08 Apr
Question
Topical Questions

The topical question session held in the House of Commons featured a series of important exchanges between parliamentarians on issues ranging from economic and fiscal policies to defense and national security. Key talking points included the Labour Government's contrast with the SNP's perceived failures, defense spending boosts, and the economic implications of tariffs and trade policies. Discussions also touched upon support for businesses in light of current economic challenges, with particular emphasis on the UK's relationship with global trade powers and public services funding.

Several speakers challenged the Government's fiscal strategies, pointing to perceived deficiencies in planning and execution, particularly around tariffs and industry support during economically uncertain times. Notably, debates also centered on the Government's handling of welfare sectors, including child poverty and mental health investments, highlighting discrepancies across UK regions.

Most significantly, the session revealed contentious discourse around labor markets, taxes, and regional support, setting the stage for future policy directions and aligning party strategies ahead of forthcoming elections.

Outcome

The session underscored the existing divides within the UK Parliament over fiscal management, trade policies, and public investment. While the Government demonstrated confidence in its economic strategies, opposition scrutiny called for greater accountability and more nuanced policy responses, particularly in addressing regional disparities.

£9.9 billion

Fiscal headroom restored post-emergency budget

Statistics

  1. Fiscal Headroom: Highlighted increase back to £9.9 billion since the emergency Budget, indicating a larger financial buffer from prior policies.
  2. Defence Spending: Announcement of increasing defense spending to 2.5% of GDP by 2027, the largest since the Cold War period.
  3. Export Tariffs Impact: US-imposed tariffs cited as a constraint on UK exports.
  4. Investment in Transport: An £830 million funding allocation for West Yorkshire's transport infrastructure, reflecting large-scale regional commitments.
2.5%

GDP proportion directed to defense spending by 2027

£830 million

Funding towards West Yorkshire transport, marking significant infrastructural investment

Outcome

The topical question session demonstrated a robust parliamentary environment with active debate between opposing and governing parties. Key outcomes involved acknowledgments of economic progress under current policies while revealing existing pressures that could fuel electoral strategies. Crucially, the meeting provided a platform for future legislative priorities concerning fiscal stability, regional investments, and systemic reforms.

Key Contributions

Douglas McAllisterMP
Labour

Criticized SNP's track record of waste, contrasting with Labour's plans for transformational public service investments

Darren Jones

Defended government's approach to public service and economic reforms, highlighting increased fiscal headroom and urging a Labour-led government in Scotland.

Mel StrideShadow Chancellor
Conservative

Questioned the Government's fiscal headroom strategy, labeling it inadequate and seeking reassurance on future tax policies.

Catherine Atkinson
Labour

Highlighted Derby's defense sector importance and questioned the link between national and economic security.

Daisy Cooper
Liberal Democrats

Asked about electric vehicle incentives and support for the automotive industry amidst US tariffs.

Oliver Ryan
Ind

Inquired about support for businesses in Burnley, stressing economic revitalization needs.

Vikki Slade
Liberal Democrats

Called for VAT reductions in hospitality to counter rising costs affecting the industry.

Dan Tomlinson
Labour

Stressed need for increased local investment, particularly in Leeds, due to high housing costs in London.

Rachel Reeves

Affirmed defense spending boost and ongoing trade negotiations, addressing both local and international economic implications.

Original Transcript
Douglas McAllister
West Dunbartonshire
Lab
Question
UIN: 903681

T1. If she will make a statement on her departmental responsibilities.

The Chief Secretary to the Treasury
Darren Jones

Mr Speaker, you shocked me by moving to topical questions so quickly, but I have now found my page and am ready to answer them.

Mr Speaker

You need to get a new watch!

Darren Jones

From ferries to the National Care Service, we have seen failure after failure from the SNP in Scotland, including a track record of waste.

In contrast, this Labour Government are tackling waste and investing in frontline services such as our national health service, which has seen waiting lists fall for each of the past five months in England.

We hope that the people of Scotland will soon have the opportunity to experience such a transformation.

Douglas McAllister

The Chancellor set out in the spring statement a clear plan to drive better value for taxpayers, including through the transformation fund, which will transform frontline delivery while making savings in the long term.

Does he agree that that is in stark contrast to the SNP Scottish Government’s record of waste?

Darren Jones

As my hon. Friend knows, we have given the Scottish Government the largest increase in spending since devolution began. The people of Scotland expect that money to be spent well, which we are doing in England by transforming public services and improving the national health service.

However, given that SNP Members are not present in the Chamber today, the people of Scotland need to know that they will have to elect a Labour Government in Scotland later next year for that to happen.

Mr Speaker

I call the shadow Chancellor.

Mel Stride
Central Devon
Con

It was obvious to many before the emergency Budget that the President of the United States was going to be slapping tariffs on our exports.

May I therefore ask the Chancellor why it was that she came forward at the emergency Budget with a recklessly slender slither of headroom—the same headroom that she had at the time of the autumn Budget, which proved then to be entirely inadequate.

She blew that headroom and more due to her disastrous economic choices.

Darren Jones

I am sorry to disappoint the shadow Chancellor, but I am afraid that, because of the ordering of questions, he is stuck with me. To answer his question, he will have seen at the Budget that we increased the fiscal headroom back to our agreement of £9.

9 billion, which was more than the headroom that we inherited from the Conservative party.

The key difference is that this is a Government who take economic and political stability seriously, because when a Government lose control of the economy, they lose control of family finances and, ultimately, end up in opposition.

Mr Speaker

Just to correct the record, the Order Paper has not changed at all in topicals.

Darren Jones
12:33

My apologies, Mr Speaker. It was our ordering that caused the problem, not the ordering of questions in the House. The right hon.

Gentleman knows that tight decisions were taken at the Budget, but we have been very clear that we are working hand in glove with businesses to be able to bring growth back to the economy and to ensure that investment—private sector and public sector—is coming forward.

As he will know, from his time of swimming underwater, this Government are taking a different approach to fiscal discipline, and he should welcome that.

Catherine Atkinson
Derby North
Lab
12:34
Question
UIN: 903685

T5. The defence sector is a vital part of our local economy in Derby, particularly with the landmark £9 billion deal struck with Rolls-Royce, which is supporting the Royal Navy’s submarines and providing a major jobs boost.

Does the Chancellor agree that national security goes hand in hand with economic security and, in turn, financial security for households?

The Chancellor of the Exchequer
Rachel Reeves

The first duty of any Government is to keep the nation safe. That is why we are increasing defence spending as a share of GDP to 2.5%—the biggest sustained increase in defence spending since the end of the cold war.

Derby has a vital role to play within the UK’s defence sector, particularly in nuclear engineering and aerospace, as demonstrated by the landmark £9 billion deal with Rolls-Royce, which will create up to 1,000 jobs in the city and protect thousands more.

Mr Speaker
12:35

I call the Liberal Democrat spokesperson.

Daisy Cooper
St Albans
LD
12:35

I welcome the fast action by the Government to convene the automotive industry in reaction to President Trump’s damaging tariffs, but the measures in and of themselves will not create new export markets or stimulate demand here in the UK.

Will Ministers look at Liberal Democrat calls to reintroduce the plug-in car grant and equalise VAT for electric vehicle pavement charging? Will the Government instruct the valuation office to scrap business rates for EV charging bays until the transition is complete?

Oliver Ryan
Burnley
Ind
12:36
Question
UIN: 903686

T6. What is the Chancellor doing to support businesses and boost wages in towns such as Burney, Padiham and Brierfield, which were forgotten for 14 years under the previous Government?

Rachel Reeves

My hon. Friend is doing great work supporting local businesses in Burnley, including the digital marketing start-up Door4, which I know he has been championing.

Vikki Slade
Mid Dorset and North Poole
LD
12:37
Question
UIN: 903682

T2. I have been contacted by many local businesses, including the Cross Keys pub in the Holt Heath nature reserve and the BEAR café in Wimborne. They are two different venues in two different locations, but both tell me that these are the most extreme trading conditions ever seen in hospitality.

With national insurance, minimum wage and energy and food costs, will the Chancellor consider a reduction in VAT on hospitality sales to protect high streets and local producers and to save our communities?

The Exchequer Secretary to the Treasury
James Murray

I am unclear, given the hon.

Lady’s remarks, whether she is opposed to the increase in the national minimum wage, but she should know that we have extended support for businesses in business rates relief this year, which would have been ended entirely under the plans we inherited from the previous Government, and there will be permanently lower multipliers for retail, hospitality and leisure premises on the high street from April 2026.

Dan Tomlinson
Chipping Barnet
Lab
12:38
Question
UIN: 903687

T7. As a north London MP, I know that tackling the high housing costs in this city is a priority for my constituents. It is my belief that one route to that is investing in the country as a whole, so that we are not just flying on one London-shaped engine.

To that end, did you know, Mr Speaker, that Leeds is the largest city in western Europe that does not have a tram or a mass transit system? That is a damning indictment of decades of economic failure.

Will the Chancellor do all she can to ensure that the Leeds tram is built as fast as possible so that her constituents and mine can be better off?

Rachel Reeves

Hear, hear. I had better declare an interest as a proud Member of Parliament for Leeds West and Pudsey. West Yorkshire combined authority is receiving £830 million for transport spending through round 1 of the city region sustainable transport settlement.

That includes £200 million for the development of a mass transport system. For too long Leeds has lacked this. This Government will put that investment in and get those trams running.

Wendy Morton
Aldridge-Brownhills
Con
12:39
Question
UIN: 903683

T3. With the jobs tax and the increase in business rates, and as a result of US tariffs, it is vital that we stimulate the UK economy. What is the Chancellor’s plan, and can she expect us to see interest rates fall? Perhaps if she was listening to the question, she would be able to answer.

James Murray

I think that was a question about business rates reform. As the right hon. Lady will know, we published a discussion paper on transforming business rates. I am sure that the right hon.

Lady will have read and responded to that, so I will look out for her consultation response in what we have received. Transforming businesses rates is about ensuring that we make the business rates system fit for the future to support investment and business growth right across the UK.

Dr Allison Gardner
Stoke-on-Trent South
Lab
12:39
Question
UIN: 903688

T8. Will the Minister join me in congratulating Goodwin International, which is building a multimillion-pound production unit in Newstead in Stoke-on-Trent South, creating up to 100 jobs in defence manufacturing?

Does he agree that increased investment in defence spending will have a tangible impact on my constituents, fuelling jobs and local investment?

Darren Jones

Yes, and I congratulate my hon. Friend on championing jobs and businesses in her constituency. As she knows, the Prime Minister and the Chancellor have confirmed that defence spending will increase to 2.

5% of GDP by 2027 and that a minimum of 10% of the Ministry of Defence equipment budget will now be spent on novel technologies such as drones and artificial intelligence, which will create highly skilled jobs and drive benefits to the wider economy, including in her constituency of Stoke-on-Trent South.

Mr Richard Holden
Basildon and Billericay
Con
12:40
Question
UIN: 903684

T4. Earlier, in response to my hon. Friend the Member for Grantham and Bourne (Gareth Davies), the Chief Secretary rejected Labour’s Climate Change Committee’s advice regarding aviation policy. That also goes directly against what the Energy Secretary had committed to.

Who in Government should we believe when it comes to aviation policy?

Darren Jones

The right hon.

Member knows that we are supporting airport expansion alongside investment in things like sustainable aviation fuel to be able to reduce carbon emissions from long-haul flights as well as supporting investment into decarbonised surface transport, to help people get around the country and to their airports.

Opposition Members might want to welcome investment into this country, as opposed to talking it down.

Margaret Mullane
Dagenham and Rainham
Lab
12:41

Will the Minister introduce a 12-month delay to the incoming change in taxation for double-cab pick-up trucks? The manufacturers and their commercial customers feel that they have had insufficient time to adjust to the new changes this month.

Can he share with us any impact assessment work carried out on the reclassification of double-cab pick-ups and what effect it would have on the sector in Britain?

James Murray

We have engaged with the automotive sector on this issue, and there are generous transitional arrangements in place to mitigate the impact.

The Government have had to take difficult decisions, but at the autumn budget 2024 we prioritised long-term support for growth-driving sectors, including more than £2 billion over five years to support the automotive sector.

Wera Hobhouse
Bath
LD
12:41

Ineffective energy trading with the EU is a major barrier for global investors. According to Energy UK, we are losing out on £30 billion of investment in interconnectors alone. What will the Government do to improve our energy trading with the EU to unlock this vital opportunity?

James Murray

The Prime Minister’s plan for change sets out our ambitious but achievable target of clean power by 2030.

The clean power action plan demonstrates the significant investment requirements to reach that target, including in renewable infrastructure, and the actions that we will take to facilitate that.

We have already taken action to remove the de facto ban on onshore wind in England, approved major solar projects and delivered a record-breaking renewables auction.

Josh Fenton-Glynn
Calder Valley
Lab
12:42

The last Government left 4.5 million children in poverty, but, like many colleagues, I am alarmed that the impact assessment of the spring statement suggests that that number will rise, not fall. Will the Minister tell me when we can expect the results of the child poverty taskforce?

Will they be delivered in time to influence decisions in the spending review?

Darren Jones

My hon. Friend knows that the Government are committed to reducing child poverty and that we will be bringing forward a child poverty strategy later this year.

It will look at levers that support households to increase their income, such as supporting parents into secure employment, supporting progression in the labour market and considering social security reforms. I confirm that the work of the taskforce is feeding into the spending review.

Nick Timothy
West Suffolk
Con
12:43

The Chancellor talked earlier about the Government’s response to the new US trade policy, but what are the Government doing about China’s abuse of the world trade system? In particular, what will they do to challenge China’s status as a developing country at the World Trade Organisation?

That is the means by which China dodges so many of the rules imposed on countries such as Britain and others in the west.

Rachel Reeves

Trade issues are for the Secretary of State for Business and Trade, but I will say this.

There are rightly concerns about global trade imbalances, but the response of the United States by putting tariffs on all countries—including the UK, which does not have a trade surplus—is a disproportionate response to a genuine problem of global trade imbalances.

Bill Esterson
Sefton Central
Lab
12:44

I very much welcome the Chancellor’s commitment to investing in life sciences in this country.

May I encourage her to support the bid for a national mental health diagnostics and research centre in my constituency, not least because poor mental health is estimated to cost this country up to £300 billion a year in lost economic production?

Carla Lockhart
Upper Bann
DUP
12:45

On 30 October, the Chancellor upended our economy through tax rises and punitive death taxes. She has delivered a devastating blow to family farms and small family businesses—the very backbone of our economy. When will the Chancellor recognise that she is elected by the people, for the people?

Every day that she avoids engaging with the farming community is another day of wilful neglect. Our farmers are being driven out, not by market forces but by a Government blind to their struggles and deaf to their voices. When will she listen and speak with them?

James Murray
12:46

As the hon.

Lady and I have discussed in several debates in recent months, the decision we took on agricultural property relief and business property relief was difficult, but it was the right and balanced one to ensure we protect family farms and small businesses while fixing the public finances in a fair way.

Fixing the public finances is in the interest of every Member of this House and all the constituents we represent, because it underpins the investment we are putting into the future of this country and into getting the economy growing.

Johanna Baxter
Paisley and Renfrewshire South
Lab
12:46

Many thousands of my constituents in Paisley and Renfrewshire South work in and rely on public services that are on their knees after 18 years of under-investment by the SNP Government at Holyrood. Will my right hon.

Friend set out how the views of my constituents will be reflected in the spending review?

Rachel Reeves
12:47

Because of the decisions that we made in the Budget last year, we were able to provide a record settlement for Scotland, Wales and Northern Ireland. It is a shame that the SNP MPs are not in the Chamber today.

It is now the SNP’s responsibility to spend that money wisely and invest in public services. We are bringing down NHS waiting lists in England and Wales; the same cannot be said of Scotland.

James Murray
12:49

I was sorry to hear about the hon. Lady’s constituent’s experience with, I assume, His Majesty’s Revenue and Customs.

Even though, as the Minister with responsibility for HMRC, I cannot get directly involved in individual cases, I am happy to raise it with HMRC and make sure that it gives the matter proper attention to try and resolve it.

Baggy Shanker
Derby South
Lab/Co-op
12:48

Local businesses have huge potential to create local growth in our community. It was fantastic to see my right hon. Friend the Chief Secretary to the Treasury visiting Derby South earlier this year and engaging with business leaders.

Does the Minister agree that continued engagement with business leaders is absolutely key to building the business confidence that we so desperately need and which was shattered by the previous Government?

Darren Jones
12:48

I thank my hon. Friend for his question and for the invitation to join him in his constituency. I very much enjoyed the regional reception with business leaders, as I have done in every region and nation across the country during the spending review.

We will continue to work hand in glove with them to unlock investment, create jobs and create growth for everybody, across the whole country.

Jim Allister
North Antrim
TUV

Earlier, when the Chancellor was talking about the impact of tariffs, she pledged that the Government would act in our national interest.

How can it be in the whole national interest, so long as the trade laws governing Northern Ireland are not the trade laws of the UK but those of a foreign jurisdiction, namely the EU?

Mr Speaker

We have an urgent question shortly.

Rachel Reeves

We inherited the settlement made by the previous Government, as the hon. and learned Member will know. There is a summit between the UK and the EU on 18 May where we will be looking to reduce the barriers to trade between the whole of the United Kingdom and the European Union.

We recognise the specific issues around Northern Ireland, particularly in regard to the response to the tariffs, and we will continue to work with the Executive there to ensure that we get the best outcome for the people of Northern Ireland.

All content derived from official parliamentary records