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T1. If he will make a statement on his departmental responsibilities.
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Since day one in the job, the Prime Minister and I have been in lockstep in our determination to meet Britain’s fiscal rules. This is the bedrock on which we build good growth and help give a bit of breathing space to families and businesses. We acted in the first week to cap bus fares, cut business rates for pubs, social clubs and live venues, and cut VAT on electricity bills. We have also announced further sanctions on Russia. We have changed procurement rules to back British jobs. We launched a new plan for growth from places right across the UK and £100 million to back British sovereign AI firms. This is a Labour Government who are determined to deliver good growth in every postcode and sound fiscal discipline.
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If the Treasury wants a quick trick to increase tax receipts from new employment, may I suggest that the Chancellor takes steps to boost rural bus connectivity? North Norfolk has independent operators such as Central Connect which, in spite of challenges facing the sector, has managed to double its bus frequency in Stalham and Hoveton. It wants to go further. Can he tell us how he will work with the Department for Transport to ensure barriers are lifted and support is provided to bring more buses to my constituents?
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I am disappointed that the hon. Gentleman did not recognise that capping bus fares must be a benefit to his constituency in Norfolk and a benefit to passengers. Beyond that, let me take his contribution as an early Budget representation.
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T3. Child trust funds were designed to give every child the same financial start, regardless of who they are. However, trust fund savings are currently taken into account when assessing an 18-year-old disabled person’s financial contribution to their social care, meaning that they do not get the same financial start as their non-disabled peers. What steps is the Minister taking to ensure that all young people benefit in full from their child trust fund?
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I am grateful to my hon. Friend for her question. She raises a concern about the interaction between matured child trust funds and adult social care assessments. The financial assessment framework to which she refers is a matter for the Department of Health and Social Care, but I am, of course, more than happy to facilitate a conversation with her and the relevant departmental Minister.
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I welcome the new shadow Secretary of State.
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Thank you, Mr Speaker. First, let me pay tribute to my own predecessor, my right hon. Friend the Member for Central Devon (Sir Mel Stride), and let me welcome the Chancellor to his role. He is already responsible for the highest borrowing costs for 28 years. One in six of our young people are unemployed and yesterday we had the news that one of Britain’s top taxpayers is leaving our country. Every time a billionaire leaves, our country becomes poorer. Chris Rokos is reported to have paid over £300 million in taxes last year. Could the Chancellor tell us how many average taxpayers it will take to replace him?
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I welcome the new shadow Chancellor to his place and thank him for his words. I welcome him back to the Treasury brief—perhaps Members on the Government Benches will have more to say about that later. I echo his comments about the right hon. Member for Central Devon (Sir Mel Stride), who has played an important role in this House, including his cross-party work during the pandemic as Chair of the Treasury Committee. We thank him for that as he steps down from the Front Bench.
The shadow Chancellor takes reports in the paper and tries to make serious points in this House. We will set out our plans at the Budget to give families and businesses a bit of breathing space, to back good growth in more places throughout this country, and to rebuild confidence in strong British fiscal discipline—something that was lost under the shadow Chancellor’s Government.
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The Chancellor does not know the answer. On the Treasury’s own statistics, it would take 38,000 average income tax payers to make up for the loss of Chris Rokos. That is a lot of breathing space paid for. It means higher taxes for everyone else, or lower public spending. We know what Labour will choose. The last Chancellor raised taxes on farmers, family businesses and jobs. Conservatives will reform welfare to cut taxes; Labour always puts them up. Which, if any, of his predecessor’s damaging decisions will the Chancellor reverse?
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The future of this country will be written in our growth rates, after 14 years in which we had low growth, high debt and a Budget that crashed confidence in the British economy. Under this Government, we have already seen a new way of generating growth in more places across the country. Members have seen the way that we will reform the centre of Whitehall, so that we cut through slow decision making, with public leadership and control made accountable to the people. I made announcements yesterday on the ways that we will go further to axe the thicket of administration, to back fast-growth firms, and to change the way that we generate investment across the country.
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T4. In areas such as mine in the east midlands, growth has been too low because spending has been too low. As life has become unaffordable, growth has fallen even further. We are seeing that with growth in my local area, as well as nationally, with a rising output gap. Will the Minister set out how making life affordable will make growth rise in Loughborough, Shepshed and the villages?
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My hon. Friend is an expert on those matters and is totally right to point to the importance of looking at the demand side of the economy. The Chancellor and Prime Minister have focused on just that, for example, with the cut to VAT on electricity bills and the reinstatement of the £2 cap on bus fares for 2027. My hon. Friend will also support the big focus on the supply side that the Chancellor talked about in his speech yesterday, improving the productive capacity of our economy, so that we can build more homes, labs, transport and power.
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T2. I doubt that businesses in East Yorkshire will have taken much comfort from the Chancellor’s words today. With youth unemployment spiralling out of control, what is his message to young people in my constituency unable to find a job as a direct result of the punishing business taxes of his predecessor?
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Employment levels have risen since the general election, but the hon. Gentleman is absolutely right to highlight that too few young people are getting the chance to move into work and to participate in education. That is exactly what the Milburn report is looking at, and I hope the hon. Gentleman will feed into that. However, we are not waiting for that report; the Government are already acting. That is what the jobs guarantee is doing, and why businesses that employ young people on universal credit will receive £3,000. It is right that there is a moral as well as economic imperative to get young people into work.