This Government are securing economic growth. Last week, the numbers published showed that the economy grew by 0.7% in the first quarter of this year, including an 8% increase year on year in investment spending. We are now the fastest-growing economy in the G7. Since the general election, there have been four cuts in interest rates, 200,000 jobs created and three trade deals secured. Britain’s economy is stronger, but I will continue to do everything in my power to ensure that working people are better off.
Westminster is once again buzzing with the latest U-turns, speculation and briefings over the Chancellor’s policies on the winter fuel allowance and the two-child benefit cap. There is less of a buzz for the visitors to Canterbury food bank, however, which last month distributed enough food to make 13,545 meals, in a 47% rise on the same period last year. Will the Chancellor end the serious anxiety of those experiencing fuel and food poverty now and reverse those policies?
The only reason that we have been able to grow the economy and get those cuts in interest rates, which help working families in Canterbury and right across our country, is because we have returned stability to our economy. That means never making a policy commitment without being able to say where the money comes from, which is what got our country into a mess under the previous Government. We have set out the policies that we needed to put investment into the NHS and secure our public finances.
T2. Last month, Firth Ports officially opened the Charles Hammond berth at the port of Leith, in a £100 million private investment to create Scotland’s largest renewables hub. Will my right hon. Friend join me in welcoming that investment in Leith and set out how she is working with Cabinet colleagues to ensure that green manufacturing and supply chain jobs are created in Scotland?
I join my hon. Friend in welcoming the official opening of the Charles Hammond berth. As she knows, we set up Great British Energy in Scotland, bringing forward £300 million of investment ahead of the spending review to secure jobs and supply chains. Funding for the Port of Cromarty Firth, announced in March, is expected to support up to 1,000 highly skilled jobs, while our uplift to the clean energy bonus will support offshore wind supply chains across the country. That is yet another example of the Government working with business and of a Labour Government delivering for the people of Scotland.
Will the Chancellor explain what the Economic Secretary to the Treasury meant last week when she said that there will be no tax rises on individuals at the autumn Budget? Will the Chancellor similarly confirm that there will be no tax increases on businesses?
In our manifesto, we set out that we would not increase taxes on working people—that is, the income tax, national insurance or VAT that they pay. That is why we also reversed the previous Government’s decision to increase fuel duty, which would have had a disastrous effect on working people in our country. We will set out all other tax policy at the Budget.
What many up and down the country are asking is why that manifesto pledge not to impose taxes on working people was broken. Last week the Pensions Minister confirmed to the House that the Government would never interfere with the fiduciary duty of pension trustees to get the best return for their members, but when the Chancellor was questioned on that topic by Bloomberg the very same day, she said:
“I am never going to say never”.
This is chaos. The Government cannot even speak with one voice. It is clear that the right hon. Lady and the Pensions Minister cannot both be right, so will she now put the record straight?
We have secured an agreement with the biggest pension companies to invest on a voluntary basis in UK unlisted equities and infrastructure, which is something the Conservatives never achieved. We are getting investment into British infrastructure and British businesses because that is the way to grow the economy and support working people.
T4. Will my right hon. Friend outline the steps being taken in the forthcoming spending review to ensure that increased defence spending will stimulate economic growth, so that supply chain companies, such as Collins Aerospace in my constituency, can continue to strengthen national defence capabilities while boosting our local economies, jobs and quality apprenticeships?
As my hon. Friend knows, the Government are committed to increasing spending on defence to 2.5% of GDP, with an ambition to go further to 3% in the next Parliament when economic and fiscal conditions allow. As part of that increase in spending, we are making sure that UK companies and UK workers get the benefit, including in places such as Wolverhampton, through apprenticeships, good jobs and good growth.
Yesterday the Chancellor said that she understands the concerns that some people have about the limit at which the winter fuel payment is removed. Does she therefore now agree that restricting the eligibility so tightly was a mistake?
As the hon. Lady knows, when I became Chancellor last year, we inherited a £22 billion black hole in the public finances—not in some year in the future, but in the financial year that we were already three or four months into. This meant that we had to make difficult and urgent decisions to put our public finances back on a firm footing—because, unlike the Conservatives, I will never play fast and loose with the public finances.
T6. Labour-led Ipswich borough council recently announced investment to reopen the iconic Grimwades building in our town centre, which has been left vacant for more than a decade. This local ambition matches the Government’s national initiatives, but challenges remain, so what steps are the Government taking to go even further and reform the unfair business rates system for good?
We are determined to go further and faster to reform business rates, which is why we will publish an update paper in the summer. I am also glad that we can work with councils such as Ipswich to ensure that we can turn around town centres after years of Conservative decline.
T3. With interest rates still high, what assessment has the Chancellor made of the number of homeowners going into mortgage arrears and the impact that is having on families right across the UK?