If she will make a statement on her departmental responsibilities.

The Government are delivering on the priorities of the British people. Yesterday, the Office for National Statistics confirmed that the UK was the fastest-growing G7 nation in the first quarter of this year. Since the election, this Labour Government have brought £120 billion of private investment into our economy. There have been four interest rate cuts, lowering the cost of mortgages, and 384,000 new jobs—more than 1,000 jobs a day—since this Government were elected. Real wages increased more in the first 10 months of this Labour Government than they did in the first 10 years of the last Conservative Government, and we have a £1,400 pay rise for a full-time worker on the national living wage. That is the difference that this Government are making after 14 years of mismanagement by the Conservatives.

The award-winning bookshop and deli Mainstreet Trading Company in St Boswells has been forced to reduce its operating hours because

“increases to employer national insurance mean that our operating cost base has increased significantly.”

What advice does the Chancellor have for small businesses suffering because of this Labour Government’s reckless decisions?

This Government increased the employment allowance from £5,000 to £10,500, and that means 865,000 employers will pay no national insurance at all. Indeed, half of employers will either gain or see no change. It was also welcome that the Lloyds business barometer showed business confidence at a nine-year high, with a particular uptick in retail. I cannot comment on an individual business, but that is the system nationwide.

This is topicals; we have got to get going. Brian Leishman will set a good example.

I want to ask about the £200 million national wealth fund commitment for Project Willow. How will it be accessed? What is the minimum and maximum amount that can be accessed by an applicant? If it is exclusively for businesses, will it be based on being positioned within the existing footprint of the Grangemouth site that is owned or operated by Petroineos or INEOS?

There is £200 million available, and the Government will look at all proposals for investing it.

I call the shadow Chancellor.

The winter fuel payment U-turn will cost £1.25 billion, and the welfare reform U-turn will cost £2.5 billion, all adding to Labour’s unfunded black hole. This is from a Chancellor who said that she would never make a spending commitment without explaining where the money was coming from—yet another U-turn. The Chancellor has also said that her fiscal rules are iron-clad and non-negotiable. Can she reconfirm that commitment now, or are we heading for yet another U-turn?

I would take that a bit more seriously if the Conservatives were not voting against the welfare reforms this evening, and if they had not committed to fully reversing the winter fuel changes, which would cost a further £400 million that they cannot explain. I am always grateful to the right hon. Gentleman for his questions, because he always offers a useful lesson in what not to do. Even George Osborne now says that the shadow Chancellor has “no credible economic plan”. I will give the shadow Chancellor this: he knows a thing or two about welfare spending, because under his watch, the UK became the only country in the G7 with an unemployment rate stuck below pre-pandemic levels. Under his watch, the cost of working-age inactivity rose by £15.7 billion a year.

The House will note that the right hon. Lady did not categorically rule out the possibility of changing the fiscal rules in the autumn. Given that, will she at least confirm that she stands by her commitment not to raise the rates of income tax, national insurance or VAT in the autumn? Is it a yes, or is it another potential U-turn?

We made a commitment in our manifesto not to increase the key taxes that working people pay, and we stick by those commitments because, unlike the Conservative party, we stick by our manifesto.

Towns in my constituency, such as Prudhoe and Haltwhistle, have lost access to bank branches—Prudhoe lost its Lloyds branch in May—and Hexham is due to lose two branches in November. The closures have had a huge impact on customers and communities, but the guidance on banking hubs is often too restrictive. Will my hon. Friend meet me to discuss how we can support financial inclusion in Tyne valley, in the Hexham constituency and beyond?

We understand the importance of in-person banking, in my hon. Friend’s constituency and elsewhere, which is why we secured a commitment from the industry to roll out 350 banking hubs across the United Kingdom. I am leading the work on a financial inclusion strategy, which we will publish later in the year and which emphasises the importance of access to banking, and I am always happy to meet my hon. Friend.

I call the Liberal Democrat spokesperson.

More than 50% of local authorities are having to overspend on the dedicated schools grant to cover the rising costs of SEND services, and the increasing demand for inter-authority borrowing has pushed up interest rates. May I urge the Chancellor to consider, as a matter of urgency—even before the Government publish their White Paper on special educational needs and disabilities—introducing a concessionary interest rate, perhaps at the same level as the Public Works Loan Board rate, so that councils do not have to raise council tax just to serve their interest payments and can spend the money on frontline services instead?

The hon. Lady, and other Members, will have seen the reference in the spending review to a real-terms uplift in schools spending in every single year of the current Parliament, as well as additional capital investment to help rebuild the schools whose roofs were literally crumbling under the last Conservative Government. My right hon. Friend the Education Secretary will publish a Green Paper on SEND reform in the autumn, and we have extended local authorities’ statutory override for SEND education for a further two years while we bring in those reforms. This Government want to ensure that mainstream schools are more inclusive for all children.

In recent weeks Ministers have been arguing that vital support for the disabled is fiscally unsustainable because it is forecast to rise to £60.7 billion a year by 2029-30. What assessment has the Chancellor made of the fiscal sustainability of the 107 non-structural tax breaks that are currently costing HMRC £207 billion a year?

As my hon. Friend will know, in last year’s Budget we got rid of the non-dom tax status, increased capital gains tax, put VAT on private school fees and ended the loophole for private equity, as well as introducing further measures, in order to raise £40 billion. As a result, we are investing £300 billion more than would have been raised under the plans that we inherited from the Conservative party. Ours is the only country where—

Order.

Oh, all right—fine.

We have to get through these questions. I call Helen Morgan.

Businesses and individuals in my constituency tell me that the single-biggest factor holding back growth in our rural area is poor public transport. Shropshire has been poorly served by the bus service improvement plan, and by the spending review’s focus on investment in city areas. How will the Chancellor improve public transport in rural areas to drive the growth that we so desperately need there?

We are increasing transport investment by 1.9% in real terms after HS2 in every year of the spending review period. We are also extending the bus fare cap, which is particularly beneficial to rural areas.

I believe that redistribution should be core to everything that we do. It is core to the toughest decisions that we have had to make, and it is core to our efforts to achieve growth. Does the Chancellor agree that putting more pounds into the pockets of those with the lowest incomes is the best thing we can do to grow our economy?

The Government agree wholeheartedly with my hon. Friend. At the end of the current Parliament, people will be better off as a consequence of the decisions that this Labour Government are making. We have already increased the national living wage by 6.7% to benefit 3 million people, while full-time workers are seeing an increase of about £1,400 a year in their wages.

On Friday I had the privilege of visiting LOROS, Leicestershire’s much-respected palliative care charity. At full capacity it could offer 31 beds to local residents, but sadly, because of the measures that the Chancellor has introduced, such as the national insurance hike, it now operates only 18 beds. May I ask the Chancellor to look again at softening the impact of her measures, particularly on charities such as LOROS?

I am sure that the relevant Health Minister would be happy to meet representatives of the hospice. The Health Secretary set out the settlement for hospices at the end of last year to compensate financially for the increases in national insurance, but those increases in national insurance are funding the NHS, which helps fund our hospices.

This Government delivered a record real-terms settlement for Scotland at the spending review, so it was deeply concerning to hear from the Scottish Government last week that there is a £2.6 billion black hole in the public finances, which could see NHS spend reduce by 12%. Does my right hon. Friend agree that the SNP’s long-standing record of fiscal mismanagement must end, and that Scottish Ministers must ensure that the funding gets to the struggling Scottish public services?

This Labour Government in Westminster are delivering for the people of Scotland. As a consequence of our spending review, Scotland will receive an average of £50.9 billion per year over this Parliament—the largest real-terms increase in funding since devolution began. The only reason there is a black hole in the budget in Scotland is because of the SNP Government, and the people of Scotland need a new direction with a Labour Government in Scotland.

Representatives of a not-for-profit care company in my constituency feel that the Government are waging war on the care sector. I met residents and staff at a Sunday lunch at Magna care home, and the managers told me that they cannot recruit locally at all and that, because of the changes to social care visas, they are struggling to recruit internationally. I know the Government want to build our own workforce, but what are they planning to do to support organisations while we get the training in place, so that we do not see care homes going bust?

On behalf of the House, may I thank social care workers for the service they provide in all our constituencies? As a result of this Labour Government commitment’s to social workers and the social care system, we will have increased funding for social care by £4 billion by 2028-29 through the local government settlements, and we will bring forward a fair pay agreement to make sure that there is a fair deal for those people serving our constituents on the frontline.

The main beneficiaries of Brexit have been printers, because of all the extra paperwork that the previous Government created. The National Audit Office has estimated that their border arrangements have cost us £4.7 billion and rising, and the single trade window will add to the red tape. Does the Chancellor agree that the best way to reduce the paperwork requirements in the first place is to do a good deal with Europe, and will she update us on her progress on that?

My hon. Friend will have seen the Prime Minister’s work to reset relations with the EU. She mentions the single trade window, and it is the Government’s intention to deliver that. More widely, the Government are committed to minimising the administrative burdens and frictions experienced by businesses trading internationally.

We all know that there is a difference between welfare cuts and welfare reforms. These cuts were the maths of Treasury mandarins. It is the same thinking that saw winter fuel payments taken from pensioners. Now that the Government have U-turned on both of those, when will they finally back British farming and U-turn on the family farm tax?

The problem with the Conservatives is that they support all the funding, but they do not support any of the ways of funding it. Agricultural property relief means that estates worth more than £3 million will now be taxed at half the rate at which inheritance tax is usually charged. That can be repaid over a 10-year period, interest-free. I think that is the right and fair settlement, given the fiscal environment we face.

I call the Chair of the Treasury Committee.

The Economic Secretary is reviewing the work of the Financial Ombudsman Service. We on the Treasury Committee recognise that there have been challenges with the service, but how will she make sure that the consumer voice is central to her review?

I have had meetings with Which? and other consumer representatives. I reassure my hon. Friend that we are reviewing FOS. We want to make sure that it is a simple, impartial dispute resolution service that quickly and effectively deals with complainants so that consumers can get a fair deal, but that financial services firms are not subject to a quasi-regulator in the way they are at the moment.

Following the Pensions Minister’s response to me about pensioner living standards, what specific measures announced in the Government’s pensions reforms will support pre-1997 defined benefit pensioners, who currently receive a minimal or no annual uplift?

The hon. Lady is right to highlight the question of pensioners’ living standards, and we are taking action right the way across the board to deal with that. She will have seen the increases in the state pension in April. We have seen nearly 60,000 extra awards for pension credit over the course of the year since last July, compared with the year previously. On her question about pre-1997 indexation, this issue was recently discussed at the Work and Pensions Committee, and we have set out our response to that Committee’s report.

Backing Rolls-Royce, a brilliant Derby business, to deliver small modular reactors with £2.5 billion of investment shows what Labour’s new industrial strategy is about—backing British business, creating more skilled jobs and delivering clean, secure energy. Does the Chancellor agree that, after years of chaos under the Conservatives, Britain is unashamedly open for business?

I thank my hon. Friend for that question. We are proud as a Government to back Rolls-Royce, and to have it as our preferred provider for the small modular reactor programme, resulting in lower bills and more good jobs, particularly in Derbyshire.

From responses to my written parliamentary questions, we know that the median earner can expect to pay £273 more in tax this year under Labour. When the Chancellor sat on the Opposition Benches, she described freezing tax thresholds as “picking the pockets” of working people. Does the Chancellor accept that she is now the one picking the pockets of working people?

In the Budget last year, we increased taxes by £40 billion, but without affecting the pay packets of ordinary working people. We did not increase their national insurance, their income tax or their VAT, and we did not go ahead with the wrong-headed increase in fuel duty that was put in place by the Conservative party. We are protecting working people; the Conservative party picked their pockets time and again.

Ports are engines for economic growth in sectors such as energy and critical minerals. Falmouth port, in the constituency neighbouring mine, is surrounded by massive tin and lithium deposits, and it has ambitious plans to play its part. In line with our manifesto commitment for a £1.5 billion ports fund, will the Chancellor outline what mechanisms the National Wealth Fund and GB Energy can deploy to invest in ports?

I thank my hon. Friend for that question. He will know that this Government have already invested through the National Wealth Fund in the tin mine in his constituency, bringing good-quality jobs paying decent wages to the people of Cornwall, as advocated by Cornish MPs. However, there is more we can do through the National Wealth Fund, including investing in our ports, which is absolutely vital for clean, cheap energy and for creating good jobs in this country, including in Cornwall.

A recent freedom of information request has revealed that, for a number of schemes, HMRC has settled with large corporations for just 15% of what was owed. With the loan charge review ongoing, does the Chancellor agree with me that individuals should be treated no differently from the large corporations for which this precedent has been set?

I thank the hon. Gentleman for his question; he has engaged with me about the loan charge previously. As he knows, there is an independent review of the loan charge at the moment, and I think it is important that I as a Minister do not comment on that. Let the independent reviewer complete his work and report back to us as a Government.

The loan charge scandal was absolutely awful and has devastated the lives of tens of thousands of people. It failed to be addressed under the last Government. Can the Minister please tell us what he is doing to make sure people are not still being sold this illegal product?

I thank my hon. Friend very much for her question. I can reassure her that, alongside the loan charge review, the Government have published a consultation on a comprehensive package of measures to close in on the promoters of marketed tax avoidance schemes. As we know, these contrived schemes both deprive public services of funding and leave their clients with unexpected tax bills.

Does the Chancellor believe that the changes she has made to employer’s national insurance contributions will lead to higher levels of employment, or will they lead to higher levels of unemployment?

Let us look at the record so far. There are 385,000 more jobs in the UK economy today than there were when Labour came to office a year ago, which is more than 1,000 jobs a day. So businesses are voting with their feet and taking on more workers, because of the policies of this Labour Government compared with the Tory policies that took our economy down.

As people are living longer, they face more complex financial choices. The new, simplified advice regime announced by the Government and the Financial Conduct Authority yesterday is hugely welcome and will help more people make better informed investment decisions. Will the Minister provide more detail on the steps the Government will be taking to help firms deliver better advice at scale, especially to young people and the self-employed?

We are really excited about targeted support, because it means that firms will be able to make suggestions to consumers with similarities, so that they have the confidence to invest in the long term and can get better support—not advice—on their pensions.

Further to that answer, will the Minister confirm that one of the regulatory barriers in that area are privacy and electronic communications regulations, which prevent firms from proactively reaching out to customers to offer targeted support? As part of the review, will she ensure that that specific regulatory change is made, so that that can happen?

I assure the right hon. Gentleman that we are looking at that. We will make sure that firms can take advantage of suggesting targeted support to their consumers so that they are better off, can make more of their money and get a better pension, too.

Some 58% of investors think it is important that stocks and shares ISAs are invested in UK companies. Currently, it is estimated that £100 billion is held in the cash ISAs of people who do not have stocks and shares ISAs. What steps is my right hon. Friend taking to encourage further investment in UK stocks and shares, and investment in UK companies?

As we set out at the spring statement, we are looking at the balance between investments in cash and investments in stocks and shares in ISAs. We want to get that balance right. We understand the importance of a rainy day buffer in cash, but we need to give people the confidence to invest. That is a win-win: it is a win for them and a win for British companies listed on our stock exchange.

Jackie from Street suffers with Crohn’s disease, fibromyalgia and mental health issues. She worked for most of her life until ill health made it impossible. Under the reforms, she will lose her entitlement to personal independence payment and employment and support allowance, plunging her into poverty. Can the Chancellor give Jackie the reassurance she needs that she will not be left in poverty?

Yes, I can absolutely give my assurance to Jackie, and to other people who are currently claiming PIP, that they will see absolutely no change in their entitlement. That is what my right hon. Friend the Secretary of State for Work and Pensions announced to the Chamber yesterday: everybody who is currently on those benefits will see no change whatever. The Timms review, which will be co-produced with disabled people and those who represent them, will build a new system for the future.

Does the Minister agree that we are driving growth across every part of the country with investments at the spending review, including £15.6 billion for transport projects in city regions and additional support that I saw myself in Warwickshire with the launch of an electric bus fleet, including buses built at Alexander Dennis in this country; and that this shows a Government who are investing in the future prosperity of our country?

It was great to be with my hon. Friend in Warwickshire just a couple of weeks ago to welcome some of the investment, through our industrial strategy and our spending review, which will turbocharge the British economy, creating more good jobs and paying decent wages in all parts of the country, including in Warwickshire.

Last week, ahead of the launch of its ethnicity code, the Lending Standards Board announced it would be closing, following the withdrawal of support from major high street banks. This was going to be a groundbreaking step towards tackling the barriers that ethnic minority business owners face in accessing finance. What steps will the Government take to ensure that the ethnicity code is implemented, supported and scaled, so that its principles are embedded across the financial sector?

I am aware of the situation. I reassure the hon. Lady that the Government are committed to ensuring that firms continue to deliver good customer outcomes, now and in the future, with proportionate regulation and oversight. I am happy to engage with her in more detail on the subject she mentions.

Will the Chancellor please provide an update on the invaluable Viking CCS project in the Humber?

At the spending review, we were able to build on the investment we had already made in Merseyside and Teesside with Track-1 of carbon capture and storage, and put investment into both the Acorn project in Scotland and Viking CCS in the Humber to support the Government’s ambitions for Britain to lead the way in carbon capture and storage, creating more good jobs in all parts of the country, including in Great Grimsby and Cleethorpes.