Commons Sense

House of Commons · Ministers' Questions

Management of Public Finances

Tuesday 3 December 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 2 Partly answered 3 Not answered 0

Key points

  • Jennifer Craft (Thurrock) (Labour) questioned the Government on the sound management of public finances and the impact of family farm tax on her constituents.
  • The Treasury maintains that only 25% of estates will pay additional tax under the family farm tax policy, contrary to external estimates.
  • Harriet Cross (Gordon and Buchan) (Conservative) requested a meeting with the relevant Minister to discuss a plan to save the Grangemouth refinery and prevent job losses.

Topics (select to filter)

Questions & Answers

Q1 Jennifer Craft Lab Thurrock
Economy
Context

Concern over government spending and fraud during the pandemic.

Question

What steps she is taking to help ensure the sound management of public finances. My constituents expect the Government to treat taxpayer money with the utmost respect. However, during the pandemic the Conservatives handed out contracts to their friends and donors and failed to prevent fraud, using the crisis as a cover for their greed. Does the Chancellor agree with me that that money belongs to the taxpayer?

Answer from Rachel Reeves

My hon. Friend's constituents in Thurrock are right to be angry about the waste and corruption that happened under the previous Government. That money belongs to the British people and in our public services, not in the pockets of fraudsters taking advantage of a national emergency. Tom Hayhoe will leave no stone unturned in investigating the carnival of fraud that the previous Government presided over, including in PPE contracts.

Answered
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Q2 Jennifer Craft Lab Thurrock
Agriculture & Rural Affairs
Context

Concern over the number of farms impacted by the family farm tax, with a calculation from experts suggesting five times more than the Treasury's estimate.

Question

The Treasury consistently insists that only 500 farms a year will be impacted by the family farm tax. However, the Central Association for Agricultural Valuers calculates that the real number will be five times higher and will include many farms in my Gordon and Buchan constituency. Who is right: the Treasury or the experts?

Answer from Rachel Reeves

We have published the detail of how that money is raised, but the numbers from His Majesty's Revenue and Customs are very clear: only a quarter of estates will pay any additional tax. At the moment, the vast majority of agricultural property relief is enjoyed by a very small number of very large and very expensive estates.

Partly answered

Not addressed: Did not provide clarification on who is right between Treasury or experts.

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Q3 Harriet Cross Con Gordon and Buchan
Economy Employment Scotland
Context

Concern over job losses at the Grangemouth refinery, which costs £100 million annually to run with an economic contribution exceeding £400 million per annum.

Question

I declare an interest: I am a member of Unite the Union. The Grangemouth refinery costs £100 million a year to run, and its economic contribution to Scotland exceeds £400 million per annum. Unite has a credible plan to save the refinery and prevent thousands of job losses. Will the Treasury consider the plan, and meet me, Unite and the refinery owners to discuss its viability and Government intervention for the public good?

Answer from Rachel Reeves

I am happy to arrange a meeting between my hon. Friend and the relevant Minister.

Answered
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Q4 Brian Leishman Lab Alloa and Grangemouth
Economy
Context

Concern over government commitments to avoid further borrowing or tax increases, with the Prime Minister not repeating those words.

Question

Last week, the Chancellor told the CBI conference that she would not come back 'with more borrowing or more taxes'. Last Wednesday, the Prime Minister hung her out to dry and refused to repeat those words. Will she repeat them today and rule out any more borrowing or any more taxes—yes or no?

Answer from Rachel Reeves

At the Budget in October, we had to fill a £22 billion black hole left by the previous Government. We will never have to repeat a Budget like this one, because we will not have to clear up the mess of the previous Government ever again.

Partly answered

Not addressed: Did not provide a direct yes or no answer.

How: Clearing Up The Mess Of The Previous Government

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Q5 Nick Timothy Con West Suffolk
Economy
Context

Concern over economic uncertainty due to delay in multi-year spending review and confusion about Cabinet colleagues' spending plans.

Question

A cornerstone of sound management is economic certainty, but this Government seem to specialise in creating economic uncertainty; most recently they did so by delaying the date for the critical multi-year spending review. It looks like the Chancellor does not have a grip on either her Cabinet colleagues' spending plans or her own plans for public sector productivity. Which is it—or is it both?

Answer from Rachel Reeves

The hon. Gentleman talks about uncertainty, but he was a Minister in the Treasury under Liz Truss, when huge damage was done to families' and businesses' finances. Frankly, I will take no lessons from Conservative Members on how to run the economy.

Not addressed: Changed subject to criticise previous government's handling of finances.

How: Damage Done To Families' And Businesses' Finances

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Q6 Richard Fuller Con North Bedfordshire
Economy
Context

Concern over government's ability to manage its budget, including fiddling figures for borrowing and lack of headroom.

Question

The Chancellor may find that in her job, she needs to listen and learn lessons. One of the many criticisms of the last Budget was that the Government fiddled the figures to borrow more money, and still left little headroom for if their forecast went wrong. Since the Budget, business confidence has collapsed, putting further pressure on that headroom. Does the Chancellor have a problem with balancing her books, and will she, like Oliver Twist, be coming back for more?

Answer from Rachel Reeves

The hon. Gentleman will know that there is more headroom in our Budget in October than was left by the previous Government. The lesson I have learned is that I will never play fast and loose with the public finances, as the Conservative party did.

Partly answered

Not addressed: Did not provide a direct answer on whether there is a problem balancing books or future borrowing plans.

How: Previous Government'S Economic Management

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