stride (Central Devon) (Con)
In response to the question from my right hon. Friend the Member for Godalming and Ash (Sir Jeremy Hunt) on borrowing, the right hon. Lady suggested that she was following a strict deficit reduction plan. I think she made reference to a reduction in the deficit of £20 billion year on year—but, of course, it is easy to reduce something if you pump it up recklessly in the first place. Could she tell the House how much more borrowing this Government will undertake across this Parliament compared with the plans that she inherited from the last Government?
Rachel Reeves
As my hon. Friend knows from sitting on the Treasury Committee, this Government have already taken action to reduce the cost of living and to bear down on inflation with the changes around energy prices, fuel duty, prescription charges and rail fares. I will do everything in my power and use every lever we have to bear down on the cost of living, including for people in the private rented sector. That is why we have already introduced the Renters’ Rights Act 2025. People who have mortgages have seen cuts in their mortgage rates since we came into office, and we will also do everything we can to help people in the private rented sector too, because we must ensure that this conflict in the middle east does not result in our constituents being poorer.
Daisy Cooper (St Albans) (LD)
Business rates bills have been landing on doormats over the last few weeks, and some small businesses in St Albans and beyond tell me that the future looks bleak, with some taking the crushing decision to close their doors. Will the Chancellor please look again at the eye-watering revaluations and release the full 20p discount for small businesses, which the Government legislated to do, to save our high streets?
Olly Glover (Didcot and Wantage) (LD)
Mr Speaker
Order. This is topical questions, and I want to get other colleagues in, please.
Dan Tomlinson
I am always happy to take questions on business rates, even months after the decision set out at the Budget, and I thank the hon. Member for reading out the Labour manifesto. We have made significant changes to business rates by introducing the new lower multiplier for high street businesses so that they can pay a lower tax rate than the largest online giants.