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

May I first pay tribute to all those who responded to Saturday’s horrendous attack: the quick-thinking driver, the emergency services, and the heroic LNER staff member Samir Zitouni who bravely saved the lives of passengers? The Government were elected to break a cycle of decline. We have returned the public finances to a firm footing, invested in Britain and begun to rebuild our economy. But times remain challenging: global uncertainty is dampening growth and increasing the cost of borrowing; while inflation remains too high and productivity too low. In the face of those challenges, my task is clear. At the Budget later this month, I will continue to build the strong foundations to secure Britain’s future, protect our NHS, reduce our national debt and improve the cost of living for a fairer, more prosperous Britain with an economy that works for everyone.

I am proud that the Government have invested £250 million in putting solar panels on schools and hospitals. In Stroud, we have a programme whereby, through community energy funding, we will put solar panels on every school in the area. I was going to ask the Chancellor about Treasury rules that were blocking that, but I heard from her answer to my hon. Friend the Member for Congleton (Sarah Russell) that that may no longer be the case. Will she confirm that that block has been removed?

Order. We are on topicals, so I need speedy questions.

It was good to see my hon. Friend and the engineering company Redler in Downing Street yesterday. On the issue about schools, as I said in answer to my hon. Friend the Member for Congleton (Sarah Russell), the scheme is now reopened. I have not had a look at the schools mentioned by my hon. Friend the Member for Stroud (Dr Opher). There may be some issues with maintained schools, but we are looking into that and are keen to work with him to ensure that schools in his constituency—indeed, schools in all hon. Members’ constituencies—can benefit from the scheme.

I call the shadow Minister.

What is the Chancellor’s definition of “working people”?

A working person is somebody who goes out every day to earn their income. They rely on prices that are affordable in the shops, low interest rates and taxes that are as low as possible, but also public services that work for them, like the NHS, where waiting lists have already come down by more than 200,000.

That is a very broad definition. Maybe the Chancellor should speak to the Prime Minister, the Transport Secretary, the Education Secretary and the Chancellor of the Duchy of Lancaster, who have all given different definitions of working people over the last 12 months. After last year’s Budget, the Chancellor said that she had wiped the slate clean, but that was not true, Chancellor, was it? She said that she would not be coming back with more taxes, but that was not true, Chancellor, was it? At the election, the Chancellor said that she would not raise taxes on working people, but that was not true either, was it, Chancellor? When will the Chancellor learn the truth that she is not a commentator on the country’s economic problems; she is the cause?

When we came into office last year, there was a £22 billion black hole in the public finances. The reserve that is set out for genuine emergencies had already been spent four times over only three months into the financial year. That is the reality. We increased taxes in the Budget last year to stabilise the public finances and to put a much-needed injection of cash into our public services, principally our national health service. Since then, anyone can see the big challenges facing the world, as well as the productivity that never materialised under the past Government.

Order. Please, I have a lot of Members to get in and I am trying to help everybody. Don’t be tempted—that is the easy answer.

T3. I know that the Chancellor and her team are well aware that families, such as those in my constituency of Lewisham East, are struggling with homelessness and temporary accommodation. Will she consider increasing finance to local councils so that they can better support constituents and improve their wellbeing and security?

At the spending review, we enabled better investment in temporary accommodation stock and strengthened local authorities’ financial position. Those changes will support local authorities to increase the supply of good-quality temporary accommodation and drive down day-to-day spend on such accommodation.

T2. In her speech this morning, the Chancellor said that she must make necessary choices ahead of the Budget. Will those choices once again come at the expense of rural communities such as West Dorset, or will she commit to reviewing the funding model to ensure that rurality is a funding metric, alongside deprivation, so that rural communities finally get the support they deserve?

At the spending review, as announced earlier this year by my predecessor, my right hon. Friend the Member for Bristol North West (Darren Jones), we set out record investment into the farming and rural communities right across this country. That is only possible because of the choices that we have made on taxation and to balance the public finances.

T4. Will the Chancellor please update the House on progress made with the implementation of the Green Book review and that change, as a result, might better enable investment in small northern towns such as those that make up Rossendale and Darwen?

I thank my hon. Friend for his question and for his campaigning work on this. At the spending review, I announced the changes to the Green Book and particularly our work on place-based business cases, looking at how spending can cumulatively benefit an area. We are rolling out the new Green Book with some test cases. I am determined that we get investment that is long overdue into our northern towns and cities.

T8. In a new poll, FairFuelUK has found that three out of four road users who voted Labour want fuel duty to be kept frozen or reduced. Will the Chancellor listen to the people who put her into Government and ensure that that regressive tax, which hits low-income families and economic growth the hardest, is not increased?

The House will be aware that the 5p cut to fuel duty is set to expire in March 2026, and as with other tax policies, the Chancellor will make a final decision on fuel duty rates at the Budget in the context of the public finances.

T5. My constituents are grateful for the Government’s work to get our national health service back on track. Our local Royal Stoke university hospital is doing better but there is still much more to do. Will the Chancellor assure me that our national health service will always remain free at the point of need under this Labour Government and confirm that the Government utterly reject an insurance-based system, as recommended by the Reform political party?

The NHS will remain free at the point of use for as long as there is a Labour Government. That is not something that Reform is able to promise. As usual, Reform does one thing and says another. In Kent, the party said that it would find efficiencies to keep down council tax, but it has not found a single one and that is why the 2 million people who live in Reform council areas will get a council tax rise next year.

T9. With reports that the Chancellor is eyeing up doubling council tax for bands G and H, can she tell me whether she really considers the family who wrote to me yesterday—both have mid-range salaries, are fully eligible for child benefit and bought a home for just shy of £500,000 in 2013—rich enough to see their council tax double to £800 a month?

Under the last Government, time and again, council tax went up and up and the funding for local councils went down and down. We have left councils on their knees, struggling when it comes to special educational needs, temporary accommodation and funding for homelessness and adult social care. This Government will make the right decisions when it comes to funding our councils and having a fair property taxation system.

T6. I refer the House to my membership of Unite. I met Unite reps in the automotive sector yesterday, including from the Vauxhall plant in Ellesmere Port, who raised with me their concerns about changes to the employee car ownership scheme in the automotive sector. This will mean an increase in taxes on working people and lead to unintended consequences for the car sector. Also, it will not raise the money that the Treasury believes it will, so will the Minister meet me and the interested parties to discuss this further?

I thank my hon. Friend for raising this issue. The Government are fully committed to doing all they can to supporting the UK car industry to grow, invest and provide employment in constituencies such as his and in other important sites across the country. Specifically on the employee car ownership scheme, we should be clear that private use of a company car is a valuable benefit to an employee but it is also right that company car tax is paid on it, ensuring fairness with other taxpayers who pay tax on cars provided by their employers. That said, I would be happy to meet—

Order. Please. I am trying to help Members. Minister, tell me which one you do not want to get in, because that is what it is getting to.

I recently joined Sarah Laker and the wonderful team at Stationery Supplies in Marple to celebrate an impressive 20 years in business, but recent research by the British Retail Consortium and UKHospitality has shown that 120,000 high street jobs are potentially at risk as a result of proposed changes to business rates next April. Could the Chancellor and Ministers confirm that the forthcoming Budget will support my 250 local retail businesses through a meaningful reduction in rates and ensure that no shop pays more?

Order. Members are meant to shorten their questions for topicals.

We will be introducing permanently lower rates for those businesses in the Budget.

T7. My constituents in Airdrie and Shotts, along with many others across the country, will be impacted by the decision of Maiden Life Försäkrings to withdraw family protection plan cover. I understand that the Chancellor may be aware of this issue, so will her Department investigate this matter and consider what assistance might be available to those affected?

I am indeed aware of this issue. I know that it affects people in my hon. Friend’s constituency and in plenty of other Members’ constituencies, too. I also know how concerned he and other Members are about it. It is for the Financial Conduct Authority to consider whether it is appropriate to take any further steps, but I have asked my officials to engage with the FCA on how it is approaching this.

Economists have told the Chancellor that stamp duty is a terrible tax because it damages growth. The Government’s response is to double stamp duty on a £300,000 house. Why?

In the end, when it comes to property taxation, we have to make sure that we have a fair and sustainable system that brings in revenues from a range of sources. Scrapping individual taxes without any realistic and plausible plan to fund them is the road to economic ruin in this country. We have seen what happened in the past when Conservative Governments came forward with plans to cut taxes without the means to afford it. We on this side of the House will not be making that mistake.

T10. British businesses face a toxic storm of crushing tariffs from America and mountains of paperwork from Europe. I welcome the Prime Minister’s recognition that we need to do something about the latter because in my constituency, because of Brexit, businesses now have to deal with 27 different VAT regimes rather than one. Can the Chancellor update us on what she is doing to be a red against the red tape and solve that problem?

The work that my right hon. Friends the Chancellor and the Prime Minister have been doing with Europe is all about taking down trade barriers where they get in the way of our national interest and economic growth. That is our priority, as well as cutting bureaucracy for businesses here in the UK.

The Chancellor justified at the Dispatch Box what a working person is. Will she reiterate at the Dispatch Box now what she said to the British public during the general election campaign, which is that her forthcoming Budget will not raise taxes on working people?

We will set out all our Budget measures at the Budget.

How will the Government help to fund the green infrastructure that we need, as through the coastal energy partnership that I helped to set up in Bournemouth, with Great British Energy taking on early stage project development and the National Wealth Fund making those critical long-term investments?

Through our investments in the National Wealth Fund, Great British Energy, the British Business Bank and UK Export Finance, we are using every lever the Government have to support businesses to thrive—in stark contrast with the previous Government, which left them high and dry.

Charities, trade unions, academics and industry are united in their view that replacing the energy profits levy is not just an economic imperative, but a moral one. How many more of my constituents need to lose their jobs before the Government do just that?

At the Budget we will set out clearly our proposals for the future of the energy profits levy and the oil and gas mechanism. We will ensure that we can provide the certainty to business on the future regime as soon as we can.

People in Crook and Tow Law are excited by the £20 million that the Chancellor is investing in our area through the pride in place scheme. After years of decline under the previous Government, which failed to spend most of the levelling-up money that they promised our community, what assurance can she give me that this time it will be local people in the driving seat and that we can spend the funds?

I am glad to hear that the people of Crook and Tow Law are already thinking about how to use their pride in place funding to improve their local area. Children at Peases West primary school will be reassured to know that improving local playparks and upgrading community facilities will be possible under this funding.

From her CV to her tax promises, would the Chancellor know the truth if it stood right in front of her?

Order. You do not need to bother answering that, Chancellor—we will now move on.

Will the Chancellor update the House on how and when schools can apply for libraries for primaries funding, which she announced on 29 September?

We have made a commitment that every single primary school in England will have a library by the end of this Parliament. The Department for Education will set out the process in due course, but any primary school without a library can rest assured that it will have one soon.

Will the Chancellor consider in her Budget closing the loophole in small business rates relief that allows wealthy second homeowners to have their homes on the rental market for 72 nights a year and therefore avoid paying any tax whatsoever? My constituents working the minimum wage are having to subsidise them. That is not fair, is it?

We will set out the changes that we will make to business rates at the Budget.

The Government’s pride in place programme presents a welcome opportunity for communities across the country to once again feel proud of where they live, especially after years of austerity and neglect under successive Conservative Governments. However, the Isle of Wight received none of that funding, which feels like an oversight, given the challenges our island faces, not least with cross-Solent transport. Will the Chancellor assure me that she is doing everything possible to ensure that islanders are not left behind and that they, too, can benefit from this programme and feel pride in our island once again?

The pride in place funding is going towards 250 communities across the country to ensure that local people are in control of investing in their local areas. I note my hon. Friend’s comments about the community that he represents. Of course, the Government’s wider agenda about driving growth, increasing people’s wages and ensuring that people are better off is central to improving the lives of his constituents and those right across the UK.

Since the Chancellor delivered her speech this morning, the FTSE 100 has dropped by over £22 billion—the real £22 billion rather than the fantasy £22 billion black hole. What can the Chancellor say right now to steady the markets so that all our constituents’ pensions are protected?

What this Government have done to steady the markets is to kick the Conservatives out of office and leave them in opposition for years to come.

I welcome our Government’s recent Typhoon deal with Türkiye, which will see the brilliant team at Rolls-Royce in Filton play a key role in engine production and maintenance. Will the Chancellor join me in congratulating them, our local small and medium-sized enterprises and others, and set out how integral she sees defence as an engine for growth?

My hon. Friend is a solid defender of businesses and working people in her constituency. The defence industrial strategy is about supporting British industry as we—and other countries around the world—up what we spend on defence. We want British businesses and British workers to benefit from that investment.

Through freedom of information requests, Restore Britain has uncovered unpublished Treasury analysis breaking down contributions by ethnicity. Evidently the data exists, so will the Chancellor commit to going further by publishing the same analysis by nationality, so that we can see which groups are paying their way, and, more importantly, which groups are not?

Mr Speaker, I am considering how to respond to that question. I will simply leave it at saying that everyone must pay their fair share of tax. That is something that the Labour party are committed to in government.

On a more constructive note, for the past year I have been campaigning hard for Eden Portland to open in my constituency. If opened, it would be a world-class attraction, rejuvenating Portland, attracting investment, creating well-paid jobs and promoting our coast. The project is a success story waiting to happen, so will the Chancellor of the Exchequer continue to work with me, Dorset council and the team at Eden Portland to deliver that exciting project as soon as possible?

I thank my hon. Friend again for raising the opportunities in Portland. As he knows, we are working closely with Dorset council, the project and him to bring that to fruition.

The Chancellor knows that I agree with her that the use of public research and development is one of the most effective levers for economic growth, but it will not significantly increase over the entire five-year spending review period. If the Government are serious about economic growth, they must find a way to increase public research and development. Does she agree?

We are increasing spending on research and development in real terms and in every year of this Parliament, for exactly the reasons that the hon. Gentleman mentions. But we are doing more than that: we are supporting start-up and scale-up businesses through our pensions reform, through the British Business Bank and through UK Export Finance. We are absolutely determined to ensure that the money that goes into R&D in this country turns into great businesses that stay in this country.

Will the Chancellor join me in congratulating the great work of Red Hat, a catapult based in Hyndburn that has supported the safeguarding of over 300 jobs and the development of 46 new products? Will she meet me to consider the role of catapults in supporting economic growth in places such as Hyndburn?

Catapults have been a big success in driving economic activity, especially in manufacturing and engineering, which are prevalent in all parts of the country, including in my hon. Friend’s constituency. It was a pleasure to visit Hyndburn with her last year. I look forward to having the opportunity to do so again.

In the past few weeks, I have visited two incredible local businesses: Saragusta Spirits, a local gin distillery, and Williams Family Wines, an award-winning winery. However, such entrepreneurial success is being hampered by small producer relief adding significant additional duty cost and preventing businesses from growing. With English viticulture and wines enjoying a surge in popularity, will the Chancellor consider extending small producer relief to drinks above 8.5% ABV, and if not, why not?

All decisions relating to tax will be made at the Budget in late November.

Claire founded Little Foxes Play Town in my constituency. It caters for and is enjoyed by children and parents in the community. However, Claire’s business has struggled with the cost of business rates and now with the requirement to pay VAT. Will the Minister assure me that the change in business rates will benefit small business owners such as Claire and ensure that they can continue to serve their local areas?

One important thing about the business rate reforms that the Government will undertake is that we support small businesses in growing and investing. They are the backbone of our communities and our country. The reforms that we will set out at the Budget—and on which we will continue to have conversations with Members across the House and with businesses—will, I hope, continue to support and enable investment in our small businesses.

This morning the Chancellor spoke of difficult decisions for everybody but the ultra-rich. With billionaire wealth soaring while living standards for most people fall, does she agree that it is time to double down on gross inequality in our country and tax extreme wealth fairly, so that we can tackle the cost of living crisis, end child poverty and invest in our public services?

As the hon. Gentleman knows, that is not what I said in my speech this morning. In last year’s Budget we got rid of the non-dom tax status, we introduced VAT and business rates on private schools, we increased capital gains tax, we increased tax on private jets and we got rid of the carried interest—more than the Green party has ever done to reduce inequality in this country.

So often the farm is the very core of a rural economy. Could my hon. Friend confirm what assessment has been made about the impact of proposed changes to agricultural property relief on growth opportunities in rural areas and the viability of rural communities?

As I said earlier, the proposals made by CenTax and others in relation to agricultural property relief would result in twice as many farms paying more tax as are planned to do under the Government’s proposals. We think our proposals are right and fair.

Asylum accommodation costs are set to quadruple in Northern Ireland, from £100 million to £400 million, and across the UK to £15.3 billion in the next decade. Before hiking taxes again, should the Chancellor not look at where the waste really lies, when we are funding an asylum system that is failed, chaotic and expensive? This is not racist or far-right; it is looking after our own citizens who cannot pay their bills.

I absolutely agree with the hon. Lady that we should reduce the cost of asylum accommodation. Indeed, that is why our commitment to close all asylum hotels in this Parliament is so important.

When will the Government lift the two-child cap?

The previous Labour Government cut child poverty significantly, and so will this one.

Between 2010 and 2020, the personal tax allowance threshold went up by 9.2% on average per year. However, it was frozen by the previous Government in 2021, and the freeze has continued under this Government. Will the Chancellor consider unfreezing the personal tax allowance and adjusting the additional rate and higher rate bands to compensate, to ensure that tax receipts are maintained?

It is important to realise that changes to taxation, if they are unfunded, will mean additional borrowing. This Government will ensure that we do not return to austerity, as the Conservatives did, but nor will we return to additional borrowing, which causes interest rates to rise, causes the cost of mortgages for families to go up and leads to economic chaos. That is not the approach this Government will take. Bill Presented Dairy Farming and Dairy Products Bill Presentation and First Reading (Standing Order No. 57) Sarah Dyke presented a Bill to make provision to require the Secretary of State, in any negotiation relating to an international trade agreement, to seek to ensure that the agreement does not result in any detriment to UK dairy farmers; to make provision about the labelling of dairy products imported from outside the UK; to make provision about fair dealing between dairy farmers, processors and retailers, including in relation to pricing; to provide for certain additional contractual protections for dairy farmers; and for connected purposes. Bill read the First time; to be read a Second time on Friday 28 November, and to be printed (Bill 323).