← Back to House of Commons Debates
Economic Update
17 October 2022
Lead MP
Jeremy Hunt
Debate Type
Ministerial Statement
Tags
NHSUkraineEconomyTaxation
Other Contributors: 106
At a Glance
Jeremy Hunt raised concerns about economic update in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Mr Speaker, I announced the necessity of difficult decisions to ensure economic stability in the UK amidst global challenges such as Russia's invasion of Ukraine leading to energy and food price spikes. After extensive consultations with key stakeholders, including the Prime Minister, Cabinet colleagues, Governor of the Bank of England, OBR, and others, we decided on immediate changes to our fiscal plans rather than waiting for the medium-term plan in two weeks. The primary aim is to reduce unhelpful speculation about future plans by showing market confidence through action. We will reverse almost all tax measures announced in the growth plan three weeks ago that have not been legislated for Parliament, except for the abolition of the health and social care levy, changes to stamp duty, increased annual investment allowance to £1 million, and wider reforms to investment taxes. Reversed measures include reductions in dividend tax rates (£1 billion a year), off-payroll working reform reversals (£2 billion a year), VAT-free shopping scheme for non-UK visitors (£2 billion a year), and alcohol duty rate freeze (£600 million a year).
Mark Fletcher
Con
Wakefield
Question
The hon. Member for Leeds West mentioned that the Chancellor was elected with just 18 votes, but I remind him that he did so because he is a credible candidate who has the confidence of the country and the House to lead us out of this difficult situation.
Minister reply
I thank the right hon. Gentleman for his support. We have taken these decisions in the best interests of the British public, ensuring stability and trust in our economy.
Angela Watkinson
Con
Hornchurch and Upminster
Question
In light of recent events, will the Chancellor consider introducing a windfall tax on energy firms as suggested by Labour? Can he also provide further details about how the reversal of measures in the mini-Budget will impact public services?
Minister reply
We are currently reviewing all options to ensure we address the cost-of-living crisis effectively. The Government remains committed to protecting essential public services despite fiscal challenges.
Rachel Reeves
Lab
Leeds West and Pudsey
Question
Reeves criticises the Tory Government for causing economic chaos, leading to higher mortgages and a lack of growth. She questions why the Government does not extend windfall tax on energy producers instead of increasing mortgage costs and bankers’ bonuses.
Minister reply
Jeremy Hunt acknowledges the criticisms but claims there is no disagreement with his decisions from Reeves. He emphasises positive economic facts such as lower unemployment rates compared to other G7 countries and higher growth since 2010. Hunt also defends the NHS budget protection during financial crises, despite opposition from Labour.
Mel Stride
Con
Central Devon
Question
I welcome my right hon. Friend’s statement and ask for reassurance that the economic advisory council will complement existing financial institutions without conflicting with them.
Minister reply
The minister assures that the new council, led by individuals like Rupert Harrison, complements the work of established institutions such as the Treasury, Bank of England, and OBR to provide independent advice.
Question
She criticises the previous economic policies and asks for clarification on future austerity measures, energy price guarantees, business support, benefit increases, and investment in renewables.
Minister reply
The minister emphasises spending £37 billion to support cost of living concerns, dismisses the SNP's policy of independence, and stresses that his government will avoid large-scale austerity measures.
Question
He asks about the impact of current measures on growth rate and avoiding recession.
Minister reply
The minister states he will wait for OBR forecasts before making definitive statements, but aims for long-term sustainable economic growth.
Question
She questions the effectiveness of investment zones and asks if they will be abandoned.
Minister reply
The minister acknowledges concerns about past failures but pledges to implement them in a way that learns from historical lessons for success.
Question
He welcomes fiscal responsibility and asks if the OBR forecasts will show debt falling as a proportion of income, with no borrowing for day-to-day spending.
Minister reply
The minister confirms that the intention is to control debt and avoid borrowing for daily expenses.
Edward Davey
Lib Dem
Kingston and Surbiton
Question
He asks about a windfall tax on oil and gas companies' record profits.
Minister reply
The minister says he is not opposed to taxing genuine windfalls but warns against measures that could drive away investment in the cyclical energy sector.
Andrew Mitchell
Con
Sutton Coldfield
Question
He congratulates the minister and asks for assurance on close cooperation between the Treasury, OBR, and Bank of England.
Minister reply
The minister reassures that independent institutions will work closely to bolster stability.
Rushanara Ali
Lab
Bethnal Green and Stepney
Question
I congratulate the Chancellor on his appointment but express concern about mortgage rates going up by an average of £500 due to the mini-Budget fiasco. Can he assure us that he will look at how to take Prime Minister’s mortgage premium off people’s bills and protect them during this difficult time?
Minister reply
The Government is committed to doing everything possible to hold down increases in mortgage rates, which are going up globally due to interest rate hikes. We have taken strong steps towards fiscal balance but recognise the challenge for those with mortgages.
Kevin Hollinrake
Con
Thirsk and Malton
Question
Welcoming the measures in the Chancellor’s statement, will he confirm that any cuts to spending will not impact capital expenditure on infrastructure projects, such as Northern Powerhouse Rail?
Minister reply
The Government is considering all options for fiscal balance but recognises the importance of capital spending for long-term economic growth.
Mitcham and Morden
Question
When dismantling Trussonomics, why did the Chancellor decide to continue boosting bankers’ bonuses during a cost-of-living crisis?
Minister reply
The policy was not working, and the current approach will generate more tax revenue from rich bankers.
Question
If further steps are required, will the Chancellor do whatever it takes to restore the UK’s fiscal credibility?
Minister reply
The Chancellor agrees that he will take necessary steps to ensure fiscal credibility.
Sammy Wilson
DUP
East Antrim
Question
While not blaming the Government for global inflation, what economic modelling has been done on the impact of increased taxation on growth and debt over the next two years?
Minister reply
The announced measures largely involve cancelling planned tax cuts rather than new increases. Further difficult decisions will be required to ensure debt falls as a percentage of GDP by 2027.
Helen Whately
Con
Faversham and Mid Kent
Question
How will the Chancellor continue pressing ahead with commitments on reforming social care, given its importance to NHS support?
Minister reply
Aware of pressures in both social care and the NHS, no specific commitment is made yet but decisions will prioritise those who need help most.
Angela Eagle
Lab
Wallasey
Question
Given the £32 billion cuts to planned tax reductions and potential deficit of up to £40 billion, does this mean a new austerity round similar to 2010-2015?
Minister reply
While difficult decisions are ahead, it is unlikely they will be on the scale seen in 2010. The Chancellor aims for compassionate and necessary measures.
Edward Leigh
Con
Gainsborough
Question
With a vision for economic growth and competitiveness, can the Chancellor promise to return taxation levels to at least their starting point in 2019 by the next election?
Minister reply
The Government’s role is to build a strong economy; decisions will be taken with an eye towards competitiveness and efficiency.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
Question
Does the Chancellor agree that the state pension will rise in line with inflation in April, as confirmed by the Prime Minister?
Minister reply
Aware of vulnerable pensioners, no specific commitment is made but decisions will be taken considering what matters most to those in need.
Question
Acknowledging robust defence of Conservative economic policy, can the Chancellor ensure the energy price guarantee targets support where it’s needed most and works for everyone?
Minister reply
The Government is considering practical ways to design a scheme that effectively supports those who need help most.
John McDonnell
Lab
Hayes and Harlington
Question
Given the report of over 300,000 excess deaths due to austerity, will increasing benefits by at least inflation rate prevent further suffering?
Minister reply
While not making firm commitments on individual elements of tax and spending, decisions will prioritise those who need help most.
Chris Grayling
Con
Baldock and Hertsmere
Question
I congratulate my right hon. Friend: he has hit the ground running in his job. These are difficult decisions, but they are the correct decisions right now. May I ask him, as he prepares for 31 October, to look in detail at how we should address what is the most—in my view—deep-rooted problem that the country faces and has faced for decades, which is our current account deficit? We will not truly get rid of these issues until we restore a better balance in our national finances, and I ask him to make that a priority.
Minister reply
I thank my right hon. Friend for his question. I agree: ultimately, it is not sustainable to have a permanent current account deficit and that is something that we need to address.
Ben Lake
PC
Ceredigion Preseli
Question
The Chancellor announced that he would be reviewing the energy price guarantee, but do the Government have any plans to review the level of support offered to off-grid properties for the cost of their heating bills this winter? There is cross-party consensus that the £100 payment is inadequate to meet the rising bills, so will he bring forward further support in advance of this winter?
Minister reply
I have listened carefully to what the hon. Gentleman has said, as I did to my right hon. Friend the Member for Forest of Dean (Mr Harper), and we will certainly look carefully at what can be done for off-grid properties.
Question
I welcome the necessary but vigorous course corrections that my right hon. Friend has introduced. He began his statement by describing the central responsibilities of any Government. They also include security: the defence of Britain, supporting our allies and standing up to our adversaries, as we have done in Ukraine. He knows that the world is getting more dangerous, not less, so will he commit to continuing the promise of 3% of GDP on the Defence spend?
Minister reply
It will not have been a secret to my right hon. Friend that I am sympathetic to that, because I campaigned for it very loudly and visibly when I was a Back Bencher, but all these things have to be sustainable. Any increase in Defence spending has to be an increase that we can sustain over many years. I agree with him entirely that the duty of a Government is to provide security for the population, in all senses of the word.
Question
Does the Chancellor’s compassionate conservatism extend to raising the minimum income component of pension credit, or is he prepared to let the poorest pensioners in the land be sacrificed on the altar of Trussonomics?
Minister reply
I would gently say to the hon. Gentleman that, while I completely understand how important it is to support our most vulnerable pensioners, what they need more than anything is a strong economy that can pay for the support that we would want to give them.
Simon Hoare
Con
North Dorset
Question
I welcome my right hon. Friend to his place and breathe a sigh of relief at the grown-up and sensible approach he has taken to the issues at hand. I also echo the remarks of my right hon. Friend the Member for Forest of Dean (Mr Harper) and the hon. Member for Ceredigion (Ben Lake) about the need to take into account those who are off grid and using heating oil. They deserve as much support as possible.
My right hon. Friend is newly empowered and he is able to slay many dragons. Could he slay the dragon of fracking, which was not in our manifesto?
Minister reply
This is an issue that has raised its head in my own constituency. Let me simply say to my hon. Friend that the Government’s position is clear: we will not proceed unless there is local support.
Question
In the bonfire of Government policy that has just taken place, the Chancellor was not very specific about what would happen to the Prime Minister’s investment zones policy. Personally, I was hoping that it would be incinerated as well, not least because it is designed to undermine environmental regulation, to avoid fair taxation and to bypass local democracy. In the past, he has said that he is a green Tory. I have to put it to him that that is sadly an endangered species right now, but if he is serious about being a green Tory, will he now take steps to demonstrate it by ruling out any policies that will undermine nature protection and restoration, and will he accept there is no financial capital that is not entirely dependent on a thriving natural capital?
Minister reply
I am absolutely committed to protecting our green spaces and boosting biodiversity, but I also think it is important to look at environmental regulations to see if they can be streamlined in a way that is consistent with allowing the natural world to flourish as well as the economy.
George Freeman
Con
Mid Norfolk
Question
I welcome the Chancellor and thank him for bringing calm reassurance to the markets and to this crisis so quickly. Does he agree that economic crises based on political confidence mean that everybody in this Chamber, on both sides of the House, has a duty to reassure the markets that we are capable of taking tough decisions? Does he also agree that, as we look to grow as he has highlighted, the technology and science sectors provide huge opportunities and that we should resist the opportunity to cut their funding?
Minister reply
There is no more formidable an advocate of science and technology than my hon. Friend, and he knows that I also care very much about the sector. With respect to reassuring the markets, the most important thing is, as we said earlier, that there is no disagreement about the policies announced today. It is important for the markets to know that there is that consensus in the House.
Diana R. Johnson
Lab
Kingston upon Hull North and Cottingham
Question
Last month, the Prime Minister told the BBC in Hull that we would be included in Northern Powerhouse Rail despite not being included in the Government’s integrated rail plan. Was the Prime Minister wrong to say that?
Minister reply
I do not know, but I will write to the right hon. Lady.
Julian Lewis
Con
New Forest East
Question
May I warmly welcome the Chancellor’s remarks about defence and security? As it took us very many years to pay off this country’s colossal second world war debt, am I right in thinking that the huge costs of covid and Putin’s aggression in Ukraine cannot possibly be cleared completely in the short to medium term?
Minister reply
I wish I could answer that question. As my right hon. Friend will know better than me, this appalling saga is far from over, so we do not know what the total costs will be. I thank him for his rapid and not entirely unexpected lobbying on defence budget issues since I took up this post. I think the job of the Chancellor of the Exchequer is to make sure that our economy is strong enough to fund the role that Britain wants to play in defence of democracy and freedom all over the world.
Question
I have worked with and against the Chancellor of the Exchequer on many occasions, and I have learned that he is an honest man, but he said in his opening remarks that this country is always good at rising to the challenge of big and difficult times. What I hate about what he said today—I really do hate it—is that there was no note of contrition. This big and difficult was started by his lot only two weeks ago. It is not just big and difficult; it is a national disaster. He spoke not one word of contrition about the mess that his party has made of this country.
Minister reply
I have the greatest respect for the hon. Gentleman, and we have had many exchanges in this House over the years. I think actions speak louder than words, and I do not think I could have been plainer in going out this weekend and today to accept that mistakes were made. The country wants to see us correcting those mistakes, and that is what we have done.
Question
My right hon. Friend knows that I am very pleased to see him in Downing Street. The sense of relief expressed to me this weekend as I was out and about in my constituency was palpable. I welcome his statement—I welcome its realism and honesty—and I welcome his trademark sense of optimism in his final remark, from which I could certainly learn. He is right that growth demands confidence. Does he have confidence that, when the Bank makes its decisions a week or so after his statement in two weeks’ time, the rise in interest rates, the mere prospect of which is terrifying my constituents, is not inevitable?
Minister reply
I thank my hon. Friend for his generous comments. It is not for the Government to say what the Bank of England does when the Monetary Policy Committee makes its decision on interest rates, but of course I have had conversations with the Governor about what the Bank needs to hear for it to feel that the inflationary pressures will be lower and so it will not have to make as high an increase as some people are predicting. Our constituents’ mortgages are at the top of my mind.
Zarah Sultana
Green
Coventry South
Question
The Chancellor has pledged a new wave of austerity, with public spending cuts squeezing services that have already been cut to the bone over the past 12 years. This is without a mandate and, as before, this round of austerity is a political choice not an economic necessity. Instead of cutting our services, the Government could raise taxes on the super-rich. If the Chancellor believes in his approach, why does he not put it to the people and call for a general election?
Minister reply
With the greatest respect to the hon. Lady, I did not pledge a new wave of austerity. If she does not like austerity, she should look at the generosity of the furlough scheme and what we are doing on the cost of living crisis. This has all been done because of difficult decisions she opposed every time.
Question
I welcome my right hon. Friend to his place. He talks about growing the economy and a strong economy, and I agree with that. May I remind the House, particularly those on the Opposition Benches, that it is, in the main, the private sector that raises the money that pays the tax for the public sector? We cannot go on hammering the private sector if we want to see the growth we want. As he takes his place, will he bear that in mind and reduce taxation as soon as he is able?
Minister reply
The answer is yes. To demonstrate that I understand what my hon. Friend is talking about when he talks about the private sector, I am going to say some words I have always dreamed of saying from this Dispatch Box: I used to be an entrepreneur.
Stewart Hosie
SNP
Dundee East
Question
The Chancellor spoke about difficult questions to be faced in the future, and I hope he is not going to fall into the old trap of trying to cut his way to growth. May we have a guarantee from him today that for as long as he has anything to do with it, there will never be a return to extremist, crank, experimental, think-tank economics?
Minister reply
I am happy to offer that guarantee if the right hon. Gentleman will agree to explicitly reject the extremist, crank, think-tank economics of Scottish independence.
Robert Halfon
Con
Southend West
Question
I welcome the reinstatement of compassionate conservatism and ask whether my right hon. Friend will help the most needy with cost-of-living issues by introducing a living wage, cutting taxes for lower earners, freezing fuel duty, investing in skills and apprenticeships?
Minister reply
I always listen to my right hon. Friend carefully on these issues. Let me say to him this: I do not think we will solve the growth paradox of this country unless we tackle the skills issue—that is central.
John Cryer
Ind
Leyton and Wanstead
Question
Government insiders are busy telling the press that the Bank of England is “playing roulette” with the British economy. Is that helpful or unhelpful?
Minister reply
Those comments have not been coming from the Government since I have been a part of the Government. What I will say is that I am working extremely closely with the Bank of England, and we are both absolutely aligned on the need for stability.
James Cartlidge
Con
South Suffolk
Question
Is a crucial point not that one weakness of the plan for growth is that fiscal and monetary policy were contradicting one another? When we talk about working with the Bank of England, what that really means is fiscal and monetary policy working in lockstep so that we deal with inflation?
Minister reply
My hon. Friend has actually answered the previous question much better than I did—the answer is yes.
Stephen Farry
Alliance
East Antrim
Question
Is it morally justifiable to lift the cap on bankers’ bonuses while refusing to confirm that he will link benefits to inflation? Will he pledge that benefits will increase in line with existing Government policy?
Minister reply
I understand why the hon. Gentleman has asked the question. I believe that wealthier people should pay more as we go through a difficult period, but the mechanism of the cap was not working.
Alex Chalk
Con
Cheltenham
Question
Does he agree that the best way in the long term to build a strong economy and a fair society for constituents in Cheltenham is to repair the public finances in the short term?
Minister reply
Absolutely, and only a couple of weeks ago I was sitting in a café in Cheltenham having a cold sandwich with my hon. Friend.
Flick Drummond
Con
Stroud
Question
Will the Chancellor commit to ensuring that incentives are available across all industries for R&D, especially manufacturing businesses in the defence sector?
Minister reply
That is a very important point. We have an issue in that we need our companies to invest more in R&D. In so far as our actions affect the stability of our markets, including the currency markets, the one thing we can do is to show that we are balancing the books.
Alan Brown
SNP
Kilmarnock and Loudoun
Question
Since 2015, the value of the pound has dropped about 30% compared with the dollar. After this Government’s mini-Budget, the pound hit an all-time low against the dollar. Given that oil and gas are traded in dollars, is it not the case that, by absolutely tanking the pound against the dollar, this Government have added other costs to the cost of energy in the UK?
Minister reply
I am delighted that someone from the SNP is worried about the value of the pound. In all seriousness, Governments cannot control the value of currency and should not seek to do so, but in so far as our actions affect the stability of our markets.
David Morris
Con
Morecambe and Lunesdale
Question
Would my right hon. Friend like to come to Morecambe on Thursday to see how much money has been spent there since 2010, the Eden Project North site, and the stakeholders?
Minister reply
I would be delighted to accept my hon. Friend’s invitation.
Tan Dhesi
Lab
Slough
Question
Given that the new Chancellor has effectively dumped the kamikaze mini-Budget, does he agree that he and the Prime Minister no longer have a democratic mandate to continue in their positions and should step aside?
Minister reply
A general election would not contribute to stability if people had to worry about the disastrous policies of a future Labour Government.
Mike Wood
Con
Kingswinford and South Staffordshire
Question
Will he look at how the changes he is making to beer duty can be structured to help rather than harm small hospitality businesses?
Minister reply
I hear my hon. Friend. The hospitality industry is incredibly important to our economy. We are reviewing the whole structure of alcohol duties, and as part of that process we will be keeping the levels of duty under constant review.
Tim Farron
Lib Dem
Westmorland and Lonsdale
Question
Does he understand the damage that excessive second home ownership does to communities such as his, and will he think again about stamp duty reform?
Minister reply
I entirely understand the concerns about second home ownership. However, I gently say to the hon. Member that it would be wrong to be dismissive of the concerns of young people desperately trying to get onto the housing ladder.
Alun Cairns
Con
Vale of Glamorgan
Question
Does he agree that, as he reviews the policy, there will continually be challenges in this area so long as Putin maintains his aggressive conflict in Ukraine?
Minister reply
Absolutely. I am very pleased that my right hon. Friend has made that point. We should remember that Putin’s gain is to try to turn economic instability into political instability.
Stephen Doughty
Lab Co-op
Cardiff South and Penarth
Question
The chaos in the bond markets impacting on pensions was a result of decisions by the Government. Can he now tell us whether all pension funds are secure, what is the value of total losses, and what actions will be taken to ensure confidence in pensions?
Minister reply
I do not accept the hon. Member’s analysis but acknowledge issues with pension funds. The Bank of England Governor's statement indicates progress towards resolving them.
Question
When reviewing energy bill support policies in April, will he ensure those who need it most are protected, particularly businesses like ceramics in Stoke-on-Trent?
Minister reply
I have discussed with Treasury officials the needs of energy-intensive industries and am well aware of their issues.
Jess Phillips
Lab
Birmingham Yardley
Question
Why is the Chancellor spending £2 billion a year on unfunded stamp duty cuts when he said today that he could not announce unfunded tax cuts?
Minister reply
The hon. Lady will find out in two weeks.
Question
Will long-term energy resilience be one of his priorities along with support for families and businesses with energy bills now?
Minister reply
It is an important priority and responsibility shared by the whole Government, focusing on both short-term crises and long-term issues.
Jeremy Corbyn
Ind
Islington North
Question
Can he assure people reliant on benefits that they will be increased at least in line with inflation to tackle poverty?
Minister reply
I respect the issue's importance but must look at spending and tax policy holistically due to economic gravity. Independent audit by OBR will precede decisions.
Question
Will he maintain commitment to seed enterprise investment schemes focused on science and technology?
Minister reply
I am committed to the opportunity for the UK in this sector, though I cannot give a specific answer now.
Pete Wishart
SNP
Perth and Kinross-shire
Question
Does he think the Prime Minister is a help or hindrance to his economic objectives?
Minister reply
The Prime Minister has willingly changed her decision for economic stability.
Question
Will this Government continue supporting vulnerable people with energy bills in the months ahead?
Minister reply
I assure my hon. Friend that concerns of vulnerable constituents will be prioritised.
Question
Before a spending cut spree, will he look at analysis saying £1 invested in NHS generates £4 in growth and protect poorly paid health workers?
Minister reply
While aware of the potential for economic benefit from NHS investment, difficult decisions about fiscal responsibility are necessary.
Question
Does he agree that money invested in skills and education of disadvantaged is well spent for future growth?
Minister reply
Agrees but emphasises the importance of addressing long-term issues like literacy among young people, which requires time.
Chris Bryant
Lab
Rhondda and Ogmore
Question
Why does this Government have the highest tax take in history but still high borrowing levels?
Minister reply
Responded sharply, stating that Labour opposed necessary economic measures while supporting spending increases.
Question
Does the energy support package for business remain unaltered and will it consider strategic value of steel during review?
Minister reply
Affirms that the package remains unchanged, and strategic value is considered.
Toby Perkins
Lab
Chesterfield
Question
Does he believe increased corporation tax raises more revenue or less, as previously suggested?
Minister reply
In long run, reduction may lead to higher revenue but must be based on actual funds rather than borrowed money.
Question
Will he meet representatives from hospitality and tourism sector to discuss keeping them open?
Minister reply
Absolutely, given the generous comments of my hon. Friend.
Beth Winter
Lab
Constituency not specified
Question
The Chancellor has raised the prospect of further departmental savings, but people agree there is nothing left to cut. Will the Chancellor listen to the Wealth Tax Commission and raise tax on wealth rather than decimate public services?
Minister reply
We already ask wealthier people to pay more tax, but new taxes would destroy overall economic wealth and lead to less money for NHS.
John Stevenson
Con
Carlisle
Question
Will the Chancellor be sensitive towards capital projects that may have a slight shortfall due to funding allocated three or four years ago?
Minister reply
Yes, we will be sensitive but difficult decisions must still be made.
Kirsten Oswald
Sinn Féin
West Tyrone
Question
What does the Chancellor believe has happened and who is responsible for economic turmoil?
Minister reply
Turmoil results from international and domestic factors.
Jerome Mayhew
Con
Broadland and Fakenham
Question
How will the Chancellor's actions impact mortgage rates in constituencies?
Minister reply
Chancellors do not comment on interest rates but want to ensure they are held down as much as possible.
Andrew Gwynne
Ind
Gorton and Denton
Question
Will the Chancellor consider protecting communities from further cuts in local government funding?
Minister reply
Not making commitments but understands pressure faced by local governments.
Aaron Bell
Con
Newcastle-under-Lyme
Question
Can the Chancellor reassure that the Government will continue to deliver levelling up despite economic difficulties?
Minister reply
Absolutely, delivering opportunity and growth evenly across the nation is a fundamental Conservative philosophy.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Question
Why does the Chancellor think spirits duty freezes will be different this time?
Minister reply
Will ask Treasury to relook at figures but doubts they would advise such measures if it was beneficial.
Peter Aldous
Con
Waveney
Question
When can the Chancellor confirm benefits will be uprated in line with inflation?
Minister reply
Not making commitments today but understands importance and will make decisions soon.
Ellie Reeves
Lab
Lewisham West and East Dulwich
Question
What does the Chancellor have to say to SE20 Cycles facing higher energy bills?
Minister reply
Introduced energy price guarantee and will write to the MP to detail support for small businesses.
Richard Holden
Con
Basildon and Billericay
Question
Can the Chancellor look at off-grid extra costs and work on broader energy security measures?
Minister reply
Absolutely will do that.
Gavin Newlands
SNP
Paisley and Renfrewshire North
Question
Does the Chancellor agree with previous analysis regarding impact of Brexit on public services?
Minister reply
UK grew faster than eurozone since 2016; does not accept analysis.
James Morris
Con
Huntingdon
Question
Will the Chancellor maintain funding necessary for winter pressures in NHS?
Minister reply
Aware of pressures and will look carefully but wants reform to improve spending efficiency.
Barbara Keeley
Lab
Worsley and Eccles South
Question
What does the Chancellor say to constituents impacted by price rises, mortgage costs, and pension impacts?
Minister reply
Listened and changed policies; rise in interest rates due to global factors but will shield people as much as possible.
Ben Spencer
Con
Runnymede and Weybridge
Question
I thank my right hon. Friend for his statement today. It is absolutely right that the Government should prioritise economic stability above all else and accordingly make some necessary but difficult decisions given the challenging circumstances. Can he confirm that pursuing a high-growth economy remains central to the vision and will he continue to pursue policies of reducing the tax burden as circumstances and the economy allow?
Minister reply
I am happy to confirm both those points to my hon. Friend.
Wendy Chamberlain
Lib Dem
North East Fife
Question
Will the Chancellor confirm whether we will see inflationary increases to benefits and, if not, will he consider expanding the means-tested cost of living payments to include those on carers allowance or, at the very least, will he allow people to work more before their carers allowance is impacted?
Minister reply
I have said, as the hon. Lady will have heard, that I am not announcing decisions in any individual areas because of the gravity of the situation we face. On carers allowance, I will happily write to her anyway as I think these are all things we keep under review.
Question
I very much welcome the fact that we now have an entrepreneur in 11 Downing Street. I also welcome the fact that over the weekend the Chancellor spoke once again about compassionate Conservatism, supporting those in our communities who are most in need while striving for sustainable growth. Does my right hon. Friend agree with me in principle that one of the best ways we can support and create sustainable jobs in our communities is by continuing to invest in our levelling-up agenda across communities in our country?
Minister reply
I absolutely am very happy to confirm that I agree with that in principle.
Question
Two very important conferences are taking place in the UK this week that support the Government’s aim for a UK cryptocurrency hub: the digital assets summit and the bitcoin collective summit. Can the Treasury meet to hear about the Chancellor’s commitments to regulation and consumer protection and take forward the area’s vast potential in job creation, innovation and growth?
Minister reply
I know that the hon. Lady has been in discussions with the Financial Secretary to the Treasury, and I know that he would be delighted to communicate with her further, because she obviously has a lot of expertise in this area.
Rachael Maskell
Lab Co-op
York Central
Question
For three and a half weeks, the Government have gambled with people’s pensions, with their mortgages and with their futures. Can he say that pension schemes will not be deemed unviable over this period, that they will get the support they need from Government, and that he will ensure they are stable for the future as both defined contribution and defined benefit schemes?
Minister reply
Well, I have had many discussions on pensions issues with the Governor of the Bank of England who, as the hon. Lady knows, has taken extensive action to protect the viability of pension funds. She will be as pleased as I was that he announced today that he thinks that he has basically succeeded in resolving that issue in nearly every case.
Question
Will the Chancellor commit to the House that, as part of his decision making, he will also take cognisance of the social consequences and the consequences for social stability? Can he meet those charities so that they can impress on him the urgent need to uprate benefits in line with inflation?
Minister reply
I am meeting many different people to discuss that very issue, but I am afraid that I can only point the hon. Gentleman to my earlier answer that I am not announcing any decisions on it today.
Clive Efford
Lab
Eltham and Chislehurst
Question
The Chancellor is taking plaudits for having calmed the markets, but he has not resolved the problem—he has just stopped it getting worse. Gilts will still cost more so borrowing will still cost more for the Government in perpetuity, which will have an impact on people’s mortgage rates. Does he expect repossessions to go up in future? If so, what action will he take to assist people who find themselves in that situation because of the Prime Minister’s reckless Budget?
Minister reply
It is because I do not want that to happen that I have taken the very difficult decisions today.
Christine Jardine
Lib Dem
Edinburgh West
Question
I am sure that the Chancellor would agree that certainty is key to stability for businesses. Can he commit to letting the industry know at an early date—as soon as possible—what will actually happen to it, as it is vital to many of our constituencies?
Minister reply
We will conclude the decisions on what we will do in terms of excise duty reform generally as quickly as we can, but for now, I am afraid that the difficult decision that I announced today stands and we will not be able to proceed with the freeze from next February.
Barry Gardiner
Lab
Brent West
Question
I want to focus his attention back on the young couple seeking to purchase their first home. They fear that the housing shortage means that the cut in stamp duty will not benefit them, but will simply raise the price of property and benefit existing homeowners—or have he and his party managed to abolish the law of supply and demand in the last 24 hours?
Minister reply
No, I have not. We recognise the need for more housing and the problems in the planning system. They will be at the top of our mind as we announce reforms to restore economic growth.
Question
Does the Chancellor think that it is a good example of the dividend that he says Scotland gets from being in the Union? My constituents live in one of the most energy rich countries in the world, yet they face crippling bills. Does the Chancellor think that that is a good example of the dividend that he says Scotland gets from being in the Union?
Minister reply
Well, I think that not just Scotland but England, Wales and Northern Ireland get a fantastic dividend from being in the Union. I say to the hon. and learned Lady that we have not reneged on our commitment to help people on low incomes with energy bills next year.
Stephen Timms
Lab
East Ham
Question
Does the Chancellor recognise that there was a very heavy blow to the lowest-income households in the country in April when social security benefits were uprated by 3.1% and inflation was nearly 10%? It was justified at the time on the basis that that was what the regular uprating formula had delivered, and that the same formula would be used next April. That assurance was given by both the then Chancellor and the then Prime Minister.
Minister reply
I do accept that, and I think compassion and fairness are two sides of the same coin. I have told the right hon. Gentleman that while I cannot give the answers to any of these decisions, it will be through those prisms that we make those very difficult choices.
Question
How will the concerns and experiences of the nations and regions of the United Kingdom be represented on the Chancellor’s new advisory panel? What, if any, are the Barnett consequentials of today’s announcement for the devolved Administrations’ budgets?
Minister reply
On the latter point, I will write to the hon. Gentleman. On the former point, I am confident that the advisers I have will be able to speak for the whole United Kingdom.
Nick Smith
Lab
Blaenau Gwent and Rhymney
Question
May I press the Chancellor? The defined benefit pensions market has been in turmoil. Schemes have nearly folded, and the Bank of England has spent £20 billion to steady the market. How will he grip that better so that pensioners can have confidence in their schemes?
Minister reply
I believe that the Bank of England has taken important action and I refer the hon. Gentleman to what the Governor of the Bank of England said today and his confidence that those issues have been largely resolved.
Question
Earlier this afternoon, the Chancellor announced the formation of a new economic advisory council. Can he confirm that its members will be independent and that they are not major donors to the Conservative party seeking to gain influence on Government policy?
Minister reply
I can confirm that the council’s members will be independent; I can confirm that there will be no improper influence exerted; and I can confirm, as the hon. Gentleman will be pleased to hear, that all donations to the Conservative party are vetted and legal.
Richard Burgon
Lab
Leeds East
Question
I have listened carefully to what the Chancellor has said. Our public services are on their knees after 12 years of Tory misrule; they really cannot cope with any further cuts. In contrast, the very richest have seen their wealth soar threefold over the past decade. Surely, rather than further cuts to our public services, would it not be fairer to impose a wealth tax on the very richest in our society?
Minister reply
The trouble with those kinds of taxes is that they end up inhibiting the wealth-creating capacity of the economy to fund the very public services that the hon. Gentleman supports.
Stephen Flynn
SNP
Aberdeen South
Question
We have a Government who Scotland did not vote for, and a Chancellor who is leading the way despite Scotland not voting for him and who is, of course, about to impose swingeing public sector cuts on Scotland that, again, we did not vote for. With that prospectus, is it any surprise that the people of Scotland are going to choose a different path?
Minister reply
I am very happy that the hon. Gentleman is concerned about what the people of Scotland voted for, which was to remain in the United Kingdom.
Karin Smyth
Lab
Bristol South
Question
In the past year, I have found myself regularly agreeing with the right hon. Gentleman when he warned that workforce burnout across the NHS and social care had reached emergency levels and is an extraordinarily dangerous risk to the functioning of both services. Does he stand by that assessment today and will he now support an independent workforce plan?
Minister reply
It is very difficult to un-invent or un-say things that one has said on the Floor of this House. I am not going to make any commitments today, but let me say that, in my time as Chair of the Health and Social Care Committee, I learned a great deal about how the NHS functions, as indeed I did when I was Health Secretary, and I hope that will be useful to me in my role.
Question
The doglike devotion that Tory branch office members in Scotland have for their London bosses was hopelessly exposed when they urged the Scottish Government to follow the disastrous tax plans of the soon-to-be former Prime Minister. Hours later, the same branch office members applauded October’s Chancellor’s abandonment of those plans in a desperate effort to stay on script. Does the current Chancellor agree that those in the Tory branch office in Scotland should apologise to the people of Scotland for seeking to railroad the Scottish Government down a path that would have caused even more pain for struggling households?
Minister reply
The Tory Government the hon. Member so hates have shown ourselves in the last few days to be willing to take tough and difficult decisions if they are right for the country, so here is a tough and difficult decision for her. Independence will make Scotland poorer in every single way, so why does she not abandon it?
Mohammad Yasin
Lab
Bedford
Question
The Chancellor has reversed most of his Prime Minister’s Budget, yet he is still talking about spending cuts to pay for the fine mess his Government have got this country into. Tory austerity broke our precious NHS, which he had a hand in. Now he is in charge of the purse strings, will he put his money where his mouth is, invest in the NHS and implement the workforce plan he knows is desperately needed?
Minister reply
Before I was Chancellor, with great respect to the hon. Gentleman, I think I did put my money where my mouth was. When I became Health Secretary we were funding the NHS at the OECD average and now it is the fifth highest in the OECD, so I have started to fix years of disastrous Labour underfunding.
Jim Shannon
DUP
Strangford
Question
Can I say how very pleased I am to see the Chancellor in his place? I wish him well, and I think this House wishes him well in the job he has to do. Northern Ireland is a global leader in areas such as cyber-security and advanced manufacturing, and it is also the top location in the UK outside London for foreign direct investment. However, the rate of economic inactivity in Northern Ireland is higher than anywhere in Great Britain, which costs the economy some £16 billion annually. Can I ask the Chancellor if he can give any indication as to whether Northern Ireland will receive a fair proportion of the levelling-up funding under round 2, rather than in the first phase, when the 3% share target was missed?
Minister reply
As the hon. Member knows, I am not announcing any decisions today, but it would always be my intention to give a fair deal to Northern Ireland, which is an incredibly precious part of our Union.
Dave Doogan
SNP
Angus and Perthshire Glens
Question
The new Chancellor—October’s Chancellor—said, with no small measure of smug superiority and constitutional illiteracy, that in his opinion the four members he identified of his economic advisory board, who by my count are three members of large accountancy firms and one former insider from the Treasury, were well equipped to usher in the best possible economic plan for the devolved nations. That is clearly patent nonsense, but has it occurred to the Chancellor to invite the Finance Ministers from the devolved nations to form part of his economic advisory board, or is that beneath him?
Minister reply
I have regular contact and will continue to have regular contact—[Interruption.] Excuse me, would you let me answer? Sorry, Madam Deputy Speaker, but I was hoping the hon. Gentleman would let me answer. I have regular contact with my Finance Minister counterparts in the devolved nations—and, indeed, the Chief Secretary to the Treasury had such discussions today—but this economic council is something different. This is about trying to make sure that we deal effectively with the instability we have seen in the markets, which is mainly London-based, and we want to make sure that it does not happen again, so I think I have four fantastic people for that role.
Question
My constituents in Birmingham, Perry Barr and the people of the west midlands, who work tirelessly to be able to secure homes for their families, now look on in disbelief as they are having to focus on soaring energy bills in addition to crippling mortgage interest rates. Can the Chancellor explain how he will ensure that my constituents will not lose all they have worked for and will not need to make a choice between heating, eating or keeping their homes?
Minister reply
We are taking difficult decisions, and we will do whatever it takes to restore economic stability. That is the biggest single thing we can do.
Marie Rimmer
Lab
St Helens South and Whiston
Question
Could the Chancellor explain to me whether the announcements today on tax will have implications for the primary legislation the Government are looking to introduce to enable the offer on tax and simplified regulations on investment zones? The in principle policy was published on 24 September, with expressions of interest asked for on 2 October and a rushed announcement that they had to be in by 14 October. There is very little detail for people to make really informed decisions. I will write again to the BEIS Secretary of State, if he remains the same—I have written to two—about one really good scheme, which is going to be massive. My constituency has two of the most deprived boroughs—Knowsley, the second most deprived in the country, which has had nothing yet, and St Helens, which is high up there. The schemes are just wonderful. What is the impact?
Minister reply
Because we are getting towards the end of our questions, I will reply to the hon. Member’s letter. I do not believe there are any implications from what I have said today but, if I am wrong, I will let her know.
Munira Wilson
Lib Dem
Twickenham
Question
If the Chancellor is serious about growth, he has to be serious about education, yet school governors in my constituency recently described the funding situation they face as “soul destroying”, and one said that ‘we have trimmed everything we can possibly trim’. They are considering laying off teaching assistants, delaying building repairs and axing school trips. Could the Chancellor of the Exchequer tell parents and teachers in my constituency what else he wants schools to cut to pay for the Prime Minister’s economic incompetence?
Minister reply
I want to do everything I can to protect our precious public services. I totally agree with the hon. Member about the link between education and economic growth, but I also think it is about social justice. I want to have fantastic schools for all our children, whatever their background. That is why I have taken the difficult decisions I have announced today.
Cat Smith
Lab
Lancaster and Wyre
Question
I know the Chancellor has already performed quite a lot of U-turns today, but can I invite him to make another U-turn specifically on fracking? Given that renewable energy is nine times cheaper, would it not make good economic sense to invest in renewables rather than fracking?
Minister reply
We are not going to do fracking unless it has local consent, but I also say, as someone who believes passionately that we have to do more on climate change, that it is not helping climate change to import hydrocarbons from other countries and say that as a result we are being very virtuous in reducing our own emissions. We need to do what it takes to reduce overall emissions.
Question
Can I thank the Chancellor in advance for what he has promised to publish over the next two weeks because it will be the starkest ever confirmation of the awful price of Better Together? Unless you are a banker on a bumper bonus, which not many of my constituents are, you are looking at higher food prices, higher fuel prices, higher mortgages, reducing wages in real terms, falling benefits in real terms and savage real-terms cuts in public services. Alternatively, my constituents could be building towards a Scotland that is creating 385,000 jobs in renewable energy, producing between three and four times as much energy as we need, and—who knows?—maybe even selling it on at mates’ rates to our friends and neighbours, as long as they treat us well. I respect the Chancellor’s right to dismiss that future. I think he is doing himself an injustice by basing his dismissal on blind, evidence-light dogma, rather than looking at the facts, but does he accept that it is not for him, anyone on the Government Benches or, indeed, anyone on the Opposition Benches to deny my constituents the right to choose between those two futures?
Minister reply
I can accept that the hon. Member and I are different in that I am totally emotionally committed to the Union and it is part of my identity, and he feels differently about that, but what I cannot accept is that it would be anything other than madness for every household in Scotland to want to leave the United Kingdom, which would make them much worse off.
Salford
Question
The Chancellor spoke of cuts, albeit shrouded in compassionate conservativism—a paradox if ever there was one—but surely he must realise how serious things are in public services at the moment. In Salford alone, the council is sitting on a £16 million shortfall due to soaring energy costs. That is on top of slashing its previous budget in half and slashing its staff rotas by over half. How can he possibly put forward compassionate cuts to services that are barely able to function at the moment?
Minister reply
It is because I want to be able to invest in public services like the ones the hon. Member talks about that I think it is so important to take tough economic decisions at times like this. All I would say is that, while she and I have a different viewpoint on many issues, her party has supported the decisions I have taken today, and I think that was the right thing.
Question
After the Chancellor’s televised statement earlier, gilt prices rose and the yield on them fell, thereby reducing their effective interest rate. Does he recognise that the markets have effectively factored in the removal from office of the Prime Minister and what does he think will happen if that does not happen?
Minister reply
One of the first lessons I was told as Chancellor is never to speculate on why markets do what they do and I am not going to break that today.
Question
The Chancellor has repeatedly refused to answer questions about uprating of benefits, but with the Resolution Foundation briefing last week that it expects 2 million more people to be pushed into absolute poverty, can he guarantee to the House that any attempt to balance the books, to steady the ship, or whatever other expression we are going to use, is not going to be made at the expense of those already struggling?
Minister reply
As I have said—I am happy to repeat it—all these decisions will be taken through the prism of the impact on the most vulnerable people in society.
Question
Many constituents in Ilford South will be very glad that the last Labour Prime Minister had the foresight to make the Bank of England independent, given the mini-Budget a few weeks ago almost tanked six pension funds in the UK. What I would like to know from our new Chancellor today is what he is going to do—at least one more is still at risk—to reassure pensioners in Ilford South, and the millions of people across the country who are not only angry but frightened, that he will do something concrete to shore up pension funds not just over the next few weeks but over the next few years.
Minister reply
We have had very decisive action from the Bank of England to do exactly that, and I hope the hon. Gentleman is encouraged by what the Governor of the Bank of England said today about his belief that he has largely solved those issues.
Daisy Cooper
Lib Dem
St Albans
Question
Thank you, Madam Deputy Speaker; I now know what it feels like to have the knees of the hon. Member for Strangford (Jim Shannon). [Interruption.] It is a fleeting thought, but it has gone. Pubs and hospitality businesses in my seat of St Albans are really up against it. Suckerpunch is a bar that closed its doors just a couple of days ago because it can no longer continue. Others are clinging on until Christmas and we know that around the country hospitality businesses are saying that they are going to go into complete hibernation until the spring, and that means redundancies. Will the Chancellor confirm that he understands that hospitality is one of the sectors that is most affected and will therefore attract support, and will he look again at the broken business rates system, which is killing our pubs and high streets while letting multinationals off the hook?
Minister reply
Another of the promises I now vainly wish I had not made in the summer as to policies we should do is a fundamental review of business rates, so I have a great deal of sympathy for the hon. Member on that front and I will happily look at those issues. I do not want to promise we are going to make any progress in the next two weeks because there are so many other things we have to consider, but what she has said has been well heard—and I, too, congratulate her on her patience.
Shadow Comment
Rachel Reeves
Shadow Comment
Ms Reeves welcomed the new Chancellor but highlighted the ongoing chaos in the Conservative government caused by previous policy decisions. She criticised the lack of energy support extension, questioning why the Government will not extend windfall tax on energy producers to help cover costs. The shadow Chancellor questioned the Prime Minister's authority and credibility following her recent U-turns. She also raised concerns about public spending cuts affecting NHS nurses, schools, servicemen, and women, highlighting that every service is at risk due to Tory incompetence. Additionally, Ms Reeves criticised the former Chancellor’s campaign for reducing corporation tax without providing funding details and questioned how ordinary people can afford more conservative policies given recent instability. She called for a proper windfall tax on energy producers and asked about spending cuts and benefit upratings in light of inflation.
▸
Assessment & feedback
Summary accuracy
About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.