On Friday, the Office for National Statistics published an update to the UK’s GDP growth figures, which shows that the UK economy was 0.6% larger than pre-pandemic levels by the fourth quarter of 2021. It means that our economy had the fastest recovery from the pandemic of any large European economy, thanks to decisions such as furlough that protected millions of jobs. For that growth to continue, we need to halve inflation, which I am pleased to report is now nearly 40% below its 11% peak. I can also tell the House that I will deliver the autumn statement on 22 November.
Staying on the subject of pubs, Carshalton and Wallington is also lucky to be home to some excellent pubs, including the Hope, which is this year’s Campaign for Real Ale Greater London pub of the year recipient. Will the Chancellor expand a bit more on the work that the Treasury is doing to support pubs not just in the tax system but further afield, and will he join me in wishing Carshalton and Wallington’s pubs good luck in the local pub of the year competition later on?
I very much wish my hon. Friend’s local pubs the best of luck in that competition, second only to my desire to encourage South West Surrey pubs to do well. I want to reassure him that we believe that pubs are central to our national life. That is why we have provided relief on business rates of up to 75% for pubs, and as we heard earlier, the Brexit pubs guarantee helps on their duty pricing.
Last week, thousands of parents were told that their children’s schools were unsafe and at risk of collapse. The defining image of 13 years of Conservative government: classrooms propped up to stop the ceilings from falling in. Capital budgets have halved in real terms since 2010, with warnings ignored and repair programmes slashed. Do this Conservative Government take any responsibility for any of this?
Let me start by reassuring the right hon. Lady that the vast majority of pupils in the 156 schools affected are at school normally, and we are acting fast to minimise the impact on the rest.
Let me answer the more general question that the right hon. Lady raised. Yes, we made cuts in spending in 2010 because, as she knows well, the last Labour Government left this country with an economic crisis. Despite that crisis, the Department for Education budget has gone up by 15% in real terms, and overall capital spend—
Order. This is topicals. All your colleagues on both sides of the House want to get in. Topicals are meant to be very short, not a full debate between both sides. I say to everybody: think about others. I think we can move on. I call Rachel Reeves.
I will repeat: capital budgets have halved in real terms since 2010. I understand—indeed, I know—that in the lead-up to the 2021 spending review, the Department for Education made a submission to the Treasury about the dangers of the deteriorating school estate, including from reinforced autoclaved aerated concrete. Those warnings were ignored by the then Chancellor—the current Prime Minister—and we have seen the consequences, so will today’s Chancellor do the right thing and publish the Department for Education’s submission to the last spending review?
Capital spending at the Department for Education went up 16% in real terms in that review. Is the difference not that, with the fastest recovery in Europe, the Conservatives build an economy that can pay for our schools and hospitals, and Labour runs out of money?
T2. For months, we have had the Labour economics team running down British businesses, berating them for not growing fast enough and ignoring the fact that the OECD shows that the British economy has grown faster since 2010 than Germany, Italy, Spain or France. With the recently announced Office for National Statistics upgrade that the Chancellor just referred to, what is his more hopeful message to British businesses?
It is very simply this: since 2010, we have become the strongest economy in Europe in film and television, life sciences and technology, and the opportunities are great with a Conservative Government.
T3. This week, schools have failed to reopen due to the threat of collapse. Worryingly, the danger does not end there, because 95% of schools and public buildings are estimated to contain asbestos, which is described by Mesothelioma UK as a “silent killer”. Will the Chancellor stop ignoring his own Department and commit to providing the necessary funding so that our children can be prevented from being taught in crumbling, asbestos-ridden deathtraps?
I do not accept that characterisation at all. I do understand the impact of mesothelioma, as my father died of it, but this Government have invested £15 billion to keep schools safe since 2015, and the Chancellor has set out other figures as well.
T4. Some 10 million calls went unanswered at His Majesty’s Revenue and Customs last year. Of those who did get through, two thirds had to wait more than 10 minutes; meanwhile, four out of five HMRC staff are working from home. What is being done to improve the appalling level of customer service at HMRC?
I thank my hon. Friend for his question, which I take very seriously. Just to put it in context, last year HMRC received 38 million telephone calls; around 3 million of those were to do the simplest of tasks, which can be done digitally if at all possible. If we are able to move people on to digital channels, that will free up at least 500 people to help with more complex tax affairs and help the most vulnerable. This is a period of transition for the organisation, and one that we take very seriously.
T5. I recently conducted an energy survey in Dalmarnock, which brought heartbreaking stories of pensioners going to bed early to save money on their energy and many households struggling to pay the bills, even in summer. Does the Minister not agree that Dalmarnock residents and people right across Scotland would benefit from a £400 energy rebate this winter, as the SNP proposes?
We stepped in during the energy crisis with £94 billion of support, including the energy price guarantee, which effectively paid for half of people’s energy bills. That was important while energy prices were high; wholesale gas prices have now come down.
Craig Tracey (North Warwickshire) (Con)
T6. As the Minister knows, free access to cash is a vital lifeline for many people, including some of the most vulnerable in all our constituencies. Can he confirm what steps he is taking to ensure that free access is protected and continues to be available across the country, particularly in North Warwickshire and Bedworth?
During the summer, we announced that we have given directions to the Financial Conduct Authority in respect of access to cash: it should be no more than 1 mile in an urban area, and no more than 3 miles in my hon. Friend’s rural constituency of North Warwickshire. That is the first time that the statutory right of access to cash has existed in law.