Rachel Reeves MP: speeches

Speeches

• 29 Oct 2024 · Topical Questions · Hansard source

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  Tomorrow I will present my first Budget. It will be a Budget that fixes the foundations of our economy and delivers on the promise of change. It will turn the page on low growth and will be the start of a new chapter towards making Britain better off. It will mean more pounds in people’s pockets, an NHS that is there when they need it, and businesses creating wealth and opportunity for all.

• 29 Oct 2024 · Topical Questions · Hansard source

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  My hon. Friend is right to draw attention to the disastrous impacts of the Conservative mini-Budget just over two years ago, which is still having an impact on people’s lives as they pay higher mortgage bills. This Government have committed to return sustainability to the economy and to working with business to reform our planning system, our pensions system and our skills system. We have already brought in £63.5 billion of private sector investment to grow our economy in all parts of the country and deliver the jobs and better wages that constituents in Cramlington and right across the country need to see.

• 29 Oct 2024 · Sustainable Public Finances · Hansard source

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  In July, a Treasury assessment of public spending showed that this Government inherited a £22 billion black hole in the public finances. I took immediate action— [ Interruption. ] Those on the Opposition Benches may not like it, but it is true. [ Interruption. ]

• 29 Oct 2024 · Sustainable Public Finances · Hansard source

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  I thank the Chair of the Treasury Committee for that question. She is absolutely right that in our July statement, we set a 2% productivity target, not just for the Department of Health and Social Care, as the previous Government did, but for all Departments. Ministers are absolutely determined to deliver against those targets, because that is the way to ensure that we have resources for the frontline public services—our schools, hospitals and police—that we all rely on.

• 29 Oct 2024 · Sustainable Public Finances · Hansard source

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  This Government are committed to sustainable public finances, unlike two of the Opposition parties. A stable economy built on stable public finances is a key foundation for growth, which is why Labour is on the Government Benches, and the SNP and the Tories are on the Opposition Benches. The robust fiscal rules set out in our manifesto will put the public finances on a sustainable path, so that we can move the budget into balance, with day-to-day costs being met by revenues, and get debt falling as a share of our economy. Given our challenging inheritance, that will require difficult choices, but this Government will make them to fix the foundations of our economy.

• 29 Oct 2024 · Sustainable Public Finances · Hansard source

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  The hon. Member is absolutely right: the number of people housed in temporary accommodation is a scandal, and the amount that costs taxpayers in Eastbourne and around the country is a double scandal. We made a commitment in our manifesto to building 1.5 million homes during this Parliament. Conservative Members oppose that, but we are determined to do it, because that is the way to bring down the cost of temporary accommodation and ensure that all families have a safe and secure roof over their heads.

• 29 Oct 2024 · Sustainable Public Finances · Hansard source

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  The last Government crashed the economy with a mini-Budget and sent interest rates and mortgage rates soaring, putting huge pressure on the costs borne by families and businesses. We will set out our Budget tomorrow, including robust fiscal rules on paying for day-to-day spending through tax receipts and borrowing only to invest, whereas the previous Government borrowed for day-to-day spending, which is why we are in the mess we are in today.

• 29 Oct 2024 · Sustainable Public Finances · Hansard source

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  Last week, when I was in Washington, I was very pleased to hear the International Monetary Fund say how important it is that countries, including the UK, borrow to invest in their capital infrastructure. Under the plans we inherited from the previous Government, capital spending as a share of GDP is due to fall from 2.6% to 1.7%. If those decisions were to go forward, it would mean plans delayed and cancelled. We will set out our plans tomorrow in the Budget, but it is crucial that we have rules ensuring that we pay for day-to-day spending through tax receipts, and that we borrow only to invest, unlike the previous Government.

• 29 Oct 2024 · Sustainable Public Finances · Hansard source

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  There are not many Conservative Members, but they still make quite a lot of noise. I took immediate action by identifying savings and making reforms to the spending and fiscal framework to ensure that never again can a Government be allowed to make unfunded commitments, and to leave their successors with a massive black hole, as the Leader of the Opposition and the previous Chancellor did. As my right hon. Friend the Chief Secretary to the Treasury said to the House yesterday, the Budget will confirm the detail of the robust fiscal rules—this was set out in our manifesto—and will set out tax and spending plans, alongside an updated forecast from the independent Office for Budget Responsibility.

• 3 Sept 2024 · Cost of Living: Support for Pensioners · Hansard source

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  What came to an end in July was 14 years of a Conservative Government who presided over a fall in living standards, the highest tax burden in 70 years, a debt, as a share of our economy, of almost 100%, and a £22 billion black hole in the public finances just this year. What we have not heard from those on the Opposition Front Bench, or indeed from any Conservative Member of Parliament, is an apology for the mess that they have left this country in, which this Government are now picking up.

• 3 Sept 2024 · Cost of Living: Support for Pensioners · Hansard source

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  My hon. Friend is absolutely right to remind us of the dire inheritance that this Government face. The previous Government made spending commitment after spending commitment with absolutely no idea of how to pay for them. From road and rail projects to A-levels and the Rwanda deal, we saw £22 billion of unfunded commitments. We will fix the foundations of the economy, rebuild Britain and ensure that working people are better off. We will fix the mess that the last Government left.

• 3 Sept 2024 · Cost of Living: Support for Pensioners · Hansard source

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  I understand the concerns that the hon. Lady sets out. The state pension is worth £900 more than it was a year ago and energy bills are lower this winter than they were last winter. As she points out, we inherited a £22 billion black hole from the previous Government, who had made unfunded spending commitments with no idea how to pay for them. When I became Chancellor, I undertook an immediate audit of the spending situation to understand the scale of the challenge, and I made difficult decisions—some very difficult decisions—to put the public finances on a sustainable footing. They were tough decisions, but they were the right decisions in the circumstances we faced. They included the decision to make the winter fuel payment better targeted, so pensioners who need it most will still get it alongside pension credit. Targeting the winter fuel payment will save around £1.5 billion a year to support public finances.

• 3 Sept 2024 · Cost of Living: Support for Pensioners · Hansard source

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  I welcome the hon. Lady to her place. Pensioners in South Devon, in common with pensioners in all our constituencies, will receive a basic state pension that is worth £900 more than it was a year ago, and energy prices are lower this winter than they were last winter. Many of her constituents will be entitled to pension credit but, because of a failure to act by the last Government, are not currently receiving it. We all need to play our part in ensuring that everybody gets the help they are entitled to. We should all ensure that our poorest pensioners get that support from both pension credit and the winter fuel payment associated with it.

• 3 Sept 2024 · Cost of Living: Support for Pensioners · Hansard source

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  This Government have committed to insulate an additional 5 million homes during the course of this Parliament to ensure that energy bills are as low as possible, saving people money and ensuring that their homes are warmer. That will help my hon. Friend’s constituents in Copley and constituents across the country.

• 3 Sept 2024 · Cost of Living: Support for Pensioners · Hansard source

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  The Government have committed to the triple lock not just for this year, but for the duration of this Parliament. That means that pensioners are £900 better off than they were a year ago. Based on September earnings and inflation data, we will uprate pensions next year by whichever is higher: 2.5%, inflation or average earnings. We are ensuring that pensioners get the pensions that they are entitled to and have contributed to.

• 3 Sept 2024 · Cost of Living: Support for Pensioners · Hansard source

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  This Government support the triple lock. As a result, the state pension is worth £900 more than it was this time last year. In April, it will go up again by the highest of inflation, average wage growth or 2.5%. Our commitment to the triple lock is for not just one year but the duration of this Parliament. In addition, pensioners will continue to benefit from free eye tests, free prescriptions and free bus passes, and those pensioners most in need will continue to receive winter fuel payments alongside the pension credit.

• 3 Sept 2024 · Cost of Living: Support for Pensioners · Hansard source

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  I thank the hon. Gentleman for his question and welcome him to his place. He will be a powerful representative for the people of Torbay. Like him, I want to ensure that the lowest income pensioners get the support they are entitled to. Under the previous Government, 800,000 pensioner households that were entitled to pension credit did not receive it. That is why this Government are taking action to encourage the uptake of pension credit to ensure that the poorest pensioners—those who are not even receiving the minimum income guarantee—are getting it. We are working with organisations such as Age UK and local authorities. All local authorities, including those in Torbay, have been written to about how they can play their part in identifying those pensioners who are entitled to pension credit but are not getting it. The Department for Work and Pensions will also bring together the administration of pension credit and housing benefit, so that pensioner households receiving housing benefit will also receive any pension credit they are entitled to—something the previous Government deferred for years, despite knowing that the poorest pensioners were missing out.

• 3 Sept 2024 · Inward Investment: Fiscal Steps · Hansard source

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  The rural economy plays an incredibly important role in our economic prosperity as a country, and boosting food security and biodiversity is obviously incredibly important to a whole range of this Government’s objectives. I will ensure that the Secretary of State for Environment, Food and Rural Affairs hears loud and clear the message from the hon. Member, and I am sure he will include it as part of his submission to the spending review on 30 October.

• 3 Sept 2024 · Inward Investment: Fiscal Steps · Hansard source

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  Investment is at the heart of this Government’s growth mission, alongside stability and reform. With robust fiscal rules and respect for economic institutions, the Government are building the confidence needed to deliver private sector investment. It is vital that the tax system also supports growth, and today I can confirm that the Government will outline a tax road map for business at the Budget to offer the certainty that encourages investment and gives business the confidence to grow, including our commitment to cap corporation tax at 25% for the duration of this Parliament and to retain full expensing.

• 3 Sept 2024 · Inward Investment: Fiscal Steps · Hansard source

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  A huge amount of inward investment goes to Northern Ireland, as the hon. Gentleman knows, and it is important that young people are able to take advantage of those huge opportunities in our economy, whether in financial services, advanced manufacturing, shipbuilding or the many other sectors that are important to Northern Ireland. It is a travesty that something like one in five young people today are not in employment, education or training. The Secretary of State for Work and Pensions will be bringing forward a White Paper to ensure that everyone who can work does work and is given the support to succeed, both in Northern Ireland and across the United Kingdom.

• 3 Sept 2024 · Inward Investment: Fiscal Steps · Hansard source

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  I thank my hon. Friend for his question, and I know that his experience as His Majesty’s trade commissioner in India means that he understands the importance of global trade and investment to the UK economy, including the Scottish economy. Last week, I had the opportunity to visit the National Manufacturing Institute Scotland and see at first hand the excellent work that is going on to promote innovation in a whole range of sectors, including aerospace and satellite technology. The UK already produces around half of the world’s large civil aircraft wings and engines, and the aerospace sector added £11 billion to the UK economy last year. The Government are putting investment at the heart of our growth strategy, including by supporting advanced manufacturing in Scotland, and I look forward to working with my hon. Friend on this endeavour.

• 3 Sept 2024 · Inward Investment: Fiscal Steps · Hansard source

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  I thank my hon. Friend for her question and welcome her to her place. The regeneration of Stratford after the Olympic games is truly phenomenal, and I know that she will be a strong voice for her constituency and help to deliver the growth mission, which is the No. 1 priority of this new Government. The success of London’s economy will be integral to delivering that mission, and we will work with the Mayor of London, Sadiq Khan, and with our MPs to ensure that economic growth benefits people in the capital and across the country, ensuring that we narrow the gap between rich and poor and also showcase the huge opportunities that London has on the international stage. We will be hosting an international investment summit in London on 14 October, bringing together some of the biggest global investors in the world, to showcase everything our great country has to offer.

• 3 Sept 2024 · Inward Investment: Fiscal Steps · Hansard source

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  My hon. Friend makes an important contribution on behalf of her constituents, based on her background of working in science and technology before entering this House. My hon. Friend is absolutely right to say that the north-east has huge potential to grow the economy through sectors including advanced manufacturing, health, technology and our creative industries, and this Government will work with our local mayors, including Kim McGuiness, to develop ambitious, long-term local growth plans that reflect the north-east’s strengths. We will look to address some of the barriers to growth and support delivery of our national industrial strategy, as well as narrowing some of the inequalities that have persisted for far too long.

• 3 Sept 2024 · Topical Questions · Hansard source

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  The hon. Gentleman speaks powerfully about the huge opportunities at Immingham and on the whole east coast through renewable energy and carbon capture and storage. Part of the reason for the national wealth fund is to invest in industries such as CCS, but also in our crucial steel sector, which is important to so many of the other Government ambitions on growing our economy. We are determined to support the steel sector through that investment from the national wealth fund.

• 3 Sept 2024 · Topical Questions · Hansard source

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  The Conservative party crashed the economy and then wrecked the public finances, leaving us with a £22 billion black hole. The shadow Chancellor is not willing to be straight about the damage he did, and is now trying to pass the buck to independent civil servants. I will always be honest about the public finances and take the tough decisions that we need to fix the foundations of our economy.