← Back to House of Commons Debates
Economic Growth
07 September 2026
Lead MP
Emma Reynolds
Debate Type
Ministerial Statement
Tags
EconomyEmploymentForeign AffairsEnergy
Other Contributors: 43
At a Glance
Emma Reynolds raised concerns about economic growth 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
At the G20 in North Carolina, the Chancellor and I discussed global economic challenges that are impacting the UK's economy. Despite these challenges, Britain has shown resilience, with the fastest growth in the G7 and a reduction in Government borrowing. The Labour Government aims to address long-term pressures on public finances and put debt on a sustainable path. The Prime Minister has identified centralisation, privatisation of economic fundamentals, and de-industrialisation as the issues causing economic problems. To address these, the Government will work to devolve power and resources to local leaders and exert public influence over essentials like transport and housing. The Chancellor announced a £150 million northern scale-up fund to back innovative firms in the north and a new strategic partnership with key regions through the National Wealth Fund. The Government will also support investment, boost innovation, and improve job opportunities. This includes reducing barriers to private investment, doubling the number of unicorns in the UK, and improving technical education. The plan for growth is underpinned by fiscal discipline, strategic government, and enabling greater public direction. It aims to create wealth and prosperity across the country.
Richard Fuller
Con
Bedford
Question
The shadow questioned the continuity of the Chancellor and policies, the cost of Government borrowing, the independence of the investment decisions in the northern scale-up fund, and the extent of the permanent transfer of power to the regions. He also questioned the reduction in the discount rate and the Government's ability to identify unicorns. The shadow asked for a date when Mr Milburn will make his recommendations on youth unemployment.
Minister reply
The Minister did not provide a direct response to the specific questions raised by the shadow. However, she emphasised the Government's commitment to fiscal discipline, devolving power to local leaders, and supporting business growth and innovation. The Minister did not address the specific concerns about the northern scale-up fund, the discount rate, or the identification of unicorns raised by the shadow.
Richard Fuller
Con
Bedford
Question
Fuller thanked the Minister for her statement and questioned the continuity of the Government's policies. He expressed concern about Jaguar Land Rover and the high cost of energy affecting British manufacturing. He also inquired about the northern scale-up fund and the independence of investment decisions. Fuller questioned the reduction of the discount rate and the identification of unicorns, suggesting that the policy is similar to Government picking winners. He asked for a timeline for Alan Milburn's recommendations and criticised the Government for not addressing energy costs and tax certainty.
Minister reply
Emma Reynolds responded by acknowledging Fuller's points and emphasising the Government's commitment to fiscal discipline and reducing borrowing costs. She highlighted the Government's support for Jaguar Land Rover and the automotive industry, noting the loan guarantee provided after the cyber-attack. Reynolds assured the independence of investment decisions for the northern scale-up fund and the devolution of power to regions. She disagreed with Fuller on the discount rate reduction and explained the rationale behind it. She also clarified that the policy for identifying unicorns is to support growth and innovation.
Meg Hillier
Lab
Hackney South and Shoreditch
Question
Meg Hillier welcomed the Chief Secretary's statement on the independence of the British Business Bank's new fund and the need for consistent policy approach. She asked about the oversight and scrutiny of public spending by regionally elected mayors, highlighting the need for accountability and consequences if the spending is not effective.
Minister reply
Emma Reynolds thanked Meg Hillier for her question and agreed on the need for public financial institutions to make independent decisions. She emphasised the Chancellor's new strategic priorities for the National Wealth Fund and the importance of oversight for devolved powers. Reynolds mentioned the role of Members of the House in holding mayoral strategic authorities accountable when receiving new powers.
Charlie Maynard
Lab
Brent Central
Question
Charlie Maynard questioned the Government's economic policies, particularly regarding the impact of Brexit on GDP and tax revenues. He proposed negotiating a growth and defence partnership with the EU, including joining the single market and customs union. He criticised the fiscal rules as easily gameable by successive governments and suggested learning from other countries' budget processes.
Minister reply
Emma Reynolds acknowledged the fall in UK exports since 2022 and linked it to Brexit barriers. She emphasised the importance of fiscal discipline and stated that the Government is reducing the deficit at the fastest rate in the G7. She also discussed efforts to reduce trade barriers with the EU, particularly in the agrifood industry.
Nesil Caliskan
Lab
Walthamstow
Question
Nesil Caliskan asked the Minister to reassure constituents that industrialisation and job creation priorities will reach her constituency in outer London.
Minister reply
Emma Reynolds agreed that the situation in London is complex, acknowledging the economic powerhouse status of London alongside high levels of poverty in many parts. She assured the MP that the Government will focus on Barking and other parts of London.
Desmond Swayne
Con
New Forest West
Question
Desmond Swayne questioned the Prime Minister's assertion that the UK had the fastest growth in the G7 despite Brexit.
Minister reply
Emma Reynolds stated that the UK could be even further ahead of the pack.
Graham Stringer
Lab
Blackley and Broughton
Question
Graham Stringer raised concerns about the high cost of energy for UK businesses compared to international competitors.
Minister reply
Emma Reynolds acknowledged the high cost of energy for UK businesses and highlighted the British industrial competitiveness scheme to mitigate this.
Mark Pritchard
Con
The Wrekin
Question
Mark Pritchard noted the high cost of borrowing and rising mortgage rates due to bond market concerns.
Minister reply
Emma Reynolds emphasised the need for fiscal discipline to underpin economic security and commitment to meeting fiscal rules.
Salford and Eccles
Question
Rebecca Long-Bailey asked how the Government will ensure detailed local industrial strategies that build domestic productive capacity and supply chains.
Minister reply
Emma Reynolds reassured that mayoral strategic authorities will take forward these strategies, highlighting the success in the hon. Member's area.
Question
Bobby Dean raised the issue of local businesses being affected by national insurance and business rates rises.
Minister reply
Emma Reynolds did not directly address the issue but suggested that the Chancellor would address this in the next Budget.
Question
Callum Anderson welcomed the focus on using the state as a strategic partner to help innovative companies scale up.
Minister reply
Emma Reynolds reassured that the Government will work across Departments to open up public procurement to smaller and start-up businesses.
Esther McVey
Con
Tatton
Question
Esther McVey asked whether the Government believes that putting up taxes is good or bad for economic growth.
Minister reply
Emma Reynolds stated that sometimes it is necessary to fund improvements in the NHS and to fill the £22 billion fiscal black hole inherited from previous governments.
Gareth Snell
Lab
Stoke-on-Trent Central
Question
Gareth Snell made a pitch for the Midlands, highlighting specific challenges in his constituency and the wider region.
Minister reply
Emma Reynolds acknowledged the importance of the Midlands and the success of the ceramics support package in the region.
Question
Calum Miller asked about an 'infrastructure first' approach along the Oxford-Cambridge growth corridor.
Minister reply
Emma Reynolds confirmed the Government's determination to speed up infrastructure provision and mentioned her personal interest in the corridor.
Chris Curtis
Lab
Derby North
Question
The MP expressed concern over the inefficiency and cost of consultations for infrastructure projects, including East West Rail and Sizewell C, and asked how the government would improve the efficiency of decision-making and project implementation.
Minister reply
The Minister acknowledged the impatience and shared the goal of getting things done. She mentioned that the Attorney General would provide guidance to Ministers on where consultations are necessary and emphasised the government's commitment to quicker decision-making.
Steve Barclay
Con
North East Cambridgeshire
Question
The MP questioned the government's stance on consultations, noting the contrast between the Secretary of State's decision to pause local government reorganisation due to legal risks and the Chief Secretary's statement about ending the consultation culture.
Minister reply
The Minister explained that the government aims to get local government reorganisation right and highlighted the importance of considering legal risks and public views.
Chris Hinchliff
Lab
Hull West and Frocester
Question
The MP inquired about the government's plans to address the trade deficit, which has been in surplus since 1998.
Minister reply
The Minister noted that the government is considering putting the issue of global trade imbalances on the agenda for their G20 presidency.
Kirsty Blackman
SNP
Aberdeen North
Question
The MP criticised Labour's failure to deliver promised funding and jobs to Scotland and asked about additional powers to be devolved to Scotland as a result of the decisions being made.
Minister reply
The Minister responded by pointing out the devolution Scotland has already received and questioning the success of SNP government over the past two decades.
Brian Leishman
SNP
North East Fife
Question
The MP, citing child poverty statistics in Clackmannanshire, questioned the government's approach to economic growth and asked for a more redistributive approach to wealth, including taxing multimillionaires and billionaires.
Minister reply
The Minister agreed that child poverty is unacceptable and highlighted the government's efforts to lift the two-child benefit cap and reduce child poverty.
Bradley Thomas
Lab
South Shields
Question
The MP asked how many more job losses would have to occur before the government changes course, in light of Jaguar Land Rover's recent announcement of 4,000 job losses.
Minister reply
The Minister mentioned the government's support for Jaguar Land Rover, including £4 billion in capital and research funding, and expressed empathy for the workforce facing voluntary redundancies.
Rachael Maskell
Lab
York Central
Question
The MP inquired about the government's commitment to the BioYorkshire project and the investment and spending of funds for the project.
Minister reply
The Minister emphasised the need to drive win-win outcomes, deliver infrastructure and jobs while limiting consultations, and expressed willingness to address the specific question later.
Robert Jenrick
Con
Newark
Question
The MP criticised the Chancellor's recent speech for not addressing issues such as scrapping electric vehicle mandates and lowering energy costs, and questioned whether the government's policies are harming the British car industry.
Minister reply
The Minister disagreed with the notion that the government's policies are harming the car industry.
Chris Kane
Lab
Peterborough
Question
The MP asked about the government's assessment of the economic benefits of helping more young people into secure work and assured young people starting education or training that the government is working to ensure economic conditions for job opportunities.
Minister reply
The Minister highlighted the government's commitment to young people, aiming for parity between technical and university education, and driving good growth across all postcodes.
Gavin Williamson
Con
South Staffordshire
Question
The MP, representing a constituency with Jaguar Land Rover employees, asked for a commitment to ensure a quick consultation on the zero emission vehicle mandate.
Minister reply
The Minister thanked the MP for his question and confirmed that the consultation would be held quickly.
Andrew Pakes
Con
Dover
Question
The MP welcomed the Minister to her new role and asked for assurance that the government will support the building society movement and mutual economy.
Minister reply
The Minister assured the MP of the government's commitment to the mutual economy and highlighted the innovative products and support provided by building societies.
Ellie Chowns
Green
Islington South and Finsbury
Question
The MP criticised the government's rhetoric on privatisation and water ownership, and questioned the government's commitment to fair and sustainable growth.
Minister reply
The Minister disagreed with the notion of 'trashing nature and the climate' and emphasised the need to support renewable projects while addressing climate change.
James Naish
Con
Waveney
Question
The MP asked for the government's commitment to revisit limits on schemes such as the A46 and meet to discuss investment in the Midlands region.
Minister reply
The Minister reassured the MP and mentioned that one of their trailblazer projects is with Birmingham, the heart of the West Midlands.
Sarah Dyke
Lab
Glastonbury and Somerton
Question
The Chancellor promised growth in every postcode, which must include rural communities such as Glastonbury and Somerton, yet rural England’s productivity sits at just 69% of the non-rural rate. What is the Chief Secretary doing to create opportunity in the countryside and unleash the full potential of rural Britain?
Minister reply
The hon. Member will know that rural communities are close to my heart, given my previous ministerial role and because I have a semi-rural constituency. There is huge potential in rural communities. The Prime Minister visited rural Cornwall in his first few weeks in the job. We will do more, and we are doing more, to improve local transport and rural connectivity, including the £2 cap on bus fares.
Amanda Martin
Lab
Portsmouth North
Question
Too often decisions have been made in Westminster with an assumption that investment, opportunity and growth flow naturally to the south, but in reality Portsmouth has been ignored and faces real pressure on housing, transport and education. Will the Minister work with me to ensure that my city and the people of Portsmouth are no longer an afterthought but at the heart of the Government’s plan for growth and opportunity?
Minister reply
I can absolutely give my hon. Friend that reassurance. The Government are intent on driving good growth and job creation opportunities across the country—in the north, the south, the midlands and every other part, too.
Andrew Murrison
Con
South West Wiltshire
Question
The Government insisted on applying the social time preference rate to the disastrous Chagos deal to make an appalling deal look slightly better. Will the Minister confirm that the changes she has announced today as part of her Green Book revision will increase the cost of that deal by £288 million, which is 10 times the amount that she proposes to cut from the Army training budget this year?
Minister reply
The Green Book discount rate is a tool of economic analysis. It does not change the cost of the deal.
Question
Will the Minister confirm that the reforms to judicial review of infrastructure will apply to the West Yorkshire mass transit project? Does she consider that project to be nationally significant infrastructure?
Minister reply
We are working with the mayor on that issue. Our colleagues will get back to you on that.
Llinos Medi
PC
Ynys Môn
Question
The Sea Shanty café on Ynys Môn is desperate for hope. Paying 20% VAT is simply unsustainable. Hospitality is a major employer on the island, but our businesses are being squeezed by rising costs. Cutting VAT to 10% would be a quick win, driving growth by giving businesses some breathing space and protecting jobs. Will the Chief Secretary consider that?
Minister reply
The Prime Minister is clear that the hospitality sector is close to his heart. It is one that he worked closely with when he was Mayor of Greater Manchester. Earlier this summer we announced the business rate reductions for pubs, social clubs and live music venues, and we will go further in the Budget.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Question
The Minister will know from her previous ministerial role that the cost of fuel is the single most important business cost for rural businesses. I am not asking her to write the Budget today, but will she convey to the Chancellor the importance of continuing the fuel duty freeze for rural businesses beyond the end of December?
Minister reply
As I outlined to the hon. Member for Glastonbury and Somerton (Sarah Dyke), it is right that we focus on rural communities as well as urban areas and city regions. I will convey that message to the Chancellor, but I will not be writing the Budget right now.
Steffan Aquarone
Con
North Norfolk
Question
The Government talk a lot about how they will create economic growth. There is no way for them just to legislate their way to growth; there are, however, plenty of ways to legislate against it, as small rural businesses in North Norfolk know only too well. Will the Minister tell those rural businesses what she is doing to help them grow? More importantly, what things that get in their way will she stop doing?
Minister reply
As I said to the hon. Member for Glastonbury and Somerton (Sarah Dyke), we take the economic success of rural communities really seriously. We are improving connectivity, whether digital connectivity or local transport connectivity, to ensure that the areas are more successful, but there is obviously more to be done.
Julian Lewis
Con
New Forest East
Question
For some years I have known the proprietor of a small to medium-sized aviation company that has come up with revolutionary aircraft designs with both civilian and military applications, but every time the Government of the day have ended up supporting the big operators in this field. How will the right hon. Lady’s new policy towards unicorns benefit somebody like that?
Minister reply
The right hon. Gentleman is right to raise this issue. As I have said, we have given strategic steers to the public financial institutions to ensure that they are focusing on regional growth, and that is also about opening up opportunities for the kinds of businesses that he has mentioned.
Sammy Wilson
DUP
East Antrim
Question
The Chancellor has rightly identified trade frictions as a major impediment to economic growth. As a result of the Windsor framework, the internal market in the UK has been severely disrupted by EU-imposed restrictions on trade, which mean customs unions, mountains of paperwork and physical barriers. What steps does the right hon. Lady intend to take to remove this barrier to economic growth in Northern Ireland?
Minister reply
I can reassure the right hon. Gentleman that when I was Environment Secretary I visited the port of Belfast and saw the kinds of checks that were going on there. The sanitary and phytosanitary agreement that we are negotiating with the EU will help to reduce that friction.
Tom Gordon
SNP
Glasgow Central
Question
The Chief Secretary talks about £150 million for investment in the north. How much of that funding is actual new capital expenditure from this Government, or is it simply a repackaged, reannounced sum of money for the north?
Minister reply
It is money that already sits with the British Business Bank, but the change is the focus on the north, on scale-up businesses, to ensure that we unleash their growth potential. We are not announcing new funding; we never said we were.
Iqbal Mohamed
Lab
Dewsbury
Question
Dewsbury and Batley is the capital of furniture, bed and upholstery manufacturing in the UK, but after Brexit it lost a lot of its export business. What are the Government going to do to support furniture, upholstery and supply chain manufacturers in Dewsbury and Batley as part of their investment in the north?
Minister reply
The trade deals that we are doing, and also the reset of the relationship that we are taking forward with the EU, will bring down barriers with our biggest and closest market.
Ian Sollom
Lab
Birmingham Erdington
Question
The Minister cites our world-class universities and an ambition to double the number of UK unicorns that run frontier technologies such as quantum and AI, but does she recognise that those breakthroughs often come from the curiosity-driven frontier physics research in our universities, and that that research base now faces a £700 million funding gap?
Minister reply
UKRI—UK Research and Innovation—invests in that sort of research, and the Government will continue to do that through UKRI.
Shockat Adam
Lab
Leicester East
Question
I, too, am a bit concerned that the Minister is missing a page of her statement, because there has been no mention of the east midlands. The Prime Minister was right when he blamed Margaret Thatcher for picking winners and abandoning whole regions, and that appears to be happening to the east midlands this time. In my constituency, Leicestershire and Rutland receives a grand total of zero pounds in infrastructure investment. On skills funding, Leicester gets £11.30 per head, compared with £52.10 in Greater Manchester and £66.19 in the west midlands, which is six times more. Can she reassure me, the people of the east midlands and my constituents in Leicester South that we will not be left behind?
Minister reply
I can reassure the hon. Gentleman; the east midlands and the west midlands are really important. The changes that the Chancellor outlined to the discount rate today will benefit places such as his constituency, because they will ensure that we value the longer-term benefit of regional investment projects more fairly. As we have said, we will drive growth in every postcode and that includes his constituency.
Ayoub Khan
Lab
Birmingham Yardley
Question
The concept of devolution and localisation is to empower local communities by bringing the decision-making process closer to them. In Birmingham, the city council is being forced to relinquish its planning powers to the regional mayor. That is anti-devolution. Does the Minister agree, and what will she do to ensure that the council does not lose its planning powers?
Minister reply
I would disagree, because the mayoral strategic authorities are about local authorities coming together in a combined authority and working together across the borders of the west midlands—an area I know extremely well. This is about driving growth and driving good decisions across the region.
Adnan Hussain
Lab
Blackburn
Question
The Chief Secretary has promised good growth in every postcode. Blackburn has the talent, the institutions and the major employers—such as EG On the Move—that are willing to invest in local people, but we need Government investment to match that ambition. Will the Chief Secretary make Blackburn a test case for this plan and back an employer-led jobs and skills partnership to create good local jobs?
Minister reply
We are working in close partnership with business, and the hon. Gentleman is right to say that we have to unleash talent and business investment in his own constituency and elsewhere, but as I said to the Chair of the Treasury Committee, the way that the public financial institutions work is by independently assessing the potential of firms and then backing them. That is what the Chancellor was talking about today. We set the strategic priorities and those independent economic organisations assess projects for their potential.
Shadow Comment
Richard Fuller
Shadow Comment
The Minister's statement did not offer any new policies or changes, merely continuity with the same Chancellor and policies. The shadow criticised the high cost of Government borrowing and the impact of increased borrowing. The shadow questioned the independence of the new northern scale-up fund and the extent of the permanent transfer of power to the regions. The shadow also criticised the reduction in the discount rate from 3.5% to 3% despite rising borrowing costs. The shadow questioned the Government's ability to identify and support unicorns and the date for Alan Milburn's recommendations on youth unemployment. The shadow called for the Government to address high energy costs, provide certainty for businesses, and rule out tax increases.
▸
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.