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Economic Update
03 February 2022
Lead MP
Rishi Sunak
Debate Type
Ministerial Statement
Tags
EconomyTaxationEmploymentForeign AffairsEnergyBusiness & TradeLocal Government
Other Contributors: 54
At a Glance
Rishi Sunak 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
EconomyTaxationEmploymentForeign AffairsEnergyBusiness & TradeLocal Government
Government Statement
The UK’s economic recovery has been quicker than forecast, with the economy returning to pre-pandemic levels a year earlier. Unemployment peaked at just 5.2%, saving over 2 million jobs. The fastest-growing G7 economy this year will see an additional 400,000 people employed compared to before the pandemic and rising business investment. Borrowing is set to fall from £320 billion last year to £46 billion by the end of this Parliament. However, with energy prices soaring due to global factors such as depleted gas stores and increased demand in manufacturing centres, the Government will step in to help manage these costs for households. The average household will face an increase of £693 in April; however, the Government’s plan includes a £200 discount on electricity bills from October to be repaid over five years, a £150 council tax rebate, and a discretionary fund of nearly £150 million for local authorities. Additionally, the warm home discount will benefit 3 million vulnerable households, £3 billion will go towards energy efficiency in lower-income homes, and there will be an increase in the national living wage to £9.50 per hour from April.
Nicky Morgan
Con
Loughborough
Question
The Chancellor has set out a three-part package today, but is there more the Government can do now, such as cutting VAT on energy? Given that many of the poorest households will still face significant price rises from April, what additional measures will be taken?
Minister reply
The Chancellor emphasised the need for fiscal responsibility and stated that VAT cuts would disproportionately benefit wealthier households. Instead, his plan provides targeted support through a £200 discount on electricity bills spread over five years, a £150 council tax rebate, and a discretionary fund for local authorities to assist lower-income households.
Ian Blackford
SNP
Ross, Skye and Lochaber
Question
The SNP leader questioned the fairness of supporting energy companies instead of households directly. The increase in wholesale prices is leading to a £693 rise for the average household but only 17% of this cost will be met by today's measures. Is it fair that some families face hundreds of pounds more for their energy bills from April?
Minister reply
The Chancellor defended the plan as fair, targeted, and proportionate. The £200 discount on electricity bills, the £150 council tax rebate, and the discretionary fund for local authorities will ensure 28 million households receive at least £200 of support with the vast majority receiving £350, addressing the issue effectively without creating a permanent subsidy.
Paul Scully
Con
Bromley and Chislehurst
Question
With energy prices likely to rise further in October if wholesale prices remain high, what contingency plans does the Government have for this potential scenario?
Minister reply
The Chancellor noted that he will keep a close eye on developments but emphasised that his plan provides immediate relief while ensuring fiscal responsibility. The measures announced today are designed to provide substantial support now and spread costs over time.
Chris Ruane
Lab
Vale of Clwyd
Question
The Labour MP expressed concern about the impact on pensioners who may be eligible for benefits but not receive additional support under the announced measures. What can the Government do to better target those in need?
Minister reply
The Chancellor highlighted that the warm home discount will now benefit 3 million vulnerable households, and local authorities have been given a discretionary fund to help lower-income households living in higher council tax properties or exempt from council tax.
Rachel Reeves
Lab
Leeds West
Question
Criticised the Chancellor for not cutting VAT on energy bills and highlighted inconsistencies with previous statements. Suggested Labour's proposal is more effective in targeting support.
Minister reply
Replied that this Government have announced measures, dismissing opposition policy as lacking.
Kevin Hollinrake
Con
Thirsk and Malton
Question
Welcomed the Chancellor's announcement and questioned whether VAT cuts are a flawed policy. Asked about potential sanctions against Russia.
Minister reply
Agreed with targeting support more effectively, confirmed readiness for robust sanctions on Russia.
Alan Brown
SNP
Kirkcaldy and Cowdenbeath
Question
Questioned the Chancellor's measures regarding tax rises and recovery. Inquired about council tax rebates for Scotland.
Minister reply
Confirmed Barnett consequentials of £290 million for Scotland, outlined support for North Sea oil and gas industry.
Lucy Allan
Con
Telford
Question
Complimented the Chancellor's statement and asked about helping middle-income families.
Minister reply
Confirmed that four out of five households will receive support, emphasising help for those on moderate incomes.
Meg Hillier
Lab Co-op
Hackney South
Question
Questioned the funding mechanism for council tax rebates and its distribution.
Minister reply
Confirmed that it is fully Exchequer-funded with a discretionary fund to help households in higher bands.
Peter Bone
Con
Wellingborough
Question
Questioned the approach of increasing national insurance contributions followed by rebates and discounts.
Minister reply
Defended approach as responsible for tackling debt, providing long-term funding for NHS.
Stephen Timms
Lab
East Ham
Question
There is an obvious unfairness in the massive profits being made by oil and gas companies at a time when families are facing hardship. Surely the Chancellor must intervene to address this. He has announced a discretionary fund for local councils, but worried families will have no idea how much that benefits them. Will he instead introduce an uplift in universal credit?
Minister reply
Energy companies already pay corporation tax at 40%, double the standard rate of 19%. The Government's approach is to support workers by cutting the universal credit taper rate by 8 percentage points, providing a £2.2 billion tax cut for 2 million low-income individuals.
Esther McVey
Con
Tatton
Question
Many families will struggle with energy bills this year. Will the Chancellor commit to supporting those in middle Britain, as well as the lowest incomes?
Minister reply
The Government is committed to supporting hard-working families and providing them with necessary support.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
Question
What does the Chancellor have to say to constituents in Vauxhall who are already struggling with fuel poverty and face a £700 increase in energy bills?
Minister reply
Families will receive £150 in April, followed by a rebate on their bills in October when the energy price cap is reviewed again. This approach uses council tax to deliver support faster.
Question
Will the Chancellor confirm that Bank of England independence will be respected regarding monetary policy, including interest rates and quantitative easing?
Minister reply
The Bank's independence will continue to be respected on matters of monetary policy.
Nick Smith
Lab
Blaenau Gwent and Rhymney
Question
Does the Chancellor think that Shell’s $20 billion in super-profits are untouchable? Will his hands-off approach persuade many people?
Minister reply
The Government is taking action to support people's anxiety about rising energy bills, doing so proportionately, fairly, and responsibly.
Question
Does the Chancellor agree that analysis from Labour Members is a demonstration of their approach’s paucity regarding energy? Is not our approach to a zero-carbon economy based on energy security going to deliver us out of short-term problems?
Minister reply
The Government's approach aims at energy security and undoing past mistakes made by the Labour party.
Chris Bryant
Lab
Rhondda and Ogmore
Question
This is pretty puny stuff, with £350 not touching my constituents' problem. Gas and electricity are up for them by £686; fuel is up by £314; average shop costs have increased by £385; universal credit was cut by £1,040; national insurance went up by £150; and frozen tax allowances cost another £300. That makes £2,875 in a constituency where the average wage is £27,000.
Minister reply
The Government’s actions have saved 2 million jobs, increased the national living wage, provided extra support during the crisis, and are committed to continuing this support.
Question
Thanking the Chancellor for his statement before a press conference. I also thank him for engaging with Conservative colleagues, listening to their concerns, and setting out a package that smooths the impact of global gas prices.
Minister reply
The Government is taking responsible decisions and being honest about them, which people respect.
Naseem Shah
Lab
Bradford West
Question
My constituents think differently. The Conservative party cut £20 a week from universal credit; this £350 does not cut it when the Chancellor has wasted billions on personal protective equipment and covid funds.
Minister reply
Throughout the pandemic, the Government’s actions helped those on the lowest incomes the most.
Question
To champagne socialists £350 is not a lot of money. My right hon. Friend knows that I care deeply about this issue. Will he continue to focus on the just-about-managing group?
Minister reply
The Government are committed to supporting hard-working families and will continue to do so.
Christine Jardine
Lib Dem
Edinburgh West
Question
Why won't he listen to the Liberal Democrats’ suggestion of a package that would help families reduce bills by £1,000 a year? Why not scrap Conservative tax hikes?
Minister reply
The Government provides funding for the NHS and social care reform. These measures are necessary for a sustainable future.
Alun Cairns
Cons
Vale of Clwyd
Question
I congratulate my right hon. Friend on the comprehensive package of support that he has provided, which is fiscally responsible in the face of global energy-price volatility. My constituents will have the benefit and reassurance of the rebate on energy bills that the Chancellor has announced, but they will not have the reassurance of the council tax support he is making available in England. Will he at least encourage the Welsh Government to follow suit, so that my constituents have the same benefit as those in England, or even go a step further and insist that the benefit is passed on?
Minister reply
I can confirm that the Welsh Administration will receive £175 million or so in Barnett consequentials, which will enable them to provide a similar discount. The Chief Secretary to the Treasury will speak to the Welsh Government later and will very much make the point that we would like to see that happen, to the benefit of all my right hon. Friend’s constituents and people throughout Wales.
Clive Betts
Lab
Sheffield South East
Question
On the council tax rebate, some of the poorest families do not pay significant amounts of council tax because they are on council tax support schemes. Even if their council tax bills are less than £150 a year, will they still get the full £150? Will their local authority pay that to them in cash in April? On the £150 million discretionary fund, will it truly be at the discretion of councils to decide how they spend it, or will the Government direct how it is spent?
Minister reply
The hon. Gentleman is, of course, well informed on these issues. Our intention is that those people will benefit from the £150, which is why we are providing the discretionary fund. It has been sized with a sense of who those people are and how many they are. We will of course provide some guidance to local authorities on whom we would expect the support to go to, but ultimately they will be able to make those decisions for themselves.
Question
I thank the Chancellor for an extremely welcome package, which is the latest step in a series of strong reactions to different crises throughout the pandemic and today. He also mentioned improving investment in North sea gas fields, which is very welcome. It is only a temporary set of solutions, however, that will dull the initial economic pain without solving the long-term problem of sky-high energy prices. What conversations has he had with the Energy Secretary, who is sitting next to him, about solutions to deal with those longer-term problems? When we can we expect to hear answers on such things as reforming the price cap and the wholesale energy market?
Minister reply
My hon. Friend is very thoughtful on such matters and has, rightly, long made the point that we must also ensure that the long-term energy market is working in all our benefit. The Energy Secretary, the Prime Minister and I have been involved in such conversations for some time. The Energy Secretary is working on a set of measures that will address many of my hon. Friend’s concerns and he should expect to hear from the Government soon.
Pontypridd
Question
May I say how nice it is to finally see the Chancellor in his place? Some of us had been considering filing a missing persons report given his absence in recent weeks. Although I appreciate his update, for families across Pontypridd and Taff Ely, it is another case of too little, too late. The Welsh Labour Government have doubled the warm home discount scheme and Labour’s proposal would have taken £600 off the bills for the poorest in our country, but his plan gives them £350 off. Why does it fall so far short of what is needed and what is proposed?
Minister reply
I am sorry that the hon. Lady did not welcome the £175 million in Barnett consequentials for the Welsh Administration. The Government are providing significant support for those on middle incomes, because they are also struggling, and we believe that is the right approach.
Question
I welcome the Chancellor’s recognition, as my hon. Friend the Member for Weston-super-Mare (John Penrose) said, of the importance of a long-term energy policy. I thank him very much for the help for council tax payers. Bands A to D cover most folks on the Island. Can he confirm that he is talking about people with primary residences on the Island and nationally?
Minister reply
My hon. Friend makes an excellent point. I confirm that the £150 is not for those with second homes or empty homes. We will make that crystal clear in how the policy is executed.
Jim Shannon
DUP
Strangford
Question
I thank the Chancellor for his contribution. I do not want to be churlish—a fair bit of money has been set aside and we appreciate that—but with the further rise in energy prices and the uplifted cost of living in general, working families will have to choose what to cut out of their lives to make ends meet. I put on record that I welcome the £150 million for Northern Ireland and the other Barnett consequentials, but will he consider and commit to reviewing the child benefit threshold for families whose wages are the same but are simply not worth the same in real money terms as when the threshold was introduced in 2013?
Minister reply
I am glad that the hon. Gentleman recognises that there are two sets of Barnett consequentials for Northern Ireland stemming from each of the policies, which sum total £250 million. He will appreciate that I cannot comment on future tax and welfare policy but, as always, I will take what his says and reflect on it.
Question
I warmly welcome the Chancellor’s statement because 94% of properties in Stoke-on-Trent are in council tax bands A to C, so the £150 rebate will do wonders across Stoke-on-Trent North, Kidsgrove and Talke. From his recent visit to the city, he knows that the ceramics sector is an energy-intensive industry and will be looking for more creative solutions in the short term to help with rising energy costs. Can he confirm that he will meet me and other Stoke-on-Trent MPs to discuss those ideas further?
Minister reply
I am always happy to meet my hon. Friends from Stoke, which benefited from not just one, not just two, but three successful levelling-up fund bids, and which I was pleased to visit recently. My hon. Friend is right and he is, rightly, a proper champion for the ceramics sector in this House. I enjoyed meeting representatives from that sector on my recent visit and I would be happy to meet him and them to discuss the situation further.
Question
We all know that the Chancellor is a fast-talking, slick operator who knows how to keep his head down when it is useful, but as someone who has been in the House since 1979, he is the most incompetent Chancellor that I have ever seen. When children go to bed—[Interruption.] He does not like it, but when children in my constituency go to bed with no food in their tummies and no heat in their homes, what does he think is the honourable position of a Chancellor who has just allowed £4.3 billion to be taken in fraud from one of his direct policies under his watch? Any other Chancellor that I have known would have come to the House today to resign.
Minister reply
I will let this Government’s record on economic policy speak for itself. It is a record of which I am proud. I can provide the hon. Gentleman with the reassurance that I and the Government remain committed to tackling fraud wherever we see it. He mentioned the figure of £4.9 billion. As I said to the House in oral questions on Tuesday, that estimate has already been reduced by a third—by £1.6 billion—because of the actions that we are taking. I will not go into them all now, but he should know that we will go after everyone wherever we can to recover that money for the taxpayer, and I am confident that we will do a very good job.
Question
This is a targeted package that helps those just about managing, which is entirely right. The last Labour Government closed six nuclear power stations and had a policy of no new nuclear. Does my right hon. Friend agree that, alongside these measures to help people in the short term, it is imperative that we invest in our long-term energy security—in domestic gas production, in renewables, and, crucially, in new nuclear?
Minister reply
My hon. Friend is absolutely right about some of the failures of policy that the Labour party propagated in power. That is being fixed by my right hon. Friend the Secretary of State of Business, Energy and Industrial Strategy. We are investing not just in new nuclear, as he said, with billions of pounds at the spending review, but in offshore wind, and—as he knows in his part of the world—carbon capture and storage and hydrogen, where Teesside is playing a starring role in that green energy revolution.
Ben Lake
PC
Ceredigion Preseli
Question
The Chancellor will be aware that nearly 20% of households in Wales are not connected to the mains gas grid. In rural areas such as Ceredigion, that figure actually rises to more than 80%. Research by the Office for National Statistics notes that Ceredigion suffered the highest increase in fuel bills over any area in mainland UK in the past year, increasing by £863 on average. Will the Chancellor confirm whether the rebate announced today will also apply to households that are not connected to the main power grids?
Minister reply
The hon. Gentleman makes an excellent point and one that colleagues not just in Wales, but in England and Scotland will also be asking, not least my own constituents. I can tell him that the rebate will be delivered through electricity bills to solve the exact problem that he mentions, which is much more universal. Separately, obviously, the council tax discount in England is through the council tax system, so it is agnostic to the heating source, and I would expect the Welsh Government, should they choose to do the same thing, to be able to solve that problem in that way.
Question
Quite simply, this is a superb plan—very well done. My right hon. Friend is right to question the Opposition’s idea of a windfall tax, given that Gordon Brown completely stifled the telecoms market in the late ‘90s by doing exactly the same. Speaking as the chair of the all-party group for district councils, I wonder whether my right hon. Friend will join me in thanking councils for once again being able to offer swift and agile responses to local communities and families in helping us to deliver this today.
Minister reply
As a former local government Minister, it gives me great pleasure to pay tribute to district councils and to the work of the District Councils’ Network. I do not know whether John Fuller is still running it, but it does an excellent job. Once again, when we need it to help us to deliver policies, it steps up. I can confirm also that it will have received new burdens funding for doing that, but I thank it for all its work, and my hon. Friend is right to champion it.
Diana R. Johnson
Lab
Kingston upon Hull North and Cottingham
Question
With the cost of living crisis, will the measures introduced today see an increase or decrease in children living in poverty by Christmas?
Minister reply
Thanks to Government actions since 2010, there are 200,000 fewer children in poverty. The best way to help is by finding jobs for their parents.
Caroline Johnson
Con
Sleaford and North Hykeham
Question
Can the discretionary £150 million fund ensure support for those living in military family accommodation who are not eligible for council tax?
Minister reply
The funding will be directed to cover exemptions such as those living off the gas grid, ensuring they receive help.
Karin Smyth
Lab
Bristol South
Question
How do the plans address prepayment metre customers facing high energy costs?
Minister reply
About 40% of households with prepayment metres will receive automatic rebates, while others will be supported through manual methods like barcodes and emails.
Philip Hollobone
Con
Question
How can pension credit outreach help residents in Kettering with rising energy bills?
Minister reply
The warm home discount will move to a more automatic system for those on pension credit, improving support.
Geraint Davies
Lab
Question
Correct the record on job numbers post-pandemic and explain the national insurance tax imposition.
Minister reply
There are 400,000 more payroll jobs than pre-pandemic. The Government have a proud track record of supporting jobs.
Steven Baker
Con
Question
Will the plan provide faster and more substantial help to constituents in Wycombe?
Minister reply
Residents in council tax bands A to D will receive £150 in April, more than a VAT cut would have provided.
Rachael Maskell
Lab Co-op
York Central
Question
What additional steps are taken to ensure older people and those with disabilities aren’t pushed into poverty?
Minister reply
Pensions will be protected with a double lock, and winter fuel payments will provide up to £300 support for pensioners.
Martin Vickers
Con
Brigg and Immingham
Question
Will the policy remain under review if energy prices continue rising?
Minister reply
The rebate of £200 will be provided in October, to help with potential further increases. The Government will keep this policy under review.
Mike Amesbury
Lab
Question
How is the support for hard-pressed families compared to fraudsters?
Minister reply
The support provided was at enormous scale, and now they are committed to going after anyone who has defrauded the Government with full force.
Sally-Ann Hart
Con
Hastings and Rye
Question
How do these measures target the most vulnerable in her constituency?
Minister reply
The £150 will be provided to those in council tax bands A to D, ensuring immediate relief for families who need it.
Sarah Jones
Lab
Croydon West
Question
The Chancellor’s package offers £350 off to the poorest households. Labour’s proposals offer £600 off to the poorest households. The cap has gone up by £693. Why is the Chancellor offering the poorest households so much less than they would get under Labour?
Minister reply
Those of us on the Government Benches believe that it is also right that we support those on middle incomes; those families are also working hard and they deserve our support. It is important that they know that the Government are on their side at times like this, and that is why we have taken the approach that we have.
Question
I welcome this generous plan, especially the inclusion of families on middle incomes, which will do a lot to help many of my constituents in Rushcliffe. Does my right hon Friend the Chancellor agree that now is the time for us to be investing in our domestic energy industry and energy security—in turbo charging our move to clean energy, as we are doing in the east midlands freeport, rather than risk driving investment from the UK with a counterproductive windfall tax as the Labour party would?
Minister reply
I agree with my hon Friend. She puts the point excellently. Government Members are in favour of more investment in domestic energy, more jobs for the British economy and greater energy security for our nation.
Question
With families facing an extra £2,800 of expenses, this package does not really touch the sides at all, does it? With regard to electricity, the Chancellor said: “with the Government meeting the cost in full.” But he is not is he? He is spreading it over five years, which means that next year, when electricity prices continue to rise, the poorest families will face increased bills and have to find £40 to pay back to the Chancellor. You have not put a lid on it, Chancellor, you have just kicked the can further down the road.
Minister reply
As my right hon Friend the Member for Harlow (Robert Halfon) said earlier, £350 is a significant amount of money for families up and down the country, and I think it will make a real difference and lessen their anxiety. What I was talking about was the council tax rebate, which will be fully Exchequer funded with no cash due back.
Mike Wood
Con
Kingswinford and South Staffordshire
Question
I thank my right hon Friend the Chancellor for meeting me and colleagues and responding so positively on this issue. He may remember that I asked him to ensure that any support extended to cover those just above benefit thresholds because they are often most in need of help. How does the support that he has announced today for those constituents compare with the suggestions made by Labour?
Minister reply
My hon Friend, as ever, makes a thoughtful contribution, and I enjoyed our conversations. He was right to champion those who are on middle incomes. As a result of those conversations with him and others, we have designed a package that does exactly as I think he would like to have seen.
Ruth Cadbury
Lab
Brentford and Isleworth
Question
A poll by Survation today reveals that 63% of the public support a windfall tax on oil and gas producers’ profits. It is not like this Government to ignore the polls so may I suggest that, rather than misnaming, as he did in his statement, a renewable loan as a discount, why not go for the windfall tax and give that money to our hard-pressed constituents?
Minister reply
We have had this debate. Conservatives believe in more investment in our domestic energy sector. We want to support British jobs and British energy security and we believe in doing the right, responsible thing.
Saqib Bhatti
Con
Meriden and Solihull East
Question
I thank my right hon Friend for these packages, which will help my constituents across my constituency. On the issue of a windfall tax, will my right hon Friend confirm that the Labour party’s call for a windfall tax would undermine competition in the market, reduce investment and kill off jobs? Ultimately it would mean that energy prices were likely to be higher for longer and hit the poorest the hardest.
Minister reply
My hon Friend is exactly right. Some 200,000 jobs are supported in that industry, and as I pointed out earlier, there are £11 billion-worth of projects waiting to get going.
Question
I thank the Chancellor for his statement. My constituents in Bassetlaw will be breathing a sigh of relief at his announcements today, which blow the Opposition’s VAT cut out of the water. The Chancellor mentioned wholesale prices; as we become more self-sufficient and move to renewables and new nuclear, is he able to outline what the Government and the Treasury are doing to tackle this problem at source? May I suggest the excellent step fusion project in Bassetlaw that we are bidding for?
Minister reply
I am grateful for my hon Friend’s support, and I am glad that this announcement will provide some reassurance to his constituents, who I know would be worried about the cost of living. We announced, I think, £120 million for advanced nuclear technologies in the spending review.
Question
I thank my right hon Friend for today’s statement, and for confirming that this significant £9 billion package is going to be targeted at those who need help most. He also highlighted that 80% of cost increases are coming from the global wholesale price increase, so is he going to continue his focus on trying to insulate the UK as much as possible from those global price fluctuations, increasing our energy security, boosting domestic production and ensuring that our energy supply is diverse in nature, sustainable for the future and significant in scale?
Minister reply
My hon Friend is absolutely right. It is important that we have diversity of supply: that is what we are doing, whether through offshore wind, nuclear, carbon capture and storage, or exploiting domestic gas.
Question
I welcome these targeted and fair measures that will help those who need help most. While Labour’s VAT plans would help by just £89, I welcome the fact that this council tax rebate will help 89% of households in Yorkshire and Humber—I have just had the figures through—with a £150 rebate. Will the Chancellor also confirm that those who fall outside the A to D bandings and who still need help will be able to get that help through the extra discretionary funding for local councils?
Minister reply
I am grateful to my hon Friend, because I know that this is an issue that was on his mind, and he wanted to make sure his constituents got the support they needed at a time of anxiety for them. I can confirm that the £144 million discretionary fund is there to take care of those people—we estimate around 300,000 people—who are on means-tested benefits and happen to live in council tax bands above A to D.
Question
I thank the Chancellor for the £350 help that will really benefit everyone in Rother Valley. Does he agree that it is right that this Government are helping not just those on means-tested benefits, but those not on benefits—the lower and middle-income families—because they also need a helping hand? It is great that this Government reward hard work and those who are doing the right thing.
Minister reply
My hon Friend is absolutely right. He has championed his constituents who are working hard and doing the right thing, and today’s announcement will give them reassurance that this Government and their Member of Parliament are on their side.
Richard Holden
Con
Basildon and Billericay
Question
Thank you very much, Mr Deputy Speaker; it is always a pleasure to see you in the Chair. Could my right hon Friend confirm that all UK households will benefit from the £200 smoothing rebate, and that almost 95% of County Durham residents will benefit from the £150 council tax rebate, including those who are off-grid—a similar proportion to the constituency of the right hon Member for Doncaster North (Edward Miliband), who I see has now scuttled away? That £150 is over 50% more than Labour’s VAT plan, which would have benefited the richest people most. Will the Chancellor continue to pursue a one-nation Conservative approach, not an inner London two-kitchen one?
Minister reply
There were so many excellent points in my hon Friend’s question. The only thing on which I will correct him is that the energy rebate is Great Britain-wide, because the Northern Ireland energy market is devolved and we do not have the legal powers or the regulator to do it there.
Shadow Comment
Rachel Reeves
Shadow Comment
While welcoming today's statement on rising energy prices, Rachel Reeves criticised the Government for not providing immediate support through a VAT cut as previously suggested by the Prime Minister. She pointed out that even after today’s measures, many families will still face hundreds of pounds more in energy bills from April. The Labour party proposed a £400 targeted support increase and an extension to 9 million households of the warm home discount, which she argued would be better for targeting those who need it most. She highlighted that the Government's scheme disproportionately benefits wealthier households compared to the poorest.
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