Darren Jones MP: speeches

Speeches

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  My hon. Friend is right to point out that the Government are in the service of working people. What does that mean? It means that people’s lives—the money they have in their pocket, and the ability to pay the bills, get a roof over their head and seek opportunity—are at the very heart of what it means to be in the Labour party and in this Labour Government. Conservative Members might not have suffered from higher mortgage bills or worried about the cost of living during their supermarket shop each month, but people across the country did, and they suffered as a consequence of the Conservatives’ behaviour. I welcome my hon. Friend’s comment that they should have a period of silence while they learn the lessons.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  My hon. Friend is right. May I offer some probably unwelcome advice to Opposition Members? The sooner they stop groaning and stop laughing about their performance when they were last in government, and the sooner they apologise for it, the sooner the British people might start listening to them again.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  I am pleased that the hon. Member can afford the subscription to Bloomberg News ; I cannot, unfortunately, so I could not read the article to which he refers. He inadvertently asks me a question about the process of the spending review. [ Interruption. ] That was the question. We are embedding mission-led government, which is what the Prime Minister set out in his missions in his plan for change. That requires Departments to work together to make sure that they are absolutely focused on the delivery of the plan for change priorities, which is why the spending review is being done on a multilateral basis in a new way. I will be giving a speech on this issue in a couple of weeks’ time, and I will make sure that the hon. Gentleman gets an invitation.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  I am very happy to set out the Government’s plan, as I have done repeatedly today. The hon. Member will have seen in the Chancellor’s Budget last autumn a clear plan to wipe the slate clean, to deal with the mess that we inherited, to protect working people, and to invest in our public services. He will have seen it in the Prime Minister’s plan for change, which sets out the direction of this Government over the years ahead. We will put more money in working people’s pockets across the country, get our public services back on their feet and make sure that this country is in a strong position. The hon. Member will know that the Government are working through our spending review, which I run as the responsible Minister. I have already confirmed that we will come back in June to confirm the spending plans for Departments, which will have to live within their means and in line with the fiscal rules in the years ahead. I cannot think what more he would want.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  I am pleased that the right hon. Gentleman enjoyed my performance—I have not even had my first cup of coffee yet this morning. Let me answer some of his questions. [ Interruption. ] Conservative Members might like to listen, if the questions are so important to them. The right hon. Gentleman asked me about the fiscal rules. As I said in my statement, those rules are non-negotiable. As the Chancellor set out at the Budget, we have two fiscal rules: first, that day-to-day spending should be met by tax receipts, and secondly, that debt should be falling as a share of the economy. The right hon. Gentleman talked about the debt burden that this country has. Maybe we should reflect a little on why we have so much debt— [ Interruption. ] From pre-pandemic, Mr Speaker. Let us look at the burden of debt inherited by this Government from the Conservatives. From 2010 onwards, why did the last Government have to borrow so much money every single month, not just to invest but to pay the day-to-day bills? Because of an absolute failure to get growth into the economy. They could not make the numbers add up. They stacked up the country’s credit card and left it to the Labour party to deal with, and we are going to deal with it. That is why those fiscal rules are non-negotiable, and it is why public spending will be within the numbers set out at the Budget. We are starting the spending review now, and it will conclude in June. Public services will have to live within their means—the Chancellor has been very clear about that. That is why with this Government, you get economic stability and absolute clarity on public spending. That is why the British people trust this party and booted that lot out of office.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  I thank the Chair of the Science, Innovation and Technology Committee for her question. She will know that our first commitment in the Labour party manifesto at the last election was to fiscal responsibility. It is the bedrock of this Government and the bedrock of every decision we take. As the Prime Minister set out in his plan for change, the reason people will know the difference that a Labour Government make is that they will have more money in their pockets by the end of this Parliament than when it started.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  I am always grateful to see Conservative Members welcome me to the House. Financial markets are always evolving, as the shadow Chancellor knows, so there is a long-standing convention that the Government do not comment on specific financial market movements, and I will not break that convention today. Financial market movements, including changes in Government bond or gilt yields, which represent the Government’s borrowing costs, are determined by a wide range of international and domestic factors. It is normal for the price and yields of gilts to vary when there are wider movements in global financial markets, including in response to economic data. In recent months, moves in financial markets have been largely driven by data and global geopolitical events, which is to be expected as markets adjust to new information. UK gilt markets continue to function in an orderly way. Underlying demand for the UK’s debt remains strong, with a generally well-diversified investor base. The Debt Management Office’s gilt sales operations continue to see strong demand. The latest auction, held yesterday, received three times as many bids as the amount on offer. The Chancellor has commissioned from the Office for Budget Responsibility an updated economic and fiscal forecast for 26 March incorporating the latest data. Only the OBR’s forecast can accurately predict the effect on the public finances of any changes in financial markets or the economy, and I will not pre-empt that forecast. There should be no doubt of the Government’s commitment to economic stability and sound public finances. That is why meeting the fiscal rules is non-negotiable. May I end by saying that I am pleased that the shadow Chancellor is holding this Government to account on our stewardship of the economy? It is important that he does so. He will remember when his party crashed the economy with unfunded tax cuts, unrealistic public spending plans and a clear disregard for the consequences on family finances. Families across the country are still paying the price for the Conservatives’ disastrous performance on the economy through higher mortgages and bills. If there was one clear reason why the Conservative party suffered such an historic defeat at the last general election, it was their performance on the economy. That is presumably why the shadow Chancellor himself admitted in December that the lack of trust in the Conservative party’s management of the economy has left a “deep and painful scar” in the pockets of every person across Britain. Let me tell the House what has changed. In our first six months, this Labour Government have exposed the £22 billion black hole in the public finances. Not only have we exposed it, but we have dealt with it: the Chancellor’s autumn Budget protects working people, wipes the slate clean of the mess the Conservative party left the country in, and invests in our NHS and schools. We have given the independent Office for Budget Responsibility enhanced powers of oversight, in law, so that we never again get into the situation where that lot left the country: a £22 billion black hole in the public finances. We have set tough new fiscal rules that are non-negotiable, with a budget settlement for public services that they must all live within. We have kick-started growth in this country—this Government’s No. 1 mission —by unlocking investment and bringing forward reforms, such as those to planning and in the Mansion House speech. May I say to the shadow Chancellor that that work stands in stark contrast to the negligent and shameful horror of a circus performance that the Conservative party in government unleashed on this country only a few years ago? Until he can come to the House with an apology for the British people, I will not take any lectures from the Conservative party about how to run the economy.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  I thank the Chair of the Select Committee for her question. As the House knows, we have started the second phase of the spending review, to set public sector budgets from 2026-27 onwards. The Chancellor confirmed in a written ministerial statement before the House rose for Christmas that there will be a forecast from the OBR and a statement on 26 March. As I said in my response, that will be the next time the OBR will give a view about the UK economy and the levels of funding for public services. Between the OBR forecast in March and the conclusion of the spending review in June, the House will be updated in the normal way.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  I can absolutely assure the Father of the House that we are working through this spending review on the basis of the envelope set at the Budget. Public services will have to operate within the means that we are providing to them. The OBR forecast will come in March, which will give us the latest set of information, and we will work to that with Departments. This is why we have set up organisations such as the Office for Value for Money, why we have set tough productivity and efficiency targets for Departments and why we are investing in, for example, technology to improve the productivity of the public services we provide. Public services must live within their means, as set out in the Budget, and that is an absolute guarantee from this Government.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  I very much agree with my hon. Friend. We have to pay day-to-day bills with the income we generate day to day. The lesson that we learned from the Opposition was about what they were happy to do, but this Government are not. They were happy to announce plans and programmes to make promises to the British people, even though they knew they did not have the money to pay for it. That will never happen under this Labour Government.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  That is exactly why our fiscal rules are non-negotiable. While the Conservatives borrowed to pay the bills every month because they did not have enough money to pay for all their promises, this Government are investing in the future of our country, whether through reforming public services or investing in infrastructure and opportunities for growth. That is exactly the right approach to the economy; it is what our fiscal rules demand, and what we will be held to.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  It is absolutely right that the Labour Government are bringing fiscal and economic stability back to this country, because we know that when you play fast and loose with the nation’s finances, you play fast and loose with family finances. That is what voters in every constituency experienced when the Conservatives were last in government. They will not experience that under this Labour Government.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  The right hon. Gentleman may not wish to reflect on his party’s performance in government, but I am afraid he has to. Although this is a new Government—we have been in office for six months—the reality is that we are having to clear up the mess that the last Government left us. That is why we have to talk about it, and explain to the country why the actions taken by the Conservative party not only affected family finances, but decimated the British economy and pushed public services on to their knees. We are taking responsibility for clearing up their mess, and that is why we will keep talking about it.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  Yes.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  I must say I am rather surprised by the inflammatory language of the former Chair of the Treasury Committee, which is clearly no reflection of reality. The Chancellor is going on her trip to China. It has been well documented for many weeks, and it is an important visit for trade and investment in the UK economy. May I say that there was no emergency statement or emergency intervention? Those are make-believe words being propagated by Opposition Members. The Treasury responded to requests from journalists about headroom, as we might do in the normal way. There is no need for any emergency intervention, and there has not been one.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  The question was whether the Government have an iron grip on public finances; the answer is yes.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  My hon. Friend is absolutely right. Our industrial strategy, through which we will invest alongside businesses and industries of the future, and our infrastructure strategy, which sets out how we will get Britain building again, are two examples of the Government playing their part by bringing economic and political stability. By, for example, reforming the planning system, we will unlock billions of pounds of private sector investment in UK plc—something that did not happen under the previous Government.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  The fiscal rules are non-negotiable, and they will be met.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  The Chancellor is going to China, as has been well documented. Again, I am sorry that it disappoints the hon. Member that I am here. I refer him and his colleagues to the urgent question, which is about a statement on borrowing costs and public finances. He will know that I am the Minister for public finances, which is why I am here answering his questions.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  My hon. Friend is absolutely right. Let me set out the difference that the British people will experience. At the end of 14 years of Conservative Government, they had higher mortgages, higher bills, a higher cost of living and public services on their knees. At the end of this Labour Government, pointing towards the next general election, as set out in the Prime Minister’s plan for change, they will have more money in their pocket, public services will be functioning again, and they will be proud once again of their Government, and of the British economy.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  I have been clear to the House, as has the Chancellor, that the fiscal rules are non-negotiable. Public services will have to live within their means. We set the Budget in the autumn last year, and we have the OBR forecasts coming in March. Those are the numbers that Departments are working to in the spending review, and those are the numbers that we will hold public services to when we conclude the spending review in June.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  My hon. Friend asks an important question. Why did we have to take that action? Why was this Government’s first Bill about fiscal responsibility? It was because of the mess that Conservative Members left this country in. That is why we have given the Office for Budget Responsibility stronger, independent powers of oversight in statute—something that the shadow Chancellor presumably welcomed, given his comments criticising Liz Truss and her Budget when he was Chair of the Treasury Committee. We brought that change forward, which the Conservative party failed to do. That is why we have set fiscal rules that are non-negotiable, why public services must live within their means, and why the Government’s absolute focus is on securing growth, investment, reform and long-term sustainability for public finances.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  It might have been legitimate for the Conservatives to say that their economic policy was to borrow for day-to-day costs—as they did. That could be a decision that they took. What is not forgivable is the fact that they reached a point at which they were making promises to the British people that they knew they did not have the money to pay for, and that is where the £22 billion black hole came from. They should be ashamed of their record on the economy, and they should apologise to the British people.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  Yes, I can. There is no denying that the economic inheritance that we were given by the Conservative party makes life very difficult for us: it means that we have to take difficult decisions. The fiscal rules are non-negotiable and public services have to live within their means because that is that the bedrock of any approach in government. Is that going to be easy for us? No, it is not, but it is part of our responsibility in clearing up the mess left by the Conservatives, and from that we can build for the future, as is set out in the Prime Minister’s plan for change.

• 9 Jan 2025 · Public Finances: Borrowing Costs · Hansard source

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  You will correctly tell me, Mr Speaker, that it would not be right for me to comment on legal proceedings, but I am happy to say that one of the huge lessons for the country, for the British voting public and perhaps, one day, for the Conservative party is that the actions that the Conservative party took were not just reckless and negligent, but had a direct impact on public finances in every single constituency. There was a direct connection: it was Conservative Ministers’ hubris, ego and lack of focus on working people that ruined the lives of people across the country. I say that today and I will say it every day, because the British people must never forget the recklessness of the Conservative party.