PARLIAMENTARY DEBATE
Topical Questions - 8 September 2026 (Commons/Commons Chamber)

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.

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?

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.

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.

I welcome the new shadow Secretary of State.

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?

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.

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?

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.

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.

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.

Order. I really am struggling to get all Members in—it is now 29 minutes past 12, and we have not even got through the topicals list. I ask Members on both Front Benches to help me to help them.

Fiscal decisions are taken at the Budget, but I join my hon. Friend in urging the Welsh Government to consider extending the support that we have given to English pubs to pubs in Wales.

As I said a moment ago, decisions on fiscal matters are taken at the Budget, but I urge the hon. Gentleman to urge the Scottish Government to follow the UK Government’s example by providing support to pubs in Scotland, too.

My hon. Friend is right that the Truss mini-Budget means that families with a new mortgage are now paying £600 a year more and the Government are paying more for our borrowing—money that we could be spending on schools and hospitals. The shadow Chancellor is the same man who at the weekend said that there were “lots of good things” in the Truss mini-Budget. With Labour, Britain is starting to turn the corner; it is clear that with a new shadow Chancellor, the Tories are turning back to Liz Truss.

I thank the hon. Lady for raising this important issue. I would be very happy to meet her.

Very briefly, I would like to congratulate my beautiful, long-suffering Kiwi wife on completing her citizenship ceremony today in North Somerset. Will my right hon. Friend the Chancellor set out how the Government’s investment can support the development of more local schemes for young people in North Somerset?

I thank my hon. Friend for his question and congratulate his wife on what is a significant achievement; I am sure the whole House is supporting her. He is absolutely right that we want to see more young people having the income, opportunities and purpose that work provides, which is why it is welcome that employment is up. However, we do need to do more. We will keep providing national insurance relief for employees aged under 21 and apprentices under 25, and we are rolling out our youth hubs, including in North Somerset.

We are improving funding for local government as a result of the spending review, and I would be happy to meet the hon. Gentleman to discuss that further. It is also obviously a question for the Ministry of Housing, Communities and Local Government.

When CoalWorks in my constituency fundraised for a defib, the charity London Hearts reached out to it. Because it is a charitable organisation, there was no VAT on the purchase, meaning that CoalWorks could afford to buy two. However, when the Kings Arms in Coleorton recently fundraised, it had to pay VAT because it did not go via a charity partner. Will the Minister make an assessment of the potential impact of removing VAT on defibs for community-based purchases?

I congratulate the organisation in my hon. Friend’s constituency for successfully fundraising for two defibrillators. As she knows, decisions on fiscal matters are taken at the Budget. She makes a powerful case, but we have to evaluate whether VAT reliefs are passed on in full to consumers. That is one of the key considerations when taking decisions of this sort.

We are providing a 20% cut in business rates for pubs in England. I urge the Scottish Government to do the same for Scottish pubs.

When the Bank of Scotland closed its Larkhall branch, it left the town with no high street bank. It is a problem not only for Larkhall but for nearby villages including Ashgill and Netherburn. I am grateful to Treasury Ministers for engaging with me on this issue over the last few months. What can the Government do to support towns like Larkhall and protect face-to-face banking services in rural communities?

I want to be really clear about this: people who need in-person banking must be able to access essential services, including those in rural communities. That is exactly why I commissioned the independent review on access to banking services, which will gather data about current access to banking services. It is the Government’s intention for there to be a power in the Financial Services and Markets Bill to allow the Government to act on that review.

In his previous role, the Chancellor demonstrated that he is a man of principle who is able to advocate for change, even when politically difficult. Where the evidence shows that Labour policies are harming businesses and jobs, will he also advocate a change of course?

The difficult choices that we have had to make are why NHS waiting lists are falling in the hon. Gentleman’s constituency and why his own police chief constable said that

“increased officer numbers will enable us to further tackle issues such as antisocial behaviour, theft and drug-related crimes.”

The hon. Gentleman is a man who, unfortunately, on the day of the mini-Budget spoke up in this Chamber and said that it was a “vote of confidence” in the whole UK economy. The only regret he must have is not being more enthusiastic—otherwise he would be shadow Chancellor.

UK Finance estimates that two thirds of all fraud cases are enabled online. Jonathan Fisher’s recent review into fraud recommended that an anti-fraud levy be placed on digital and communications platforms. Will the Minister meet me to discuss how we ensure that economic crime enforcement agencies are properly funded to protect us all from predatory scammers on the internet?

Fraud is the most common type of crime in this country, and its impact can be truly devastating for individuals and businesses. That is why this Government are committed to tackling it, including via the doubling of the economic crime levy. The Fisher review made a number of recommendations, including about the role of technology companies. We are considering those recommendations very thoroughly.

The Northern Ireland Executive have been without a budget this year, and in the last six months the Secretary of State for Northern Ireland has been engaging with the Executive parties. What latitude or support has the Chancellor given the Secretary of State for Northern Ireland to enable a budget to be agreed in Northern Ireland, and what steps will the Government take if the Northern Ireland Executive are unable to set a budget?

I can reassure the hon. Gentleman that I am working extremely closely with the Secretary of State for Northern Ireland who, as he will know, is in discussions with all the parties in the Northern Ireland Executive. We need to make sure that a budget is set for Northern Ireland so that the Executive can continue to deliver vital local public services.

I was pleased to see that the Chancellor was in the west midlands yesterday meeting manufacturing apprentices alongside Mayor Richard Parker. What conversations has he had with the mayor about using new devolution powers to invest in local skills and employment, and what will he do to make sure that young people in Wolverhampton North East get more local opportunities to benefit from?

Indeed, the West Midlands Mayor, Richard Parker, is using the powers that he has, including recently by stepping in and taking action to improve bus services across the west midlands. Yesterday he stepped in to provide support for the Jaguar Land Rover workers who may face redundancy and will certainly be well placed to get further jobs.

May I welcome the Chancellor to his position and thank him for his kind remarks earlier? May I also wish him every success, because I am afraid that under this Government we need some? He will know that if we are to fix the economy, we have to fix the welfare bill. Will he give a commitment today that at the Budget next month, he will come to the House with a comprehensive plan for how he will arrest the burgeoning welfare bill? He and I know that failure to do so will lead to millions of hard-working people and hundreds of thousands of businesses up and down the country facing unnecessary and unacceptable tax increases.

The right hon. Gentleman sets out the challenge facing the country in the long term. That is exactly why we have commissioned Alan Milburn and the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for East Ham (Sir Stephen Timms) to do the reviews they are currently doing. When they produce them in the autumn, we will look at them and act on the recommendations.

What conversations has the Chancellor had with the Department of Health and Social Care on providing compensation to those harmed by valporate and vaginal mesh, as per the Hughes report, which was published over two years ago?

I reassure my hon. Friend that I am working extremely closely with the Health Secretary and discussing overall levels of NHS spending—of course, the Department has the biggest budget across the Departments. The NHS is performing well, but I will take back the specifics that she mentioned.

Monifieth in my constituency is home to over 9,000 people and is the central connection point for a vast rural community across Angus. Despite an application in 2023, a banking hub was denied because the regulations are not fit for rural communities. Will the Minister commit to meet me to discuss how those regulations impact rural communities and see if we can finally get Monifieth the banking hub that it needs?

I will indeed meet the hon. Member. The issues she identifies are exactly why we had a commitment in our manifesto to work with industry to roll out 350 banking hubs over the course of the Parliament. We are well on track, with 282 banking hubs having already been announced, so we are running way ahead of schedule.

In recent weeks, the fast fashion online retailer Shein has been valued at a fraction of its price when it listed in Hong Kong, in part due to the treatment of low-value imports in the US and Europe. With that in mind, I welcome the Government’s decision to end the £135 de minimis relief by October 2028, but what more can be done before then to level the playing field for British retailers?

My hon. Friend is right to highlight the importance of removing the low-value imports relief and levelling the playing field with high streets. As she will know, my predecessor announced in June that we are bringing forward the implementation of the measure to October 2028 to benefit high streets across the country as quickly as possible.