Oral Answers to Questions

Lucy Rigby Excerpts

Tuesday 27th January 2026 Commons Chamber

[Chris Coghlan (Dorking and Horley) (LD)]

1. If she will make an assessment of the potential merits of issuing research and development bonds of up to £20 billion.

[The Economic Secretary to the Treasury (Lucy Rigby)]

Innovation is a key driver of long-term economic growth, higher productivity and improved living standards. That is why this Government are investing more in R&D and why we are committed to maintaining the generosity of R&D tax reliefs. We remain open to new and innovative debt instruments and we review options regularly, but clearly new instruments need to meet a range of criteria, including value for money.

[Chris Coghlan]

In the 1940s, refugees fled the Nazis and built the atomic bomb; they pioneered a method of public research and development that has powered US economic dominance ever since. The EU Security Action for Europe defence bond fund offers us a similarly transformative opportunity: £20 billion invested in defence R&D could expand our economy by £100 billion. Will we join our Canadian and European allies, end our economic stagnation, and together defend the—

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[Lucy Rigby]

I am grateful to the hon. Member for his question. Indeed, he and I have discussed this issue previously. We are due to meet to discuss it later this month, and I am very much looking forward to that discussion.

[Bill Esterson (Sefton Central) (Lab)]

Mersey Care NHS foundation trust has plans for a world-leading mental health research and development facility at Maghull health park in my constituency. Will the Minister meet me to discuss how the Treasury might support investing in such an important research and development project, not least as it is fundamental to the Government’s plans for improving healthcare?

[Lucy Rigby]

My hon. Friend raises an important point. This Government are investing an extra £29 billion in our national health service. I would be happy to meet him to discuss it further.

[Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)]

2. What steps she is taking to provide regional funding.

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[Jo White (Bassetlaw) (Lab)]

5. What assessment she has made of the potential merits of providing Government-backed loans for SMEs.

[The Economic Secretary to the Treasury (Lucy Rigby)]

The Government provide a wide range of loan support for SMEs through the British Business Bank. This includes the start up loans programme and the growth guarantee scheme, the latter of which recently supported over 4,000 businesses and over 65,000 jobs right across the country.

[Jo White]

I recently met Matthew Pendleton, who owns Apawtiser, a high-quality dog treat company. The company grew legs because processed dog food had made his pet dog violently ill. Matthew now needs the finances so that he can continue to expand, employ more staff and get Apawtiser on the national pet food map. I want to see businesses such as these succeed in my area, and Matthew’s small ask is: will the Government step in with the offer of an underwritten loan?

[Lucy Rigby]

My hon. Friend is a tireless champion of businesses in Bassetlaw, and I wish her a happy birthday for yesterday. In the recent spending review, the Government extended the growth guarantee scheme, enabling £5 billion-worth of loans over the next four years. This will support businesses like the one she mentioned, and I would be more than happy to meet her to talk about how her constituent might access that support.

[Wera Hobhouse (Bath) (LD)]

First-of-a-kind technologies such as DRIFT Energy in Bath face serious investment challenges and difficulties in accessing grant funding from any Government Department. DRIFT is a groundbreaking renewable energy innovator that could rapidly scale and contribute to the UK’s energy independence. What are the Government doing to ensure that first-in-kind technologies in particular receive the support that they need here in the UK, rather than being forced to go abroad?

[Lucy Rigby]

The hon. Member may well know that, at the spending review, we increased the financial capacity of the British Business Bank to £25.6 billion. There are a number of ways in which the British Business Bank will support companies like the one she referred to.

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

As well as the British Business Bank, the National Wealth Fund plays a crucial part in investing taxpayers’ money. I welcome the Government’s response to the Select Committee’s report on that issue. Will the Minister indicate when the National Wealth Fund will have the ability to borrow from private markets in order to increase its independence, secure funding for infrastructure, and get the taxpayer off the hook?

[Lucy Rigby]

It is absolutely right that we have increased the amount of funding going into the National Wealth Fund. On my hon. Friend’s specific question, my understanding is that we have not set a date, but I am more than happy to write to her with further information—to the extent that it exists.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Has the Minister assessed what proportion of British Business Bank grant funding goes to the smallest of businesses? One in four people in my constituency works for themselves or for very small businesses. To what extent is she working to ensure that smaller businesses—those employing 10 people or fewer, which are the very bedrock of our economy in the lakes and dales in Cumbria—know about the availability of those loans and are talked through the difficult process of applying for and receiving them, so that we can invest in rural communities like mine?

[Lucy Rigby]

On the Government’s policies vis-à-vis businesses as a whole, we support the sort of businesses the hon. Member refers to in a whole range of ways. On businesses in his area, 80% of the recent deployment of the growth guarantee scheme was outside London.

[Luke Murphy (Basingstoke) (Lab)]

7. If she will make an assessment of the potential impact of trends in the level of living standards on the economy.

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[Alison Taylor (Paisley and Renfrewshire North) (Lab)]

17. If she will make an assessment of the potential impact on the economy of the FTSE 100 index rising above 10,000 points.

[The Economic Secretary to the Treasury (Lucy Rigby)]

It is definitely right to say that the FTSE 100 performed strongly in 2025, during which it rose faster than key benchmarks, the United States and the European stock markets, and hit 10,000 points as we entered the new year. The UK is one of the world’s leading global financial hubs, and this Government are committed to the sector’s enduring leadership.

[Alison Taylor]

Does the Minister agree that cutting paperwork and speeding access to capital will provide a valuable boost to companies looking to list their shares on the London Stock Exchange? Is she hearing that from the companies that she is meeting, because that is what I have been hearing while I have been out engaging with businesses in Scotland?

[Lucy Rigby]

I can confirm that I am indeed hearing that. Last week’s introduction of the new prospectus rules will mean faster execution, reduced complexity and a simplified route to capital raising. Together with the three-year UK listing relief announced at the Budget, these initiatives will make the UK the most attractive destination for companies to start, scale, list and stay.

[Alan Mak (Havant) (Con)]

Just one pure technology company is now listed on the FTSE 100 and Budget measures, such as cutting venture capital trust tax relief, discourage companies from listing on the UK exchanges. Why are the Government driving away growth and investment?

[Lucy Rigby]

The entrepreneurship package in the Budget was incredibly important. The aim of that package, which includes the UK listing relief—the three-year stamp duty holiday that I referred to in response to my hon. Friend the Member for Paisley and Renfrewshire North (Alison Taylor)—is designed to make the UK the best place to start, scale and list a company.

[Mr Speaker]

I call the shadow Minister.

[Mark Garnier (Wyre Forest) (Con)]

The Chancellor has been very proud that the FTSE 100 has passed through the 10,000-point barrier, citing that as an endorsement of her policies. Does she not realise that that still leaves FTSE 100 on lower valuations than comparable markets and that, in any event, over 80% of the earnings of the FTSE 100 are generated outside the UK? Is it not clear that the FTSE 100 performance is despite this Government’s policies, not because of them?

[Lucy Rigby]

I could not disagree more with the shadow Minister. He is constantly talking this country down. The package of reforms that this Government are making to our capital markets are strengthening those markets, and they are beginning to bear fruit.

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[The Economic Secretary to the Treasury (Lucy Rigby)]

The hon. Member has referred to the motor finance redress situation. As the House would expect, we are monitoring that very closely, and we want to see the issues resolved in an efficient way that provides certainty for consumers and for firms. As the hon. Member knows, seeking to change the rules on corporation tax would mean deviating from our commitment to certainty and predictability in the tax system, as set out in our corporate tax road map.

[Kevin Bonavia (Stevenage) (Lab)]

I wish you a speedy recovery, Mr Speaker.

I welcome the economic steps that the Chancellor has taken against Russia’s illegal invasion of Ukraine, and I encourage her to go further, but does she agree that the British public can have confidence in our sanctions regime only if those in political leadership across all parties, including the shadow Attorney General, do not have ongoing involvement in advising Russian oligarchs?

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[Caroline Voaden (South Devon) (LD)]

Link has doubled down on its decision not to grant Totnes a banking hub, despite the Prime Minister telling Members at Prime Minister’s questions that every community that wants one should have one. Will the Chancellor agree to review the criteria for banking hubs, so that people have access to face-to-face banking services, not just access to cash, when the last bank turns its back on its customers and leaves town?

[Lucy Rigby]

The Government of course recognise the importance of in-person banking services and access to cash, as the hon. Member and I have discussed. As she knows, in-person services are provided through traditional bank branches, banking hubs, post offices and other means, and I will continue to monitor the situation. As she knows, I have listened very carefully to her concerns, and I am happy to do so again.

[Callum Anderson (Buckingham and Bletchley) (Lab)]

Earlier this month, the House of Lords Financial Services Regulation Committee published a report on private markets, highlighting the potential risks to economic stability, and the Bank of England has also undertaken a stress test of the ecosystem. What actions is the Minister considering taking with regulators to strengthen transparency and oversight of private markets, so that we can mitigate any systemic risks?