Commons Sense

House of Commons · Ministers' Questions

Sustainable Public Finances

Tuesday 29 October 2024 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 4 Not answered 0

Key points

  • The Government are committed to sustainable public finances and have set robust fiscal rules to balance costs with revenues and reduce debt.
  • The Chancellor announced plans to build 1.5 million homes during this Parliament to address the rising number of people in temporary accommodation.
  • The Government set a 2% productivity target for all Departments to ensure efficient use of resources for frontline services.

Topics (select to filter)

Questions & Answers

Q1 John Grady Lab Glasgow East
Economy
Context

The question arises from a Treasury assessment showing the government inherited a £22 billion black hole in public finances.

Question

What steps she is taking to help ensure sustainable public finances. The government inherited a £22 billion black hole, and I took immediate action against it.

Answer from Rachel Reeves

This Government are committed to sustainable public finances, unlike two of the Opposition parties. A stable economy built on stable public finances is a key foundation for growth. Our manifesto sets out robust fiscal rules to balance day-to-day costs with revenues and get debt falling as a share of our economy.

Partly answered

Not addressed: Specific steps or actions taken by the government to address the £22 billion deficit are not detailed

How: Committed, Stable Public Finances

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Q2 John Grady Lab Glasgow East
Economy Taxation Scotland
Context

The question is about the honesty of government communications on public finances, contrasting with Scotland's SNP approach.

Question

Does my right hon. Friend agree that being honest and transparent about the state of public finances is the right thing to do? The Government need a long-term plan to fix the foundations of our economy, unlike the chaotic approach by the SNP in Scotland leading to budget cuts.

Answer from Rachel Reeves

This Government are committed to sustainable public finances. Our manifesto includes robust fiscal rules to balance day-to-day costs with revenues and get debt falling as a share of our economy, fixing the foundations of our economy.

Partly answered

Not addressed: Specific honesty or transparency measures not provided

How: Committed, Stable Public Finances

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Q3 Josh Babarinde Lib Dem Eastbourne
Housing
Context

The borough council in Eastbourne spends a significant amount on temporary accommodation, leading to calls for support from the Chancellor.

Question

Will the Chancellor commit to supporting councils with the cost of temporary accommodation? The number of people in temporary accommodation is rising, and we need a solution. We propose investing in preventing homelessness.

Answer from Rachel Reeves

The hon. Member is right; the number of people in temporary accommodation is scandalous. The Government are committed to building 1.5 million homes during this Parliament, which will bring down the cost and ensure all families have a secure roof.

Answered

Not addressed: Null

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Q4 Meg Hillier Labour (Co-op) Hackney South and Shoreditch
Education Economy Employment
Context

A 2% in-year efficiency target has been set for Departments, prompting concerns about its robustness.

Question

What is she doing to ensure the 2% productivity target is applied robustly? The previous government had a Health and Social Care Department target only. There's concern that departments might defer decisions to avoid meeting targets.

Answer from Rachel Reeves

The Government set a 2% productivity target for all Departments, not just Health and Social Care. Ministers are determined to deliver against these targets to ensure resources for frontline services like schools, hospitals, and police.

Partly answered

Not addressed: Specific measures to enforce the robustness of the target are lacking

How: Determined

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Q5 Nick Timothy Con West Suffolk
Economy
Context

The last Government's policy led to increased interest rates and mortgage costs.

Question

Under the last Government, the Chancellor said that interest rates were driven by Government policy. Will the Chancellor guarantee that neither will rise higher than they did under the Conservatives?

Answer from Rachel Reeves

The previous Government crashed the economy with a mini-Budget, sending interest rates and mortgage rates soaring. We will set out our Budget tomorrow including fiscal rules on day-to-day spending through tax receipts and borrowing only to invest.

Not addressed: Future guarantee on interest rates not provided

How: Crashed The Economy, Borrowing For Day-To-Day

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Q6 Alan Mak Con Havant
Economy
Context

The Chancellor announced changes to debt rules allowing more borrowing, with Treasury advice suggesting this could keep interest rates higher.

Question

Last Wednesday, the Chancellor announced changes to the debt rules. However, published Treasury advice warns that increasing borrowing risks keeping interest rates high for longer. Does she agree?

Answer from Rachel Reeves

In Washington, I was pleased to hear IMF say it's important countries borrow to invest in capital infrastructure. Our plans inherited from the previous Government would reduce capital spending as a share of GDP. We will set out our Budget tomorrow with rules for day-to-day spending through tax receipts and borrowing only to invest.

Partly answered

Not addressed: Specific agreement on Treasury advice not provided

How: Pleased, Borrowing To Invest

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