Oral Answers to Questions

Rebecca Smith Excerpts

Tuesday 27th January 2026 Commons Chamber

[Torsten Bell]

My hon. Friend is right that the rise in private markets has brought benefits, including to growth and financial stability—we have discussed that many times in the context of pensions—but it does come with new risks. The Treasury and regulators have increased their focus on those risks in the non-bank sector in recent years and, as I am sure he is aware, have played a leading role in the response to emerging non-banks’ risks internationally. In particular, the Government emphasised in the November remit letter to the Bank of England’s Financial Policy Committee that the committee should continue to consider risks in private markets. We are considering the House of Lords Committee’s recommendations, and will respond in due course.

[Rebecca Smith (South West Devon) (Con)]

At the weekend, Storm Ingrid caused the sea wall at Dawlish to collapse in two new places, and we wait to see the damage caused by Storm Chandra today. Both storms are once again exposing the vulnerability of the main rail line to Devon and Cornwall, which is vital for the local economy. Given the reported lack of a Treasury emergency reserve, can the Chancellor guarantee contingency funding for any urgent and unplanned resilience work required and not covered by a fiscal event?

[James Murray]

I thank the hon. Lady for raising the situation in her constituency. All Departments across Government have had their budgets set, and they include a contingency for covering known pressures. One of the ways that we have managed spending settlements differently from the previous Government is that all Departments must recognise that unexpected pressures will come along. They need to prepare for that, and should have robust plans for responding when such things occur.