Topical Questions

Answer from Rachel Reeves

We are on the right path with the right economic plan. Unemployment is down, the economy is growing, interest rates have been cut six times, last year Government borrowing was lower than it was the previous year and is set to fall by more than in any other G7 economy. At the same time, the Government are acting responsibly on the world stage. This is a war that we did not start, we did not enter, and we are working with our international allies to de-escalate. Our focus is on protecting family finances, supporting businesses and taking care with the public purse to improve Britain's economic resilience.

Answer from Rachel Reeves

Just a couple of weeks ago, I hosted an event in Downing Street where I met people who are benefiting from the change in the two-child limit and people who had campaigned for that change. Mums told me that they were going to use the money to pay for their kids to go to after-school clubs with their friends, swimming lessons that they could not afford before, or a new school coat rather than a second-hand one. That is the difference that this money is making to families up and down the country. I am proud to be the Chancellor who has scrapped the two-child limit.

Answer from Rachel Reeves

To start with, let us remember that the plans we inherited from the last Government would have seen fuel duty go up straightaway; the plans that we inherited from the last Government would not have seen £29 billion of investment a year in our NHS; and the plans that we inherited from the last Government would have seen business rates for our high street businesses—our retail, hospitality and leisure businesses—go up straightaway. We did make the decision to change that inheritance because we thought it was the right thing to do, and we still do. The International Monetary Fund confirmed that we have the fastest rate of fiscal consolidation of any country in the G7, and our borrowing as a share of GDP fell to 4.3% in the last financial year and is due to fall in every single year of this Parliament. This is the first time that our deficit has been lower than 5% since 2019.

Answer from Rachel Reeves

The right hon. Gentleman would have increased fuel duty and business rates; we reduced them instead. We are reducing the budget deficit, now below 5% of GDP for the first time in six years, leading the Bank of England to cut interest rates six times since our election mandate.

Answer from Rachel Reeves

We have taken action on energy prices, fuel duty, prescription charges, and rail fares. We introduced the Renters' Rights Act 2025 and are helping people with mortgages. We will also help those in the private rented sector to ensure they do not become poorer due to conflicts.

Answer from Dan Tomlinson

This Government inherited plans for an independent revaluation of properties. We then put in £4.3 billion of support to limit increases, introduced a differential within the business rates system, and continue to review all taxes.

Answer from Rachel Reeves

I thank my hon. Friend for that question. While other parties—specifically Reform and the Conservatives—wanted us to enter this war, we stayed out of it, and are working to de-escalate the conflict and reopen the strait of Hormuz. The economy was growing, interest rates were coming down and inflation was falling. As a result, every month since I have become Chancellor, wages have risen by more than inflation, easing the cost of living pressures that the previous Government oversaw.

Answer from Dan Tomlinson

I am always happy to take questions on business rates, even months after the decision set out at the Budget, and I thank the hon. Member for reading out the Labour manifesto. We have made significant changes to business rates by introducing the new lower multiplier for high street businesses so that they can pay a lower tax rate than the largest online giants.

Answer from Rachel Reeves

My hon. Friend is absolutely right that although Reform-led Worcestershire council said that it would cut taxes, it has instead put them up. That is why I urge people in Redditch and across the country to vote Labour on 7 May.

Answer from Lucy Rigby

The Government recognise that the LISA is not working for everyone, and have launched a short consultation on a new ISA product to support more first-time buyers. The new product will include the Government bonus paid at the point of withdrawal for home purchase.

Answer from Rachel Reeves

The energy profits levy remains in place for now, capturing profits made by UK companies during conflicts. The Conservative opposition opposes this tax, which would just mean higher profits for oil and gas companies.

Answer from James Murray

Spending funded by bonds must adhere to fiscal rules, but the Minister acknowledges the importance of research and development within the defence industry. Last year, £400 million was allocated for UK defence innovation.

Answer from Rachel Reeves

Strengthening statutory sick pay is part of Labour's commitment to make work pay, and USDAW's efforts have been recognised.

Answer from Lucy Rigby

This Labour Government are committed to enabling more people to realise the dream of home ownership. Mortgages have become more affordable under this Government, thanks to increased economic stability and six interest rate cuts.