It is clear that the world is changing, which is why we must bring about a new era of security and renewal to keep our country safe. Last week, I convened European Finance Ministers at the G20 to discuss our shared challenges. I set out that national security will always be the first responsibility of this Government as well as national security being the bedrock for economic prosperity.
I was also proud to welcome President Zelensky to Downing Street alongside the Prime Minister at the weekend, where we signed a loan agreement that will deliver £2.26 billion in funding to Ukraine above our other commitments to bolster its military capacity, repaid by the profits from frozen Russian sovereign assets. We will use the additional investment in defence to create more good jobs paying decent wages in all parts of the UK. That is why we are giving the National Wealth Fund a new strategic steer to invest in technologies that better support our security and defence. Britain is a strong country with strong defences, and I know that we can weather this changing world.
As the father of five-year-old, I know at first hand how important indoor play facilities are. Providers in Cannock Chase, such as the Beach Hut in Norton Canes and the Kids Rule Play Cafe in Cannock, have written to me asking for consideration for a sector-specific VAT reduction and the opportunity to shape the reform of business rates. Is Treasury Minister willing to meet me, local providers and the Association of Indoor Play to discuss the sector’s priorities?
The Government have no plans to consider zero rating indoor play facilities for VAT. All tax breaks must provide value for money and evidence suggests that such savings are only partially passed on. I would, however, welcome my hon. Friend engaging with us as we look to inform our “Transforming Business Rates” paper ahead of the Budget later this year.
I call the shadow Chancellor of the Exchequer.
How many jobs will the right hon. Lady destroy as a result of her jobs tax?
I know that the right hon. Gentleman will have looked at the OBR forecast from the Budget last year, which forecasted that employment will rise in this Parliament, unemployment will fall and real household disposable income will increase. That is a far cry from the last Parliament, which was the worst on record for living standards.
I am surprised that the right hon. Lady did not reference the fact that the OBR also said that there would be 50,000 fewer jobs as a result of the NICs increase; indeed, Bloomberg put that figure at 130,000 jobs. It does not need to be that way. On 26 March, the right hon. Lady should come to this House with a spring statement containing a clear plan around welfare savings, which we had when we were in Government. Will she now confirm that she is prepared to do that with our support and put an end to the pernicious tax increase?
The right hon. Gentleman and his party had 14 years to reform the welfare system. They failed to do so, but this Government will. We are turning the British economy round after the disaster left to us by the previous Government: three cuts in interest rates since the general election, real wages rising at their fastest rate for three years, fuel duty frozen, the payslips of working people protected, and millions getting a pay rise through an increase in the national living wage. That is the change that this Government are delivering; that is the change that the Opposition are blocking.
Order. I call Jacob Collier.
Order. Answer, please.
My hon. Friend is a fantastic campaigner for the breweries in his constituency. We want the drinks sector to go from strength to strength. We are reviewing the responses to the consultation on the threshold that my hon. Friend mentioned.
This Government, as the hon. Member will know, has already given £26 billion of additional funding to the national health service and additional funding to the Ministry of Housing, Communities and Local Government for social care. We know that we have more to do. The Government are working hard on that and will set out further details in due course.
Unlike the Conservatives, we believe that investing alongside private industry is good for jobs and good for economic growth. I visited the National Wealth Fund’s offices last month where I heard at first hand about its equity investment in Cornish Metals. This will help to finance the reopening of Cornwall’s South Crofty tin mine, creating more than 300 local jobs, and—
Order. Look, enough is enough. I have to get Members in from both sides. I am sorry that the Front Bench does not want to get these Members in, but I am determined to. These are called topical questions, which means I want quick questions and certainly short answers. I call the Father of the House, Sir Edward Leigh.
I very much agree with the right hon. Gentleman. This is why I met my fellow European Finance Ministers in Cape Town at the G20 last week. All of Europe needs to step up. The British Government are doing so and we need to see that from other countries, too.
Impacts on ODA budgets are currently under review by the Government. Our commitment is to prioritise legal obligations and minimise disruption. We will confirm details in due course, but I will happily meet my hon. Friend and colleagues to discuss this further.
We have to decide whether we are for growth or against growth. This Government are for growth and we will set out further details of this particular project when the developers come forward with their plans for the Government to consider.
To ensure that we protect the country from the devastating impacts of flooding, we have committed £2.65 billion over 2024-25 to 2025-26 to improve flood defences, and we have established a flood resilience taskforce to feed into our decisions on future spending, which will report in due course.
We have frozen the small business multiplier this year and we will be introducing permanently lower multipliers for retail hospitality and leisure premises from April 2026, which will benefit pubs. Meanwhile, they also benefit from our decision to increase the duty relief for draft products.
What are this Government doing to ensure innovation in UK tech companies, such as Kao Park in my constituency, so that they can drive economic growth as part of world-class AI computer ecosystems?
Harlow is home to one of the UK’s largest supercomputers. We are taking forward the AI action plan and we also have the tech adoption review, which will look at how we can unlock the potential of AI in our high-growth sectors.
As part of the reforms announced at the autumn Budget, we are modernising the system for people from overseas spending time in the UK with a new residence-based test. We are always looking at ways to encourage people from overseas to spend time in and invest in the UK and to help grow our economy.
I congratulate the Government on announcing the greatest level of financial sanctions last week. Does the Chancellor agree that keeping dirty money out of the City of London and homes and communities across our country is vital for our national security, as well as our economic stability?
It is absolutely right that we increased and stepped up the sanctions last week. Also, under the loan agreement we made with Ukraine last week, the loan will be repaid with the profits on foreign sovereign Russian assets. Russia should pay for the damage it has done.
My constituent is one of hundreds of people who suffered from the collapse of Collateral. While the Financial Conduct Authority has apologised to investors for failing to act faster to stop Collateral’s fraudulent activities, I am concerned that, without internal changes, the FCA will make similar mistakes again. Should there not be an investigation into the FCA’s handling of the case?
I am happy to meet the hon. Lady and look at the case she mentions, because I need to get more detail.
The Transport Committee has looked at the economic growth case for the Heathrow expansion and has heard conflicting evidence on the project’s growth impact on regions away from London and the south-east, and also on other carbon-using sectors. Will the Chancellor ask Heathrow Airport to release the full text of the Frontier Economics report on which she made her decision to expand Heathrow?
Heathrow, as an important hub airport, will have benefits for regions across the country, as chambers of commerce have said to us. Of course, I understand that the Transport Committee is looking at the issue, and we will consider its report when it publishes it in due course.
St Raph’s hospice in my constituency faces a £140,000 increase in staff costs due to the Government’s national insurance hike. That means the hospice will have to further cut staff services that take pressure off the NHS. Will the Chancellor think again and provide an exemption for healthcare providers from the national insurance rise?
The Chancellor set out our Budget, and I set out during debates on the Finance Bill and related legislation exactly how we will implement the changes announced at the Budget. In the case of employer national insurance contributions, there are defined ways in which public sector organisations are reimbursed. The changes do not apply to hospices, as they are largely charities or are not directly part of the public sector. I also point him to the £100 million of extra investment that we have announced in improving hospices.
Does the Minister agree that investment in the fifty500 midlands growth corridor will provide an excellent opportunity to deliver this Labour Government’s mission for growth and opportunity for all?
I join my hon. Friend in celebrating investment in her region. Our growth mission is one in which each part of the country will benefit, and we look forward to working further with her.
With farmers protesting again in Westminster today, why is the Chancellor of the Exchequer running away from meeting farming unions from across this nation? Why do those who feed our nation not deserve some of the Chancellor’s time?
Just two weeks ago, I spent a fair amount of time meeting representatives from the National Farmers Union and other representative organisations from different nations within the UK. I listened to their concerns and what they had to say. We have to be honest that we disagree. They do not agree with the Government’s policy, and I need to be direct about that because we had to take a number of difficult decisions at the Budget. But I do not apologise for the importance of balancing the public finances and sticking to our fiscal rules.
Next month will see a rise and an extension to the minimum wage. In Portsmouth North, there are 9,600 minimum wage workers—higher than the national average—leaving many in in-work poverty and in desperate need of a boost to living standards. What steps are the Government taking to help improve living standards for those low-paid workers?
My hon. Friend is absolutely right that a higher minimum wage is an important way that we make low-earning workers’ lives better—as is the extension that we announced to sick pay yesterday, which I hope will be welcomed on all sides of this House.
The art of taxation is extracting the largest amount of money with the lowest amount of squeaking from the goose. Yet the Chancellor will have heard the honking of the tractors on Whitehall today in response to her raising an amount of money that will pay for less than one day of NHS spending. Will she commit to reversing the family farm tax?
As we have debated several times in this Chamber and Westminster Hall, the changes to agricultural property relief and business property relief retain a generous relief for people accessing those benefits within the taxation system. That means that people will get £1 million before inheritance tax is due, in addition to the existing nil rate band for spousal transfers. Over that, it is up to an effective rate of 20%, and any money due can be paid over 10 years, interest free.
The Government’s recent £100 million investment in hospices, including St Michael’s hospice in Basingstoke, will help to modernise facilities, enhance digital services and provide more comfortable spaces for patients and their families. Given the vital role that hospices play in all our communities, will the Treasury continue to work with the Department of Health and Social Care to ensure the sector’s long-term financial stability?
As my hon. Friend rightly points out, £100 million is being made available for hospices—£25 million in 2024-25 and £75 million from April 2025. That capital funding is intended to help charitable hospices in his constituency and elsewhere across the country to improve and modernise their facilities and physical estate.
Britain is only 55% food secure. In these deeply uncertain times internationally, is it not time to change policy when it comes to agriculture? Is this not the day to get rid of the family farm tax, undo the 76% cut in basic payments and invest in the people who keep us food secure?
As I have made clear to other hon. Members, the changes to agricultural property relief are a fair way to raise the money necessary to balance the public finances. Britain has excellent food security, and that is a priority for the Government.
It is right that the Government have put more money into defence. However, in answer to a previous question, the Chief Secretary to the Treasury said that there is an impact assessment of the overseas development budget. Does that mean that it is still in scope of the spending review and that there could be changes to that budget in June?
Just to clarify, I did not say there was an impact assessment; I said that the impact of the changes is being considered by the Government, but we will set out the detail on that in due course.
I commend the Government for their international leadership at this challenging time. Events overnight make it even clearer that Europe must find considerably more resources for Ukraine. The Chancellor has rightly continued our policy of using the interest on frozen Russian state assets to benefit Ukraine, but I believe that now is the moment to go further by actually seizing those assets. Russia’s invasion of Ukraine violates the principle of sovereign equality, providing a basis in international law for such a policy, and by acting in concert with our allies, we can ensure that there are no risks to financial stability. May I urge the Chancellor to push for co-ordinated action to seize those frozen Russian state assets and give that money to the Ukrainians so that they can defend and rebuild their country?
I thank the right hon. Gentleman for his words about this Government stepping up the funding for defence. Last week, we expanded sanctions on Russia, including by looking at financial services. This week, we have signed off a UK Export Finance package to provide more military support, above and beyond our defence spending and as well as the loan repaid using the profit on those assets. As the Prime Minister said yesterday, we would look at going further but, as the right hon. Gentleman knows, it is incredibly complicated to do that in line with international law. However, we keep all options on the table, because, as he is absolutely right to say, Russia should pay for the damage that Russia has caused.