House of Commons · Urgent Question
07 July 2025 · 35 other contributors
Opened by Mel Stride Con Central Devon
Summarised by AI from the official record, so it can contain mistakes.
Mel Stride raised concerns about government performance against fiscal rules 2025-07-07 in the House of Commons. A government minister responded. Other MPs also contributed.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Will the Chancellor confirm that she will not make any commitments that are not fully funded and fully costed, but the Chief Secretary to the Treasury has just said that we now expect to wait until the autumn to hear how the Government intend to cover £6 billion of unfunded commitments. Why is the Chief Secretary not prepared to explain how these unfunded commitments will be paid for?
Question
Why is the Chief Secretary not prepared to explain how these unfunded commitments will be paid for? Can the Chief Secretary rule out a wealth tax, along with reconfirming there will be no rise in income tax, national insurance or VAT?
Minister reply
The Government are committed to their fiscal rules and all decisions regarding future taxes will be set out at the autumn Budget. The Chancellor remains committed to not coming back with more tax rises.
Question
Can the Chief Secretary explain what benefits of the fiscal rules are for constituents in their day-to-day lives?
Minister reply
When the Government lose control of public finances, it affects family finances across the country. The fiscal rules ensure that the Government is in control and prevents such consequences.
Question
Will Ministers look at fairer revenue raisers, such as reversing tax cuts for big banks and raising revenue from tech giants and online gaming companies? Will the Government commission an interim OBR report now?
Minister reply
The Chancellor will set out future fiscal plans at one fiscal event a year. The Government have agreed three trade deals with the EU, India and USA.
Question
Does the Chief Secretary agree that these fiscal rules are because of firm foundations for future growth? How does the Budget stability rule support confidence in investors?
Minister reply
The fiscal rules prove that the Government is in control, which builds business confidence and attracts investment.
Question
Before the next Budget, will the Chief Secretary ensure consultation with business leaders to minimize damage to UK economy?
Minister reply
The Treasury engages with business leaders regularly. The fiscal rules and long-term budgets increase business confidence.
Question
Does my right hon Friend agree that the fiscal rules are critical in controlling borrowing costs?
Minister reply
The fiscal rules bring stability to family finances and prevent consequences of previous Governments losing control.
Question
Does the Government regret placing those restraints on themselves over tax measures when OBR forecasts are published?
Minister reply
The Government remain committed to setting out future fiscal plans at one fiscal event a year.
Question
Does the Chief Secretary agree that without the fiscal rules we would not have seen four interest rate cuts?
Minister reply
The Government’s adherence to the fiscal rules has led to lower borrowing costs and thus lower mortgage rates.
Question
The Conservative party has had seven different sets of fiscal rules since taking office in 2010. Does the Chief Secretary agree that by investing to grow, we will reduce our debt burden?
Minister reply
This Government recognises that cuts during austerity years under previous administrations led to poor productivity and economic consequences. We are now choosing investment over decline, as announced at the Budget.
Question
Was the fiscal rule system always predicated on going after the most vulnerable instead of targeting rich individuals and corporations?
Minister reply
The Government's decisions have led to the largest real-terms spending increase in Scotland since devolution, reflecting our commitment to a different approach from previous administrations.
Question
Will the Chief Secretary outline how capital investment under these fiscal rules is allowing for economic growth?
Minister reply
The Chancellor's decisions have enabled billions of pounds to be invested into houses, schools, hospitals, GP surgeries across the country. Opposition Members may laugh but they lack a clear plan.
Question
Will the Minister reiterate the Chancellor's promise from last year that there would be no more borrowing or taxes, given the current economic situation?
Minister reply
The Chancellor was clear last Budget was a once-in-a-generation opportunity to deal with inherited negligence and mess. We have now had one year of Labour Government without clearing up previous administrations' mess.
Question
Has the Chief Secretary heard anything from the shadow Chancellor about how their plans would interact with fiscal rules?
Minister reply
The public is grateful not to hear much from Conservatives after 14 years of failure. If they wish to be competitive again, they should set out a clear plan for the country.
Question
When will the Government's fiscal rules enshrine fairness where ultra-wealthy and large corporations pay their fair share?
Minister reply
We have introduced changes to non-dom tax status, VAT on private schools, and made it more expensive for flying in a private jet. Our reforms are delivering increased spending in Wales since devolution.
Question
Does the Chief Secretary to the Treasury agree with me that OBR finds it easier to measure economic consequences of funding cuts than investments?
Minister reply
The independent Office for Budget Responsibility's forecast methodology will remain unchanged, but we welcome their last forecast predicting increased growth due to our reforms.
Question
How many businesses in the Minister’s constituency have been affected by national insurance contributions increases?
Minister reply
I will not give a running commentary on my conversations with businesses, but I can say that changes to planning system and long-term spending commitments are welcome news for the defence and infrastructure sectors.
Question
Does my right hon. Friend agree we need more certainty for small businesses regarding trade deals?
Minister reply
The Government has entered into great trade deals with the US, India and EU on food and drink imports/export, which will lower prices in supermarkets. We are committed to an annual summit with EU counterparts.
Question
Will the Minister back small businesses by overhauling business rates and scrapping NICs hike?
Minister reply
When changes in national insurance contributions were implemented, they were designed to protect smaller businesses. Our trade deal on food/drink with EU & investment into cheaper renewable energy will help fish and chip shops.
Question
Is it difficult to take the Conservatives seriously when they won't tell us their plans or whether they support spending in the review?
Question
Has the Chief Secretary seen the OBR's forecasts for public spending growth and debt rising to more than 250% of GDP, and why does he think that playing for time instead of acting to give markets confidence is a viable strategy?
Minister reply
The Treasury monitors all OBR forecasts in detail. The Chancellor has confidence in the OBR and will consider its forecasts when producing fiscal forecasts to bring stability back to public finances.
Question
Does my right hon Friend agree that a party with no fiscal strategy, like the Conservatives, cannot be trusted?
Minister reply
In a more conciliatory tone to Conservative Members, let me say that they have so few MPs they had no choice.
Question
Since the Budget, some 270,000 jobs have been lost and borrowing is up by tens of billions of pounds. Does the Chancellor still have confidence in the OBR?
Minister reply
The Chancellor has confidence in the OBR.
Question
Does my right hon Friend agree it is only because of our sound economic management that we have seen wages rise for working people at a faster rate in the first 0 months of this Labour Government than in the last 10 years of the Conservative Government?
Minister reply
My hon Friend is right. Whether it is investors, market traders or our constituents, they got sick to the back teeth of chaos under the Conservatives, whether it was the mess of Brexit or the change in Prime Minister and Chancellor every five minutes.
Question
A £6 billion hole has been opened up because those on the Labour Front Bench cannot get those on the Labour Back Benches to vote for their own policies. Is it not the case that even if this measure is not ultimately put in place, over the next couple of months the speculation about a wealth tax itself will drive investment away from this country?
Minister reply
The hon Member knows that the Chancellor will set out any decisions on tax one way or the other in the Budget, which she will do in the autumn.
Question
The Conservatives are responsible for stagnant wages and inflation rates peaking at 11%. Does the Chief Secretary to the Treasury agree with George Osborne that the Leader of the Opposition has no credible economic plan?
Minister reply
I can reassure my hon. Friend that we are taking no advice from the Conservative party on our approach to the economy, given their dismal record.
Question
Before the general election, the Chancellor said this would be the most pro-business Government ever. However, CEOs at a recent summit did not think so. Why does the Chief Secretary to the Treasury think that is?
Minister reply
I was not at the event, but I point the hon. Member to record levels of investment in this country—including £40 billion from Amazon—and highlight the stable and strategic approach we are taking.
Question
The Institute for Government’s review found that previous Conservative Governments changed fiscal rules multiple times. Does the Chief Secretary to the Treasury agree with this assessment?
Minister reply
I thank my hon. Friend for his pertinent question and point out that the last Conservative Government had no real fiscal rules based on their actions during the Parliament.
Question
Who is most responsible for the extra 276,000 people unemployed since the Budget? Is it due to national insurance jobs tax or business rates increases?
Minister reply
I disagree with the premise of the question. We are welcoming investment in this country and increasing public investment to create good jobs with good wages.
Question
This Government has invested £5 million in North Tees hospital, £20 million in Billingham town centre and another £20 million in Stockton town centre. Does my right hon. Friend agree that it is the market’s confidence in this Government and Chancellor of the Exchequer that gives us the fiscal ability to invest?
Minister reply
I congratulate my hon. Friend on securing significant investment for his constituency, reflecting the Chancellor's strategy of investing in Britain to benefit all constituents.
Question
Although I welcome the Government’s decision to roll back on proposed welfare changes, it has put considerable pressure on fiscal rules. How will middle-class families be ensured they are not squeezed further?
Minister reply
Let me point out that wages are now increasing faster than costs, and we have extended school-based nurseries and subsidised childcare in nurseries across the country to help working families.
Question
Thanks to this Government and their plan for neighbourhoods, Coatbridge is getting £20 million promised by the last Government but not budgeted. Does my right hon. Friend agree that we must never go back to fiscal irresponsibility of the Conservative party?
Minister reply
I congratulate my hon. Friend on securing investment in his constituency from this Labour Government, noting their delivery on promises unlike past administrations.
Question
My thoughts are with Anne Moffat’s family, who lost her life 20 years ago in the 7/7 attacks. Does the Chief Secretary agree that part of the reason for fiscal mess is previous Government cutting HMRC compliance officers by 1,200?
Minister reply
I share the sympathies with Anne Moffat’s family and acknowledge my hon. Friend's point about investment in HMRC to improve customer services and ensure tax collection.
Question
Does the Chief Secretary agree that decisions made by the Chancellor have enabled this Government to invest £190 billion in day-to-day spending and £113 billion in long-term investment, which would not happen if Conservatives were in power?
Minister reply
I agree. The House knows when the Chancellor presented the Budget last year she said this Government 'chooses investment over decline' for Britain.
Question
In the context of spending decisions taken by the Johnson Government, does the Chief Secretary share my anger at the way that the Conservative party tried to take all our constituents for fools?
Minister reply
I do. It is good that my hon. Friend has been able to raise testimony from the Transport Committee, reminding us why the British people were so angry with the Conservatives after 14 years of failed promises.
Government Response
The Government are committed to their fiscal rules, which remain non-negotiable. The Chancellor will ask the OBR to produce a new fiscal forecast in the autumn for the annual Budget. This forecast will include an updated assessment of the Government’s performance against their fiscal rules. In contrast to previous Conservative Governments who lost control of the public finances, this Government is meeting its fiscal rules and investing billions of pounds in schools, hospitals, affordable homes and public transport.